Megaport Limited (ASX: MP1) reported a 37% year-over-year rise in group revenue to $312.2 million for the fiscal year ended June 30, 2026, aligning with its guidance range of $307–315 million. EBITDA totaled $77.1 million, achieving a 25% margin and surpassing the top end of its 21–24% guidance. Annual recurring revenue (ARR) reached $395 million as of June 30, up from $244 million a year earlier, driven by a 27% increase in network ARR to $289.6 million and a 72% jump in compute ARR to $105.6 million following the acquisition of Latitude.sh in November 2025.
Net revenue retention rose to 114%, a five-percentage-point increase from the prior year, while gross profit climbed $67 million to $229 million with a gross margin expansion of two percentage points to 73%. Operating cash flow increased 20% to $82.1 million, and closing cash reached $435.4 million, up 327% from the prior year. Net cash stood at $406.9 million at quarter-end, compared with $88.3 million previously.
Capital expenditures excluding strategic contracts totaled $98.3 million, within the guided $90–100 million range, while total capex including strategic initiatives reached $152.6 million. The company secured an $827.3 million capital raise in June 2026 and binding commitments for an $825 million debt facility in August 2026, which includes refinancing an existing $150 million facility. Despite strong financial performance, shares fell 6.5% to $19.01 from the prior close of $20.34, extending declines after a 73% year-to-date gain.
Megaport added 155 net new data centers in FY26, bringing its total footprint to 1,138 facilities across 31 countries. The company’s customer base grew 12% to 3,206, with the number of customers contributing $100,000 or more in ARR rising 15% to 725. Incremental network ARR additions reached $62.3 million for the year, while total services deployed increased 20% to 40,735. The global infrastructure inventory now includes over 330,000 kilometers of fiber routes, more than 3,000 network devices, and over 13,000 CPUs and GPUs.
Forward guidance for FY27 projects group revenue between $620 million and $730 million, representing 100–130% growth from FY26. Network revenue is expected to reach $315–325 million, while compute revenue is forecast at $305–405 million. EBITDA margin is projected to expand to 38–40%. The company also outlined plans for a $1.28–1.38 billion capex outlay to support upcoming fulfillment and GPU pool deployments, with procurement and deployment timelines ranging from 6–9 months and ramp-up periods of 3–6 months. Payback targets for these investments are set at 16–22 months.
