Megaport (MP1) H1 2026 earnings summary

Executive summary

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

• H1 FY26 revenue grew 26% year-over-year to $134.9M, with gross profit up 31% to $97.6M and EBITDA up 28% to $35.3M; net loss of $19.1M was primarily due to $15.8M in acquisition-related costs.

• Net new customer logos doubled year-over-year, with customer lifetime increasing to 13 years and total lifetime value up 57% to $2.5B.

• Product innovation contributed over 30% of ARR growth, with strong adoption of high-speed internet, security features, and new AI offerings.

• $218.2M capital raise completed to fund acquisitions and expansion initiatives.

Financial highlights

• Group ARR reached $338M, with Megaport Network ARR at $263.4M (up 16% year-over-year, 19% in constant currency); Latitude.sh contributed $68M ARR and Extreme IX $7M ARR.

• H1 FY26 revenue was $134.9M, gross profit $97.6M (gross margin 72%), and EBITDA $35.3M (margin 26%).

• Operating cash inflow was $36.0M, closing cash balance at $206.3M, and net cash position at $177.0M.

• Net cash outflows for investing activities totaled $141.3M, mainly due to acquisitions.

• No dividend declared for the period.

Outlook and guidance

• FY26 combined group revenue guidance raised to $302M–$317M, with EBITDA margin expected at 21–24% and capex guidance at $90M–$100M.

• Megaport Network revenue guidance tightened to $264M–$270M, reflecting strong H1 performance and Americas growth.

• Latitude.sh revenue guidance reaffirmed; H2 FY26 revenue guidance for Extreme IX set at $3M–$4M.

• Guidance is sensitive to FX rates; a $0.05 AUD:USD appreciation reduces revenue by $9M.

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