Investment Thesis
Akamai demonstrates solid financial health with strong free cash flow generation (24% FCF margin) and excellent liquidity metrics, though organic revenue growth of 5.4% is moderate. Net income decline of 10.5% YoY is concerning despite revenue growth, suggesting margin compression that warrants investigation into operational efficiency.
AKAM Strengths
- Exceptional free cash flow generation at $1.0B (24% FCF margin) with operating cash flow of $1.5B
- Strong balance sheet with 2.36x current ratio, minimal debt (0.00x D/E), and solid cash position of $930.2M
- Solid operating margin of 13.5% and reasonable net margin of 10.7% in capital-intensive business
AKAM Risks
- Net income declined 10.5% YoY despite 5.4% revenue growth, indicating deteriorating profitability
- Modest revenue growth of 5.4% suggests limited organic expansion in competitive market
- ROA of 3.9% and ROE of 9.1% are relatively low, indicating suboptimal capital deployment efficiency
Key Metrics to Watch
- Net margin trend - critical to understand if 10.5% decline is structural or temporary
- Revenue growth acceleration - watch if 5.4% growth stabilizes or improves
- Capital expenditure efficiency - monitor if $507.8M CapEx is generating adequate returns
AKAM Financial Metrics
AKAM Profitability Ratios
AKAM Balance Sheet & Liquidity
AKAM 5-Year Financial Trend
5-Year Trend Summary: AKAMAI TECHNOLOGIES INC's revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.52 reflects profitable operations.
AKAM Growth Metrics (YoY)
AKAM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $57.9M | $0.38 |
| Q2 2025 | $979.6M | $103.6M | $0.71 |
| Q1 2025 | $987.0M | $123.2M | $0.82 |
| Q3 2024 | $965.5M | $57.9M | $0.38 |
| Q2 2024 | $935.7M | $128.8M | $0.84 |
| Q1 2024 | $915.7M | $97.1M | $0.62 |
| Q3 2023 | $881.9M | $123.7M | $0.78 |
| Q2 2023 | $903.3M | $128.8M | $0.84 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AKAM Capital Allocation
AKAM SEC Filings
Access official SEC EDGAR filings for AKAMAI TECHNOLOGIES INC (CIK: 0001086222)