Megaport (MP1) H1 2026 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached AUD 338 million (or $338M), up 49% year-over-year, driven by strong organic growth, product innovation, and acquisitions of Latitude.sh and Extreme IX in India.

• Latitude.sh adds compute and GPU-as-a-service capabilities, while Extreme IX expands presence in India with 40 data centers and 400 customers.

• U.S. market and Americas region are key growth drivers, with 24% ARR growth in the Americas and significant AI-driven demand.

• Net new logo growth doubled year-over-year, reflecting successful go-to-market investments and product innovation.

• Product innovation contributed over 30% of ARR growth in H1 FY26, highlighting ongoing investment in engineering and new services.

Financial highlights

• H1 FY26 revenue was $134.9M, up 26% year-over-year; gross profit rose 31% to $97.6M, with gross margin improving to 72%.

• EBITDA increased 28% to $35.3M, with a stable EBITDA margin of 26%; net loss of $19.1M due to $15.8M in acquisition-related costs.

• Megaport standalone ARR reached AUD 263.4 million (or $263.4M), up 19% in constant currency, with a 6% increase in ARR per customer.

• Operating cash inflow was $36.0M, up 14% year-over-year; closing cash balance at $206.3M, up 130%.

• Net cash outflow (excluding capital raising/acquisitions) was under AUD 10 million, reflecting planned expansion and CapEx.

Outlook and guidance

• FY26 combined group revenue guidance raised to $302M–$317M; EBITDA margin expected at 21–24%.

• CapEx guidance for FY26 is $90M–$100M, including $8–10M for India expansion.

• Latitude.sh revenue guidance reaffirmed; Extreme IX expected to contribute AUD 3–4 million in revenue.

• FX sensitivity: a AUD 0.05 movement in AUD/USD impacts revenue by AUD 9 million.

• Continued investment in go-to-market, product innovation, and network expansion, especially in the Americas and India.