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Highlights

  • Megaport shares fell 15.5% to AUD 12.51 on 21 August morning, despite delivering record FY25 revenue and ARR growth.

  • FY25 Annual Recurring Revenue (ARR) rose 20% to AUD 243.8 million, while revenue climbed 16% YoY to AUD 227.1 million.

  • EBITDA came in at AUD 62.3 million, the lower end of guidance, as the company deliberately increased investment to accelerate future growth.

     

     

Megaport Limited (ASX:MP1), the global leader in Network-as-a-Service (NaaS), has announced its FY25 results, reporting growth across key financial and operational metrics. However, the upbeat performance was overshadowed by a steep share price decline, with the stock falling 15.5% in morning trade to AUD 12.51.

For the year ended 30 June 2025, Annual Recurring Revenue (ARR) surged 20% to AUD 243.8 million, marking a record high for the company. On a constant currency basis, ARR increased 16%. Total revenue for FY25 was AUD 227.1 million, up AUD 31.8 million, or 16% compared with FY24. Net Revenue Retention remained at 107%, improving by one percentage point year-on-year.

EBITDA reached AUD 62.3 million, up 9% year-on-year, but this was at the lower end of guidance. Adjusted for foreign exchange impacts and accounting standards (AASB 16 Leases), EBITDA stood at AUD 57.0 million. The company noted that the result reflected a deliberate decision to reinvest in growth, particularly in go-to-market expansion and product innovation.

Cash at bank stood at AUD 102.1 million, with net cash of AUD 87.8 million, a 43% increase compared to the prior year. Customer Lifetime Value rose 50% to AUD 2.1 billion, supported by an 18% increase in large customers and a 10% increase in ARR per customer.

Operationally, Megaport expanded its footprint significantly, reaching 2,873 customers across 983 enabled data centres in 185 cities worldwide. In August 2025, the company celebrated a milestone with the activation of its 1000th enabled data centre. The high-speed 400G backbone was also extended to 29 metros in the USA and Europe, supporting demand for 100G virtual cross-connects (VXCs).

Megaport now operates in 26 countries, having expanded into Brazil and Italy during the year, while also launching internet services in nine additional markets.

Looking ahead, CEO Michael Reid expressed confidence in continued growth momentum:

"The success of our investment in growth has given us the confidence to double down
on accelerating top-line growth by building on the proven initiatives in our GTM capability, product innovation, global network, ecosystem and compute platform. The Company expects FY26 revenue to be in the range of $260M - $270M19, while maintaining free cash flow20 breakeven. FY26 will be a year of acceleration. We are investing boldly, expanding globally, and harnessing even more innovation opportunities to deliver exceptional value for our customers and shareholders”

For FY26, Megaport has forecast revenue in the range of AUD 260 million to AUD 270 million, while maintaining free cash flow breakeven.