Why are Megaport shares crashing today?

Megaport shares have opened 19% lower, despite delivering double digit revenue growth.

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The Megaport Ltd (ASX: MP1) share price is in focus after the company delivered its FY25 result. The company posted record annual recurring revenue of $243.8 million, up 20%, and increased its total revenue to $227.1 million, a 16% year-on-year rise.

What did Megaport report?

  • Annual Recurring Revenue (ARR) grew 20% to $243.8 million in FY25
  • Total revenue was $227.1 million, 16% higher than FY24
  • Net Revenue Retention remained stable at 107%
  • EBITDA reached $62.3 million, up 9% year-on-year
  • Cash at bank was $102.1 million, and net cash increased 43% to $87.8 million
  • Large customer numbers rose 18% to 629

What else happened in FY25?

Megaport expanded its global data centre network, adding 115 new enabled sites and reaching a milestone of 1,000 Megaport-enabled data centres worldwide in August 2025. The company extended its high-speed 400G backbone across 29 international metros, enabling more customers to access high-speed connectivity.

Megaport also grew its presence by entering Brazil and Italy, and launched internet services in nine new countries. Total customer "logos" climbed 9% to 2,873, and the company now operates in 26 countries globally.

What did Megaport management say?

Commenting on the result, Megaport Managing Director and CEO Michael Reid said:

Megaport's focus on the enterprise market, and investment in our GTM capability, saw us lift the number of customers spending over $100K p.a. by 18%. We continued to invest in expanding our global network footprint even further, reaching 983 enabled locations during the year, and we recently launched a historic 1000th enabled data centre in August: DataBank's San Diego SAN1 facility.

We delivered these amazing outcomes while meeting EBITDA guidance and building our cash balance to over $100 million.

Artificial intelligence is fuelling unprecedented demand for secure, high-speed connectivity. With our platform's unique reach and agility, Megaport is positioned at the heart of this transformation, enabling customers to connect critical workloads and applications wherever they need them, and establishing us as a core enabler of the next wave of innovation.

What's next for Megaport?

Looking ahead, Megaport expects FY26 revenue between $260 million and $270 million while maintaining free cash flow breakeven. The company plans to keep investing in growth, particularly in global expansion and new technology innovation, aiming to accelerate top-line performance.

Management signalled FY26 will be a year of acceleration, focusing on scaling its network footprint, product innovation, and launching further services to support customers' digital transformation journeys.

Megaport share price snapshot

Over the past year, Megaport shares have climbed 26%, outpacing the S&P/ASX 200 Index (ASX: XJO) which has risen 11%.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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