Fourth quarter highlights

Revenue of $1.095 billion, up 7% year-over-year and up 6% when adjusted for foreign exchange*
Cloud Infrastructure Services** revenue of $94 million, up 45% year-over-year and up 44% when adjusted for foreign exchange*
Security revenue of $592 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*; Guardicore Segmentation and API Security revenue of $90 million, up 36% year-over-year and up 34% when adjusted for foreign exchange*
GAAP net income per diluted share of $0.58, down 36% year-over-year and when adjusted for foreign exchange*, and non-GAAP net income per diluted shared* of $1.84, up 11% year-over-year and when adjusted for foreign exchange*

Full-year highlights

Revenue of $4.208 billion, up 5% year-over-year and when adjusted for foreign exchange*
Cloud Infrastructure Services** revenue of $314 million, up 36% year-over-year and when adjusted for foreign exchange*
Security revenue of $2.243 billion, up 10% year-over-year and up 9% when adjusted for foreign exchange*; Guardicore Segmentation and API Security revenue of $293 million, up 43% year-over-year and when adjusted for foreign exchange*
GAAP net income per diluted share of $3.07, down 6% year-over-year and down 5% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $7.12, up 10% year-over-year and when adjusted for foreign exchange*

CAMBRIDGE, Mass., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies, Inc. (NASDAQ:AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the fourth quarter and full-year ended December 31, 2025.

"Akamai delivered strong year-end performance, with better-than-expected results on the top and bottom lines. We were particularly pleased to achieve 36% year-over-year revenue growth in Q4 across our Guardicore Segmentation and API Security products, and 45% year-over-year revenue growth for Cloud Infrastructure Services (CIS)," said Dr. Tom Leighton, Akamai's Chief Executive Officer. "These rapidly growing products are well-positioned to drive faster overall revenue growth for Akamai in the future, with Cloud Infrastructure Services growth, in particular, benefiting from strong customer interest in our new Akamai Inference Cloud and the overall growth of AI applications and agents in the marketplace."

Akamai delivered the following results for the fourth quarter and full-year ended December 31, 2025:

Revenue: Revenue for the fourth quarter was $1.095 billion, a 7% increase over fourth quarter 2024 revenue of $1.020 billion and a 6% increase when adjusted for foreign exchange.* Total revenue for 2025 was $4.208 billion compared to $3.991 billion for 2024, up 5% year-over-year and when adjusted for foreign exchange.*

Revenue by solution:

Security revenue for the fourth quarter was $592 million, up 11% year-over-year and up 9% when adjusted for foreign exchange.* Security revenue for 2025 was $2.243 billion, up 10% year-over-year and up 9% when adjusted for foreign exchange.*
- Guardicore Segmentation and API Security revenue for the fourth quarter was $90 million, up 36% year-over-year and up 34% when adjusted for foreign exchange.* Guardicore Segmentation and API Security revenue for 2025 was $293 million, up 43% year-over-year and when adjusted for foreign exchange.*
Delivery revenue for the fourth quarter was $311 million, down 2% year-over-year and down 3% when adjusted for foreign exchange.* Delivery revenue for 2025 was $1.257 billion, down 5% year-over-year and when adjusted for foreign exchange.*
Cloud computing revenue for the fourth quarter was $191 million, up 14% year-over-year and when adjusted for foreign exchange.* Compute revenue for 2025 was $708 million, up 12% year-over-year and when adjusted for foreign exchange.*
- Cloud Infrastructure Services** revenue for the fourth quarter was $94 million, up 45% year-over-year and up 44% when adjusted for foreign exchange.* Cloud Infrastructure Services revenue for 2025 was $314 million, up 36% year-over-year and when adjusted for foreign exchange.*

Revenue by geography:

U.S. revenue for the fourth quarter was $553 million, up 4% year-over-year. U.S. revenue for 2025 was $2.139 billion, up 3% year-over-year.

International revenue for the fourth quarter was $542 million, up 11% year-over-year and up 8% when adjusted for foreign exchange.* International revenue for 2025 was $2.069 billion, up 8% year-over-year and up 7% when adjusted for foreign exchange.*

Restructuring charge: Fourth quarter 2025 GAAP income from operations, GAAP net income, and GAAP EPS in the paragraphs below were affected by the $55 million restructuring charge recognized in the fourth quarter of 2025. This charge primarily related to severance costs in connection with a workforce reduction and impairments of certain intangible assets as the Company continues to strategically align its investments and organizational structure with long-term growth priorities.

Income from operations: GAAP income from operations for the fourth quarter was $95 million, a 36% decrease from fourth quarter 2024 income from operations of $148 million. GAAP operating margin for the fourth quarter was 9%, down 6 percentage points from the same period last year. GAAP income from operations for 2025 was $567 million, a 6% increase from the prior year's GAAP income from operations of $533 million. Full-year GAAP operating margin was 13%, flat from the same period last year.

Non-GAAP income from operations* for the fourth quarter was $316 million, a 6% increase from fourth quarter 2024 non-GAAP income from operations* of $298 million. Non-GAAP operating margin* for the fourth quarter was 29%, flat from the same period last year. Non-GAAP income from operations* for 2025 was $1.254 billion, a 7% increase from the prior year's non-GAAP income from operations* of $1.167 billion. Full-year non-GAAP operating margin* was 30%, up 1 percentage point from the same period last year.

Net income: GAAP net income for the fourth quarter was $85 million, a 39% decrease from fourth quarter 2024 GAAP net income of $140 million. GAAP net income for 2025 was $452 million, a 10% decrease from the prior year's GAAP net income of $505 million.

Non-GAAP net income* for the fourth quarter was $270 million, a 6% increase from fourth quarter 2024 non-GAAP net income* of $254 million. Non-GAAP net income* for 2025 was $1,046 million, a 5% increase from the prior year's non-GAAP net income* of $996 million.

EPS: GAAP net income per diluted share for the fourth quarter was $0.58, a 36% decrease from fourth quarter 2024 GAAP net income per diluted share of $0.91 and when adjusted for foreign exchange.* GAAP net income per diluted share for 2025 was $3.07, a 6% decrease from the prior year's GAAP net income per diluted share of $3.27 and a 5% decrease when adjusted for foreign exchange.*

Non-GAAP net income per diluted share* for the fourth quarter was $1.84, an 11% increase from fourth quarter 2024 non-GAAP net income per diluted share* of $1.66 and when adjusted for foreign exchange.* Non-GAAP net income per diluted share* for 2025 was $7.12, a 10% increase from the prior year's non-GAAP net income per diluted share* of $6.48 and when adjusted for foreign exchange.*

Adjusted EBITDA*: Adjusted EBITDA* for the fourth quarter was $458 million, a 7% increase from fourth quarter 2024 Adjusted EBITDA* of $429 million. Adjusted EBITDA* for 2025 was $1.802 billion, a 7% increase from the prior year's Adjusted EBITDA* of $1.682 billion.

Supplemental cash information: Cash from operations for the fourth quarter was $367 million, or 33% of revenue. Cash from operations for 2025 was $1.519 billion, or 36% of revenue. Cash, cash equivalents and marketable securities was $1.920 billion as of December 31, 2025.

Share repurchases: The Company did not repurchase shares of its common stock in the fourth quarter of 2025. For the full-year 2025, the Company spent $800 million to repurchase 10.0 million shares of its common stock at an average price of $79.77 per share. The Company had 145 million shares of common stock outstanding as of December 31, 2025.

Financial guidance: The Company reports the following financial guidance for the first quarter and full year 2026:

	Three Months Ending March 31, 2026						Year Ending December 31, 2026
	Low End			High End			Low End			High End
Revenue (in millions)	$	1,060		$	1,085		$	4,400		$	4,550
Non-GAAP operating margin *		26	%		27	%		26	%		28	%
Non-GAAP net income per diluted share *	$	1.50		$	1.67		$	6.20		$	7.20
Non-GAAP tax rate *		19	%		19	%		19	%		19	%
Shares used in non-GAAP per diluted share calculations * (in millions)		148			148			147			147
Capex as a percentage of revenue *		23	%		25	%		23	%		26	%

The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai's performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.

* See Use of Non-GAAP Financial Measures below for definitions

** Cloud Infrastructure Services consist of the compute and storage solutions based on Linode, along with our EdgeWorkers product and the partner solutions running on our cloud platform

Quarterly Conference Call

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies Call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-855-669-9658 (or 1-412-317-0088 for international calls) and using passcode 5393108. The archived webcast of this event may be accessed through the Akamai website.

About Akamai

Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)	December 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	930,231	$	517,707
Marketable securities		256,302		1,078,876
Accounts receivable, net		793,666		727,687
Prepaid expenses and other current assets		306,481		253,827
Total current assets		2,286,680		2,578,097
Marketable securities		733,228		275,592
Property and equipment, net		2,333,462		1,995,071
Operating lease right-of-use assets		1,469,700		1,006,738
Acquired intangible assets, net		614,542		727,585
Goodwill		3,206,525		3,151,077
Deferred income tax assets		622,776		483,249
Other assets		212,730		151,376
Total assets	$	11,479,643	$	10,368,785
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	125,054	$	130,447
Accrued expenses		319,622		370,888
Deferred revenue		151,186		149,222
Convertible senior notes		—		1,149,116
Operating lease liabilities		336,613		259,134
Other current liabilities		35,043		32,516
Total current liabilities		967,518		2,091,323
Deferred revenue		17,088		26,314
Deferred income tax liabilities		31,089		16,066
Convertible senior notes		4,105,355		2,396,695
Operating lease liabilities		1,233,420		829,660
Other liabilities		147,802		130,370
Total liabilities		6,502,272		5,490,428
Total stockholders' equity		4,977,371		4,878,357
Total liabilities and stockholders' equity	$	11,479,643	$	10,368,785

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended									Year Ended
(in thousands, except per share data)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Revenue	$	1,094,912		$	1,054,630		$	1,019,939		$	4,208,175		$	3,991,168
Costs and operating expenses:
Cost of revenue ^{(1) (2)}		452,501			429,532			414,356			1,727,513			1,620,793
Research and development ⁽¹⁾		139,453			124,720			120,245			513,560			470,876
Sales and marketing ⁽¹⁾		149,065			144,867			144,621			574,302			556,781
General and administrative ^{(1) (2)}		176,490			161,719			155,544			656,739			621,785
Amortization of acquired intangible assets		27,925			27,783			25,614			111,066			92,081
Restructuring charge (benefit)		54,602			(15	)		11,499			58,051			95,441
Total costs and operating expenses		1,000,036			888,606			871,879			3,641,231			3,457,757
Income from operations		94,876			166,024			148,060			566,944			533,411
Interest and marketable securities income, net		18,256			18,893			22,746			70,808			100,280
Interest expense		(7,893	)		(7,915	)		(6,735	)		(30,759	)		(27,117	)
Other expense, net		(1,320	)		(3,837	)		(5,962	)		(4,588	)		(19,561	)
Income before provision for income taxes		103,919			173,165			158,109			602,405			587,013
Provision for income taxes		(18,847	)		(32,995	)		(18,204	)		(150,374	)		(82,095	)
Net income	$	85,072		$	140,170		$	139,905		$	452,031		$	504,918

Net income per share:
Basic	$	0.59		$	0.98		$	0.93		$	3.11		$	3.34
Diluted	$	0.58		$	0.97		$	0.91		$	3.07		$	3.27

Shares used in per share calculations:
Basic		144,224			143,577			150,240			145,402			151,392
Diluted		146,970			144,811			153,091			147,023			154,346

(1) Includes stock-based compensation (see supplemental table for figures)

(2) Includes depreciation and amortization (see supplemental table for figures)

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Cash flows from operating activities:
Net income	$	85,072		$	140,170		$	139,905		$	452,031		$	504,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		182,505			176,623			167,949			708,611			648,410
Stock-based compensation		119,225			115,423			99,045			459,402			393,378
Provision (benefit) for deferred income taxes		2,307			(19,717	)		(71,206	)		26,653			(70,268	)
Amortization of debt issuance costs		1,877			1,926			1,588			7,053			6,521
(Gain) loss on investments		(57	)		—			5,000			(9,370	)		5,066
Other non-cash reconciling items, net		42,121			1,359			19,797			47,462			65,488
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		(34,871	)		8,551			(50,392	)		(59,437	)		(22,300	)
Prepaid expenses and other current assets		(25,648	)		11,598			(20,614	)		(43,749	)		(46,094	)
Accounts payable and accrued expenses		13,917			22,047			79,535			(48,577	)		344
Deferred revenue		(16,811	)		(19,360	)		6,709			(13,054	)		20,687
Other current liabilities		25,527			(2,105	)		(15,490	)		965			26,860
Other non-current assets and liabilities		(28,580	)		5,317			(18,038	)		(9,225	)		(13,839	)
Net cash provided by operating activities		366,584			441,832			343,788			1,518,765			1,519,171
Cash flows from investing activities:
Cash paid for business acquisitions, net of cash acquired		(55,902	)		—			—			(55,112	)		(434,066	)
Cash paid for asset acquisitions		—			—			(127,973	)		(29,930	)		(132,835	)
Purchases of property and equipment and capitalization of internal-use software development costs		(204,695	)		(195,016	)		(162,859	)		(819,500	)		(685,267	)
Purchases of short- and long-term marketable securities		(113,325	)		(181,470	)		(34,535	)		(964,590	)		(236,176	)
Proceeds from sales, maturities and redemptions of short- and long-term marketable securities		7,459			6,999			81,368			1,333,683			685,692
Other, net		71			1,156			(187	)		(5,294	)		3,973
Net cash used in investing activities		(366,392	)		(368,331	)		(244,186	)		(540,743	)		(798,679	)

AKAMAI TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility		—			—			—			250,000			—
Repayment of borrowings under revolving credit facility		—			—			—			(250,000	)		—
(Payment) proceeds from the issuance of convertible senior notes, net of issuance costs		(594	)		(392	)		—			1,701,202			—
Proceeds from the issuance of warrants related to convertible senior notes		—			—			—			330,855			—
Purchases of note hedges related to convertible senior notes		—			—			—			(605,820	)		—
Repayment of convertible senior notes		—			—			—			(1,149,992	)		—
Proceeds related to the issuance of common stock under stock plans		13,553			19,656			13,805			62,450			61,513
Employee taxes paid related to net share settlement of stock-based awards		(13,789	)		(12,052	)		(16,061	)		(123,770	)		(173,176	)
Repurchases of common stock		—			—			(138,371	)		(799,963	)		(557,468	)
Other, net		(872	)		(91	)		(213	)		(2,998	)		(10,504	)
Net cash (used in) provided by financing activities		(1,702	)		7,121			(140,840	)		(588,036	)		(679,635	)
Effects of exchange rate changes on cash, cash equivalents and restricted cash		1,496			(759	)		(12,431	)		22,238			(12,243	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(14	)		79,863			(53,669	)		412,224			28,614
Cash, cash equivalents and restricted cash at beginning of period		931,322			851,459			572,753			519,084			490,470
Cash, cash equivalents and restricted cash at end of period	$	931,308		$	931,322		$	519,084		$	931,308		$	519,084

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY SOLUTION

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Security	$	592,358		$	568,437		$	534,602		$	2,243,404		$	2,042,661
Delivery		311,113			306,495			317,842			1,256,721			1,318,131
Cloud computing		191,441			179,698			167,495			708,050			630,376
Total revenue	$	1,094,912		$	1,054,630		$	1,019,939		$	4,208,175		$	3,991,168
Revenue growth rates year-over-year:
Security		11	%		10	%		14	%		10	%		16	%
Delivery		(2	)		(4	)		(18	)		(5	)		(15	)
Cloud computing		14			8			24			12			25
Total revenue		7	%		5	%		3	%		5	%		5	%
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates⁽¹⁾:
Security		9	%		9	%		14	%		9	%		16	%
Delivery		(3	)		(4	)		(18	)		(5	)		(14	)
Cloud computing		14			7			25			12			25
Total revenue		6	%		4	%		3	%		5	%		5	%

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL REVENUE DATA – REVENUE BY GEOGRAPHY

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
U.S.	$	552,849		$	529,978		$	529,879		$	2,139,173		$	2,075,533
International		542,063			524,652			490,060			2,069,002			1,915,635
Total revenue	$	1,094,912		$	1,054,630		$	1,019,939		$	4,208,175		$	3,991,168
Revenue growth rates year-over-year:
U.S.		4	%		1	%		3	%		3	%		5	%
International		11			9			2			8			4
Total revenue		7	%		5	%		3	%		5	%		5	%
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates ⁽¹⁾:
U.S.		4	%		1	%		3	%		3	%		5	%
International		8			8			4			7			5
Total revenue		6	%		4	%		3	%		5	%		5	%

(1) See Use of Non-GAAP Financial Measures below for a definition

AKAMAI TECHNOLOGIES, INC.

OTHER SUPPLEMENTAL DATA

	Three Months Ended									Year Ended
(in thousands, except end of period statistics)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Stock-based compensation:
Cost of revenue	$	19,196		$	19,738		$	16,129		$	77,176		$	61,177
Research and development		44,918			42,415			37,843			169,404			152,114
Sales and marketing		23,082			22,413			18,730			90,198			77,593
General and administrative		32,029			30,857			26,343			122,624			102,494
Total stock-based compensation	$	119,225		$	115,423		$	99,045		$	459,402		$	393,378

Depreciation and amortization:
Network-related depreciation	$	85,827		$	82,245		$	74,949		$	328,221		$	282,106
Capitalized internal-use software development amortization		39,383			37,964			40,343			155,501			168,355
Other depreciation and amortization		16,313			16,219			15,983			64,290			63,994
Non-GAAP depreciation and amortization ⁽¹⁾		141,523			136,428			131,275			548,012			514,455
Capitalized stock-based compensation amortization ⁽²⁾		12,919			12,285			10,952			49,031			41,452
Capitalized interest expense amortization ⁽²⁾		138			127			108			502			422
Amortization of acquired intangible assets		27,925			27,783			25,614			111,066			92,081
Total depreciation and amortization	$	182,505		$	176,623		$	167,949		$	708,611		$	648,410

Capital expenditures ⁽¹^{) (3)}:
Purchases of property and equipment	$	80,474		$	141,641		$	122,694		$	505,702		$	383,392
Capitalized internal-use software development costs		73,270			82,522			69,974			312,286			292,509
Total capital expenditures	$	153,744		$	224,163		$	192,668		$	817,988		$	675,901
Capex as a percentage of revenue ⁽¹⁾		14	%		21	%		19	%		19	%		17	%

End of period statistics:
Number of employees		11,382			11,161			10,748

(1)	See Use of Non-GAAP Financial Measuresbelow for a definition.
(2)	Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements and contract fulfillment costs. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).
(3)	Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND TAX RATE

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Income from operations	$	94,876		$	166,024		$	148,060		$	566,944		$	533,411
GAAP operating margin		9	%		16	%		15	%		13	%		13	%
Amortization of acquired intangible assets		27,925			27,783			25,614			111,066			92,081
Stock-based compensation		119,225			115,423			99,045			459,402			393,378
Amortization of capitalized stock-based compensation and capitalized interest expense		13,490			12,753			11,264			50,890			42,910
Restructuring charge (benefit)		54,602			(15	)		11,499			58,051			95,441
Acquisition-related costs		1,861			17			115			3,247			7,502
Legal settlements		4,000			—			2,500			4,000			2,500
Operating adjustments		221,103			155,961			150,037			686,656			633,812
Non-GAAP income from operations	$	315,979		$	321,985		$	298,097		$	1,253,600		$	1,167,223
Non-GAAP operating margin		29	%		31	%		29	%		30	%		29	%

Net income	$	85,072		$	140,170		$	139,905		$	452,031		$	504,918
Operating adjustments (from above)		221,103			155,961			150,037			686,656			633,812
Amortization of debt issuance costs		1,877			1,926			1,588			7,053			6,521
(Gain) loss on cost method investments, net		(57	)		—			5,000			(9,370	)		5,066
Income tax effect of above non-GAAP adjustments and certain discrete tax items		(37,929	)		(29,150	)		(42,605	)		(89,945	)		(154,735	)
Non-GAAP net income	$	270,066		$	268,907		$	253,925		$	1,046,425		$	995,582

GAAP tax rate		18	%		19	%		12	%		25	%		14	%
Income tax effect of non-GAAP adjustments and certain discrete tax items		(1	)		—			7			(6	)		5
Non-GAAP tax rate		17	%		19	%		19	%		19	%		19	%

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE

	Three Months Ended									Year Ended
(in thousands, except per share data)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
GAAP net income per diluted share	$	0.58		$	0.97		$	0.91		$	3.07		$	3.27
Adjustments to net income:
Amortization of acquired intangible assets		0.19			0.19			0.17			0.76			0.60
Stock-based compensation		0.81			0.80			0.65			3.12			2.55
Amortization of capitalized stock-based compensation and capitalized interest expense		0.09			0.09			0.07			0.35			0.28
Restructuring charge (benefit)		0.37			—			0.08			0.39			0.62
Acquisition-related costs		0.01			—			—			0.02			0.05
Legal settlements		0.03			—			0.02			0.03			0.02
Amortization of debt issuance costs		0.01			0.01			0.01			0.05			0.04
(Gain) loss on cost method investments, net		—			—			0.03			(0.06	)		0.03
Income tax effect of above non-GAAP adjustments and certain discrete tax items		(0.26	)		(0.20	)		(0.28	)		(0.61	)		(1.00	)
Adjustment for shares ⁽¹⁾		—			—			—			—			0.03
Non-GAAP net income per diluted share	$	1.84		$	1.86		$	1.66		$	7.12		$	6.48

Shares used in GAAP per diluted share calculations		146,970			144,811			153,091			147,023			154,346
Impact of benefit from note hedge transactions ⁽¹⁾		—			—			(368	)		—			(744	)
Shares used in non-GAAP per diluted share calculations ⁽¹⁾		146,970			144,811			152,723			147,023			153,602

(1)

Shares used in non-GAAP per diluted share calculations have been adjusted for the three months and year ended December 31, 2024, for the benefit of Akamai's note hedge transactions. During these periods, Akamai's average stock price was in excess of $95.10, which was the initial conversion price of Akamai's convertible senior notes that matured in May 2025. See Use of Non-GAAP Financial Measures below for further definition.

AKAMAI TECHNOLOGIES, INC.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

	Three Months Ended									Year Ended
(in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Net income	$	85,072		$	140,170		$	139,905		$	452,031		$	504,918
Net income margin		8	%		13	%		14	%		11	%		13	%
Interest and marketable securities income, net		(18,256	)		(18,893	)		(22,746	)		(70,808	)		(100,280	)
Provision for income taxes		18,847			32,995			18,204			150,374			82,095
Depreciation and amortization		141,523			136,428			131,275			548,012			514,455
Amortization of capitalized stock-based compensation and capitalized interest expense		13,490			12,753			11,264			50,890			42,910
Amortization of acquired intangible assets		27,925			27,783			25,614			111,066			92,081
Stock-based compensation		119,225			115,423			99,045			459,402			393,378
Restructuring charge (benefit)		54,602			(15	)		11,499			58,051			95,441
Acquisition-related costs		1,861			17			115			3,247			7,502
Legal settlements		4,000			—			2,500			4,000			2,500
Interest expense		7,893			7,915			6,735			30,759			27,117
(Gain) loss on cost method investments, net		(57	)		—			5,000			(9,370	)		5,066
Other expense, net		1,377			3,837			962			13,958			14,495
Adjusted EBITDA	$	457,502		$	458,413		$	429,372		$	1,801,612		$	1,681,678
Adjusted EBITDA margin		42	%		43	%		42	%		43	%		42	%

Use of Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai provides additional financial metrics that are not prepared in accordance with GAAP (non-GAAP financial measures). Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes, to measure executive compensation and to evaluate Akamai's financial performance. These non-GAAP financial measures are non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures, non-GAAP depreciation and amortization, capex as a percentage of revenue and impact of foreign currency exchange rates, as discussed below.

Management believes that these non-GAAP financial measures reflect Akamai's ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparison of financial results across accounting periods and may be comparable to those of our peer companies. Management also believes that these non-GAAP financial measures enable investors to evaluate Akamai's operating results and future prospects in the same manner as management. These non-GAAP financial measures may exclude expenses and gains that may be unusual in nature, infrequent or not reflective of Akamai's ongoing operating results.

The non-GAAP financial measures do not replace the presentation of Akamai's GAAP financial measures and should only be used as a supplement to, not as a substitute for, Akamai's financial results presented in accordance with GAAP. Akamai has provided a reconciliation of non-GAAP financial measures used in its financial reporting and investor presentations to the most directly comparable GAAP financial measures. This reconciliation can be found in the "Supplemental Financial Information" on the Investor Relations section of Akamai's website.

The non-GAAP adjustments, and Akamai's basis for excluding them from non-GAAP financial measures, are outlined below:

Amortization of acquired intangible assets – Akamai has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Akamai has made. The amount of an acquisition's purchase price allocated to intangible assets and term of its related amortization can vary significantly and is unique to each acquisition; therefore, Akamai excludes amortization of acquired intangible assets from its non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.

Stock-based compensation and amortization of capitalized stock-based compensation – Stock-based compensation is an important aspect of the compensation paid to Akamai's employees which includes long-term incentive plans to encourage retention, performance-based plans to encourage achievement of specified financial targets, short-term incentive awards with a one year vest and shares issued as part of a retirement savings program. The grant date fair value of the stock-based compensation awards varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of Akamai's current financial results to previous and future periods difficult to interpret; therefore, Akamai believes it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from its non-GAAP financial measures in order to highlight the performance of Akamai's core business and to be consistent with the way many investors evaluate its performance and compare its operating results to peer companies.

Acquisition-related costs – Acquisition-related costs include transaction fees, advisory fees, due diligence costs and other direct costs associated with strategic activities. Acquisition-related costs are impacted by the timing and size of the acquisitions, and Akamai excludes acquisition-related costs from its non-GAAP financial measures to provide a useful comparison of operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the acquisition transactions and do not reflect Akamai's core operations.

Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that business is conducted. These charges include severance and related expenses for workforce reductions, impairments of long-lived assets that will no longer be used in operations (including acquired intangible assets, right-of-use assets, other facility-related property and equipment and internal-use software) and termination fees for any contracts cancelled as part of these programs. Akamai excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

Amortization of debt issuance costs and capitalized interest expense – The issuance costs of Akamai's convertible senior notes are amortized to interest expense and are excluded from Akamai's non-GAAP results because management believes the non-cash amortization expense is not representative of ongoing operating performance.

Gains and losses on cost method investments – Akamai has recorded gains and losses from the disposition, changes to fair value and impairment of cost method investments. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to these gains and losses are not representative of Akamai's core business operations and ongoing operating performance.

Legal settlements – Akamai has incurred losses related to the settlement of legal matters. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of Akamai's core business operations.

Income tax effect of non-GAAP adjustments and certain discrete tax items – The non-GAAP adjustments described above are reported on a pre-tax basis. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments) and excludes certain discrete tax items (such as the impact of intercompany sales of intellectual property related to acquisitions), if any. Akamai believes that applying the non-GAAP adjustments and their related income tax effect allows Akamai to highlight income attributable to its core operations.

Akamai's definitions of its non-GAAP financial measures are outlined below:

Non-GAAP income from operations – GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; acquisition-related costs; restructuring charges; legal settlements; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP operating margin – Non-GAAP income from operations stated as a percentage of revenue.

Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; amortization of debt issuance costs; amortization of capitalized interest expense; gains and losses on cost method investments; and other non-recurring or unusual items that may arise from time to time.

Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transactions entered into in connection with the issuances of Akamai's convertible senior notes. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, Akamai would receive a benefit from the note hedge transactions and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of operating performance. With respect to the convertible senior notes due in each of 2033, 2029 and 2027 and those that matured in 2025, unless Akamai's weighted average stock price is greater than $93.01, $126.31, $116.18 and $95.10, respectively, the initial conversion prices, there will be no difference between GAAP and non-GAAP diluted weighted average common shares outstanding.

Adjusted EBITDA – GAAP net income excluding the following items: interest and marketable securities income and losses; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; foreign exchange gains and losses; interest expense; amortization of capitalized interest expense; gains and losses on cost method investments; and other non-recurring or unusual items that may arise from time to time.

Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue.

Non-GAAP tax rate – GAAP tax rate excluding the tax effect of non-GAAP adjustments and certain discrete tax items.

Capital expenditures, or capex – Purchases of property and equipment and capitalization of internal-use software development costs presented on an accrual basis, which differs from the cash-basis presentation included in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.

Capex as a percentage of revenue – Capital expenditures, or capex, stated as a percentage of revenue.

Non-GAAP depreciation and amortization – GAAP depreciation and amortization (which consists of depreciation and amortization of property and equipment, capitalized stock-based compensation, capitalized interest expense and acquired intangible assets), less depreciation and amortization excluded from non-GAAP results (which consists of depreciation and amortization of capitalized stock-based compensation, capitalized interest expense and acquired intangible assets).

Impact of foreign currency exchange rate – Revenue and earnings from international operations have historically been important contributors to Akamai's financial results. Consequently, Akamai's financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of our international subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.

Because exchange rates are a meaningful factor in understanding period-to-period comparisons, management believes the presentation of the impact of foreign currency exchange rates on revenue and earnings enhances the understanding of our financial results and evaluation of performance in comparison to prior periods. The dollar impact of changes in foreign currency exchange rates presented is calculated by translating current period results using monthly average foreign currency exchange rates from the comparative period and comparing them to the reported amount. The percentage growth rate impacted by foreign currency exchange rates, sometimes referred to as constant currency, is calculated by comparing the prior period amounts as reported and the current period amounts translated using the same monthly average foreign currency exchange rates from the comparative period.

Akamai Statement Under the Private Securities Litigation Reform Act

This release and related management commentary on our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai, including our outlook, guidance, growth objectives and statements about our products, including Akamai Inference Cloud, and their anticipated capabilities, scalability and performance. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; changes in customer or user preferences or demands; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, fluctuating interest rates, foreign currency exchange rate and monetary supply fluctuations, international tensions and volatility in capital markets; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the Israel-Hamas war; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in our products or IT systems, including outages, cyber-attacks, data breaches or malware; difficulties in integrating our acquisitions and investments; failure to realize the expected benefits of any of our acquisitions, reorganizations or investments; changes to economic, political and regulatory conditions in the United States and internationally, including changes in government policies, regulations and resources; our ability to attract and retain key personnel; delay in developing or failure to develop new products, service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.

In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.

Contacts:
Johanna Schmitt	Mark Stoutenberg
Media Relations	Investor Relations
Akamai Technologies	Akamai Technologies
AkamaiPR@akamai.com	mstouten@akamai.com

Akamai Reports Fourth Quarter 2025 and Full-Year 2025 Financial Results