Megaport (MP1) H1 2025 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) reached $226.6M, up 18% year-over-year, with the Americas contributing 58% of total ARR and strong growth across all regions.

• Revenue for H1 FY25 was $106.8M, up 12% year-over-year, with gross profit at $74.7M and a stable 70% gross margin.

• Net revenue retention stabilized at 107%, up 1 percentage point, reflecting product innovation and customer success investments.

• Net cash flow increased 26% year-over-year to $15.7M, with closing net cash at $76.9M and cash at bank at $89.8M.

• Continued global expansion with new launches, including entry into Brazil and Italy, and no dividend declared for the period.

Financial highlights

• EBITDA was $27.6M, down 8–9% year-over-year, with a margin of 26–27%; adjusted EBITDA would be $29.1M excluding $1.5M in GTM investments.

• Operating cash flow for H1 FY25 was $31.7M, up from $25.9M in the prior year.

• CapEx for H1 was $19M, including $6M in equipment licenses for future use; FY25 capex guidance is $27M–$30M.

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

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

Outlook and guidance

• FY25 revenue guidance tightened to $216M–$222M, reflecting confidence in NRR stabilization and representing 11%–14% growth over FY24.

• FY25 EBITDA guidance unchanged at $57M–$65M, including $4M for GTM investment.

• Guidance assumes AUD/USD at 0.668; a $0.01 movement impacts revenue by $2.0M–$2.2M and EBITDA by $0.6M–$0.8M.

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

• Management expects ongoing growth in ARR and service adoption.