Highlights

  • FY26 Revenue reached A$312 million, while EBITDA was A$77 million.
  • FY27 revenue guidance is A$620 million to A$730 million, with an EBITDA Margin target of 38% to 40%.
  • AI-related compute contracts have materially expanded Recurring Revenue expectations and infrastructure requirements.
  • Megaport raised A$827.3 million through an entitlement offer to support new compute, network, storage and GPU capacity.
  • Execution now depends on hardware supply, deployment timing, customer concentration and Capital discipline.

Megaport Ltd (ASX:MP1) provides network-as-a-service connectivity linking businesses with cloud providers and data centres. Through its Acquisition of Latitude.sh, the company has expanded into AI-oriented compute services. The FY26 result shows how this shift is changing the scale, capital intensity and Earnings profile of the Business as management moves into FY27.

FY26 Result Sets the Base

For FY26, Megaport reported revenue of A$312 million and EBITDA of A$77 million. Revenue was within the company's guidance range, while EBITDA came in above the stated range. However, the statutory result was a net loss of A$39 million. The difference highlights the growing importance of depreciation, financing and other costs as the company adds more capital-intensive compute infrastructure to its traditional networking model.

For Megaport Ltd (ASX:MP1), this makes EBITDA only one part of the earnings picture. As compute capacity expands, investors will also need to track statutory profitability, Capital Expenditure and the cash conversion of new contracts.

AI Contracts Increase Revenue Visibility

During 2026, Megaport announced a series of multi-year compute, storage, GPU, CPU and network agreements with US technology customers. The source material reports contracts with substantial total contract values and annual recurring revenue contributions once fully deployed. Some disclosed contract groupings overlap or differ across reports, so the figures should not be added together without checking the company announcements.

The strategic point is clearer than the aggregate number: Megaport Ltd (ASX:MP1) is moving beyond connectivity into bundled network and compute infrastructure. That broadens the addressable market but also increases exposure to hardware procurement, installation schedules and the performance of a relatively small number of large customers.

FY27 Guidance Implies a Much Larger Business

Management has guided to FY27 revenue of A$620 million to A$730 million and an EBITDA margin of 38% to 40%. This represents a significant step up from FY26 and depends on the timely deployment of contracted capacity. The company has already renegotiated two strategic contracts because of Supply constraints, showing that hardware availability can affect implementation even where customer Demand is secured.

Megaport Ltd (ASX:MP1) therefore enters FY27 with more contracted revenue visibility, but also with a wider execution range. Delivery, customer retention, supply availability and the timing of infrastructure commissioning will determine how closely reported results track the guidance range.

Funding Supports the Compute Build-Out

The expansion requires materially more capital than Megaport's original asset-light model. The source material reports an A$827.3 million entitlement offer to fund new compute, network, storage and GPU capacity. This funding gives the company resources to deploy infrastructure against contracted demand, but it also changes the balance between growth, capital intensity and Shareholder dilution.

As Megaport Ltd (ASX:MP1) scales the compute business, the quality of customer contracts becomes increasingly important. Contract duration, deployment schedules and recurring revenue conversion will influence whether the additional capital base translates into sustained earnings and cash generation.

Key Insights

Megaport is transitioning from a primarily network-as-a-service provider into a broader digital infrastructure platform with AI compute exposure. FY27 guidance points to a substantially larger revenue base, but the expansion also raises execution and capital requirements. The main variables are deployment timing, hardware supply, customer concentration, funding efficiency and the path from EBITDA growth to statutory profitability and cash flow.