Megaport shares rebounded after initially plummeting nearly 20 per cent in early trading. At 10.38am AEST, the company’s shares were down 17.8 per cent to $12.17 due to concerns over higher operating expenses potentially impacting earnings, despite revenue growth. However, by 12.20pm AEST, the stock had recovered to be up 1.6 per cent at $15.08.
According to E&P analyst Paul Mason, Megaport’s chief executive, Michael Reid, worked to project a positive outlook. Mason noted that despite the stock’s initial drop, Reid maintained an optimistic tone, particularly during the Q&A session, even though the underlying outlook remained largely unchanged.
Megaport reported its FY25 results, revealing revenue of $227.1 million, surpassing E&P’s consensus estimate of $222.6 million. The company also reported an EBITDA of $62.3 million, slightly above consensus. According to Mason, the company addressed concerns about a material miss versus consensus EBITDA in FY26 by explaining discretionary investments, suggesting that margins could recover if these investments do not yield the expected results.
Megaport is a global Network as a Service provider. The company’s platform enables businesses to rapidly connect their network to services and other data centres across the world.
