Highlights

  • Megaport shares fell 16.32% to AUD 8.08 following H1 FY26 results and FX outlook correction.
  • Group ARR increased 49% YoY to AUD 338 million, with customer lifetime value up 57% in constant currency.
  • Updated FY26 guidance accounts for acquisitions and FX impact, narrowing revenue and EBITDA ranges.

Shares of Megaport Ltd (ASX:MP1) fell 16.32% to AUD 8.08 by 3:07 pm on 23 February 2026. The decline followed the company’s H1 FY26 results announcement, including a correction to its FX assumptions and updated guidance, prompting investor reaction despite record underlying performance and completed acquisitions.

H1 FY26 Results Show Growth Across Metrics

In the half-year ended 31 December 2025, Megaport reported group revenue of AUD 134.9 million, up 26% from H1 FY25. This includes Megaport Network revenue of AUD 129.1 million and Latitude.sh revenue of AUD 5.8 million since the acquisition on 26 November 2025. EBITDA reached AUD 35.3 million, while the underlying net loss, excluding acquisition costs of AUD 15.8 million, was AUD 3.3 million.

Key performance indicators for Megaport Network, excluding acquisitions, showed:

  • Annual Recurring Revenue (ARR): AUD 263.4 million, up 16% YoY
  • Net Revenue Retention (Logo): 111%, up 3 percentage points YoY
  • Customer Lifetime Value: AUD 2.5 billion, up 57% YoY

The company also completed two strategic acquisitions—Latitude.sh and Extreme IX—while executing a capital raise of AUD 218.2 million, expanding its platform into compute services and the Indian market.

Guidance Update and FX Impact

Megaport revised its FY26 guidance to account for acquisitions and a weaker US dollar. Updated guidance includes:

  • Revenue: AUD 302–317 million
  • EBITDA: 21–24% of revenue
  • Capex: AUD 90–100 million

The company confirmed an FX assumption of AUD:USD 0.70 for H2 FY26. A USD appreciation of 5 cents would reduce revenue by AUD 9 million. Guidance also included specific projections for Megaport Compute (Latitude.sh) and Extreme IX, alongside disciplined capital allocation with maintenance capex below 2% of revenue.

The decline in Megaport’s share price on 23 February 2026 was largely driven by guidance revisions and foreign exchange considerations, despite underlying business growth and successful strategic acquisitions. How the company navigates FX fluctuations and executes expansion plans will be critical for investor sentiment in H2 FY26.

Frequently Asked Questions (F&Q)

  1. Why did Megaport shares drop 16% today?
    Shares declined after the H1 FY26 results release, which included a correction to the FX assumption and updated guidance for revenue and EBITDA.
  2. Did Megaport report growth in the first half of FY26?
    Yes. Group ARR grew 49% YoY to AUD 338 million, while customer lifetime value increased 57% in constant currency.
  3. How did acquisitions affect Megaport’s results?
    The acquisitions of Latitude.sh and Extreme IX expanded Megaport’s platform into compute services and the Indian market, adding AUD 45 million of ARR and contributing to updated guidance projections.