Fastly, Inc. (FSLY) presents a deeply negative liquidation posture as of March 31, 2026. Applying standard liquidation haircuts to reported assets and holding liabilities at face value, equity recovery is materially negative. Total assets of $1.51B are dominated by Goodwill ($670.4M, zero recovery), finite-lived intangibles ($23.5M net, zero recovery), and operating lease ROU assets ($57.7M, zero recovery), which together represent approximately $751M of book value that contributes nothing in liquidation. Reported cash and cash equivalents of $146.7M recover at par. Marketable securities (current) of $183.8M recover at par or near-par given the short-duration, investment-grade composition described in MD&A. AR net of allowance of $130.0M recovers at 90-95%, yielding approximately $117-124M. PP&E net of $215.9M at a 50-60% recovery rate yields roughly $108-130M. Capitalized contract costs ($45.0M noncurrent) are intangible in nature and carry zero recovery. On the liability side, total liabilities of $536.4M are held at face: long-term debt noncurrent of $323.6M (the 2028 Notes at $150M and 2030 Notes at $180M, partially offset by unamortized issuance costs), operating lease liabilities of $77.6M (total undiscounted obligation $91.1M, must be settled at face under liquidation lens), purchase obligations of $88.7M (cloud infrastructure and vendor commitments that do not extinguish on wind-up), and current liabilities of $163.4M. The aggregate haircutted asset pool is estimated at roughly $620-660M against $536M of face-value liabilities, producing a slim theoretical positive on tangible recoverable assets alone, but this ignores the $670M goodwill write-down which wipes out the surplus entirely. MFFAIS CLV of negative $386M aligns with this analysis. Relative to the prior filing (10-K, December 31, 2025), the key structural change is the retirement of the 2026 Notes during Q1 2026 ($35.8M cash used in financing, including the remaining 2026 Note balance repayment and $0.5M deferred issuance costs on the 2030 Notes). Long-term debt decreased as the 2026 Notes were extinguished, replaced by the 2030 Notes ($180M) already issued in December 2025. Accumulated deficit widened to $1.135B from prior year-end. Operating cash flow was positive at $28.9M for the quarter, providing near-term liquidity support, but the balance sheet recovery picture remains structurally negative due to the goodwill overhang. The company has ongoing active securities class action litigation and derivative suits; the filing does not separately XBRL-tag any contingent liability reserve for these proceedings.
▼ Community Notes