Financial analysis of Akamai Tech

Akamai Technologies (AKAM.US) — FY2025 Annual Report

Akamai closed fiscal 2025 with revenue of roughly $4.21 billion, continuing a steady upward trajectory that has carried the top line from about $3.46 billion in 2021. Yet net income of $452 million appears to be the lowest in the five-year window, marking a third consecutive annual decline. This divergence — growing revenue alongside shrinking profits — seems to capture the central tension in the company's current profile.

The revenue mix appears to be shifting meaningfully beneath the surface. Security climbed to roughly $2.24 billion and cloud computing to around $708 million, while the legacy Delivery business continued to erode, falling to about $1.26 billion from over $1.54 billion two years earlier. The trade-off may be that these growth engines carry different cost structures: operating margin compressed to 13.5% from over 22% in 2021, and net margin slipped to 10.7%, well below the roughly 14% five-year average. Rising research and development, stock-based compensation (which grew to $459 million), and amortization of acquired intangibles all appear to be weighing on profitability even as gross margins hold in the high-50s.