AKAMAI TECHNOLOGIES INC (AKAM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that AKAMAI TECHNOLOGIES INC surfaced in its latest filing.

• U.S.-Israel military conflict with Iran and related hostilities in the Middle East, including Iranian strikes on data center facilities in the Persian Gulf in early 2026.early 2026
• AMD 'Inception' vulnerability identified in mid-2023 that potentially impacted a large portion of the internet ecosystem.mid-2023
• Volatility in server component costs from recently imposed tariffs affecting AI, cloud, and platform infrastructure build-outs, with tariffs imposed by the United States on other countries and resulting counter-tariffs.
• Integration of the Linode compute platform into Akamai's platform and migration of certain applications and products from third party cloud providers onto Akamai's platform.
• A large social media customer took steps to lower costs and reduce reliance on U.S. providers by optimizing its platform, including using a DIY component, which reduced traffic on our network and negatively impacted our revenue in 2024.2024
• During the first quarter of 2023, the third quarter of 2024 and the fourth quarter of 2025, management committed to actions to restructure certain parts of the company, including reducing headcount.first quarter of 2023, third quarter of 2024, fourth quarter of 2025
• In 2025 management introduced changes to the sales organization and sales compensation structure.2025
• The OECD's 15% global minimum corporate tax rate (Pillar Two) applies to us as of January 1, 2024, and increased our effective income tax rate.January 1, 2024
• In 2025, the weakening of the U.S. dollar had a positive impact on revenue and profitability.2025
• We recently launched a platform enabling AI inferencing at the edge of the internet as a direct offering in the AI market.
• Department of Justice's January 8, 2025, rule on 'Preventing Access to U.S. Sensitive Personal Data and Government-Related Data by Countries of Concern or Covered Persons' prohibits data brokerage transactions involving certain sensitive personal data categories to countries of concern, including China.January 8, 2025
• EU is exploring broader 'digital sovereignty' frameworks placing operational, ownership and control requirements that must be met to provide services to certain markets or sectors.
• Restrictions adopted in India in 2020 prohibiting access to identified Chinese-owned applications caused a reduction in revenue.2020
• In April 2024, the U.S. government enacted the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA).April 2024
• An Executive Order on September 25, 2025 declared a proposed sale of the Chinese-owned application's U.S. operations to a new joint-venture company complied with PAFACA's divestiture requirements and extended non-enforcement until January 23, 2026.September 25, 2025
• Executive Orders directed DOJ to issue guidance and letters stating no violation and no liability for conduct during PAFACA non-enforcement periods, resulting in company's receipt of an Attorney General determination that services had not violated the law.
• On January 22, 2026, the divestiture was finalized, and a new U.S.-based joint venture assumed operation of the U.S. application.January 22, 2026
• EU's AI Act began implementation on August 1, 2024, with significant provisions scheduled to take effect in August 2026.August 1, 2024
• A December 2025 executive order endorsed a federal moratorium on enforcement of state AI laws.December 2025
• Total principal amount of $1,150.0 million of convertible senior notes outstanding due in 2027.2027
• Total principal amount of $1,265.0 million of convertible senior notes outstanding due in 2029.2029
• Total principal amount of $1,750.0 million of convertible senior notes outstanding due in 2030.2030
• Total principal amount of $1,750.0 million of convertible senior notes outstanding due in 2032.2032
• Total principal amount of $1,725.0 million of convertible senior notes outstanding due in 2033.2033
• Credit agreement entered in November 2022, amended in May 2025, increasing aggregate revolving commitments to $1.0 billion.November 2022, amended May 2025
• Credit agreement entered in January 2025 providing for a $150.0 million revolving credit facility.January 2025
• As of June 30, 2026, there were no outstanding borrowings under the credit facilities.June 30, 2026
• We identified and subsequently remediated a material weakness in internal control over financial reporting in the past.