How Megaport Expanded Globally While Posting a Slight FY25 Loss
Megaport Limited reported a 16% revenue increase to $227.1 million in FY25, alongside a 20% rise in Annual Recurring Revenue, while posting a slight net loss of $0.3 million. The company expanded its global footprint and launched innovative new services, setting the stage for continued growth in FY26.
- 16% revenue growth to $227.1 million
- 20% increase in Annual Recurring Revenue to $243.8 million
- Slight net loss of $0.3 million compared to prior year profit
- 115 new data centres added globally, expanding to 983 enabled locations
- Launch of AI Exchange and Financial Services Exchange platforms
Megaport's FY25 Financial Performance
Megaport Limited has delivered a strong top-line performance for the financial year ended 30 June 2025, with revenue climbing 16% to $227.1 million. This growth was underpinned by a 20% increase in Annual Recurring Revenue (ARR), which reached $243.8 million, driven by an 18% rise in large customers and a 10% uplift in ARR per customer. Despite these encouraging figures, the company reported a slight net loss of $0.3 million, a reversal from the $9.6 million profit recorded in the previous year.
Strategic Expansion and Innovation
FY25 marked the most ambitious network expansion in Megaport’s history, with the addition of 115 new data centres, bringing the total to 983 enabled locations across 185 cities in 26 countries. Notably, the company expanded into Brazil and Italy, further broadening its global reach. Megaport also enhanced its product suite with the launch of the AI Exchange, connecting over 30 providers, and the Financial Services Exchange, which now links more than 600 companies. These initiatives position Megaport at the forefront of Network-as-a-Service (NaaS) innovation, catering to the accelerating demand for agile, scalable connectivity solutions.
Operational Highlights and Workforce Growth
The company’s network infrastructure saw significant upgrades, including extending its 400G backbone to 29 metropolitan areas and enabling 100G Virtual Cross Connects in 746 data centres worldwide. Megaport’s workforce grew by 37%, now exceeding 350 employees across 16 countries, predominantly in the US and Australia. Investments in go-to-market capabilities, product innovation, and customer success functions have been pivotal in driving incremental ARR and stabilizing net revenue retention at 107%.
Governance and Board Renewal
Megaport’s board welcomed two new directors during FY25, Grant Dempsey, bringing extensive financial and executive experience, and Mohit Lad, co-founder of ThousandEyes with deep expertise in networking and digital innovation. These appointments strengthen the board’s capability to guide Megaport’s strategic direction amid a dynamic market environment. The company also initiated a search for a new ASX-experienced Chair for the Remuneration & Nomination Committee to support governance excellence.
Outlook for FY26
Looking ahead, Megaport expects FY26 revenue to range between $260 million and $270 million, with a focus on maintaining free cash flow breakeven. The company plans to accelerate investments in its platform, product offerings, and global network to capitalize on growth opportunities fueled by AI adoption and multicloud expansion. CEO Michael Reid emphasized the company’s readiness to build on its momentum, innovate rapidly, and deepen engagement with enterprise and cloud customers to secure its position as the global standard in NaaS.
Bottom Line?
Megaport’s FY25 results underscore its resilience and strategic momentum, but the slight net loss signals the need for continued execution to convert growth into sustained profitability.
Questions in the middle?
- What factors contributed to the net loss despite strong revenue and ARR growth?
- How will Megaport balance aggressive expansion with profitability in FY26?
- What competitive threats could impact Megaport’s leadership in the evolving NaaS market?
