Segment and Geographic Information

The Company’s chief operating decision-maker ("CODM") is the chief executive officer and the executive management team. As of December 31, 2025, the Company is currently organized and operates as one operating and reportable segment. The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief executive officer comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its services. Accordingly, the Company does not accumulate discrete financial information with respect to separate entities. The CODM assesses performance and makes decisions on optimizing the allocation of resources across functions and strategic investments using consolidated net income. Segment assets represent total assets as reported on the consolidated balance sheets.

Information regarding the Company's one operating segment for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):


	2025		2024		2023
Revenue	$	4,208,175	$	3,991,168	$	3,811,920
Less:
Co-location costs	349,191		308,314		256,062
Bandwidth fees	192,875		233,100		228,038
Network build-out and supporting services	236,644		193,607		215,557
Payroll and related costs	1,565,108		1,511,272		1,408,866
Capitalized salaries and related costs	(322,703)		(302,830)		(261,728)
Facilities-related costs	86,081		86,671		90,061
Software and related service costs	85,483		71,687		69,970
Other segment items (1)	219,241		211,205		198,525
Depreciation and amortization	708,611		648,410		570,776
Stock-based compensation	459,402		393,378		328,467
Restructuring charge	58,051		95,441		56,643
Acquisition-related costs	3,247		7,502		13,345
Interest and marketable securities income, net	(70,808)		(100,280)		(45,194)
Interest expense	30,759		27,117		17,709
Other expense, net	4,588		19,561		12,296
Income tax expense	150,374		82,095		106,373
Gain from equity method investment	—		—		(1,475)
Net income	$	452,031	$	504,918	$	547,629

(1) Other segment items includes marketing programs and related costs, third-party professional service fees, non-income related tax expense and other expenses.

The Company deploys its servers into networks worldwide. Net property and equipment, excluding internal-use software, and operating lease right-of-use assets, located in the U.S. and international locations, as of December 31, 2025 and 2024 was as follows (in thousands):


	December 31, 2025		December 31, 2024
Property and equipment, net, excluding internal-use software, located in the U.S.	$	669,390	$	616,376
Property and equipment, net, excluding internal-use software, located internationally	$	737,260	$	663,914
Operating lease right-of-use assets located in the U.S.	$	1,066,526	$	600,015
Operating lease right-of-use assets located internationally	$	403,174	$	406,723

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

AKAMAI TECHNOLOGIES INC Segments Disclosure

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