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.

• Net Revenue Retention (NRR) stabilized at 107%, up 1 percentage point, reflecting improved customer retention and expansion.

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

• 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 major investments in network, product innovation, and customer success.

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 go-to-market investments.

• Operating cash flow for the half-year 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.

• Net profit after tax was $0.9M, down from $4.4M in the prior year period.

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 remains at $57M–$65M, including $4M in go-to-market investments.

• Capital expenditure guidance unchanged at $27M–$30M.

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

• Management expects ongoing growth in ARR and service adoption.