Megaport Ltd
ASX:MP1
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Megaport Ltd
ASX:MP1
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AU |
Megaport Ltd
Megaport Ltd. engages in the provision of software-defined networking based elastic interconnection services. The company is headquartered in Fortitude Valley, Queensland. The company went IPO on 2015-12-17. The company’s global Software Defined Network (SDN) helps businesses connect their network to services via an easy-to-use portal or its open application programming interface (API). The company operates through three segments: Asia-Pacific, North America and Europe. Asia-Pacific segment, including Australia, New Zealand, Hong Kong, Singapore and Japan. There are approximately 105 installed data centers operate across Asia-Pacific. North America segment includes approximately 198 installed data centers across the United States of America and Canada. Europe segment includes Megaport (Bulgaria) EAD (formerly OMNIX Group AD) and Megaport (Deutschland) GmbH (formerly Peering GmbH) respectively. There are approximately 102 installed data centers across Europe. The Company’s services include Megaport Virtual Edge, Megaport Cloud Router, Data Centre Interconnect, IX Peering and Megaport Marketplace.
Megaport Ltd. engages in the provision of software-defined networking based elastic interconnection services. The company is headquartered in Fortitude Valley, Queensland. The company went IPO on 2015-12-17. The company’s global Software Defined Network (SDN) helps businesses connect their network to services via an easy-to-use portal or its open application programming interface (API). The company operates through three segments: Asia-Pacific, North America and Europe. Asia-Pacific segment, including Australia, New Zealand, Hong Kong, Singapore and Japan. There are approximately 105 installed data centers operate across Asia-Pacific. North America segment includes approximately 198 installed data centers across the United States of America and Canada. Europe segment includes Megaport (Bulgaria) EAD (formerly OMNIX Group AD) and Megaport (Deutschland) GmbH (formerly Peering GmbH) respectively. There are approximately 102 installed data centers across Europe. The Company’s services include Megaport Virtual Edge, Megaport Cloud Router, Data Centre Interconnect, IX Peering and Megaport Marketplace.
Revenue Growth: Megaport reported $338 million in annual recurring revenue (ARR) for the group, up 49% ($112 million) year-on-year, with $263 million from the core Megaport business, $68 million from the Latitude acquisition, and $7 million from the Extreme IX acquisition.
Guidance Raised: Megaport increased the lower end of its core network revenue guidance for FY '26 and reaffirmed Latitude.sh revenue guidance. Group revenue guidance is now $302–$317 million for the year.
Strong U.S. Performance: The U.S. market is a major growth driver, with 24% ARR growth and new customer additions up 100% year-on-year, supported by investments in sales and go-to-market teams.
Margin Profile: The reported EBITDA margin was 26%, but the exit margin for Megaport's core network business was 21%, in line with guidance. Group EBITDA margin guidance is 21%–24%.
Acquisitions & Strategy: Two acquisitions were completed: Latitude.sh (Compute-as-a-Service, $68M ARR) and Extreme IX (largest internet exchange in India, $7M ARR, 400 customers, 40 data centers), expanding Megaport's offering and geographic reach.
Product Innovation: 30% of ARR growth came from new products, and customer lifetime increased from 10 to 13 years, with lifetime value up 57% to $2.5 billion.
AI Tailwinds: Management highlighted strong demand driven by AI-related data movement and compute needs, especially in North America.
