Technology
AKAMAI REPORTS FOURTH QUARTER 2024 AND FULL-YEAR 2024 FINANCIAL RESULTS
Published
2 years agoon
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Fourth quarter highlights
Revenue of $1.020 billion, up 3% year-over-year and when adjusted for foreign exchange*Security and compute revenue represented 69% of total revenue in the fourth quarter and grew 16% year-over-year and 17% when adjusted for foreign exchange*GAAP net income per diluted share of $0.91, down 12% year-over-year and down 9% when adjusted for foreign exchange*, and non-GAAP net income per diluted shared* of $1.66, down 2% year-over-year and flat when adjusted for foreign exchange*
Full-year highlights
Revenue of $3.991 billion, up 5% year-over-year and when adjusted for foreign exchange*Security and compute revenue represented 67% of total revenue in 2024 and grew 18% year-over-year and when adjusted for foreign exchange*GAAP net income per diluted share of $3.27, down 7% year-over-year and down 4% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $6.48, up 5% year-over-year and up 6% when adjusted for foreign exchange*
CAMBRIDGE, Mass., Feb. 20, 2025 /PRNewswire/ — Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial results for the fourth quarter and full-year ended December 31, 2024.
“Akamai delivered a solid fourth quarter, demonstrating robust profitability and sustained momentum across our security and cloud computing solutions,” said Dr. Tom Leighton, Akamai’s Chief Executive Officer. “We are encouraged by our latest results and the market adoption of our newest product innovations. As we head into 2025, our focus on delivering sustainable profitability across all areas of our business, coupled with our ongoing transformation into a leading cybersecurity and cloud solutions provider, positions us for long-term success.”
Akamai delivered the following results for the fourth quarter and full-year ended December 31, 2024:
Revenue: Revenue for the fourth quarter was $1.020 billion, a 3% increase over fourth quarter 2023 revenue of $995 million and a 3% increase when adjusted for foreign exchange.* Total revenue for 2024 was $3.991 billion compared to $3.812 billion for 2023, up 5% year-over-year and when adjusted for foreign exchange.*
Revenue by solution:
Security revenue for the fourth quarter was $535 million, up 14% year-over-year and when adjusted for foreign exchange.* Security revenue for 2024 was $2.043 billion, up 16% year-over-year and when adjusted for foreign exchange.*Delivery revenue for the fourth quarter was $318 million, down 18% year-over-year and when adjusted for foreign exchange.* Delivery revenue for 2024 was $1.318 billion, down 15% year-over-year and down 14% when adjusted for foreign exchange.*Compute revenue for the fourth quarter was $167 million, up 24% year-over-year and up 25% when adjusted for foreign exchange.* Compute revenue for 2024 was $630 million, up 25% year-over-year and when adjusted for foreign exchange.*
Revenue by geography:
U.S. revenue for the fourth quarter was $530 million, up 3% year-over-year. U.S. revenue for 2024 was $2.076 billion, up 5% year-over-year.International revenue for the fourth quarter was $490 million, up 2% year-over-year and up 4% when adjusted for foreign exchange.* International revenue for 2024 was $1.916 billion, up 4% year-over-year and up 5% when adjusted for foreign exchange.*
Income from operations: GAAP income from operations for the fourth quarter was $148 million, a 20% decrease from fourth quarter 2023 income from operations of $185 million. GAAP operating margin for the fourth quarter was 15%, down 4 percentage points from the same period last year. GAAP income from operations for 2024 was $533 million, a 16% decrease from the prior year’s GAAP income from operations of $637 million. Full-year GAAP operating margin was 13%, down 4 percentage points from the same period last year.
Non-GAAP income from operations* for the fourth quarter was $298 million, a 2% decrease from fourth quarter 2023 non-GAAP income from operations* of $303 million. Non-GAAP operating margin* for the fourth quarter was 29%, down 1 percentage point from the same period last year. Non-GAAP income from operations* for 2024 was $1.167 billion, a 3% increase from the prior year’s non-GAAP income from operations* of $1.136 billion. Full-year non-GAAP operating margin* was 29%, down 1 percentage point from the same period last year.
Net income: GAAP net income for the fourth quarter was $140 million, a 13% decrease from fourth quarter 2023 GAAP net income of $161 million. GAAP net income for 2024 was $505 million, an 8% decrease from the prior year’s GAAP net income of $548 million.
Non-GAAP net income* for the fourth quarter was $254 million, a 3% decrease from fourth quarter 2023 non-GAAP net income* of $263 million. Non-GAAP net income* for 2024 was $996 million, a 4% increase from the prior year’s non-GAAP net income* of $960 million.
EPS: GAAP net income per diluted share for the fourth quarter was $0.91, a 12% decrease from fourth quarter 2023 GAAP net income per diluted share of $1.03 and a 9% decrease when adjusted for foreign exchange.* GAAP net income per diluted share for 2024 was $3.27, a 7% decrease from the prior year’s GAAP net income per diluted share of $3.52 and a 4% decrease when adjusted for foreign exchange.*
Non-GAAP net income per diluted share* for the fourth quarter was $1.66, a 2% decrease from fourth quarter 2023 non-GAAP net income per diluted share* of $1.69 and flat when adjusted for foreign exchange.* Non-GAAP net income per diluted share* for 2024 was $6.48, a 5% increase from the prior year’s non-GAAP net income per diluted share* of $6.20 and a 6% increase when adjusted for foreign exchange.*
Adjusted EBITDA*: Adjusted EBITDA* for the fourth quarter was $429 million, a 1% increase from fourth quarter 2023 Adjusted EBITDA* of $426 million. Adjusted EBITDA* for 2024 was $1.682 billion, a 5% increase from the prior year’s Adjusted EBITDA* of $1.608 billion.
Supplemental cash information: Cash from operations for the fourth quarter was $344 million, or 34% of revenue. Cash from operations for 2024 was $1.519 billion, or 38% of revenue. Cash, cash equivalents and marketable securities was $1.872 billion as of December 31, 2024.
Share repurchases: The Company spent $138 million in the fourth quarter of 2024 to repurchase 1.4 million shares of its common stock at an average price of $97.43 per share. For the full-year 2024, the Company spent $557 million to repurchase 5.6 million shares of its common stock at an average price of $99.14 per share. The Company had 150 million shares of common stock outstanding as of December 31, 2024.
Financial guidance: The Company reports the following financial guidance for the first quarter and full year 2025:
Three Months Ending
March 31, 2025
Year Ending
December 31, 2025
Low End
High End
Low End
High End
Revenue (in millions)
$ 1,000
$ 1,020
$ 4,000
$ 4,200
Non-GAAP operating margin *
28 %
28 %
28 %
28 %
Non-GAAP net income per diluted share *
$ 1.54
$ 1.59
$ 6.00
$ 6.40
Non-GAAP tax rate*
19.5 %
19.5 %
19.5 %
19.5 %
Shares used in non-GAAP per diluted share calculations * (in millions)
152
152
152
152
Capex as a percentage of revenue *
24 %
24 %
19 %
19 %
The guidance that is provided on a non-GAAP basis cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items Akamai excludes from non-GAAP measures. For example, stock-based compensation is unpredictable for Akamai’s performance-based awards, which can fluctuate significantly based on current expectations of the future achievement of performance-based targets. Amortization of intangible assets, acquisition-related costs and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, Akamai excludes certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items Akamai excludes and to estimate certain discrete tax items, such as the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.
* See Use of Non-GAAP Financial Measures below for definitions
Quarterly Conference Call
Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-833-634-5020 (or 1-412-902-4238 for international calls) and using passcode Akamai Technologies Call. A live webcast of the call may be accessed at www.akamai.com in the Investor Relations section. In addition, a replay of the call will be available for two weeks following the conference by calling 1-877-344-7529 (or 1-412-317-0088 for international calls) and using passcode 3157633. The archived webcast of this event may be accessed through the Akamai website.
About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence and global operations team provide defense-in-depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale and expertise they need to grow their business with confidence. Learn more about Akamai’s cloud computing, security and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 517,707
$ 489,468
Marketable securities
1,078,876
374,971
Accounts receivable, net
727,687
724,302
Prepaid expenses and other current assets
253,827
216,114
Total current assets
2,578,097
1,804,855
Marketable securities
275,592
1,431,354
Property and equipment, net
1,995,071
1,825,944
Operating lease right-of-use assets
1,006,738
908,634
Acquired intangible assets, net
727,585
536,143
Goodwill
3,151,077
2,850,470
Deferred income tax assets
483,249
418,297
Other assets
151,376
124,340
Total assets
$ 10,368,785
$ 9,900,037
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 130,447
$ 146,927
Accrued expenses
370,888
352,181
Deferred revenue
149,222
107,544
Convertible senior notes
1,149,116
—
Operating lease liabilities
259,134
222,944
Other current liabilities
32,516
6,442
Total current liabilities
2,091,323
836,038
Deferred revenue
26,314
23,006
Deferred income tax liabilities
16,066
24,622
Convertible senior notes
2,396,695
3,538,229
Operating lease liabilities
829,660
774,806
Other liabilities
130,370
106,181
Total liabilities
5,490,428
5,302,882
Total stockholders’ equity
4,878,357
4,597,155
Total liabilities and stockholders’ equity
$ 10,368,785
$ 9,900,037
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
Year Ended
(in thousands, except per share data)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenue
$ 1,019,939
$ 1,004,679
$ 995,017
$ 3,991,168
$ 3,811,920
Costs and operating expenses:
Cost of revenue (1) (2)
414,356
408,806
393,397
1,620,793
1,511,063
Research and development (1)
120,245
120,347
109,202
470,876
406,048
Sales and marketing (1)
144,621
138,551
135,256
556,781
533,226
General and administrative (1) (2)
155,544
159,957
155,575
621,785
600,851
Amortization of acquired intangible assets
25,614
24,368
16,833
92,081
66,751
Restructuring charge (benefit)
11,499
82,013
(32)
95,441
56,643
Total costs and operating expenses
871,879
934,042
810,231
3,457,757
3,174,582
Income from operations
148,060
70,637
184,786
533,411
637,338
Interest and marketable securities income, net
22,746
23,065
23,981
100,280
45,194
Interest expense
(6,735)
(6,735)
(6,884)
(27,117)
(17,709)
Other expense, net
(5,962)
(13,161)
(5,642)
(19,561)
(12,296)
Income before provision for income taxes
158,109
73,806
196,241
587,013
652,527
Provision for income taxes
(18,204)
(15,899)
(35,076)
(82,095)
(106,373)
Gain from equity method investment
—
—
—
—
1,475
Net income
$ 139,905
$ 57,907
$ 161,165
$ 504,918
$ 547,629
Net income per share:
Basic
$ 0.93
$ 0.38
$ 1.07
$ 3.34
$ 3.59
Diluted
$ 0.91
$ 0.38
$ 1.03
$ 3.27
$ 3.52
Shares used in per share calculations:
Basic
150,240
151,435
150,979
151,392
152,510
Diluted
153,091
153,240
157,024
154,346
155,397
(1) Includes stock-based compensation (see supplemental table for figures)
(2) Includes depreciation and amortization (see supplemental table for figures)
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Cash flows from operating activities:
Net income
$ 139,905
$ 57,907
$ 161,165
$ 504,918
$ 547,629
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization
167,949
165,729
147,634
648,410
570,776
Stock-based compensation
99,045
102,607
92,123
393,378
328,467
Benefit for deferred income taxes
(71,206)
(2,541)
(13,224)
(70,268)
(22,987)
Amortization of debt issuance costs
1,588
1,591
1,741
6,521
5,341
Loss (gain) on investments
5,000
—
—
5,066
(311)
Other non-cash reconciling items, net
19,797
41,733
5,019
65,488
50,221
Changes in operating assets and liabilities,
net of effects of acquisitions:
Accounts receivable
(50,392)
11,290
(2,941)
(22,300)
(49,203)
Prepaid expenses and other current assets
(20,614)
(717)
(2,623)
(46,094)
(18,726)
Accounts payable and accrued expenses
79,535
(31,765)
20,345
344
(39,825)
Deferred revenue
6,709
(8,719)
(24,098)
20,687
48
Other current liabilities
(15,490)
41,370
(774)
26,860
1,516
Other non-current assets and liabilities
(18,038)
14,057
4,826
(13,839)
(24,507)
Net cash provided by operating activities
343,788
392,542
389,193
1,519,171
1,348,439
Cash flows from investing activities:
Cash paid for business acquisitions, net of cash acquired
—
—
—
(434,066)
(106,171)
Cash paid for asset acquisitions
(127,973)
(66)
(84,637)
(132,835)
(120,985)
Purchases of property and equipment and capitalization of
internal-use software development costs
(162,859)
(185,117)
(133,887)
(685,267)
(730,040)
Purchases of short- and long-term marketable securities
(34,535)
(15,519)
(277,053)
(236,176)
(1,461,890)
Proceeds from sales, maturities and redemptions of short-
and long-term marketable securities
81,368
84,849
178,382
685,692
576,917
Other, net
(187)
(375)
1,362
3,973
(6,069)
Net cash used in investing activities
(244,186)
(116,228)
(315,833)
(798,679)
(1,848,238)
AKAMAI TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility
—
—
—
—
90,000
Repayment from borrowings under revolving credit facility
—
—
—
—
(90,000)
Proceeds from the issuance of convertible senior notes, net of issuance costs
—
—
—
—
1,247,388
Proceeds from the issuance of warrants related to convertible senior notes
—
—
—
—
90,195
Purchases of note hedges related to convertible senior notes
—
—
—
—
(236,555)
Proceeds from the issuance of common stock under stock plans
13,805
19,442
13,426
61,513
62,979
Employee taxes paid related to net share settlement of stock-based awards
(16,061)
(15,868)
(15,312)
(173,176)
(66,222)
Repurchases of common stock
(138,371)
(165,839)
(54,891)
(557,468)
(654,046)
Other, net
(213)
(104)
—
(10,504)
(360)
Net cash (used in) provided by financing activities
(140,840)
(162,369)
(56,777)
(679,635)
443,379
Effects of exchange rate changes on cash, cash equivalents and restricted cash
(12,431)
9,494
11,597
(12,243)
3,868
Net (decrease) increase in cash, cash equivalents and restricted cash
(53,669)
123,439
28,180
28,614
(52,552)
Cash, cash equivalents and restricted cash at beginning of period
572,753
449,314
462,290
490,470
543,022
Cash, cash equivalents and restricted cash at end of period
$ 519,084
$ 572,753
$ 490,470
$ 519,084
$ 490,470
AKAMAI TECHNOLOGIES, INC.
SUPPLEMENTAL REVENUE DATA – REVENUE BY SOLUTION
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Security
$ 534,602
$ 518,670
$ 470,977
$ 2,042,661
$ 1,765,267
Delivery
317,842
319,132
389,048
1,318,131
1,542,434
Compute
167,495
166,877
134,992
630,376
504,219
Total revenue
$ 1,019,939
$ 1,004,679
$ 995,017
$ 3,991,168
$ 3,811,920
Revenue growth rates year-over-year:
Security
14 %
14 %
18 %
16 %
14 %
Delivery
(18)
(16)
(6)
(15)
(8)
Compute
24
28
20
25
24
Total revenue
3 %
4 %
7 %
5 %
5 %
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):
Security
14 %
14 %
17 %
16 %
15 %
Delivery
(18)
(16)
(7)
(14)
(7)
Compute
25
28
20
25
25
Total revenue
3 %
4 %
7 %
5 %
6 %
AKAMAI TECHNOLOGIES, INC.
SUPPLEMENTAL REVENUE DATA – REVENUE BY GEOGRAPHY
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
U.S.
$ 529,879
$ 524,611
$ 516,348
$ 2,075,533
$ 1,968,779
International
490,060
480,068
478,669
1,915,635
1,843,141
Total revenue
$ 1,019,939
$ 1,004,679
$ 995,017
$ 3,991,168
$ 3,811,920
Revenue growth rates year-over-year:
U.S.
3 %
5 %
7 %
5 %
4 %
International
2
3
8
4
7
Total revenue
3 %
4 %
7 %
5 %
5 %
Revenue growth rates year-over-year, adjusted for the impact of foreign exchange rates (1):
U.S.
3 %
5 %
7 %
5 %
4 %
International
4
3
6
5
8
Total revenue
3 %
4 %
7 %
5 %
6 %
(1) See Use of Non-GAAP Financial Measures below for a definition
AKAMAI TECHNOLOGIES, INC.
OTHER SUPPLEMENTAL DATA
Three Months Ended
Year Ended
(in thousands, except end of period statistics)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Stock-based compensation:
Cost of revenue
$ 16,129
$ 16,566
$ 11,898
$ 61,177
$ 43,802
Research and development
37,843
39,275
36,428
152,114
123,896
Sales and marketing
18,730
21,076
17,895
77,593
66,453
General and administrative
26,343
25,690
25,902
102,494
94,316
Total stock-based compensation
$ 99,045
$ 102,607
$ 92,123
$ 393,378
$ 328,467
Depreciation and amortization:
Network-related depreciation
$ 74,949
$ 72,546
$ 63,225
$ 282,106
$ 231,500
Capitalized internal-use software development amortization
40,343
41,973
43,919
168,355
176,675
Other depreciation and amortization
15,983
15,998
16,170
63,994
63,860
Depreciation of property and equipment
131,275
130,517
123,314
514,455
472,035
Capitalized stock-based compensation amortization (1)
10,952
10,740
7,379
41,452
31,548
Capitalized interest expense
amortization (1)
108
104
108
422
442
Amortization of acquired intangible assets
25,614
24,368
16,833
92,081
66,751
Total depreciation and amortization
$ 167,949
$ 165,729
$ 147,634
$ 648,410
$ 570,776
Capital expenditures (2) (3):
Purchases of property and equipment
$ 122,694
$ 91,600
$ 80,408
$ 383,392
$ 459,167
Capitalized internal-use software development costs
69,974
72,391
62,355
292,509
258,626
Total capital expenditures
$ 192,668
$ 163,991
$ 142,763
$ 675,901
$ 717,793
Capex as a percentage of revenue (3)
19 %
16 %
14 %
17 %
19 %
End of period statistics:
Number of employees
10,748
10,947
10,281
(1)
Amortization of capitalized stock-based compensation and interest expense in this table excludes amortization of capitalized stock-based compensation and interest expense capitalized related to cloud-computing arrangements and contract fulfillment costs. However, the amounts are included in our total amortization of capitalized stock-based compensation and interest expense that is excluded from our non-GAAP measures (see reconciliations of GAAP to non-GAAP measures).
(2)
Capital expenditures presented in this table are reported on an accrual basis, which differs from the cash-basis presentation in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.
(3)
See Use of Non-GAAP Financial Measures below for a definition.
AKAMAI TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND TAX RATE
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Income from operations
$ 148,060
$ 70,637
$ 184,786
$ 533,411
$ 637,338
GAAP operating margin
15 %
7 %
19 %
13 %
17 %
Amortization of acquired intangible assets
25,614
24,368
16,833
92,081
66,751
Stock-based compensation
99,045
102,607
92,123
393,378
328,467
Amortization of capitalized stock-based compensation and capitalized interest expense
11,264
11,089
7,774
42,910
32,981
Restructuring charge (benefit)
11,499
82,013
(32)
95,441
56,643
Acquisition-related costs
115
5,036
1,189
7,502
13,345
Legal settlements
2,500
—
—
2,500
—
Operating adjustments
150,037
225,113
117,887
633,812
498,187
Non-GAAP income from operations
$ 298,097
$ 295,750
$ 302,673
$ 1,167,223
$ 1,135,525
Non-GAAP operating margin
29 %
29 %
30 %
29 %
30 %
Net income
$ 139,905
$ 57,907
$ 161,165
$ 504,918
$ 547,629
Operating adjustments (from above)
150,037
225,113
117,887
633,812
498,187
Amortization of debt issuance costs
1,588
1,591
1,741
6,521
5,341
Loss (gain) on cost method investments
5,000
—
—
5,066
(311)
Gain from equity method investment
—
—
—
—
(1,475)
Income tax effect of above non-GAAP adjustments and certain discrete tax items
(42,605)
(41,097)
(18,162)
(154,735)
(89,364)
Non-GAAP net income
$ 253,925
$ 243,514
$ 262,631
$ 995,582
$ 960,007
GAAP tax rate
12 %
22 %
18 %
14 %
16 %
Income tax effect of non-GAAP adjustments and certain discrete tax items
7
(3)
(1)
5
1
Non-GAAP tax rate
19 %
19 %
17 %
19 %
17 %
AKAMAI TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED SHARE
Three Months Ended
Year Ended
(in thousands, except per share data)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
GAAP net income per diluted share
$ 0.91
$ 0.38
$ 1.03
$ 3.27
$ 3.52
Adjustments to net income:
Amortization of acquired intangible assets
0.17
0.16
0.11
0.60
0.43
Stock-based compensation
0.65
0.67
0.59
2.55
2.11
Amortization of capitalized stock-based compensation and capitalized interest expense
0.07
0.07
0.05
0.28
0.21
Restructuring charge (benefit)
0.08
0.54
—
0.62
0.36
Acquisition-related costs
—
0.03
0.01
0.05
0.09
Legal settlements
0.02
—
—
0.02
—
Amortization of debt issuance costs
0.01
0.01
0.01
0.04
0.03
Loss (gain) on cost method investments
0.03
—
—
0.03
—
Gain from equity method investment
—
—
—
—
(0.01)
Income tax effect of above non-GAAP adjustments and certain discrete tax items
(0.28)
(0.27)
(0.12)
(1.00)
(0.58)
Adjustment for shares (1)
—
—
0.02
0.03
0.02
Non-GAAP net income per diluted share
$ 1.66
$ 1.59
$ 1.69
$ 6.48
$ 6.20
Shares used in GAAP per diluted share calculations
153,091
153,240
157,024
154,346
155,397
Impact of benefit from note hedge transactions (1)
(368)
(294)
(1,755)
(744)
(574)
Shares used in non-GAAP per diluted share calculations (1)
152,723
152,946
155,269
153,602
154,823
(1)
Shares used in non-GAAP per diluted share calculations have been adjusted for the periods presented for the benefit of Akamai’s note hedge transactions. During these periods, Akamai’s average stock price was in excess of $95.10, which is the initial conversion price of Akamai’s convertible senior notes due in 2025. See Use of Non-GAAP Financial Measures below for further definition.
AKAMAI TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
Three Months Ended
Year Ended
(in thousands)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Net income
$ 139,905
$ 57,907
$ 161,165
$ 504,918
$ 547,629
Net income margin
14 %
6 %
16 %
13 %
14 %
Interest and marketable securities income, net
(22,746)
(23,065)
(23,981)
(100,280)
(45,194)
Provision for income taxes
18,204
15,899
35,076
82,095
106,373
Depreciation and amortization
131,275
130,517
123,314
514,455
472,035
Amortization of capitalized stock-based compensation and capitalized interest expense
11,264
11,089
7,774
42,910
32,981
Amortization of acquired intangible assets
25,614
24,368
16,833
92,081
66,751
Stock-based compensation
99,045
102,607
92,123
393,378
328,467
Restructuring charge (benefit)
11,499
82,013
(32)
95,441
56,643
Acquisition-related costs
115
5,036
1,189
7,502
13,345
Legal settlements
2,500
—
—
2,500
—
Interest expense
6,735
6,735
6,884
27,117
17,709
Loss (gain) on cost method investments
5,000
—
—
5,066
(311)
Gain from equity method investment
—
—
—
—
(1,475)
Other expense, net
962
13,161
5,642
14,495
12,607
Adjusted EBITDA
$ 429,372
$ 426,267
$ 425,987
$ 1,681,678
$ 1,607,560
Adjusted EBITDA margin
42 %
42 %
43 %
42 %
42 %
Use of Non-GAAP Financial Measures
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 non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP tax rate, capital expenditures and impact of foreign currency exchange rates, as discussed below.
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 measures 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 each non-GAAP financial measure used in its financial reporting and investor presentations to the most directly comparable GAAP financial measure. This reconciliation captioned “Reconciliation of GAAP to Non-GAAP Financial Measures” can be found on the Investor Relations section of Akamai’s website.
The non-GAAP adjustments, and Akamai’s basis for excluding them from non-GAAP financial measures, are outlined below:
Amortization of acquired intangible assets – Akamai has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Akamai has made. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization can vary significantly and is unique to each acquisition; therefore, Akamai excludes amortization of acquired intangible assets from its non-GAAP financial measures to provide investors with a consistent basis for comparing pre- and post-acquisition operating results.Stock-based compensation and amortization of capitalized stock-based compensation – Stock-based compensation is an important aspect of the compensation paid to Akamai’s employees, which includes long-term incentive plans to encourage retention, performance-based plans to encourage achievement of specified financial targets and also short-term incentive awards with a one year vest. The grant date fair value of the stock-based compensation awards varies based on the stock price at the time of grant, varying valuation methodologies, subjective assumptions and the variety of award types. This makes the comparison of Akamai’s current financial results to previous and future periods difficult to interpret; therefore, Akamai believes it is useful to exclude stock-based compensation and amortization of capitalized stock-based compensation from its non-GAAP financial measures in order to highlight the performance of Akamai’s core business and to be consistent with the way many investors evaluate its performance and compare its operating results to peer companies.Acquisition-related costs – Acquisition-related costs include transaction fees, advisory fees, due diligence costs and other direct costs associated with strategic activities, as well as certain additional compensation costs payable to employees acquired from the Linode acquisition if employed for a certain period of time. The additional compensation cost was initiated by and determined by the seller, and is in addition to normal levels of compensation, including retention programs, offered by Akamai. Acquisition-related costs are impacted by the timing and size of the acquisitions, and Akamai excludes acquisition-related costs from its non-GAAP financial measures to provide a useful comparison of operating results to prior periods and to peer companies because such amounts vary significantly based on the magnitude of the acquisition transactions and do not reflect Akamai’s core operations.Restructuring charge – Akamai has incurred restructuring charges from programs that have significantly changed either the scope of the business undertaken by the Company or the manner in which that business is conducted. These charges include severance and related expenses for workforce reductions, impairments of long-lived assets that will no longer be used in operations (including acquired intangible assets, right-of-use assets, other facility-related property and equipment and internal-use software) and termination fees for any contracts cancelled as part of these programs. Akamai excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.Amortization of debt issuance costs and capitalized interest expense – Akamai has convertible senior notes outstanding that mature in 2029, 2027 and 2025. The issuance costs of the convertible senior notes are amortized to interest expense and are excluded from Akamai’s non-GAAP results because management believes the non-cash amortization expense is not representative of ongoing operating performance.Gains and losses on cost method investments – Akamai has recorded gains and losses from the disposition, changes to fair value and impairment of cost method investments. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to these gains and losses are not representative of Akamai’s core business operations and ongoing operating performance.Legal settlements – Akamai has incurred losses related to the settlement of legal matters. Akamai believes excluding these amounts from its non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of Akamai’s core business operations.Gains and losses from equity method investment – Akamai records income or losses on its share of earnings and losses from its equity method investment, and any gains from returns of investments or impairments. Akamai excludes such income and losses because it does not have direct control over the operations of the investment and the related income and losses are not representative of its core business operations.Income tax effect of non-GAAP adjustments and certain discrete tax items – The non-GAAP adjustments described above are reported on a pre-tax basis. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments) and excludes certain discrete tax items (such as the impact of intercompany sales of intellectual property related to acquisitions), if any. Akamai believes that applying the non-GAAP adjustments and their related income tax effect allows Akamai to highlight income attributable to its core operations.
Akamai’s definitions of its non-GAAP financial measures are outlined below:
Non-GAAP income from operations – GAAP income from operations adjusted for the following items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; amortization of capitalized interest expense; acquisition-related costs; restructuring charges; legal settlements; and other non-recurring or unusual items that may arise from time to time.
Non-GAAP operating margin – Non-GAAP income from operations stated as a percentage of revenue.
Non-GAAP net income – GAAP net income adjusted for the following tax-affected items: amortization of acquired intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; amortization of debt issuance costs; amortization of capitalized interest expense; gains and losses on cost method investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time.
Non-GAAP tax rate – GAAP tax rate excluding the tax effect of non-GAAP adjustments and certain discrete tax items.
Non-GAAP net income per diluted share, or EPS – Non-GAAP net income divided by weighted average diluted common shares outstanding. Diluted weighted average common shares outstanding are adjusted in non-GAAP per share calculations for the shares that would be delivered to Akamai pursuant to the note hedge transactions entered into in connection with the issuances of $1,265 million of convertible senior notes due 2029 and the issuances of $1,150 million of convertible senior notes due 2027 and 2025, respectively. Under GAAP, shares delivered under hedge transactions are not considered offsetting shares in the fully-diluted share calculation until they are delivered. However, Akamai would receive a benefit from the note hedge transactions and would not allow the dilution to occur, so management believes that adjusting for this benefit provides a meaningful view of operating performance. With respect to the convertible senior notes due in each of 2029, 2027 and 2025, unless Akamai’s weighted average stock price is greater than $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.
Adjusted EBITDA – GAAP net income excluding the following items: interest and marketable securities income and losses; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; amortization of capitalized stock-based compensation; acquisition-related costs; restructuring charges; legal settlements; foreign exchange gains and losses; interest expense; amortization of capitalized interest expense; gains and losses on cost method investments; gains and losses from equity method investment; and other non-recurring or unusual items that may arise from time to time.
Adjusted EBITDA margin – Adjusted EBITDA stated as a percentage of revenue.
Capital expenditures, or capex – Purchases of property and equipment and capitalization of internal-use software development costs presented on an accrual basis, which differs from the cash-basis presentation included in the statements of cash flows. The primary difference between the two is the change in purchases of property and equipment and capitalization of internal-use software development costs accrued for, but not paid, at period end versus prior periods.
Capex as a percentage of revenue – Capital expenditures, or capex, stated as a percentage of revenue.
Impact of foreign currency exchange rate – Revenue and earnings from international operations have historically been important contributors to Akamai’s financial results. Consequently, Akamai’s financial results have been impacted, and management expects they will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, when the local currencies of our international subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.
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 growth rate impacted by foreign currency exchange rates, sometimes referred to as constant currency, 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.
Akamai Statement Under the Private Securities Litigation Reform Act
This release and related management commentary on our quarterly earnings conference call scheduled for later today contain statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about expected future financial performance, expectations, plans and prospects of Akamai, including our outlook, guidance and growth objectives. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to continue to generate cash at the same level as prior years; failure of our investments in innovation to generate solutions that are accepted in the market; inability to increase our revenue at the same rate as in the past and keep our expenses from increasing at a greater rate than our revenues; effects of competition, including pricing pressure and changing business models; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, rising and fluctuating interest rates, foreign currency exchange rate fluctuations, securities market volatility and monetary supply fluctuations; conditions and uncertainties in the geopolitical environment, including sanctions and disruptions resulting from the ongoing war in Ukraine and the Israel-Hamas war; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in our products or IT systems, including cyber-attacks, data breaches or malware; difficulties in integrating our acquisitions and investments; failure to realize the expected benefits of any of our acquisitions, reorganizations or investments; changes to economic, political and regulatory conditions in the United States and internationally; our ability to attract and retain key personnel; delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected, and other factors that are discussed in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents filed with the SEC.
In addition, the statements in this press release and on our quarterly earnings conference call represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.
Contacts:
Christine Simeone
Media Relations
Akamai Technologies
AkamaiPR@akamai.com
Mark Stoutenberg
Investor Relations
Akamai Technologies
mstouten@akamai.com
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SOURCE Akamai Technologies, Inc.
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OASE+ and Elsevier Agree Next-Phase Read and Publish Agreement to Expand Open Access Publishing in Japan
Published
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October 26, 2026By
A new three-year term removes the annual cap on open access publishing under the Read and Publish agreement and extends eligibility beyond universities
TOKYO, Oct. 26, 2026 /PRNewswire/ — OASE+ (Open Access for Scholarly Empowerment +), the collective negotiating body established with Japanese government support to advance the country’s national open access policy, and Elsevier, a global leader in advanced information and decision support, have agreed a read-and-publish agreement covering 2027 to 2029.
The agreement further develops the framework established by Elsevier in partnership with the Japan Alliance of University Library Consortia for E-Resources (JUSTICE) for 2024 to 2026. Under this framework Japanese research institutions are able to expand open access publishing at a pace suited to their individual circumstances while maintaining access to scholarly journals.
From 2027, researchers at participating institutions will be able to publish open access in eligible Core Hybrid journals, subject to the terms of the agreement and without an annual cap on the number of open access articles. The decision to publish open access will rest with the researcher and the research itself, giving researchers greater flexibility in choosing open access publishing and greater certainty in meeting their funders’ and institutions’ open access requirements.
A separate agreement applies the same approach to Cell Press. For institutions that subscribe to Cell Press Hybrid titles, reading access and open access publishing will cover the subscribed titles. The agreement will also have no annual cap on the number of open access articles and run from 2027 to 2029.
The agreement also extends eligibility for the first time beyond universities to national research and development agencies, opening participation to a substantial part of Japan’s publicly funded research base.
Japan is one of the world’s largest producers of scientific research. Wider open access publishing increases the international visibility of that research, supports collaboration across borders, and helps ensure Japanese findings inform science, practice and policy well beyond Japan. It also advances the objectives of the Japanese government’s National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data.
The agreement follows extended discussions between OASE+ and Elsevier and reflects the findings of a survey of the needs of institutes that expressed interest in the Read and Publish agreement, as well as experience gained through the current framework.
Professor Yasuteru Shigeta of the University of Tsukuba, Chair of OASE+, said: “In 2024, OASE was established under the Japanese government’s ‘National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data’. Through collaboration with JUSTICE, OASE has since strengthened its framework as OASE+. This enhanced structure enabled constructive negotiations with Elsevier, building upon the achievements and experience gained through the pilot proposal implemented for JUSTICE through 2026. As a result, we are pleased that researchers will be able to publish open access in Core Hybrid journals without any cap on the number of articles, and that Cell Press Hybrid journals are now also available under a Read and Publish agreement. While there should be multiple valid approaches to advancing open access, we hope that this agreement will serve as one of those pathways and help enhance the visibility of research from Japan to create positive impact.”
Gemma Hersh, Senior Vice President, Sales and Commercial Director, Primary Research, Elsevier, said: “We are delighted that this new agreement with OASE+ will enable us to further develop our long-standing partnership with the Japanese research community. We are grateful to OASE+ and the institutions that expressed interest in the agreement for the collaboration and pragmatism they brought to our discussions, and for helping to establish a framework with broader reach across Japan’s research base. Japan’s research is of global importance, and this agreement will help ensure more of it is openly available to researchers around the world.”
Further information is available from OASE+ and on Elsevier’s open access agreements page.
Notes to editors
A Read and Publish agreement combines, in a single contract, the subscription fees research institutions paid publishers for access to scholarly articles with the fees for publishing articles open access (article publishing charges, or APCs).
Core Hybrid journals are subscription-based journals that also give authors the option to publish individual articles open access. Under the 2027 to 2029 agreement, open access publishing in eligible Core Hybrid journals is available without an annual open access publishing limit.
Cell Press Hybrid journals are subscription-based Cell Press journals that also give authors the option to publish individual articles open access. A companion agreement covering 2027 to 2029 applies to Cell Press Hybrid journals, under which reading access and open access publishing are aligned to the Cell Press Hybrid journals an institution subscribes to, without an annual open access publishing limit.
Institutions that have expressed interest will not necessarily enter into the agreement immediately. Each institution reviews the terms and decides independently whether to participate, and contract commencement dates will vary. Institutions wishing to participate must submit an expression of interest through OASE+. As of October 21, 167 institutions have expressed interest in the agreement with Elsevier.
About OASE+
OASE+ (Open Access for Scholarly Empowerment +) is a team supported by the Japanese government working to establish a collective bargaining framework, led by universities and other research institutions, for negotiations with academic publishers. Through discussions with global academic publishers, OASE+ aims to contribute to the realization of the Japanese government’s National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data.
OASE+ succeeds the activities of OASE, which was established in 2024, and operates as a joint initiative involving the Japan Alliance of University Library Consortia for E-Resources (JUSTICE) and OASE to promote open access to scholarly publications. For more information, visit the OASE+ website.
About Elsevier
Elsevier is a global leader in advanced information and decision support. For over a century, we have been helping advance science and healthcare to advance human progress. We support academic and corporate research communities, doctors, nurses, future healthcare professionals, and educators across 170 countries in their vital work. We help impact makers achieve better outcomes with research and clinical-grade solutions built on the world’s leading evidence-based scientific and medical content, precision AI, and expert human assessment. We champion inclusion and sustainability, working with the communities that we serve. The Elsevier Foundation supports research and health partnerships around the world.
Elsevier is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers. For more information, visit www.elsevier.com and follow us on social media @elsevierconnect.
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uSMART and PIVOT Fintech Introduce GlobalSave Portfolios Balanced Strategy on FollowSmart
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Offering professionally managed investment strategies to a wider investor base can involve significant technology, operational and client servicing requirements. FollowSmart provides a digital workflow supporting account onboarding, trade implementation, position monitoring, valuation and client reporting. The platform is designed to help investment managers handle these operational processes while focusing on portfolio management.
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The PIVOT- GlobalSave Portfolios Balanced Strategy
uSMART is acting as an authorized distributor of the PIVOT- GlobalSave Portfolios Balanced Strategy, which is managed by MAS-regulated PIVOT Fintech. The investment team is led by Victor Lye. The strategy uses a quantitative investment approach informed by Modern Portfolio Theory (MPT). It invests in U.S.-listed ETFs across equities, fixed income, commodities and real estate to build globally diversified portfolios. Asset allocation weights are adjusted in response to macroeconomic trends, with the objective of balancing expected returns and risk for medium- to long-term investors.
Expanding the FollowSmart Ecosystem
The addition of PIVOT Fintech is part of uSMART’s ongoing development of the FollowSmart platform and its network of investment managers. Other strategies recently added to the platform include the Global Quantitative Core Growth Strategy by Sunova Capital Management and the JMC Absolute Return Strategy by JMC Capital Asset Management. Together, these offerings provide investors with access to a range of professionally managed investment approaches.
About uSMART Securities (Singapore) Pte Ltd – uSMART Securities (Singapore) Pte Ltd, established on March 22, 2021, is the Singapore entity under uSMART Group (uSmart Holding Ltd.). The company holds a Capital Markets Services (CMS) Licence (Licence No. CMS101161) regulated by the Monetary Authority of Singapore (MAS). Based in Singapore, it provides financial services through the uSMART platform. Its products include US, Hong Kong, Singapore, Japan and UK stocks, options, futures, ETFs, funds, Contracts for Difference (CFDs) and forex products. Its services include trading tools, client account services, risk management arrangements and segregated client fund accounts.
About PIVOT Fintech – PIVOT Fintech Pte. Ltd. (UEN 201716150D) holds a Capital Markets Services Licence (CMS100806) regulated by the Monetary Authority of Singapore and serves as the Investment Manager of the Strategy. PIVOT’s investment team is led by its founder, Victor Lye, who has over 35 years of senior leadership experience across wealth management, insurance, fintech, and artificial intelligence. He holds a First-Class Honours Degree in Economics and Accounting from the University of Adelaide and is a Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP).
Risk Disclaimer – Investment involves risks. Past performance is not indicative of future performance. Investors should carefully consider their investment objectives, financial situation and risk tolerance before making any investment decision. This material is provided for information and reference purposes only and does not constitute an offer, solicitation, recommendation or investment advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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FFR to Hold Listing Ceremony and Investor Day on October 26; FFAI Announces Rescheduling of YT Jia’s Investor Weekly Report to October 26
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Faraday Future announced that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26.FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/
LOS ANGELES, Oct. 25, 2026 /PRNewswire/ — FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (“FFR” or the “Company”), a U.S.-listed Embodied AI (“EAI“) robotics ecosystem company, today highlighted an update from Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future” or “FF“) that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.
FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26, 2026. During the event, FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.
The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/
About FF EAI Robotics Ecosystem Inc.
FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (renamed from AIxCrypto Holdings, Inc. and AIXC, effective September 30, 2026) is a U.S.-based Embodied AI (EAI) robotics company that is in the process of acquiring the FF EAI Robotics business. Upon completion of the acquisition, the Company will focus on the research and development, manufacturing, commercialization, and deployment of intelligent robotic technologies, products, and industry solutions.
The Company is committed to building a “Four-Core Full-Stack” AI ecosystem covering the full lifecycle of robotics, consisting of EAI Brain & Developer Platform, EAI Devices, Industry Productivity Solutions, and EAI Data Factory. Guided by the technology and product philosophy of “One Brain, Multi-forms, Multi-capabilities,” the Company aims to empower humanoid, biomimetic, and other robotic form factors through a unified EAI Brain, while continuously expanding their multi-task and multi-scenario capabilities. The ecosystem is designed to support the full robotics lifecycle, including R&D, deployment, data collection and training, operations, and commercial applications.
The FF EAI Robotics business has already achieved commercial deliveries of humanoid and biomimetic robotic products. Through its multi-form-factor robotic products, EAI technology platform, closed-loop data capabilities, and industry solutions, the business continues to advance the scaled adoption of robotics across real-world applications. The Company also operates RoboShare, a robot-sharing and services platform designed to connect robotic assets, service capabilities, customer demand, and ecosystem partners, further strengthening its robotics commercialization and service ecosystem.
For more information, visit www.ff.com.
ABOUT FARADAY FUTURE
Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a “Four-Core Full-Stack AI” ecosystem of EAI Brain and Developer Platform, EAI Devices, Industry Productivity Solutions and EAI Data Factory, FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future’s official website: https://www.ff.com/
FFR Forward-Looking Statements
This communication, including any presentation, press release, investor materials or other document of which it forms a part (this “Communication”), contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, and other securities laws, regarding FF EAI Robotics Ecosystem Inc. (“FFR,” the “Company,” “us,” “our,” or “we”) and our industry. All statements, whether written or oral, other than statements of historical fact, including any financial projections and any statements regarding future events, our strategy, our transition to robotics operations, our plans for RoboShare, our digital asset disposition plans, the proposed acquisition of the FF EAI Robotics business, the projections referenced in this communication, our name and ticker change, any related financing, and the anticipated benefits and timing of the foregoing, our objectives, expectations, or anticipated actions or results, are forward-looking statements. You can often identify forward-looking statements by words such as “may,” “might,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “likely,” or “continue,” or the negative of these terms or other similar expressions; the absence of these words does not mean a statement is not forward-looking. These statements reflect our current expectations and projections about future events as of the date of this Communication and are necessarily based on estimates and assumptions that, while considered reasonable by management, are inherently uncertain. FFR can give no assurance that such forward-looking statements or financial projections will prove to be correct.
Actual results may differ materially from those expressed or implied by these forward-looking statements as a result of numerous risks and uncertainties, both general and specific, including, but not limited to:
The proposed acquisition transaction and PIPE. The definitive agreements may be terminated in accordance with their terms, and the proposed transactions may not be completed on the terms described or at all; the conditions to closing, including the completion of FFAI’s internal restructuring of the robotics business, the execution of key employee agreements and other customary conditions, and the parties’ ability to satisfy them; the risk that the stockholder approval required under Nasdaq listing rules for the conversion of the preferred stock issued as consideration is not obtained or is delayed, and the effect of the conversion restrictions and the information statement process on the timing of conversion; the timing of the transaction and the costs of pursuing it; the issuance of a substantial number of shares as consideration and the resulting dilution to existing stockholders; the fact that the counterparty is our controlling stockholder, that it will hold a substantial majority of our outstanding shares following closing, that certain members of management serve both companies, and the conflicts of interest inherent in the transaction; the risk that the agreed valuations do not reflect the market value of our shares or of the acquired business; our dependence on the counterparty for transition, supply and support following any closing; the scope and enforceability of the non-competition and governance arrangements; the consequences of the transaction under Nasdaq listing rules, including the possibility that Nasdaq determines that the transaction requires us to satisfy initial listing requirements in connection with a business combination, change of control or change in the nature of our business; the risk that the PIPE financing, on which the transaction is not conditioned, is not completed on the anticipated terms or at all; the risk of litigation relating to the transaction; our ability to integrate and operate the acquired business; and the risk that the acquired business performs differently than anticipated.
Projections. The projections referenced in this communication were prepared by FFAI management for the FF EAI Robotics business on a standalone basis and do not reflect our existing business, transaction-related expenses or the combined company. We have not independently verified them or adopted them as guidance. They were not prepared with a view toward public disclosure or toward compliance with the published guidelines of the Securities and Exchange Commission or the American Institute of Certified Public Accountants regarding prospective financial information, and no independent registered public accounting firm has examined, compiled or performed any procedures with respect to them, and none expresses an opinion or any other form of assurance with respect to them. The projections reflect estimates and assumptions that are inherently uncertain and subject to change, including through due diligence and the review of our special committee and its financial advisor. Actual results are likely to differ, and may differ materially.
Liquidity, capital and going concern. Our limited cash and liquidity position and our history of operating losses and negative operating cash flow; substantial doubt regarding our ability to continue as a going concern, as described in our periodic reports; our need to obtain additional financing on acceptable terms or at all, and the substantial dilution to existing stockholders that additional financing may cause, including any financing completed in connection with the proposed transaction, which may not be completed or may be on less favorable terms than anticipated; our ability to fund operations pending and following the disposition of our digital asset positions; and our ability to satisfy the continued listing requirements of The Nasdaq Stock Market, including stockholders’ equity, minimum bid price and other applicable standards.
Our strategic transition and the disposition of digital assets. Risks associated with a fundamental shift in our business strategy and the redeployment of resources from a digital asset treasury strategy to robotics operations; our ability to execute the disposition of our digital asset positions in an orderly manner and on acceptable terms; the risk that amounts realized on disposition are materially less than carrying value as a result of price volatility, market depth, execution timing, custody or transfer constraints, or other limitations; tax, accounting and regulatory consequences of the dispositions; the continued volatility and regulatory uncertainty associated with digital assets and cryptocurrencies during the wind-down period; the concentration of a substantial portion of our assets in a single equity investment, including an investment in a related party, and the illiquidity, valuation uncertainty, holding-period and transfer restrictions associated with that investment; and risks arising from our relationships and agreements with related parties and significant stockholders.
Our robotics operations business. Our limited operating history in robotics operations and commercialization and the absence of a meaningful revenue history; the early stage of RoboShare and the risk that customer demand, repeat demand, pricing, utilization or unit economics do not develop as anticipated; our dependence on a small number of customers, on a single initial geographic market, and on individual events or engagements, and the risk that the loss of, or a change in the terms of, any such relationship has a disproportionate effect; our dependence on third-party robot owners, operators, suppliers, original equipment manufacturers and local partners, and on their willingness to make robots available on our platform; risks relating to the availability, cost, quality, maintenance, transport, insurance and technological obsolescence of robots and related equipment, and to supply chains, tariffs and trade measures affecting them; and our ability to expand into additional markets and to attract and retain participants on both sides of our marketplace.
Operations, safety and liability. Risks of property damage, personal injury or death arising from the operation of humanoid robots, quadrupeds and other autonomous or semi-autonomous machines in proximity to performers, employees, guests and the public, including at live events and in uncontrolled environments; product liability, premises liability, negligence and related claims and the adequacy, scope, availability and cost of our insurance coverage and of contractual indemnities from customers, owners and suppliers; the allocation of responsibility among us, robot owners, venues, event producers and customers; permitting, licensing, occupational safety and event-specific regulatory requirements; and the reputational consequences of any safety incident.
Technology, data and intellectual property. Systems, network, telecommunications or service disruptions, failures, defects or cyber-attacks; the performance, reliability and autonomy limitations of robotic systems and of the software, models and networks that support them; our collection, use, storage, transmission and protection of personal information, including images and any biometric or biometric-adjacent data captured in the course of robot deployments, and evolving privacy, biometric and artificial intelligence laws and regulations across the jurisdictions in which we operate or intend to operate; our ability to obtain, maintain, protect and enforce our intellectual property rights and to defend against third-party claims of infringement or misappropriation; and our reliance on third-party technology, platforms and licenses.
Legal, regulatory and general. The regulated industries and jurisdictions in which we operate; current or future laws or regulations and new interpretations of existing laws or regulations, including those applicable to digital assets, robotics, autonomous systems, consumer protection, advertising and endorsements; the risk that our marketplace arrangements, or the manner in which they are described, are characterized differently than we intend by regulators or courts; the failure of counterparties to perform their contractual obligations; litigation, regulatory inquiries, investigations and enforcement actions, and their costs and outcomes; business, economic, market and capital-market conditions; competition in our industry; changes in market demand for, and the pricing of, our products and services; our ability to define, design and release new products and services in a timely manner that meet customer needs; our ability to attract, retain and motivate qualified personnel, including key management; our ability to manage our growth and our transition; and our ability to maintain effective internal control over financial reporting and disclosure controls and procedures.
This list of factors is not exhaustive. Additional risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and our subsequent filings, which are available on the SEC’s website at www.sec.gov. Investors are urged to review the liquidity, capital resources and going concern disclosures contained in those reports.
The forward-looking statements in this Communication speak only as of the date hereof. Except as required by law, neither FFR nor any other person undertakes any obligation to update or revise any forward-looking statement or financial projection set out herein, whether as a result of new information, future events or otherwise. This Communication is provided for informational purposes only, does not constitute an offer to sell or the solicitation of an offer to buy any security, and does not constitute investment, tax or legal advice or any investment recommendation, and does not take into account the investment objectives or financial situation of any person. FFR reserves the right to amend or replace the information contained herein, in whole or in part, at any time, and undertakes no obligation to notify any recipient thereof. Readers are cautioned not to place undue reliance on these forward-looking statements. This caution is made under, and these forward-looking statements are intended to be covered by, the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
FFAI FORWARD LOOKING STATEMENTS
Important factors that may affect actual results or outcomes include, among others: the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations, which it currently lacks; the availability of sufficient share capital to meet its current obligations and execute on its strategy; the willingness of convertible debt investors to fund the Company; demand for the Company’s robotics products; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; the ability of the Company to build an EAI education ecosystem that serves both the B2C consumer market and the B2B institutional education market; the acceptance by teachers and students of the Company’s robotics products in the education market; the ability of the Company to expand into additional markets for its robotics products; the Company’s reliance on a single OEM for most of its robotics products; the Company’s reliance on Chinese OEMs for all of its robotics products; the possibility of the federal government banning imports of Chinese robotics products; the Company’s ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; tariff uncertainty for imported products, particularly from China; the ability of the Company to close its transaction with FF EAI Robotics Ecosystem Inc. (FFR) for the sale of its robotics business; demand from automobile dealers for robotics products; the Company’s ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which is substantial; the Company’s ability to secure an occupancy certificate covering all of its Hanford facility; the Company’s ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of substantial losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s ability to execute on its plans to enter the robotaxi and cybercab industries; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to use its “at-the-market” program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company’s control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company’s operations in China; the success of the Company’s remedial measures taken in response to the Special Committee findings; the Company’s dependence on its suppliers and contract manufacturer; the Company’s ability to develop and protect its technologies; the Company’s ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings; the volatility of the Company’s stock price; the ability of the Company to maintain its stock price above $1.00; and the ability of the Company to maintain compliance with Nasdaq regulations for continued listing. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 13, 2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026; and Form 10-K filed with the SEC on March 31, 2026, and other documents filed by the Company from time to time with the SEC.
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SOURCE FF EAI Robotics Ecosystem Inc.
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