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Megaport
(Sydney:MP1)
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Rating:61Neutral
Price Target:
AU$20.50
â–²(17.08% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by uneven fundamentals—FY2026 profitability setback and a sharp swing to negative free cash flow—despite solid revenue growth and low leverage. Offsetting this, the latest earnings call supports a more bullish outlook with aggressive FY27 guidance and large TCV/ARR potential, while technicals are mildly positive but not strongly trending and valuation remains challenged due to negative earnings and no dividend support.
Positive Factors
Strong recurring revenue and ARR growth
Megaport’s subscription-led model is showing strong demand and expanding recurring revenue. Sustained ARR and revenue growth improve visibility, support operating leverage, and indicate increasing adoption of its connectivity and cloud infrastructure platform.
Negative Factors
Profitability remains unstable
Revenue growth has not yet translated into stable reported earnings. Volatile margins and the return to a sizable loss could constrain internally generated capital, make performance more sensitive to execution, and delay confidence in sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recurring revenue and ARR growth
Megaport’s subscription-led model is showing strong demand and expanding recurring revenue. Sustained ARR and revenue growth improve visibility, support operating leverage, and indicate increasing adoption of its connectivity and cloud infrastructure platform.
Read all positive factors
Megaport (MP1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.00B
Dividend YieldN/A
Average Volume (3M)1.71M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth37.49%
EPS Growth-11816.67%
CountryAU
Employees663
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.22
Shares Outstanding236,054,690
10 Day Avg. Volume1,540,590
30 Day Avg. Volume1,707,135
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.85
Price to Sales (P/S)12.36
P/FCF Ratio-16.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$24.61Price Target Upside40.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.14
Revenue Forecast (FY)AU$665.27M
Megaport Business Overview & Revenue Model
Company Description
Megaport Limited provides on-demand interconnection services in Australia, New Zealand, Hong Kong, Singapore, Japan, the United States of America, Canada, Mexico, and Brazil, and Europe. It operates a Software Defined Network platform that enables...
How the Company Makes Money
Megaport primarily makes money by selling recurring connectivity services delivered over its software-defined network. Key revenue streams include: (1) Port access charges: customers pay recurring fees for network ports at connected data centers/p...
Megaport Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed strong operational execution and a series of high-impact commercial wins (large TCV, ARR acceleration, product launches, successful acquisitions and clear FY'27 upside guidance). These positives are tempered by execution and timing risks: supply chain/pricing volatility, equipment procurement/installation lead times, integration and higher operating costs, and the need to manage funding as scale increases. On balance, the momentum in revenue, ARR, product capability and capital raises outweigh the risks, though timing and deployment execution remain key near-term watchpoints.Positive Updates
Significant Total Contract Value (TCV) Wins
Announced approximately $1.3 billion of TCV since April 27 (notable deals: $35M on Apr 27, $254M on May 14, $458.9M on Jun 3, $506M announced today). These deals are expected to add $435M of ARR once fully deployed.
Negative Updates
Timing and Procurement Risks
Revenue recognition and ARR additions are sensitive to equipment delivery and deployment timing (procurement/delivery windows typically 6–9 months; GPU pool ramp 3–6 months post-deployment). Management warned that small delays materially affect quarterly/annual reported revenue and contributed to guidance ranges.
Read all updates
Q4-2026 Updates
Positive
Negative
Significant Total Contract Value (TCV) Wins
Announced approximately $1.3 billion of TCV since April 27 (notable deals: $35M on Apr 27, $254M on May 14, $458.9M on Jun 3, $506M announced today). These deals are expected to add $435M of ARR once fully deployed.
Read all positive updates
Company Guidance
Management guided FY27 group revenue of $620–$730 million (roughly 100–130% YoY growth versus FY26 revenue of $312m), split to about $315–$325m of network revenue and $305–$405m of compute revenue, with EBITDA margin targeted at 38–40%; this outlook is driven by recently announced strategic deals totaling $1.3 billion of TCV that are expected to add ~ $435m of ARR once deployed and are supported by approximately $826m of CapEx, alongside an ~$825m new debt facility and an ~$827m entitlement raise to fund growth. For context, FY26 finished with $395m of ARR (network ARR $289.6m, compute ARR $105m), group revenue $312m (+37% YoY), network net revenue retention of 114%, 155 net new data centers added (up 35%), and $62.3m of net ARR incremental additions in FY26.Megaport Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
41
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 312.19M | 227.06M | 195.27M | 153.08M | 109.73M |
| Gross Profit | 9.59M | 188.56M | 158.86M | 6.10M | -20.42M |
| EBITDA | 43.03M | 43.92M | 40.39M | 28.00M | -7.13M |
| Net Income | -39.00M | -292.00K | 9.61M | -9.77M | -48.49M |
Balance Sheet | |||||
| Total Assets | 1.46B | 260.20M | 214.70M | 202.23M | 220.38M |
| Cash, Cash Equivalents and Short-Term Investments | 435.44M | 102.07M | 72.43M | 48.45M | 82.55M |
| Total Debt | 100.34M | 28.30M | 15.79M | 19.96M | 27.27M |
| Total Liabilities | 462.65M | 81.52M | 60.62M | 74.30M | 78.14M |
| Stockholders Equity | 1.00B | 178.69M | 154.08M | 127.93M | 142.25M |
Cash Flow | |||||
| Free Cash Flow | -236.58M | 33.95M | 30.32M | -24.57M | -49.71M |
| Operating Cash Flow | 75.56M | 68.25M | 50.17M | 8.23M | -9.83M |
| Investing Cash Flow | -445.62M | -34.29M | -19.85M | -32.73M | -50.26M |
| Financing Cash Flow | 699.37M | -6.03M | -7.43M | -10.40M | 5.87M |
Megaport Technical Analysis
Positive
17.51
Price Trends
18.97
Negative
16.35
Positive
13.29
Positive
Market Momentum
-0.73
Positive
40.74
Neutral
22.94
Neutral
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 17.51 is below the 20-day moving average (MA) of 18.69, below the 50-day MA of 18.97, and above the 200-day MA of 13.29, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 22.94 is Neutral, 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$4.00B | -77.23 | -5.20% | ― | 37.49% | -11816.67% | |
58 Neutral | AU$30.41M | -31.59 | -6.86% | ― | 33.71% | -277.88% | |
57 Neutral | AU$39.79M | 92.66 | 1.06% | 13.83% | 4.73% | ― | |
49 Neutral | AU$17.02M | -3.64 | -21.70% | ― | -3.00% | 74.39% | |
45 Neutral | AU$5.45M | 22.00 | -11.62% | ― | 37.65% | ― | |
41 Neutral | AU$8.56M | -0.32 | -434.09% | ― | -11.66% | 89.02% |
* Technology Sector Average
AU:MP1
Megaport
16.99
3.37
24.75%
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Megaport Corporate Events
Megaport Tightens Governance Framework in FY26 Statement
Aug 19, 2026
Megaport Limited has released its FY26 Corporate Governance Statement, outlining an updated framework designed to reinforce board effectiveness and enhance oversight of management and strategic decision-making. The document details the skills and ...
Megaport Files Updated ASX Corporate Governance Statement and Appendix 4G
Aug 19, 2026
Megaport Limited has lodged its updated corporate governance statement for the financial year ended 30 June 2026, making it available via its investor website in line with ASX Listing Rule requirements. The statement, current as of 20 August 2026 ...
Megaport Secures $506m in New AI Infrastructure Contracts and Boosts Strategic Deal Value
Aug 19, 2026
Megaport has secured a new portfolio of three major infrastructure contracts via its Latitude.sh subsidiary, with a combined total contract value of about USD$359.4 million and annualised recurring revenue of roughly USD$91.7 million once fully de...
Megaport posts record FY26 growth and taps investors to fund AI infrastructure push
Aug 19, 2026
Megaport reported record FY26 results, fuelled by strong growth in its core network business and the integration of two acquisitions that broadened its platform across compute, network and storage. The purchase of Latitude.sh added dedicated CPU, ...
Megaport Director Lisa Hennessy Steps Down With No Securities Interests
Jul 31, 2026
Megaport Limited has disclosed that director Lisa Hennessy ceased to be a member of the board effective 31 July 2026, as recorded in a final director’s interest notice lodged with the ASX. The filing confirms that Hennessy held no relevant i...
Megaport Reshapes Remuneration & Nomination Committee After Director Resignation
Jul 31, 2026
Megaport has announced the immediate resignation of Non-Executive Director Lisa Hennessy, who also chaired the Remuneration Nomination Committee. The board has begun the process of appointing a new committee chair, underscoring ongoing attention ...
Megaport schedules FY26 results release and investor webcast
Jul 28, 2026
Megaport Limited, a global provider of software-defined private compute, network, and storage services, operates a secure, on-demand infrastructure platform that underpins a globally distributed AI inference cloud. Its network is ISO/IEC 27001 cer...
Mitsubishi UFJ exits substantial holder position in Megaport
Jul 15, 2026
Mitsubishi UFJ Financial Group has filed a notice indicating it has ceased to be a substantial shareholder in Megaport Limited, following a series of transactions in early July involving the sale and purchase of Megaport’s fully paid ordinar...
Megaport Reports Lapse of Restricted Stock Units
Jul 8, 2026
Megaport Limited has reported the cessation of 63,445 restricted stock units, identified under ASX code MP1AE, after the conditional rights attached to these securities lapsed on June 30, 2026. The units ceased because the required conditions for ...
Megaport Director Boosts Shareholding Through Entitlement Offer
Jul 8, 2026
Megaport Limited has disclosed a change in director Melinda Snowden’s holdings, following her participation in the retail component of the company’s accelerated non-renounceable entitlement offer. Snowden acquired 7,248 fully paid ordi...
Megaport Seeks ASX Quotation for 21.6 Million New Shares
Jul 2, 2026
Megaport Limited is an Australia-based technology firm specialising in network-as-a-service, offering elastic interconnection and on-demand connectivity to cloud and IT services via a global software-defined networking platform. Listed on the ASX ...
Megaport completes oversubscribed retail entitlement offer
Jul 1, 2026
Megaport has successfully completed the retail component of its fully underwritten pro rata accelerated non-renounceable entitlement offer, which forms part of an approximately AUD$827 million capital raising. The retail offer generated about AUD$...
JPMorgan Ceases to Be Substantial Holder in Megaport
Jun 22, 2026
JPMorgan Chase Co and its affiliates have disclosed that they have ceased to be a substantial holder in Megaport Ltd, according to a notice filed under Australian corporations law. The change follows a series of securities lending transactions an...
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...
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.