Data centres

Megaport Delivers Record H1 FY25 Performance, Raises Revenue Guidance

Megaport (ASX: MP1) has reported a strong first half for FY25, with Annual Recurring Revenue (ARR) surging 18% to $226.6 million, total revenue climbing 12% to $106.8 million, and net cash flow reaching $15.7 million, up $3.2 million from H1 FY24. The cloud connectivity provider continues to invest aggressively in innovation and global expansion, laying the groundwork for sustained long-term growth.

Growth Momentum Across All Metrics

The results reflect broad-based revenue growth across all regions, underpinned by a 1 percentage point improvement in Net Revenue Retention (NRR) to 107% since June 2024. Gross profit also rose 12% to $74.7 million, maintaining a healthy 70% gross margin.

CEO Michael Reid noted, “We’ve balanced top-line growth with strategic investments, ensuring we continue to scale while remaining cash flow positive. The business is seeing stabilisation in retention rates, giving us confidence in our long-term trajectory.”

Operational Expansion and Product Innovation

Megaport has been expanding at breakneck speed, deploying its 400G backbone and now offering 100G VXCs across 597 data centres—solidifying its position as the largest 100G NaaS connectivity platform globally.

In H1 FY25, the company:

  • Added 82 new data centres, 4 new Internet Exchange locations, and 25 new cloud on-ramps.
  • Expanded into Brazil and Italy, further growing its global reach.
  • Launched a new compute platform, accelerating innovation with 100G MCRs and a high-speed NAT Gateway.
  • Integrated Border Gateway Protocol (BGP) into its internet services, expanding its addressable market.
  • Strengthened its Megaport Virtual Edge (MVE) offering, growing usage 90% year-over-year and adding new partners like Palo Alto Prisma, Aviatrix, and 6WIND.
  • Unveiled AI Exchange (AIx) and Financial Services Exchange (FSx), creating new ecosystems for AI and financial services customers.

FY25 Guidance Tightened on Stronger Revenue Outlook

Off the back of its strong first half, Megaport has tightened its FY25 revenue guidance to $216 million – $222 million, reflecting 11%–14% growth over FY24’s revenue of $195.3 million. EBITDA guidance remains unchanged at $57 million – $65 million, including the impact of recent go-to-market investments.

Michael Reid added, “Our ARR growth, stabilising retention, and global expansion efforts are translating into a stronger business. The investments we’ve made over the last 18 months in product development and market expansion are now paying off.”

With momentum building across its core metrics, Megaport is well-positioned for further growth, capitalising on booming demand for high-speed, flexible, cloud-based networking solutions.