Megaport (MP1) H1 2025 earnings summary

Executive summary

• Annual recurring revenue reached $226.6M (AUD 226.6M), up 18% year-over-year, with the Americas contributing 58% of total ARR.

• Net revenue retention stabilized at 107%, reflecting successful product innovation and customer success investments.

• Gross profit was $74.7M, maintaining a 70% gross margin, with gross profit up $8.1M year-over-year.

• Net cash flow increased 26% year-over-year to $15.7M, and closing net cash rose 68% to $76.9M.

• Significant turnaround in go-to-market, sales, and product engineering, resulting in record net new customer logos and port capacity additions.

Financial highlights

• Revenue for H1 FY25 was $106.8M, up 12% year-over-year, driven by higher ARR per customer and new customer additions.

• EBITDA was $27.6M, down 8–9% year-over-year, with an EBITDA margin of 26%, impacted by $1.5M in go-to-market hires.

• Free cash flow remained positive, with cash at $89.8M and net cash improvement of $31M compared to the prior year.

• CapEx for H1 was $19M, including $6M in equipment licenses for future use.

• Net tangible asset backing per share increased to 78.91 cents from 58.93 cents a year ago.

Outlook and guidance

• FY25 revenue guidance tightened to $216M–$222M, reflecting confidence in net revenue retention stabilization.

• FY25 EBITDA guidance unchanged at $57M–$65M, including $4M for opportunistic go-to-market investment.

• Guidance assumes AUD/USD at 0.668; a 1-cent movement impacts revenue by $2M–$2.2M and EBITDA by $600K–$800K.

• Continued investment in go-to-market, network expansion, and product innovation to drive future growth.