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Megaport Ltd. (AU:MP1)
ASX:MP1
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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$15.00
▼(-8.87% Downside)
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 further suggests bearish momentum, and the valuation is unattractive due to a highly negative P/E ratio.

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:Aug 20, 2025
(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 shows strong revenue growth and a high gross profit margin, but struggles with profitability and cash flow conversion. The balance sheet is stable with low leverage, but the negative return on equity indicates inefficiencies in generating shareholder returns.
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
EBITDA41.98M43.92M40.39M28.79M-6.32M-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
Positive
Last Price16.46
Price Trends
50DMA
15.35
Positive
100DMA
14.80
Positive
200DMA
12.78
Positive
Market Momentum
MACD
0.22
Negative
RSI
65.70
Neutral
STOCH
82.57
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 16.46 is above the 20-day moving average (MA) of 15.25, above the 50-day MA of 15.35, and above the 200-day MA of 12.78, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.57 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$123.76M17.8119.30%13.74%70.80%
AU$584.71M32.608.20%1.06%-30.96%
$37.18B12.37-10.20%1.83%8.50%-7.62%
AU$46.42M-1.65-64.51%-38.38%-277.78%
$2.66B-0.15%16.28%-102.98%
AU$26.64M-1.71-54.62%-22.47%39.26%
AU$4.05M-50.39%-74.68%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MP1
Megaport
16.46
9.62
140.64%
AU:FCT
FirstWave Cloud Technology
0.01
-0.01
-50.00%
AU:SEN
Senetas Corporation Limited
0.03
<0.01
50.00%
AU:NNG
Nexion Group Ltd.
0.02
0.00
0.00%
AU:B4P
Beforepay Group Limited
2.31
0.96
71.11%
AU:TYR
Tyro Payments Ltd.
1.11
0.34
44.16%

Megaport Corporate Events

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.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.30 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

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.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$18.00 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Limited Announces Cessation of Restricted Stock Units
Sep 5, 2025

Megaport Limited announced the cessation of 32,780 restricted stock units due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders regarding the company’s equity management and strategic financial decisions.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.50 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Announces Director’s Interest Change
Sep 5, 2025

Megaport Limited announced a change in the director’s interest, specifically involving Michael Reid. The change pertains to the lapse of 2,301 performance restricted stock units (PRSUs) that were due to vest on September 1, 2025, as the conditions for vesting were not met. This adjustment reflects the company’s adherence to its Restricted Stock Unit program and shareholder-approved plans, potentially impacting the director’s stake and signaling the company’s commitment to performance-based incentives.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.50 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Limited Announces Quotation of New Securities
Sep 3, 2025

Megaport Limited has announced the quotation of 870,034 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 3, 2025. This move is part of the company’s strategy to enhance its financial flexibility and potentially expand its market presence, offering stakeholders an opportunity to engage with the company’s growth trajectory.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.77 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Issues Restricted Stock Units to Boost Employee Incentives
Sep 2, 2025

Megaport Limited announced the issuance of 372,869 restricted stock units under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market positioning by aligning employee interests with company performance.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.77 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Ltd. Reports Strong FY25 Growth and Expansion
Aug 21, 2025

Megaport Ltd. is a global leader in Network-as-a-Service (NaaS) solutions, providing elastic connectivity platforms that transform how businesses connect to services, applications, and each other without traditional infrastructure. Operating in one of the largest vendor-neutral platforms, Megaport connects over 2,800 customers across more than 983 data centers in 26 countries, offering scalable, secure, and flexible network solutions.

Megaport Enhances Corporate Governance for FY25
Aug 21, 2025

Megaport has released its FY25 Corporate Governance Statement, highlighting its commitment to high standards of corporate governance. The company has reviewed and updated its risk management framework and corporate governance policies to ensure they remain effective. Key changes include the addition of Mohit Lad and Grant Dempsey to the Board, the latter also serving as Chair of the Audit & Risk Committee. The company has also updated its Board Skills matrix and Whistleblowing policy, and approved its Modern Slavery Statement for 2024. These updates aim to align the company’s governance practices with its global NaaS business capabilities and support employee development through initiatives like the FY25 Mentorship Program.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.95 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Releases 2025 Corporate Governance Statement
Aug 21, 2025

Megaport Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is now available on their website. This statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability in its management practices. The release of this statement is significant as it reassures stakeholders of Megaport’s dedication to maintaining high governance standards, potentially impacting investor confidence positively.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.95 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Achieves Record Growth and Expands Global Network
Aug 21, 2025

Megaport reported a record performance for the fiscal year ending June 30, 2025, with a 20% increase in Annual Recurring Revenue (ARR) to $243.8 million and a 16% rise in total revenue to $227.1 million. The company expanded its global footprint by adding 115 new data centers and increasing its customer base, particularly large customers, by 18%. Investments in go-to-market capabilities and product innovation have driven growth, positioning Megaport as a key player in the evolving landscape of high-speed connectivity, especially with the rising demand for artificial intelligence solutions.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.95 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Reports Revenue Growth but Posts Net Loss for FY25
Aug 21, 2025

Megaport Limited reported a 16% increase in revenue for the financial year ending June 30, 2025, reaching $227.06 million. Despite the revenue growth, the company experienced a net loss of $292,000, compared to a profit of $9.6 million in the previous year. No dividends were declared for the year. The company’s net tangible asset backing per share increased from 66.09 cents to 82.11 cents, indicating a stronger asset position. The financial results reflect challenges in maintaining profitability despite revenue growth, impacting stakeholders’ expectations.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.95 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

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: Oct 22, 2025