Megaport (MP1) H2 2025 earnings summary

Executive summary

• Annual recurring revenue reached $243.8 million, up 20% year-over-year, with strong growth in the Americas, especially the U.S., which contributed 57% of growth.

• Net revenue retention stabilized at 107% for 18 months, and large customers billing over $100,000 in ARR increased 18% to 629.

• 236 new customer logos were added, a 157% year-over-year increase, reflecting successful go-to-market investments.

• Added 115 new data centers (up 105% YoY), now surpassing 1,000 globally, expanding reach and capacity.

• Product innovation contributed over 25% of ARR growth, with new offerings such as MVE, NAT Gateway, and expanded cloud connectivity.

Financial highlights

• FY 2025 revenue was $227.1 million, exceeding guidance, with 15% growth on a constant currency basis.

• EBITDA reached $62.3 million (reported), with adjusted EBITDA at $59.2 million (26% margin) after lease adjustments.

• CapEx was $34.6 million, mainly for new data centers, network expansion, and product innovation.

• Gross margin remained stable at 71% after normalizing for IFRS 16 adjustments.

• Cash at bank rose 41% to $102.1 million at year-end, supporting ongoing investments.

Outlook and guidance

• FY 2026 revenue guidance: $260–$270 million, representing 15–19% YoY growth.

• EBITDA margin guidance: 18–20% of revenue, reflecting continued investment in go-to-market and network expansion.

• CapEx is forecast at 18–20% of revenue, with maintenance CapEx under 3%.

• Free cash flow expected to remain at break-even despite increased investment.

• Strategic focus on doubling down investment in FY 2026 to accelerate growth for FY 2027 and beyond.