Megaport Ltd (ASX: MP1) shares are under pressure on Friday.
In morning trade, the network-as-a-service provider's shares are down 4% to $10.51.
This follows the release of its half-year results.
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Megaport shares fall on results day
For the six months ended 31 December, Megaport reported a 26% increase in revenue to a record of $134.9 million. This comprises Megaport network revenue of $129.1 million and Latitude.sh revenue of $5.8 million (from 26 November 2025).
Annual recurring revenue (ARR) was up 16% over the prior corresponding period to $263.4 million.
This growth was driven by a 15% increase in large customers, a 17% lift in total services, and net revenue retention of 110%.
Also growing strongly was Megaport's EBITDA. It delivered EBITDA growth of 28% to a record of $35.3 million.
However, on the bottom line, the company posted an underlying net loss of $3.3 million. This excludes acquisition costs of $15.8 million that were incurred during the half.
Nevertheless, at the end of the period, Megaport had a cash balance of $177 million.
Commenting on its performance, the ASX 200 tech stock's CEO, Michael Reid, said:
Our global business continues to scale, with the United States delivering exceptional momentum, pushing the Americas to 24% YoY ARR growth. This performance was driven by rising NRR and consistent new logo acquisition.
We are also seeing strong adoption of our newer products, alongside a clear shift toward larger bandwidth commitments, more complex global routes, and longer-term contracts. Together, these trends demonstrate expanding wallet share and Megaport's growing strategic importance within our customers' infrastructure stack.
Reid also spoke positively about the recently acquired Latitude business. He said:
With Latitude.sh now part of Megaport, we're accelerating our vision of a global platform where network and compute converge. This is the logical extension of what we've always done: automating infrastructure to power the cloud, AI, and data centre ecosystems. By combining private, on-demand connectivity with high-performance, optimised compute, we're enabling customers to deploy and scale critical workloads anywhere in the world, instantly. This is a new chapter for Megaport, and we're just getting started.
Outlook
Megaport has updated its guidance to reflect the acquisitions of Latitude.sh and Extreme IX, as well as a weaker US dollar.
It is guiding to revenue of $302 million to $317 million, an EBITDA margin of 21% to 24%, and capex of $90 million to $100 million.
Michael Reid said:
Our updated guidance reflects the strategic expansion of the Group through the acquisitions of Latitude.sh and Extreme IX, as well as the impact of foreign exchange movements. Importantly, we have raised the lower end and tightened the range of our core Megaport Network revenue guidance in constant currency, underscoring the continued strength of the underlying business.
