Megaport Sees Record Revenue in First Half FY26
•February 20, 2026
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Companies Mentioned
Why It Matters
The results show Megaport’s ability to scale its connectivity platform while using acquisitions to diversify into high‑growth compute and exchange services, positioning it for accelerated market share gains.
Key Takeaways
- •Revenue up 26% to $134.9M H1 FY26.
- •ARR grew 49% year‑on‑year to $338M.
- •Acquisitions cost $15.8M, driving net loss.
- •$218.2M equity raise strengthens balance sheet.
- •FY26 revenue guidance lifted to $302‑$317M range.
Pulse Analysis
Megaport, the Australian‑listed cloud connectivity specialist, posted a record‑breaking first‑half FY26, with revenue climbing 26 percent to $134.9 million. The surge was underpinned by a 49 percent jump in annual recurring revenue, now $338 million, reflecting strong demand for its elastic interconnection platform across hyperscale providers, enterprises, and service partners. EBITDA rose 28 percent to $35.3 million, confirming operational leverage despite a post‑tax loss. The results highlight Megaport’s ability to monetize its expanding network footprint while positioning itself for broader services beyond pure connectivity.
The earnings dip stems largely from $15.8 million of acquisition‑related costs tied to the purchase of Latitude.sh, a New York‑based compute‑as‑a‑service provider, and Extreme IX, an Indian internet exchange operator. These deals extend Megaport’s portfolio into edge compute and regional exchange markets, creating cross‑sell opportunities and a more diversified revenue base. Excluding acquisition expenses, the company would have posted a modest $3.3 million loss, indicating the core business remains profitable. Integrating Latitude.sh’s on‑demand compute with Megaport’s network could accelerate growth in AI‑driven workloads.
To fund the expansion, Megaport raised $218.2 million in equity through a $200 million institutional placement and a $18.2 million share‑purchase plan, bolstering its balance sheet and reducing reliance on debt. Management upgraded FY26 guidance, now forecasting $302‑$317 million in revenue and EBITDA margins of 21‑24 percent, while capping capex at $90‑$100 million. The revised outlook signals confidence that the acquisitions and foreign‑exchange tailwinds will translate into accelerated top‑line growth. Investors will watch how quickly Megaport can monetize its compute and exchange assets and sustain margin expansion in a competitive cloud‑connectivity market. The company's stock reaction will likely reflect confidence in this strategic roadmap.
Megaport sees record revenue in first half FY26
Publicly listed cloud connectivity provider, Megaport has seen revenue rise 26 per cent to $134.9 million for the first half of FY26, while group annual recurring revenue (ARR) was up 49 per cent year-on-year, to $338 million. Post-tax profit was $19.1 million in the red due to acquisition activity.
Megaport CEO Michael Reid said its employees delivered “an outstanding first half performance, demonstrating the strength and resilience of the underlying business”.
“Importantly, we achieved this while completing two strategic acquisitions and executing a successful capital raise,” he said. “These initiatives extend our platform into adjacent markets and position Megaport for accelerated growth across network, compute, and AI.”
Acquisition-related costs of $15.8 million stemmed from buying 100 per cent of the share capital of both New York-based compute-as-a-service platform Latitude.sh and Indian internet exchange operator Extreme IX in November and December, respectively.
Excluding acquisition-related costs from the equation results in a net loss after tax of $3.3 million.This is down from the previous corresponding period’s net profit after tax of $886,000 in the black.
Additionally, earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 28 per cent, to $35.3 million.
During the period, the provider also raised $218.2 million in equity on the ASX through a fully underwritten $200 million institutional placement and $18.2 million through a share purchase plan.
Megaport also updated its FY26 guidance, which now sits at revenue of $302 million to $317 million, EBITDA of 21 to 24 per cent, and capex of $90 million to $100 million.
The guidance includes a $4 million raise at the lower end of its revenue guidance for its core Megaport Network business in constant currency; unchanged HY2 revenue guidance for Latitude.sh, now Megaport Compute; and HY2 revenue guidance of $3 million to $4 million for Extreme IX, among other factors.
“Our updated guidance reflects the strategic expansion of the group through the acquisitions of Latitude.sh and Extreme IX, as well as the impact of foreign exchange movements,” Reid added.
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