Megaport Sees Record Revenue in First Half FY26

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.