Highlights

  • ARR & Revenue Growth: Group ARR jumped 49% YoY to $338 million; half-year revenue reached $134.9 million with EBITDA of $35.3 million.
  • Customer Retention: Net Revenue Retention (NRR) climbed to 111%, signaling increasing spend from existing customers integrating Megaport services.
  • Strategic Expansion: Acquisitions of Latitude.sh and Extreme IX broaden the addressable market into compute and advanced peering, supporting AI and data center growth.

Megaport Limited (AZX:MP1) continues to dominate the "Network as a Service" (NaaS) sector, reporting record performance for H1 FY2026. The company provides on-demand interconnection services across North America, APAC, and Europe.

Growth Metrics and Recurring Revenue

  • ARR Growth: Group Annual Recurring Revenue (ARR) increased by 49% year-over-year to $338 million.
  • Revenue and EBITDA: Total revenue for the half hit $134.9 million, a 26% increase, while EBITDA reached $35.3 million.
  • Customer Retention: Net Revenue Retention (NRR) rose to 111%, signaling that existing customers are spending more over time as they integrate Megaport into their core infrastructure.

Strategic Acquisitions: Latitude.sh and Extreme IX

Megaport’s expansion into "compute" and advanced peering via Latitude.sh and Extreme IX has significantly broadened its addressable market. By connecting automated networks with automated compute, Megaport is positioning itself at the center of the AI and data center ecosystem.

Valuation and Risks

Despite the strong growth, the market has recently seen a sell-off in MP1 shares due to foreign exchange headwinds and acquisition costs leading to a statutory net loss of $19.1 million. However, the company remains well-capitalized with $206.3 million in cash following a successful $218 million capital raise.