Executive Summary
Akamai delivered QQ1 2025 results with revenue of $1.015 billion, marking a modest year‑over‑year expansion of 2.9% and a slight QoQ decline of 0.5%. Gross margin remained solid at ~58.7%, supporting an operating margin of 15.2% and an EBITDA margin near 34.9%. Net income came in at $123.2 million and adjusted earnings per share (EPS) of $0.83 (diluted $0.82). The quarter benefited from ongoing cash flow generation, with operating cash flow of $251.2 million and free cash flow of $55.2 million, despite capex of $196.0 million.
Key Performance Indicators
QoQ: -11.96% | YoY:-29.78%
QoQ: -10.75% | YoY:-28.45%
Key Insights
Revenue: $1,015.1 million; YoY growth: 2.85%, QoQ: -0.47%
Gross Profit: $596.2 million; Gross margin: 58.7%; YoY gross margin change: 0.67%, QoQ: -1.55%
Operating Income: $154.6 million; Op. margin: 15.23%; YoY: -7.28%, QoQ: 4.41%
Net Income: $123.2 million; Net margin: 12.13%; YoY: -29.78%, QoQ: -11.96%
EPS: $0.83 (GAAP); Diluted EPS: $0.82; YoY: -28.45%, QoQ: -10.75%
EBITDA: $354.2 million; EBITDA margin: ~34.9%
Cash Flow: Operating cash flow $251.2 million; Free cash flow $55.2 million; Capex...
Financial Highlights
Revenue: $1,015.1 million; YoY growth: 2.85%, QoQ: -0.47%
Gross Profit: $596.2 million; Gross margin: 58.7%; YoY gross margin change: 0.67%, QoQ: -1.55%
Operating Income: $154.6 million; Op. margin: 15.23%; YoY: -7.28%, QoQ: 4.41%
Net Income: $123.2 million; Net margin: 12.13%; YoY: -29.78%, QoQ: -11.96%
EPS: $0.83 (GAAP); Diluted EPS: $0.82; YoY: -28.45%, QoQ: -10.75%
EBITDA: $354.2 million; EBITDA margin: ~34.9%
Cash Flow: Operating cash flow $251.2 million; Free cash flow $55.2 million; Capex $196.0 million; Net cash provided by operating activities $251.2 million; Free cash flow per share $0.895
Liquidity & Leverage: Cash and cash equivalents $1.097B; Total debt $4.618B; Net debt $3.522B; Current ratio 1.18; Interest coverage ~22.9x
Capital Allocation: Common stock repurchased $499.963 million; Common stock issued $20.182 million; Net cash impact from financing activities negative ~$552.3 million
Valuation & Efficiency: Price-to-sales ~11.82x; Price-to-earnings ~24.35x; Gross margin ~58.7%; Operating margin ~15.2%; ROE ~2.69%; ROA ~1.23%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.02B |
2.85% |
-0.47% |
| Gross Profit |
596.19M |
0.67% |
-1.55% |
| Operating Income |
154.58M |
-7.28% |
4.41% |
| Net Income |
123.17M |
-29.78% |
-11.96% |
| EPS |
0.83 |
-28.45% |
-10.75% |
Key Financial Ratios
operatingProfitMargin
15.2%
operatingCashFlowPerShare
$1.69
freeCashFlowPerShare
$0.9
Management Commentary
Notes on the earnings transcript were not provided in the supplied data. As a result, there are no management quotes or theme-based highlights captured here. Typical themes in Akamai calls include progress on edge compute adoption, multi-cloud delivery, cybersecurity solutions, customer concentration, and cost discipline. The absence of a transcript limits the ability to quote direct management commentary for QQ1 2025.
Not available in the provided data.
— N/A
Not available in the provided data.
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Forward Guidance
No explicit formal guidance was included in the QQ1 2025 data provided. Given Akamai’s steady gross margins and positive but modest revenue growth, the near-term expectation may trend toward mid-single-digit revenue growth with stable or gradually expanding margins, supported by ongoing cost controls and capital redeployment. Potential catalysts include accelerated edge compute monetization, expansion of security offerings, and multi-cloud partnerships. Monitoring points for investors: pipeline progression in edge compute and security, customer renewal rates, mix of recurring vs. non-recurring revenue, capital allocation pacing (buybacks vs. R&D and strategic investments), and competitive dynamics in the CDN/security space.