Megaport (MP1) investor relations material

Executive summary

• Annual Recurring Revenue (ARR) reached AUD 338 million (or $338M), up 49% year-over-year, driven by strong organic growth and major acquisitions: Latitude.sh (Compute as a Service) and Extreme IX (India's largest Internet Exchange), expanding global reach and product offerings.

• Product innovation contributed over 30% of ARR growth in H1 FY26, with new launches in CPU VMs and AI inference as a service.

• Significant expansion in the U.S. market, with Americas ARR up 24% year-over-year and a 100% increase in new customer logos.

• Customer lifetime increased to 13 years, with total lifetime value up 57% to AUD 2.5 billion.

• Net loss of $19.1 million reported, primarily due to $15.8 million in acquisition-related costs.

Financial highlights

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

• EBITDA increased 28% to $35.3 million, with a stable EBITDA margin of 26%.

• Group ARR reached AUD 338 million: AUD 263 million from core/Network, AUD 68 million from Latitude.sh, AUD 7 million from Extreme IX.

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

• Net cash outflow (excluding capital raise/acquisitions) under AUD 10 million; net cash outflows of $141.3 million for investing activities, mainly due to acquisitions.

Outlook and guidance

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

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

• Guidance incorporates FX sensitivities and acquisition impacts; maintenance CapEx for the group is less than 2%.

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

• Focus on integrating recent acquisitions to drive future growth and scale.