Megaport Ltd. (AU:MP1)
ASX:MP1
Want to see AU:MP1 full AI Analyst Report?
Top Page
Megaport
(Sydney:MP1)
Select Model
Select Model
Rating:61Neutral
Price Target:
AU$22.00
â–²(159.13% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by mixed financial fundamentals: strong revenue growth and gross margin with low leverage, but still weak profitability and declining free cash flow. Technicals are supportive due to strong trend strength, though extreme overbought readings raise near-term risk. Earnings call commentary was constructive with raised guidance and strong ARR/retention metrics, partially offset by FX, integration, and supply-chain execution risks. Valuation remains constrained by lack of profitability and no dividend support.
Positive Factors
ARR Growth & Retention
Sustained ARR growth (+49%) with NRR >100% and a lengthening customer lifetime (13 years) signals durable subscription revenue and high renewal/expansion rates. This improves predictable cashflows, raises lifetime value, and underpins scalable unit economics as the business grows.
Negative Factors
Negative Profitability
Despite strong top-line and gross margins, persistent negative net and EBIT margins indicate operating costs and investment cadence still outpacing product-level profits. Long-term value creation depends on converting high gross margins into consistent operating profitability as scale and mix mature.
Read all positive and negative factors
Positive Factors
Negative Factors
ARR Growth & Retention
Sustained ARR growth (+49%) with NRR >100% and a lengthening customer lifetime (13 years) signals durable subscription revenue and high renewal/expansion rates. This improves predictable cashflows, raises lifetime value, and underpins scalable unit economics as the business grows.
Read all positive factors
Megaport (MP1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.88B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth23.32%
EPS Growth-403.83%
CountryAU
Employees200
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.12
Shares Outstanding236,054,690
10 Day Avg. Volume1,125,242
30 Day Avg. Volume1,186,668
Financial Highlights & Ratios
PEG Ratio76.96
Price to Book (P/B)12.95
Price to Sales (P/S)10.19
P/FCF Ratio68.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$21.11Price Target Upside148.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-0.04
Revenue Forecast (FY)AU$312.62M
Megaport Business Overview & Revenue Model
Company Description
Megaport Limited, founded in 2013 and headquartered in Fortitude Valley, Australia, specializes in delivering flexible networking solutions. The company provides agile interconnection services to a diverse clientele, including businesses and servi...
How the Company Makes Money
Megaport primarily makes money by selling recurring connectivity services delivered over its software-defined network platform. Key revenue streams include: (1) recurring charges for virtual connectivity services (e.g., VXCs) that customers provis...
Megaport Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum: high ARR growth (group +49% YoY), improving NRR (111%), extended customer lifetime, significant product innovation, accelerated US traction and strategic acquisitions (compute and India exchange) that materially expand TAM. Short‑term headwinds include FX volatility, acquisition integration complexity, supply‑chain constraints for Latitude compute capacity and near‑term investment‑driven margin pressure. Management provided revised guidance with sensitivities and emphasized the long‑term strategic fit and sizable AI tailwind. Overall the positives (robust growth metrics, product traction, strategic acquisitions and improved retention) materially outweigh the near‑term challenges.Positive Updates
Group ARR and Scale
Megaport Group ARR of $338M, up 49% year‑on‑year (+$112M). Group composition highlighted as Megaport Network ~$263M ARR, Latitude and Extreme acquisitions adding to group ARR.
Negative Updates
FX Headwind and Reporting Impact
Reported growth was lower than constant‑currency growth due to AUD:USD movement (cited moving from ~$0.65 to ~$0.70). Management flagged FX sensitivity: ~$9M revenue impact per $0.05 AUD:USD move, complicating reported results and guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Group ARR and Scale
Megaport Group ARR of $338M, up 49% year‑on‑year (+$112M). Group composition highlighted as Megaport Network ~$263M ARR, Latitude and Extreme acquisitions adding to group ARR.
Read all positive updates
Company Guidance
Guidance was updated across the standalone network and the combined group: Megaport Network (constant‑currency at A$0.65:US$1) raised the bottom end of its FY26 revenue range from A$260–270m to A$264–270m (EBITDA margin and CapEx unchanged; Megaport Network ARR A$263.4m and exit EBITDA margin ~21%), Latitude.sh revenue guidance was reaffirmed (Latitude ARR ~A$68m / US$45m at 31 Dec), and the combined‑group FY26 guidance (using A$0.70:US$1) is A$302–317m revenue, 21–24% EBITDA margin, and A$90–100m CapEx (including ~A$3–4m contribution from the India IX acquisition); maintenance CapEx is <2% and management noted FX sensitivity of ~A$9m revenue per A$0.05 AUD:USD move.Megaport Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
55
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 255.16M | 227.06M | 195.27M | 153.08M | 109.73M | 78.28M |
| Gross Profit | 23.28M | 188.56M | 158.86M | 6.10M | -20.42M | -22.77M |
| EBITDA | 48.52M | 43.92M | 40.39M | 28.00M | -7.13M | -36.69M |
| Net Income | -20.25M | -292.00K | 9.61M | -9.77M | -48.49M | -55.00M |
Balance Sheet | ||||||
| Total Assets | 935.04M | 260.20M | 214.70M | 202.23M | 220.38M | 220.56M |
| Cash, Cash Equivalents and Short-Term Investments | 206.32M | 102.07M | 72.43M | 48.45M | 82.55M | 136.31M |
| Total Debt | 119.38M | 28.30M | 15.79M | 19.96M | 27.27M | 15.76M |
| Total Liabilities | 437.11M | 81.52M | 60.62M | 74.30M | 78.14M | 40.15M |
| Stockholders Equity | 497.93M | 178.69M | 154.08M | 127.93M | 142.25M | 180.41M |
Cash Flow | ||||||
| Free Cash Flow | 35.02M | 33.95M | 30.32M | -24.57M | -49.71M | -30.79M |
| Operating Cash Flow | 69.91M | 68.25M | 50.17M | 8.23M | -9.83M | -8.29M |
| Investing Cash Flow | -158.59M | -34.29M | -19.85M | -32.73M | -50.26M | -22.44M |
| Financing Cash Flow | 208.16M | -6.03M | -7.43M | -10.40M | 5.87M | 4.87M |
Megaport Technical Analysis
Positive
8.49
Price Trends
12.35
Positive
10.48
Positive
12.07
Positive
Market Momentum
2.40
Negative
86.63
Negative
88.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MP1, the sentiment is Positive. The current price of 8.49 is below the 20-day moving average (MA) of 17.01, below the 50-day MA of 12.35, and below the 200-day MA of 12.07, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 86.63 is Negative, neither overbought nor oversold. The STOCH value of 88.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MP1.
Megaport Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$4.88B | -182.80 | -5.99% | ― | 23.32% | -403.83% | |
59 Neutral | AU$26.82M | -99.93 | -1.84% | ― | 34.48% | -165.12% | |
55 Neutral | AU$50.23M | -1.88 | -64.64% | 4.99% | -63.89% | -609.31% | |
51 Neutral | AU$14.89M | -3.36 | -15.64% | ― | -19.91% | 35.34% | |
43 Neutral | AU$8.98M | -0.21 | -148.39% | ― | 6.70% | 33.88% | |
43 Neutral | AU$4.44M | -6.25 | 22.49% | ― | 18.41% | 90.13% |
* Technology Sector Average
AU:MP1
Megaport
20.94
7.96
61.31%
AU:FCT
FirstWave Cloud Technology
0.01
0.00
0.00%
AU:SEN
Senetas Corporation Limited
3.02
1.30
75.68%
AU:CYB
Sovereign Cloud Holdings Ltd.
0.04
-0.03
-42.67%
AU:RTH
RAS Technology Holdings Limited
0.56
-0.42
-43.37%
AU:XPN
XPON Technologies Group Ltd.
0.01
0.00
0.00%
Megaport Corporate Events
Citigroup Entities Exit Substantial Holder Status in Megaport
Jun 17, 2026
Megaport Limited has disclosed that Citigroup Global Markets Australia and related Citi entities have ceased to be substantial shareholders in the company as of 15 June 2026. The change follows adjustments in relevant interests held through securi...
Megaport Informs Market of First Sentier’s Exit as Substantial Shareholder
Jun 10, 2026
Megaport Ltd has disclosed that investment manager First Sentier Investors (Australia) IM Ltd and its related entities have ceased to be substantial holders in the company as of 8 June 2026. The change, formally notified under Australian Corporati...
Citi Group Entities Exit Substantial Shareholder Position in Megaport
Jun 9, 2026
Megaport has disclosed that Citigroup Global Markets Australia and related Citi entities have ceased to be substantial shareholders in the company as of 5 June 2026, following changes in relevant interests tied to securities lending arrangements. ...
Megaport Raises A$518m in Strongly Supported Institutional Entitlement Offer
Jun 4, 2026
Megaport has successfully completed the institutional component of its fully underwritten A$827.3 million pro rata accelerated non-renounceable entitlement offer, raising about A$518 million through the issue of roughly 36.2 million new shares at ...
Megaport launches fully underwritten pro rata entitlement offer with no expected change of control
Jun 2, 2026
Megaport Limited has launched a fully underwritten accelerated non-renounceable pro rata entitlement offer, inviting existing shareholders to subscribe for one new fully paid ordinary share for every 3.08 shares they currently hold. The new shares...
Megaport launches accelerated entitlement offer to raise capital
Jun 2, 2026
Megaport Limited has announced an accelerated non-renounceable entitlement offer, also known as a JUMBO or ANREO, for its ordinary fully paid shares listed on the ASX under the code MP1. The offer will see up to 57,856,541 new shares issued, with ...
Megaport Unveils AI Inference Cloud Strategy and Entitlement Offer
Jun 2, 2026
Megaport has released an investor presentation outlining a trading update, FY26 guidance, and plans for a globally distributed AI inference cloud underpinned by a new GPU pool. The company also detailed new contracts and a funding initiative via a...
Megaport Extends Trading Halt as It Launches Accelerated Entitlement Offer
Jun 2, 2026
Megaport shares will remain in a trading halt as the company progresses an accelerated non-renounceable entitlement offer aimed at raising equity from existing shareholders. The halt, requested under ASX Listing Rule 17.1, is intended to ensure th...
Megaport Raises Capital to Build Globally Distributed AI Inference Cloud
Jun 2, 2026
Megaport is expanding its role in AI infrastructure by creating an on-demand GPU Pool and launching a Globally-Distributed AI Inference Cloud, leveraging its extensive global data centre network. The company’s compute division pro forma annu...
Megaport Shares Halted Ahead of Material Transaction Announcement
Jun 1, 2026
Megaport has requested and been granted a trading halt in its securities on the ASX, effective from 2 June 2026, as it prepares to announce new material commercial transactions. The halt, sought to manage the company’s continuous disclosure ...
Megaport Issues New Employee Equity Under Incentive Scheme
Jun 1, 2026
Megaport Limited has issued 670,382 unquoted restricted stock units under its employee incentive scheme, with the new securities recorded under the ASX code MP1AE. The issuance, effective 1 June 2026, reflects the company’s continued use of ...
Megaport Announces Departure of Director Grant Dempsey
May 29, 2026
Megaport Limited has announced that director Grant Dempsey has ceased to be a director of the company as of 29 May 2026. According to the final director’s interest notice filed with the ASX, Dempsey does not hold any relevant interests in Me...
Megaport Appoints New Director Without Existing Security Interests
May 29, 2026
Megaport Limited has appointed Jonathan Gidney as a director effective 29 May 2026, according to a filing with the ASX. The initial director’s interest notice confirms that Gidney holds no relevant interests in Megaport securities, either di...
Megaport lands $35m AI compute deal and reaffirms guidance
Apr 26, 2026
Megaport’s Latitude.sh unit has secured a 36-month compute and storage contract worth about USD$25.1 million, translating to roughly USD$8.4 million in annualised recurring revenue and underscoring strong demand from a U.S.-based, high-growt...
Megaport Updates Market on Lapse of Restricted Stock Units
Apr 10, 2026
Megaport Limited has reported the lapse of 28,938 restricted stock units, which ceased on March 31, 2026, after the conditions attached to these rights were not met or became incapable of being satisfied. The notification, lodged as an update on t...
Capital Group ceases to be substantial shareholder in Megaport
Apr 8, 2026
Megaport has disclosed that The Capital Group Companies and its related investment management entities have ceased to be substantial shareholders in the company as of 7 April 2026. The change follows on-market disposals of Megaport common stock by...
Australian Retirement Trust Ceases to Be Substantial Holder in Megaport
Apr 1, 2026
Australian Retirement Trust Pty Ltd, acting as trustee for Australian Retirement Trust, has notified Megaport Limited that it has ceased to be a substantial shareholder in the company as of 30 March 2026. The change, documented under AustraliaR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.