Fastly Prices $160 Million Convertible Notes Offering, Plans to Repurchase 2026 Notes
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 51 minutes ago0mins
- Increased Offering Size: Fastly has raised the size of its convertible notes offering from $125 million to $160 million, with estimated net proceeds of approximately $153.8 million, enhancing the company's capital structure to support future growth initiatives.
- Flexible Bond Terms: The notes will mature in 2030 with an initial conversion price of $15.26 per share, representing a 32.5% premium over the current stock price, providing investors with potential capital appreciation opportunities.
- Repurchase Plan Execution: Fastly intends to use approximately $148.9 million to repurchase $150 million of its 2026 convertible notes, aiming to reduce future interest burdens and optimize its debt structure.
- Risk Management Strategy: By entering into capped call transactions with financial institutions, Fastly aims to mitigate potential equity dilution risks while providing flexibility for future debt conversions, thereby enhancing market confidence.
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Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FSLY is 11.10 USD with a low forecast of 9.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 11.740
Low
9.00
Averages
11.10
High
13.00
Current: 11.740
Low
9.00
Averages
11.10
High
13.00
Oppenheimer
Oppenheimer
Perform
initiated
2025-11-17
Reason
Oppenheimer
Oppenheimer
Price Target
2025-11-17
initiated
Perform
Reason
As previously reported, Oppenheimer initiated coverage of Fastly with a Perform rating. While Fastly did show some success these past two quarters, including an acceleration in security revenue, the firm sees these as early wins that need to persist. In addition, the core CDN business continues to face pricing pressure at high-teens decline year-over-year. As such, despite its positive view of recent operational improvements, Oppenheimer remains on the sidelines until it sees a strong continuation in stride.
Oppenheimer
Perform
initiated
2025-11-17
Reason
Oppenheimer
Price Target
2025-11-17
initiated
Perform
Reason
Oppenheimer initiated coverage of Fastly with a Perform rating.
DA Davidson
Rudy Kessinger
Neutral
maintain
2025-11-11
Reason
DA Davidson
Rudy Kessinger
Price Target
2025-11-11
maintain
Neutral
Reason
DA Davidson analyst Rudy Kessinger raised the firm's price target on Fastly to $11.50 from $9.50 and keeps a Neutral rating on the shares after its Q3 earnings beat. The business is seeing improvement on a number of fronts, including traffic growth, pricing, Security adoption, and the management is laser focused on delivering strong incremental operating margins going forward, the analyst tells investors in a research note.
Citi
Neutral
maintain
$8 -> $12
2025-11-11
Reason
Citi
Price Target
$8 -> $12
2025-11-11
maintain
Neutral
Reason
Citi raised the firm's price target on Fastly to $12 from $8 and keeps a Neutral rating on the shares. The firm updated the company's model post the Q3 report. The analyst sees improved fundamentals and execution for Fastly under new management.
See All Ratings
About FSLY
Fastly, Inc. provides a programmable edge cloud platform that helps the world’s brands deliver online experiences through edge compute, delivery, security, and observability offerings, improving site performance, and enhancing security at a global scale. The Company enables developers to deliver secure Websites and apps. The edge cloud is a category of Infrastructure as a Service (IaaS) that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. The Company’s products and services includes Programmable Edge Platform, Network Services, Security, Compute, Observability, and Services. Its Network services include content delivery network, video / streaming, load balancing, image optimization, and origin connect. Its Security service includes Next-Gen WAF, bot management, DDoS protection, and others. The Company’s professional services include network services, managed security service, and response security service.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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