Buying new overseas companies slugs record results for Queensland tech giant
Cloud computing giant Megaport’s nearly $450 million acquisition of a competitor saw its profit line sour, impacting an otherwise “record” first-half for the Brisbane-based firm.
Brisbane-based Megaport reported a first-half loss after tax of $19 million in the six months to December 2025, down from $886,000 the year prior, but hailed its “record” results as it expands further globally.
The company, which offers cloud computing services, saw annual recurring revenue rise 49 per cent in the period to $338 million, with the United States “delivering exceptional momentum”, according to CEO Michael Reid.
But two acquisitions, including the nearly $450 million purchase of Brazil-based competitor Latitude.sh and Indian firm Extreme IX, cut into profits.
The company raised $218 million to support its expansion plans during the half.
Excluding acquisition costs during the period of $15.8 million, the underlying net loss for the year was $3.3 million.
You might like
Shares in the company have also tumbled by 4.39 per cent on the release of its financial statements to the stock market.
Reid welcomed the “record performance” of the company, which today also raised the lower end of its original revenue guidance.
“Our team delivered an outstanding first half performance, demonstrating the strength and resilience of the underlying business,” Reid said.
“Importantly, we achieved this while completing two strategic acquisitions and executing a successful capital raise.
Stay informed, daily
“These initiatives extend our platform into adjacent markets and position Megaport for accelerated growth.”
Megaport’s recurring revenue growth in the Americas was up 24 per cent, the company said.
“We are also seeing strong adoption of our newer products, alongside a clear shift toward larger bandwidth commitments, more complex global routes, and longer-term contracts,” Reid said.
Latitude.sh has now been integrated into Megaport, which Reid said was “accelerating our vision of a global platform where network and compute converge”.
“This is the logical extension of what we’ve always done: automating infrastructure to power the cloud, AI and data centre ecosystems,” he said.
“By combining private, on-demand connectivity with high-performance, optimised compute, we’re enabling customers to deploy and scale critical workloads anywhere in the world, instantly.”
The company anticipates delivering between $302 million and $317 million of revenue in the full year.
The updated guidance reflects the “strategic expansion of the group” through the two acquisitions.
