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Megaport Ltd. (AU:MP1)
ASX:MP1

Megaport (MP1) AI Stock Analysis

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AU:MP1

Megaport

(Sydney:MP1)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
AU$14.00
▲(10.24% Upside)
Megaport's overall stock score is primarily impacted by its financial performance and valuation. While the company shows potential for growth with strong revenue and gross profit margins, significant challenges in profitability and cash flow conversion weigh heavily on its score. The technical analysis suggests a bearish trend, further contributing to a lower score. The lack of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and demand for Megaport's NaaS solutions, supporting long-term business expansion.
Gross Profit Margin
A high gross profit margin reflects efficient cost management, enhancing Megaport's ability to invest in growth and innovation.
Low Leverage
Low leverage provides Megaport with financial flexibility to navigate market fluctuations and invest in strategic opportunities.
Negative Factors
Profitability Challenges
Ongoing profitability challenges may hinder Megaport's ability to reinvest in growth and could impact long-term financial health.
Negative Return on Equity
A negative return on equity suggests inefficiencies in capital use, potentially affecting shareholder value and investment appeal.
Declining Free Cash Flow
Declining free cash flow may limit Megaport's ability to fund new projects and manage debt, affecting long-term operational flexibility.

Megaport (MP1) vs. iShares MSCI Australia ETF (EWA)

Megaport Business Overview & Revenue Model

Company DescriptionMegaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe. It operates a platform that enables customers to connect their network to other services, as well as creates agile network that connects in multiple regions. The company also offers Megaport Virtual Edge, an on-demand and vendor-neutral Network Function Virtualization service that enables branch-to-cloud connectivity on Megaport's global software-defined network; internet exchange services; and Megaport Marketplace, an online hub the interconnects service providers and enterprise customers. In addition, it provides cloud connectivity solutions; and virtual routing for cloud networking. The company was founded in 2013 and is headquartered in Fortitude Valley, Australia.
How the Company Makes MoneyMegaport generates revenue primarily through its subscription-based model, where customers pay for the connectivity services they use, including port fees and data transfer charges. Key revenue streams include monthly fees for virtual cross-connects and network ports, as well as charges for additional bandwidth and on-demand services. The company has established significant partnerships with major cloud providers and data center operators, enhancing its service offerings and expanding its customer base. Additionally, Megaport benefits from the growing demand for flexible and scalable connectivity solutions in the digital transformation landscape, further driving its earnings.

Megaport Earnings Call Summary

Earnings Call Date:Feb 19, 2024
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted substantial revenue and EBITDA growth, successful product launches, and improved financial health. However, challenges with KPI metrics and increased expenditures were noted. Overall, the positive achievements significantly outweighed the challenges.
Q2-2024 Updates
Positive Updates
Record Revenue Growth
Revenue reached $48.6 million, a 31% increase year-on-year, marking an $11.6 million rise.
EBITDA Surge
EBITDA increased by 529% to $15.1 million, reflecting a significant $12.7 million year-on-year growth.
Cash Flow Improvement
Total cash flow was $7.3 million, up $19.2 million year-on-year, showcasing a significant turnaround.
Strong Financial Position
Cash at bank was $62.5 million, up $7.3 million quarter-on-quarter, indicating a healthy fiscal status.
Global WAN Success
The launch of Global WAN resulted in the largest deal in company history, with $1.4 million in annual recurring revenue contracted over three years.
Product Innovation and Expansion
Launched several new products including Megaport Internet, 100-gig VXCs, and a 400-gig U.S. backbone upgrade is underway.
Cost Management and Efficiency
Operating cash flow increased to $15.2 million, up $15 million year-on-year, due to ongoing cost control and revenue growth.
Negative Updates
Challenges with KPI Metrics
Historically reported KPIs presented challenges due to cloud port consolidation and inappropriate signals, leading to a shift to revenue-generating metrics.
Increased Expenditure
Incremental costs for sales and marketing and customer success staff impacted EBITDA quarter-on-quarter, reflecting reinvestment in the go-to-market engine.
Delayed Headcount Cost Impact
New hires landed towards the end of Q2, meaning the full cost impact will be seen in Q3.
Company Guidance
In the recent earnings call for MP1.AX, CEO Michael Reid provided detailed guidance on multiple financial and operational metrics, highlighting a significant turnaround and growth trajectory for the company. The company reported a revenue of $48.6 million for the second quarter of FY '24, marking a 31% increase year-on-year, alongside an EBITDA of $15.1 million, reflecting a substantial 529% rise. The net cash flow improved by $6.9 million year-on-year, while operating cash flow surged to $15.2 million. The company maintained its revenue guidance for FY '24 at $190 million to $195 million and EBITDA between $51 million and $57 million, despite revising CapEx expectations down to $20 million-$22 million. The shift in focus to revenue-generating KPIs was emphasized, with total services reported at 748, and customer numbers and ports also seeing increases. With a strong emphasis on go-to-market strategies and hiring, particularly in North America, the company is poised to continue its growth momentum. The call also pointed to the success of the newly launched Global WAN product, which resulted in the largest deal in Megaport's history, valued at $1.4 million in annual recurring revenue.

Megaport Financial Statement Overview

Summary
Megaport demonstrates solid revenue growth and a strong gross profit margin, but faces challenges with profitability and cash flow conversion. The balance sheet is stable with low leverage, yet the negative return on equity highlights inefficiencies in generating shareholder returns. Overall, the company shows potential for growth but needs to address profitability and cash flow issues to enhance financial health.
Income Statement
60
Neutral
Megaport has shown a consistent revenue growth trajectory, with a 9.74% increase in the latest year. The gross profit margin is strong at 83.05%, indicating effective cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.13% and a negative EBIT margin. The EBITDA margin remains positive at 19.34%, suggesting some operational efficiency.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio is relatively low at 0.16, indicating a conservative leverage approach. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio stands at 68.66%, showing a solid equity base relative to total assets.
Cash Flow
50
Neutral
Operating cash flow is strong, with a coverage ratio of 1.19, indicating sufficient cash generation to cover net income. However, free cash flow has declined by 20.09%, and the free cash flow to net income ratio is below 1, suggesting potential issues in converting earnings into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue227.06M227.06M195.27M153.08M109.73M78.28M
Gross Profit86.54M188.56M158.86M6.10M-20.42M-22.77M
EBITDA41.98M43.92M40.39M28.00M-7.13M-36.69M
Net Income-292.00K-292.00K9.61M-9.77M-48.49M-55.00M
Balance Sheet
Total Assets260.20M260.20M214.70M202.23M220.38M220.56M
Cash, Cash Equivalents and Short-Term Investments102.07M102.07M72.43M48.45M82.55M136.31M
Total Debt28.30M28.30M15.79M19.96M27.27M15.76M
Total Liabilities81.52M81.52M60.62M74.30M78.14M40.15M
Stockholders Equity178.69M178.69M154.08M127.93M142.25M180.41M
Cash Flow
Free Cash Flow45.73M33.95M30.32M-24.57M-49.71M-30.79M
Operating Cash Flow67.22M68.25M50.17M8.23M-9.83M-8.29M
Investing Cash Flow-34.29M-34.29M-19.85M-32.73M-50.26M-22.44M
Financing Cash Flow-4.40M-6.03M-7.43M-10.40M5.87M4.87M

Megaport Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.70
Price Trends
50DMA
14.30
Negative
100DMA
14.79
Negative
200DMA
13.56
Negative
Market Momentum
MACD
-0.50
Positive
RSI
44.21
Neutral
STOCH
31.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MP1, the sentiment is Neutral. The current price of 12.7 is below the 20-day moving average (MA) of 13.29, below the 50-day MA of 14.30, and below the 200-day MA of 13.56, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:MP1.

Megaport Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$119.51M17.6619.30%13.74%70.80%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
AU$541.35M30.538.20%1.06%-30.96%
49
Neutral
AU$2.29B-7,055.56-0.15%16.28%-102.98%
48
Neutral
AU$38.46M-1.42-64.51%4.99%-38.38%-275.50%
42
Neutral
AU$14.01M-1.22-54.62%-22.47%39.26%
35
Underperform
AU$4.05M-1.45-50.39%-74.68%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MP1
Megaport
12.70
4.99
64.72%
AU:FCT
FirstWave Cloud Technology
0.01
-0.01
-50.00%
AU:SEN
Senetas Corporation Limited
2.42
-0.06
-2.42%
AU:NNG
Nexion Group Ltd.
0.02
0.00
0.00%
AU:B4P
Beforepay Group Limited
2.48
1.04
72.22%
AU:TYR
Tyro Payments Ltd.
1.04
0.22
26.83%

Megaport Corporate Events

Megaport Director Increases Shareholding Following Shareholder Approval
Dec 4, 2025

Megaport Limited has announced a change in the director’s interest, with Glo Gordon acquiring an additional 2,009 fully paid ordinary shares, bringing her total to 6,027 shares. This acquisition was made pursuant to shareholder approval granted at Megaport’s Annual General Meeting, indicating a potential strategic alignment and confidence in the company’s future prospects.

Megaport Announces New Director Appointment
Dec 4, 2025

Megaport Limited has announced the appointment of Lisa Hennessy as a new director, effective December 5, 2025. This appointment is part of Megaport’s strategic efforts to strengthen its leadership team, although Hennessy currently holds no securities or contractual interests in the company. This move is expected to enhance the company’s governance and potentially influence its strategic direction, reflecting Megaport’s commitment to robust leadership and growth.

Megaport Appoints Lisa Hennessy to Board as Non-Executive Director
Dec 4, 2025

Megaport Limited has appointed Lisa Hennessy as a Non-Executive Director, where she will serve as Chair of the Remuneration & Nomination Committee. Hennessy brings over 30 years of experience in executive and board roles across various sectors, enhancing Megaport’s strategic growth initiatives. Her appointment reflects Megaport’s commitment to board renewal and succession planning, aiming to support long-term value creation for the company.

Megaport Limited Announces Quotation of New Securities on ASX
Dec 2, 2025

Megaport Limited has announced the quotation of 8,036 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code MP1, effective December 3, 2025. This move is part of an employee incentive scheme and reflects the company’s ongoing efforts to enhance its market presence and operational capabilities.

Megaport Limited Announces Quotation of New Securities
Dec 2, 2025

Megaport Limited announced the quotation of 344,997 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of December 2, 2025. This move is part of the company’s strategy to enhance its financial flexibility and support its growth initiatives, potentially impacting its market position and offering new opportunities for stakeholders.

Megaport Completes Latitude.sh Acquisition and Launches Share Purchase Plan
Nov 26, 2025

Megaport Limited has successfully completed its acquisition of Latitude.sh, a globally scalable Compute-as-a-Service platform. This acquisition allows Megaport to enhance its service offerings by integrating high-performance compute infrastructure, which supports the traditional dedicated compute market and the growing demand for AI inference and training. Additionally, Megaport is conducting a Share Purchase Plan (SPP) for eligible Australian and New Zealand shareholders, aiming to raise up to A$20 million. This plan allows shareholders to subscribe for new shares without transaction costs, with the SPP expected to close on 4 December 2025.

Megaport Limited Announces Successful Outcomes of 2025 Annual General Meeting
Nov 26, 2025

Megaport Limited announced the results of its 2025 Annual General Meeting, with all resolutions being carried. The meeting included the re-election and election of directors, approval of the Employee Share Plan, and the non-executive Directors’ equity program. The successful passing of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operations and stakeholder relationships positively.

Megaport Limited Hosts 2025 Annual General Meeting
Nov 26, 2025

Megaport Limited held its 2025 Annual General Meeting, where the Chair, Melinda Snowden, and CEO, Michael Reid, addressed shareholders. The meeting focused on formal business matters, including resolutions and voting arrangements, with opportunities for shareholder questions. The event highlighted Megaport’s commitment to respecting the traditional custodians of the land and included participation from the board of directors, company secretary, and auditor. This meeting underscores Megaport’s ongoing efforts to engage with stakeholders and maintain transparency in its operations.

Megaport Opens Share Purchase Plan Following Successful Placement
Nov 17, 2025

Megaport Limited has announced the opening of its Share Purchase Plan (SPP) for eligible shareholders in Australia and New Zealand, following a successful A$200 million institutional placement. The SPP aims to raise up to A$20 million, allowing shareholders to purchase additional shares at a discounted rate, with the potential to increase the amount raised or scale back applications based on demand. This initiative is part of Megaport’s strategy to strengthen its financial position and enhance shareholder value, reflecting its commitment to expanding its market presence and operational capabilities.

Megaport Expands Capital Base with New Share Issuance
Nov 16, 2025

Megaport Limited has issued nearly 14 million new fully paid ordinary shares at $14.30 each to institutional and sophisticated investors as part of a fully underwritten institutional placement. This move is part of a broader strategy that includes a non-underwritten share purchase plan, aimed at enhancing the company’s financial position and market reach. The issuance of shares without disclosure under Part 6D.2 of the Corporations Act signifies compliance with regulatory requirements and reflects Megaport’s strategic efforts to strengthen its capital base and expand its operational capabilities.

Megaport Limited Announces Quotation of New Securities on ASX
Nov 13, 2025

Megaport Limited has announced the application for quotation of 13,986,014 fully paid ordinary securities on the Australian Securities Exchange (ASX), set to be issued on November 17, 2025. This move is part of previously announced transactions and could enhance Megaport’s market presence and liquidity, potentially benefiting stakeholders by increasing the company’s capital base and supporting its growth initiatives.

Megaport Acquires Latitude.sh with ASX Waiver Approval
Nov 11, 2025

Megaport Limited has announced its acquisition of Latitude.sh entities for a total consideration of up to US$300 million, with US$150 million upfront and the remainder contingent on performance milestones. The company received a waiver from ASX Listing Rule 7.3.4, allowing it to seek shareholder approval for issuing contingent consideration shares at a single meeting, simplifying the process and potentially enhancing its strategic positioning in the market.

Megaport Secures A$200 Million for Strategic Expansion
Nov 11, 2025

Megaport Limited has successfully completed a A$200 million institutional placement to fund its acquisition of Latitude.sh and accelerate its network expansion in India. The placement was well-received by both existing and new investors, highlighting strong market confidence in Megaport’s strategic direction. The company also announced a Share Purchase Plan for eligible Australian and New Zealand shareholders, aiming to raise up to A$20 million for general corporate purposes.

Megaport Implements New Securities Trading Policy to Combat Insider Trading
Nov 10, 2025

Megaport Limited has adopted a new Securities Trading Policy, which outlines the legal framework regarding insider trading. This policy applies to employees, contractors, directors, and other individuals associated with the company, detailing when they can trade in Megaport’s securities. The policy aims to ensure compliance with the insider trading provisions of the Corporations Act, emphasizing the prohibition of trading based on ‘inside information.’ Violations of this policy can result in significant penalties, including fines, imprisonment, and disciplinary actions such as termination of employment.

Megaport Limited Announces Proposed Securities Issue to Bolster Growth
Nov 10, 2025

Megaport Limited has announced a proposed issue of 7,839,126 ordinary fully paid securities, with the issuance date set for December 31, 2026. This move is part of a placement or other type of issue and is expected to enhance the company’s financial resources, potentially strengthening its market position and providing additional capital for growth initiatives.

Megaport Limited Announces Proposed Securities Issue to Boost Capital
Nov 10, 2025

Megaport Limited announced a proposed issue of securities, consisting of a total of 1,398,601 ordinary fully paid shares under a securities purchase plan and 13,986,014 ordinary fully paid shares through a placement. This strategic move is aimed at raising capital, which could potentially enhance the company’s market positioning and operational capabilities, offering stakeholders an opportunity to participate in its growth trajectory.

Megaport Announces Equity Raising for Strategic Acquisition and Expansion
Nov 10, 2025

Megaport is undertaking an equity raising initiative to fund its acquisition of Latitude.sh and to accelerate its network expansion. This strategic move is expected to enhance Megaport’s operational capabilities and industry positioning, potentially offering significant benefits to its stakeholders.

Megaport Expands with Latitude.sh Acquisition and India Network Investment
Nov 10, 2025

Megaport Limited has announced a A$200 million equity raising to fund the acquisition of Latitude.sh and expand its network in India. The acquisition of Latitude.sh, a global Compute-as-a-Service platform, is set to enhance Megaport’s capabilities by integrating high-performance compute infrastructure with its automated network services. This strategic move positions Megaport to capitalize on the growing US$13 billion Compute-as-a-Service market, with expected revenue and EBITDA uplifts. The expansion into India involves an investment of approximately A$43 million to acquire a leading network operator and deploy hardware across 40 data centers, strengthening Megaport’s market presence.

Megaport Limited Announces Trading Halt for Major Acquisition
Nov 10, 2025

Megaport Limited has requested a trading halt on its securities pending an announcement related to a significant corporate acquisition and an associated equity raising. This strategic move is expected to impact the company’s operations by potentially expanding its market presence and financial resources, which could influence its industry positioning and stakeholder interests.

Megaport Limited Announces 2025 Hybrid Annual General Meeting
Oct 27, 2025

Megaport Limited has announced its 2025 Annual General Meeting (AGM), scheduled for November 26, 2025, to be held as a hybrid event allowing both in-person and virtual attendance. Shareholders will have the opportunity to vote and ask questions online, with detailed participation instructions provided. This approach reflects Megaport’s commitment to accessibility and environmental initiatives, as it encourages electronic communication to ensure secure and prompt information delivery.

Megaport Announces Key FY26 Financial Calendar Dates
Oct 17, 2025

Megaport Limited has announced key dates for its FY26 financial calendar, including its Annual General Meeting on November 26, 2025, and the release dates for its half-year and annual financial reports. This announcement is crucial for stakeholders as it outlines the timeline for financial disclosures, which are important for assessing the company’s performance and strategic direction.

Megaport Announces FY26 Financial Calendar Key Dates
Sep 24, 2025

Megaport Limited has announced key dates for its FY26 financial calendar, including the closing date for external director nominations, the Annual General Meeting, and the release dates for its half-year and annual financial reports. This announcement provides stakeholders with important timelines for the company’s financial disclosures and governance activities, reflecting its commitment to transparency and structured communication with investors.

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.Date of analysis: Nov 28, 2025