Akamai Technologies : Supplemental Financial Information, 1st Quarter 2026

Published: 2026-05-07 16:14:24 ET AKAM

Published on 05/07/2026 at 04:14 pm EDT

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 defined on the tab labeled "Non-GAAP Definitions" with this Supplemental Financial Information.

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 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 results 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.

AKAMAI TECHNOLOGIES, INC.

SUPPLEMENTAL METRICS (UNAUDITED)

MARCH 31, 2026

(in thousands, except per share data)

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Q1 2026

Revenue

$ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

GAAP cost of revenue

$ 418,945 $

426,535 $

429,532 $

452,501 $

1,727,513

$ 471,299

Stock-based compensation - cost of revenue

$ 18,928 $

19,314 $

19,738 $

19,196 $

77,176

$ 21,677

Depreciation and amortization - cost of revenue

$ 129,899 $

131,253 $

131,960 $

137,524 $

530,636

$ 140,426

Non-GAAP cash cost of revenue (1)

$ 270,118 $

275,968 $

277,834 $

295,781 $

1,119,701

$ 309,196

GAAP gross profit

$ 596,194 $

616,959 $

625,098 $

642,411 $

2,480,662

$ 602,311

GAAP gross margin

59 %

56 %

Non-GAAP cash gross profit (1)

$ 745,021 $

767,526 $

776,796 $

799,131 $

3,088,474

$ 764,414

Non-GAAP cash gross margin (1)

73 %

74 %

73 %

71 %

GAAP R&D

$ 123,549 $

125,838 $

124,720 $

139,453 $

513,560

$ 141,576

Stock-based compensation - R&D

$ 42,268 $

39,803 $

42,415 $

44,918 $

169,404

$ 48,857

Non-GAAP R&D (2)

$ 81,281 $

86,035 $

82,305 $

94,535 $

344,156

$ 92,719

GAAP S&M

$ 134,131 $

146,239 $

144,867 $

149,065 $

574,302

$ 157,062

Stock-based compensation - S&M

$ 22,440 $

22,263 $

22,413 $

23,082 $

90,198

$ 24,981

Non-GAAP S&M (2)

$ 111,691 $

123,976 $

122,454 $

125,983 $

484,104

$ 132,081

GAAP G&A

$ 155,933 $

162,597 $

161,719 $

176,490 $

656,739

$ 163,809

Stock-based compensation - G&A

$ 28,342 $

31,396 $

30,857 $

32,029 $

122,624

$ 33,166

Depreciation and amortization - G&A

$ 16,486 $

16,487 $

16,880 $

17,056 $

66,909

$ 18,138

Amortization of capitalized stock-based compensation and interest expense not included in depreciation and amortization - G&A

$ 278 $

305 $

341 $

433 $

1,357

$ 319

Acquisition-related costs (benefit) - G&A

$ 95 $

1,274 $

17 $

1,861 $

3,247

$ (759)

Legal settlements - G&A

$ - $

- $

4,000 $

4,000

$ -

Non-GAAP G&A (2)

$ 110,732 $

113,135 $

113,624 $

121,111 $

458,602

$ 112,945

Restructuring charge (benefit)

$ 361 $

3,103 $

(15) $

54,602 $

58,051

$ 183

Amortization of acquired intangible assets

$ 27,637 $

27,721 $

27,783 $

27,925 $

111,066

$ 25,187

GAAP OpEx (excluding cost of revenue)

$ 441,611 $

465,498 $

459,074 $

547,535 $

1,913,718

$ 487,817

GAAP income from operations

$ 154,583 $

151,461 $

166,024 $

94,876 $

566,944

$ 114,494

GAAP operating margin

15 %

16 %

9 %

13 %

11 %

Non-GAAP income from operations (1)

$ 307,013 $

308,623 $

321,985 $

315,979 $

1,253,600

$ 282,802

Non-GAAP operating margin (1)

30 %

31 %

29 %

30 %

26 %

Interest and marketable securities income, net

$ 19,530 $

14,129 $

18,893 $

18,256 $

70,808

$ 17,547

Interest expense

$ (6,750) $

(8,201) $

(7,915) $

(7,893) $

(30,759)

$ (8,257)

Other income (expense), net

$ 6,020 $

(5,451) $

(3,837) $

(1,320) $

(4,588)

$ (1,786)

Income before provision for income taxes

$ 173,383 $

151,938 $

173,165 $

103,919 $

602,405

$ 121,998

Provision for income taxes

$ 50,212 $

48,320 $

32,995 $

18,847 $

150,374

$ 15,679

Net income

$ 123,171 $

103,618 $

140,170 $

85,072 $

452,031

$ 106,319

Net income margin

12 %

10 %

13 %

8 %

11 %

10 %

Non-GAAP net income (1)

$ 256,096 $

251,356 $

268,907 $

270,066 $

1,046,425

$ 239,260

Net income per share - basic

$ 0.83 $

0.72 $

0.98 $

0.59 $

3.11

$ 0.73

Net income per share - diluted

$ 0.82 $

0.71 $

0.97 $

0.58 $

3.07

$ 0.71

Non-GAAP net income per diluted share (1)

$ 1.70 $

1.73 $

1.86 $

1.84 $

7.12

$ 1.61

Shares used in per share calculation - basic

149,052

144,757

143,577

144,224

145,402

145,270

Shares used in per share calculation - diluted

151,064

145,249

144,811

146,970

147,023

150,022

Shares used in non-GAAP per share calculation - diluted (1)

151,064

145,249

144,811

146,970

147,023

148,684

Adjusted EBITDA (1)

$ 441,317 $

444,380 $

458,413 $

457,502 $

1,801,612

$ 426,669

Adjusted EBITDA margin (1)

43 %

42 %

43 %

40 %

See tabs labeled "GAAP to Non-GAAP Reconciliations" and "Non-GAAP Definitions" for reconciliations of these non-GAAP metrics to the closest GAAP metrics and for definitions.

See tab labeled "Non-GAAP Definitions" for definitions of these non-GAAP metrics.

(in thousands) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026

Security

530,695 $

551,914 $

568,437 $

592,358 $

2,243,404 $

589,790

Delivery and other cloud applications 416,843 420,117 405,014 408,888 1,650,862 389,208

Cloud Infrastructure Services

67,601

71,463

81,179

93,666

313,909

94,612

Total revenue $ 1,015,139 $ 1,043,494 $ 1,054,630 $ 1,094,912 $ 4,208,175 $ 1,073,610

Delivery

318,988 $

320,125 $

306,495 $

311,113 $

1,256,721 $

294,154

Other cloud applications $ 97,855 $ 99,992 $ 98,519 $ 97,775 $ 394,141 $ 95,054

Security

8 %

11 %

10 %

11 %

10 %

11 %

Delivery and other cloud applications (6)% (1)% (5)% (3)% (4)% (7)%

Cloud Infrastructure Services

30 %

39 %

45 %

36 %

40 %

Total revenue 3 % 7 % 5 % 7 % 5 % 6 %

Delivery

(9)%

(3)%

(4)%

(2)%

(5)%

(8)%

Other cloud applications 6 % 4 % (9)% (5)% (2)% (3)%

Security

10 %

9 %

Delivery and other cloud applications (5)% (2)% (6)% (3)% (4)% (8)%

Cloud Infrastructure Services

31 %

29 %

39 %

44 %

36 %

39 %

Total revenue 4 % 6 % 4 % 6 % 5 % 4 %

Delivery

(8)%

(4)%

(3)%

(5)%

(9)%

Other cloud applications 7 % 3 % (10)% (6)% (2)% (4)%

REVENUE BY GEOGRAPHY

U.S.

$ 528,739

$ 527,607

$ 529,978

$ 552,849

$ 2,139,173

$ 543,147

International

486,400

515,887

524,652

542,063

2,069,002

530,463

Total revenue

$ 1,015,139

$ 1,043,494

$ 1,054,630

$ 1,094,912

$ 4,208,175

$ 1,073,610

Revenue growth rates year-over-year - as reported:

U.S.

3 %

4 %

1 %

4 %

3 %

International

2 %

10 %

9 %

11 %

8 %

9 %

Total revenue

3 %

7 %

5 %

7 %

5 %

6 %

Revenue growth rates year-over-year - adjusted for impact of foreign exchange rates (1):

U.S.

3 %

4 %

1 %

4 %

3 %

International

5 %

8 %

7 %

5 %

Total revenue

4 %

6 %

4 %

6 %

5 %

4 %

See tab labeled "Non-GAAP Definitions" for an explanation of the impact of foreign currency exchange rates.

AKAMAI TECHNOLOGIES, INC.

GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED)

MARCH 31, 2026

See " Non-GAAP Definitions" tab for definitions of these non-GAAP financial measures.

(in thousands, except per share data) Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Q1 2026

GAAP cost of revenue $ 418,945 $

426,535 $

429,532 $

452,501 $

1,727,513

$ 471,299

Stock-based compensation - cost of revenue 18,928

19,314

19,738

19,196

77,176

21,677

Depreciation and amortization - cost of revenue 129,899

131,253

131,960

137,524

530,636

140,426

Non-GAAP cash cost of revenue $ 270,118 $

275,968 $

277,834 $

295,781 $

1,119,701

$ 309,196

Revenue $ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Non-GAAP cash cost of revenue 270,118

275,968

277,834

295,781

1,119,701

309,196

Non-GAAP cash gross profit $ 745,021 $

767,526 $

776,796 $

799,131 $

3,088,474

$ 764,414

Revenue $ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Non-GAAP cash gross profit $ 745,021 $

767,526 $

776,796 $

799,131 $

3,088,474

$ 764,414

Non-GAAP cash gross margin 73 %

74 %

73 %

71 %

GAAP income from operations $ 154,583 $

151,461 $

166,024 $

94,876 $

566,944

$ 114,494

GAAP operating margin 15 %

15 %

16 %

9 %

13 %

11 %

Amortization of acquired intangible assets 27,637

27,721

27,783

27,925

111,066

25,187

Stock-based compensation 111,978

112,776

115,423

119,225

459,402

128,681

Amortization of capitalized stock-based compensation and capitalized interest

expense 12,359

12,288

12,753

13,490

50,890

15,016

Restructuring charge (benefit) 361

3,103

(15)

54,602

58,051

183

Acquisition-related costs (benefit) 95

1,274

1,861

3,247

(759)

Legal settlements -

4,000

Non-GAAP income from operations $ 307,013 $

308,623 $

321,985 $

315,979 $

1,253,600

$ 282,802

Revenue $ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Non-GAAP income from operations

307,013

308,623

321,985

315,979

1,253,600

282,802

Non-GAAP operating margin

30 %

31 %

29 %

30 %

26 %

GAAP net income

123,171

103,618

140,170

85,072

452,031

106,319

Amortization of acquired intangible assets

27,637

27,721

27,783

27,925

111,066

25,187

Stock-based compensation

111,978

112,776

115,423

119,225

459,402

128,681

Amortization of capitalized stock-based compensation and capitalized interest expense

12,359

12,288

12,753

13,490

50,890

15,016

Restructuring charge (benefit)

361

3,103

(15)

54,602

58,051

183

Acquisition-related costs (benefit)

1,274

1,861

3,247

(759)

Legal settlements

4,000

Amortization of debt issuance costs

1,605

1,645

1,926

1,877

7,053

2,148

Gain on cost method investments, net

(9,313)

(57)

(9,370)

Income tax-effect of above non-GAAP adjustments and certain discrete tax items

(11,797) (11,069) (29,150) (37,929) (89,945) (37,515)

Non-GAAP net income $ 256,096 $ 251,356 $ 268,907 $ 270,066 $ 1,046,425 $ 239,260

GAAP net income per diluted share

0.82 $

0.71 $

0.97 $

0.58 $

3.07 $

0.71

Amortization of acquired intangible assets

0.18

0.19

0.76

0.17

Adjustments to net income:

Amortization of capitalized stock-based compensation and capitalized interest

expense

0.08

0.09

0.35

0.10

Stock-based compensation 0.74 0.78 0.80 0.81 3.12 0.86

Acquisition-related costs (benefit)

0.01

0.02

(0.01)

Restructuring charge (benefit) - 0.02 - 0.37 0.39 -

Amortization of debt issuance costs

0.01

0.05

0.01

Legal settlements - - - 0.03 0.03 -

Income tax effect of above non-GAAP adjustments and certain discrete tax items

(0.08)

(0.20)

(0.26)

(0.61)

(0.25)

Gain on cost method investments, net (0.06) - - - (0.06) -

Non-GAAP net income per diluted share $ 1.70 $ 1.73 $ 1.86 $ 1.84 $ 7.12 $ 1.61

Adjustment for shares (1) - - - - - 0.02

Shares used in GAAP per diluted share calculations

151,064

145,249

144,811

146,970

147,023

150,022

Shares used in non-GAAP per diluted share calculations (1)

151,064

145,249

144,811

146,970

147,023

148,684

Impact of benefit from note hedge transactions (1) - - - - - (1,338)

(1) Shares used in non-GAAP per diluted share calculations have been adjusted for the three months ended March 31, 2026 for the benefit of Akamai's note hedge transactions. During this period, Akamai's average stock price was in excess of $93.01, which is the initial conversion price of Akamai's convertible senior notes due in May 2033.

(in thousands, except per share data)

Q1 2025

Q2 2025

Q3 2025

Q4 2025

FY 2025

Q1 2026

Net income

$ 123,171 $

103,618 $

140,170 $

85,072 $

452,031

$ 106,319

Net income margin

12 %

10 %

13 %

8 %

11 %

10 %

Interest and marketable securities income, net

(19,530)

(14,129)

(18,893)

(18,256)

(70,808)

(17,547)

Provision for income taxes

50,212

48,320

32,995

18,847

150,374

15,679

Depreciation and amortization

134,304

135,757

136,428

141,523

548,012

143,867

Amortization of capitalized stock-based compensation and capitalized interest expense

12,359

12,288

12,753

13,490

50,890

15,016

Amortization of acquired intangible assets

27,637

27,721

27,783

27,925

111,066

25,187

Stock-based compensation

111,978

112,776

115,423

119,225

459,402

128,681

Restructuring charge (benefit)

361

3,103

(15)

54,602

58,051

183

Acquisition-related costs (benefit)

1,274

1,861

3,247

(759)

Legal settlements

4,000

Interest expense

6,750

8,201

7,915

7,893

30,759

8,257

Gain on cost method investments, net

(9,313)

(57)

(9,370)

Other expense, net

3,293

5,451

3,837

1,377

13,958

1,786

Adjusted EBITDA

$ 441,317

$ 444,380

$ 458,413

$ 457,502

$ 1,801,612

$ 426,669

Revenue

$ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Adjusted EBITDA

441,317

444,380

458,413

457,502

1,801,612

426,669

Adjusted EBITDA margin

43 %

42 %

43 %

40 %

GAAP operating expenses

$ 441,611 $

465,498 $

459,074 $

547,535 $

1,913,718

$ 487,817

Less:

Stock-based compensation

93,050

93,462

95,685

100,029

382,226

107,004

Amortization of acquired intangible assets

27,637

27,721

27,783

27,925

111,066

25,187

Depreciation and amortization

16,486

16,487

16,880

17,056

66,909

18,138

Amortization of capitalized stock-based compensation and interest expense not included in depreciation and amortization

278

305

341

433

1,357

319

Restructuring charge (benefit)

361

3,103

(15)

54,602

58,051

183

Acquisition-related costs (benefit)

1,274

1,861

3,247

(759)

Legal settlements

4,000

Non-GAAP cash operating expenses

$ 303,704 $

323,146 $

318,383 $

341,629 $

1,286,862

$ 337,745

Net cash provided by operating activities

$ 251,200 $

459,149 $

441,832 $

366,584 $

1,518,765

$ 312,508

Less:

Purchases of property and equipment - cash basis

117,776

145,536

112,780

131,694

507,786

101,686

Capitalization of internal-use software development costs - cash basis

78,232

78,245

82,236

73,001

311,714

90,161

Free cash flow

$ 55,192 $

235,368 $

246,816 $

161,889 $

699,265

$ 120,661

Revenue

$ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Free cash flow

55,192

235,368

246,816

161,889

699,265

120,661

Free cash flow as a percentage of revenue

5 %

23 %

15 %

17 %

11 %

Purchases of property and equipment - accrual basis

$ 147,990 $

135,597 $

141,641 $

80,474 $

505,702

$ 118,915

Capitalization of internal-use software development costs - accrual basis

77,910

78,584

82,522

73,270

312,286

87,422

Capital expenditures, or capex

$ 225,900 $

214,181 $

224,163 $

153,744 $

817,988

$ 206,337

Revenue

$ 1,015,139 $

1,043,494 $

1,054,630 $

1,094,912 $

4,208,175

$ 1,073,610

Capital expenditures, or capex

225,900

214,181

224,163

153,744

817,988

206,337

Capex as a percentage of revenue

22 %

21 %

14 %

19 %

GAAP depreciation and amortization

$ 174,022 $

175,461 $

176,623 $

182,505 $

708,611

$ 183,751

Less:

Capitalized stock-based compensation amortization

11,963

11,864

12,285

12,919

49,031

14,538

Capitalized interest expense amortization

118

119

127

138

502

159

Amortization of acquired intangible assets

27,637

27,721

27,783

27,925

111,066

25,187

Non-GAAP depreciation and amortization

$ 134,304 $

135,757 $

136,428 $

141,523 $

548,012

$ 143,867

GAAP tax rate

29 %

32 %

19 %

18 %

25 %

13 %

Income tax effect of non-GAAP adjustments and certain discrete tax items

(10)%

(13)%

- %

(1)%

(6)%

5 %

Non-GAAP tax rate

19 %

17 %

19 %

18 %

Akamai's definitions of its non-GAAP financial measures are as follows:

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.

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 change at constant currency presented 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.

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

Disclaimer

Akamai Technologies Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 20:13 UTC.