Highlights

  • Megaport raised AUD 827.3 million to fund new AI infrastructure contracts and a dedicated GPU Pool.
  • The company reported pro forma group ARR of AUD 662.9 million after expanding its compute operations.
  • FY26 Revenue guidance stands at AUD 307 million to AUD 315 million with an EBITDA Margin of 21% to 24%.
  • FY26 results on 20 August will put contract deployment, GPU Investment and FY27 guidance in focus.

Megaport Limited (ASX:MP1) enters its FY26 results as a markedly different Business from the one that began the year. During 2026, the company expanded beyond its network-as-a-service model, signed major AI infrastructure contracts and raised AUD 827.3 million to fund NVIDIA GPU capacity. With FY26 results scheduled for 20 August, attention is shifting from the size of the expansion to whether deployment, margins and Capital discipline remain on track.

Company Overview

Megaport operates a software-defined global network that allows enterprises to establish private connections between data centres, internet exchanges and cloud providers on Demand . At 31 December 2025, its platform covered more than 1,000 enabled data centres, 344 cloud on-ramps and 35 internet exchange locations, serving more than 4,000 customers. The business broadened further through the Acquisition of Latitude.sh, adding bare-metal compute, while Extreme IX expanded its presence into India. Megaport's AI Exchange connects customers with GPU-as-a-service providers, third-party models and storage over private connectivity.

Recent Developments

The latest phase of Megaport's expansion has been driven by large AI infrastructure contracts. On 14 May 2026, the company announced three contracts with US-based technology providers supporting AI applications, carrying total contract value of USD 182.9 million (AUD 254 million) and annualised Recurring Revenue of about USD 65.2 million (AUD 90.6 million). The contracts require roughly USD 101 million of Capital Investment , funded through cash and an expanded AUD 150 million Debt Facility .

On 3 June, Megaport announced four further US technology contracts with total contract value of AUD 458.9 million and ARR of AUD 199.0 million. Delivering these agreements requires AUD 369.5 million of Capital Expenditure , largely for NVIDIA GPUs, network and storage equipment. The company also committed AUD 350.0 million to a GPU Pool aimed at providing enterprise customers with on-demand AI infrastructure. Funding came from a fully underwritten entitlement offer that raised AUD 827.3 million.

Financial Snapshot

For the half year to 31 December 2025, Megaport reported revenue of AUD 134.9 million, up 26%, including AUD 129.1 million from the Megaport Network and AUD 5.8 million from Latitude.sh for the part-period following acquisition. EBITDA was AUD 35.3 million, while the underlying net loss was AUD 3.3 million excluding acquisition costs. Group ARR reached AUD 338 million at December, up 49% year on year.

By April 2026, Network ARR had increased to AUD 277.7 million, up 25% year on year. Pro forma compute ARR of AUD 385.2 million lifted pro forma group ARR to AUD 662.9 million. FY26 revenue guidance was narrowed to AUD 307 million to AUD 315 million, while EBITDA margin guidance remained at 21% to 24%. Capital expenditure guidance was maintained at AUD 90 million to AUD 100 million.

What to Watch

The 20 August result will test three areas. First, Megaport needs to deliver FY26 revenue within its narrowed guidance range and keep the EBITDA margin within the stated band. Second, the market will be watching the underlying Network business, where ARR growth remains below the headline group rate. Third, capital discipline will be central as the company commits close to AUD 720 million across contracted infrastructure and the GPU Pool. FY27 capex guidance, deployment timing and GPU Supply commentary are likely to be key disclosures.

Risks

The GPU Pool is capacity built ahead of demand rather than contracted revenue, so expected returns depend on utilisation. Customer concentration has increased as a small number of US technology providers account for a large portion of forward ARR. Hardware has shorter Depreciation cycles than network Assets , while deployment delays or GPU supply constraints could push revenue into later periods. Megaport also has material US dollar revenue exposure.

Outlook

Megaport enters its FY26 result with a much larger contracted and pro forma revenue base, but also with materially higher capital commitments. The next phase will depend on how quickly new contracts move into service, whether GPU capacity reaches expected utilisation and how management frames FY27 growth and expenditure. The 20 August release will provide the first detailed test of whether the expanded AI infrastructure strategy is progressing to schedule.