Negative Profitability And ROEDespite revenue growth, Megaport reports negative net and EBIT margins and a negative return on equity, indicating it currently struggles to translate top-line growth into shareholder returns. Persistent unprofitability could constrain reinvestment capacity and extend dependence on external financing.
Declining Free Cash Flow ConversionA 20% drop in free cash flow and weak conversion of reported earnings into FCF suggest limitations in converting growth into cash available for debt reduction, CapEx or buybacks. Over months this pressures financing flexibility and may force slower organic expansion or more dilutive capital raises.
FX, Supply-chain And Integration RisksMaterial FX sensitivity and documented supply‑chain shortfalls for Latitude compute capacity, plus integration work from acquisitions (India IX), create structural execution risk. These factors can delay revenue realization, raise near-term costs, and depress margins over several quarters while infrastructure is provisioned and integrated.