Megaport (MP1) H2 2026 earnings summary

Executive summary

• Achieved record FY26 group revenue of $312.2M (AUD 312 million), up 37% year-on-year, driven by strong network and compute growth and supported by major acquisitions of Latitude.sh and Extreme IX.

• Secured $1.3B in total contract value from new long-term strategic deals since April, including major customer contracts across GPU, CPU, network, and storage.

• Completed acquisitions of Latitude.sh (expanding compute/storage as-a-service) and Extreme IX (entry into India), broadening platform and global reach.

• Added 155 new data centers in FY26, expanding total addressable market and supporting rapid ARR growth.

• Launched new products including GPU on-demand pool, cloud storage, DDoS protection, and expanded network capabilities, completing a full-stack infrastructure offering.

Financial highlights

• FY26 revenue reached $312.2M, up from $227.1M in FY25; EBITDA increased 24% to $77.1M, with a 25% margin.

• Gross margin improved to 73% from 71% year-over-year; gross profit grew 41% to $229.0M.

• Network revenue was $268M; compute revenue $44M, with most strategic compute contracts impacting FY27.

• Network ARR reached $289.6M (up 19% YoY, 27% on constant currency); Compute ARR hit $105.6M, up 72% since acquisition.

• Operating cash flow increased to $82.1M, closing cash balance at $435.4M; CapEx totaled $152.6M, reflecting investments in acquisitions and infrastructure.

Outlook and guidance

• FY27 group revenue guidance: $620M–$730M, representing 99%–134% year-on-year growth; EBITDA margin expected at 38%–40%.

• Network revenue guidance: $315M–$325M; compute revenue: $305M–$405M.

• CapEx for FY27 guided at $1.28B–$1.38B, supporting execution of existing strategic contracts.

• Guidance incorporates all announced strategic contracts and assumes stable FX rates; excludes future strategic contracts and initiatives.

• Long-term outlook targets sustainable 20%+ growth and significant free cash flow conversion by FY30.