Akamai Technologies Reports $1.04 Billion Revenue in Q2 2025, Net Income Declines

Akamai Technologies, Inc. reported a revenue of $1.04 billion for the second quarter of 2025, marking a 6.5% increase from $979.6 million in the same period last year. For the first half of 2025, revenue reached $2.06 billion, up 4.7% from $1.97 billion in the first half of 2024. The company's net income for the second quarter was $103.6 million, a decrease from $131.7 million year-over-year, while net income for the first half was $226.8 million, down from $307.1 million in the prior year. The decline in profitability was attributed to increased costs and a higher effective tax rate, which rose to 30.3% from 13.5% in the previous year.

Akamai's operational metrics showed a mixed performance. The company experienced growth in its security and cloud computing solutions, with security revenue increasing by 11% year-over-year to $551.9 million, and cloud computing revenue rising by 13% to $171.5 million. However, revenue from delivery solutions fell by 3% to $320.1 million, primarily due to pricing pressures during contract renewals. The company also reported a total of 4,300 edge points-of-presence across approximately 130 countries, indicating continued geographic expansion.

In terms of strategic developments, Akamai issued $1.73 billion in convertible senior notes in May 2025, which will be used to repay existing debt and support share repurchases. The company repurchased 10 million shares for $800 million during the first half of 2025, as part of a $2 billion share repurchase program initiated in May 2024. Additionally, Akamai's employee headcount increased, reflecting investments in its security and cloud computing divisions.

The company's balance sheet showed total assets of $10.54 billion as of June 30, 2025, up from $10.37 billion at the end of 2024. Cash and cash equivalents increased to $850.3 million from $517.7 million, while total liabilities rose to $6.07 billion, primarily due to the issuance of convertible senior notes. Akamai's deferred revenue also increased, indicating a strong pipeline of future revenue.

Looking ahead, Akamai anticipates continued growth in its security and cloud computing segments, although it acknowledges potential challenges from macroeconomic conditions and competitive pricing pressures. The company expects to recognize approximately 60% of its remaining performance obligations, valued at $4.3 billion, as revenue over the next 12 months. Akamai remains focused on managing costs effectively while investing in its product offerings to drive future growth.