Part I [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Equinix's unaudited financial statements for H1 2025 reflect increased revenues, net income, assets, and robust operating cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased by June 30, 2025, primarily due to property, plant, and equipment, with liabilities also rising from new senior notes Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$38,849** | **$35,085** | | Cash and cash equivalents | $3,660 | $3,081 | | Property, plant and equipment, net | $21,207 | $19,249 | | Goodwill | $5,982 | $5,504 | | **Total Liabilities** | **$24,742** | **$21,533** | | Senior notes (current & non-current) | $17,219 | $14,562 | | **Total Stockholders' Equity** | **$14,082** | **$13,527** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues and net income increased year-over-year for both the three and six-month periods ended June 30, 2025 Statement of Operations Summary (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$2,256** | **$2,159** | **$4,481** | **$4,286** | | Income from operations | $494 | $436 | $952 | $800 | | **Net income** | **$367** | **$301** | **$710** | **$532** | | Diluted EPS | $3.75 | $3.16 | $7.26 | $5.59 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income significantly increased in Q2 and H1 2025, primarily driven by favorable foreign currency translation adjustments Comprehensive Income (Loss) Summary (in millions) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $367 | $301 | $710 | $532 | | CTA gain (loss), net of tax | $505 | $(78) | $824 | $(436) | | **Comprehensive income** | **$527** | **$258** | **$1,046** | **$281** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased, while investing activities used more cash, and financing activities provided a significant source of funds Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,753 | $1,510 | | Net cash used in investing activities | $(2,404) | $(1,461) | | Net cash provided by (used in) financing activities | $1,206 | $(103) | | **Net increase (decrease) in cash** | **$608** | **$(100)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, financial results, including acquisitions, joint ventures, debt issuance, restructuring, and regional revenue growth - On June 2, 2025, Equinix acquired TIM NextGen DC Corporation in the Philippines for **$183 million**, adding three data centers and recognizing **$127 million** in goodwill[38](index=38&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - The company has significant investments in xScale data center joint ventures, with its maximum exposure to loss related to VIE Joint Ventures totaling **$1.21 billion** as of June 30, 2025[46](index=46&type=chunk)[52](index=52&type=chunk) - In H1 2025, Equinix issued new senior notes, including **SGD500 million** due 2030, **€750 million** due 2029, and **€750 million** due 2034, increasing its total debt[85](index=85&type=chunk)[86](index=86&type=chunk) - The company initiated a wind-down of its Equinix Metal product, incurring **$10 million** in restructuring charges to date with up to **$4 million** more expected[122](index=122&type=chunk) - On July 30, 2025, the company declared a quarterly cash dividend of **$4.69** per share[129](index=129&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting revenue and Adjusted EBITDA growth driven by IBX expansions and strong customer demand, with robust liquidity Q2 2025 vs Q2 2024 Revenue Growth by Region (in millions) | Region | Q2 2025 Revenue | Q2 2024 Revenue | % Change (Actual) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Americas | $1,004 | $966 | 4% | 5% | | EMEA | $767 | $721 | 6% | 5% | | Asia-Pacific | $485 | $472 | 3% | 1% | | **Total** | **$2,256** | **$2,159** | **4%** | **4%** | H1 2025 vs H1 2024 Revenue Growth by Region (in millions) | Region | H1 2025 Revenue | H1 2024 Revenue | % Change (Actual) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | Americas | $2,005 | $1,905 | 5% | 7% | | EMEA | $1,510 | $1,448 | 4% | 4% | | Asia-Pacific | $966 | $933 | 4% | 4% | | **Total** | **$4,481** | **$4,286** | **5%** | **5%** | Adjusted EBITDA Growth (in millions) | Period | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $1,129 | $1,036 | 9% | $2,196 | $2,028 | 8% | - The company's liquidity as of June 30, 2025, consisted of **$4.5 billion** in cash, cash equivalents, and short-term investments, plus **$3.9 billion** available from its revolving credit facility[254](index=254&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency and interest rates, with hedging programs mitigating currency exposure and low interest rate risk due to fixed-rate debt - The company uses cash flow, balance sheet, and net investment hedging programs to reduce, but not eliminate, the impact of currency exchange rate movements[268](index=268&type=chunk) - A hypothetical **10%** strengthening of the U.S. dollar during H1 2025 would have decreased revenues by **$136 million** and operating expenses by **$123 million**[272](index=272&type=chunk) - A hypothetical **10%** weakening of the U.S. dollar during H1 2025 would have increased revenues by **$178 million** and operating expenses by **$158 million**[273](index=273&type=chunk) - Interest rate risk is not considered material for interest expense, as the majority of the company's debt has a fixed coupon rate[274](index=274&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarterly period covered by the report[276](index=276&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[277](index=277&type=chunk) Part II [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) Equinix is involved in legal matters, including subpoenas from U.S. authorities and a resolved stockholder class action lawsuit, with related derivative suits dismissed - The company received a subpoena from the U.S. Attorney's Office for the Northern District of California on March 20, 2024, and another from the SEC on April 30, 2024. The company is cooperating with both agencies[281](index=281&type=chunk) - A putative stockholder class action filed in May 2024 was resolved through a Stipulation of Settlement on July 15, 2025, subject to court approval and expected to be fully covered by insurance[282](index=282&type=chunk) - Two shareholder derivative lawsuits filed in February 2025, with similar allegations to the class action, were voluntarily dismissed by the plaintiffs to pursue remedies under Delaware law[283](index=283&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks across macro-environmental, operational, financial, expansion, regulatory, and REIT-specific categories, including geopolitical instability, power costs, and cybersecurity [Risks Related to the Macro Environment](index=71&type=section&id=Risks%20Related%20to%20the%20Macro%20Environment) Macro-environmental risks include geopolitical instability, inflation, rising interest rates, and increased costs or insufficient access to power, particularly for AI-driven demands - Geopolitical events, including the Russia-Ukraine war and Middle East conflicts, contribute to a complex regulatory landscape and could negatively impact global business operations[286](index=286&type=chunk)[289](index=289&type=chunk)[299](index=299&type=chunk) - Inflation, increased interest rates, and adverse global economic conditions could negatively affect business by increasing operating costs and potentially decreasing customer sales[292](index=292&type=chunk) - The business is vulnerable to increased costs to procure power, prolonged power outages, and insufficient access to power, which could harm operations and limit growth, particularly with the increasing power demands of AI[294](index=294&type=chunk)[296](index=296&type=chunk) [Risks Related to our Operations](index=74&type=section&id=Risks%20Related%20to%20our%20Operations) Operational risks encompass cybersecurity breaches, infrastructure failures, IT system disruptions, personnel challenges, and capacity limitations in older data centers due to high-power density equipment - The company has experienced cybersecurity incidents and remains vulnerable to future breaches, which could disrupt operations and cause material adverse effects[306](index=306&type=chunk) - Failure of physical infrastructure, whether owned or leased, could lead to service interruptions, significant costs, and reputational damage[309](index=309&type=chunk) - Significant ongoing investments in back-office IT systems present risks of disruption to normal operations, which could adversely affect business and financial results[314](index=314&type=chunk) - The increasing use of high-power density equipment, driven by technologies like AI, may strain the power capacity of older IBX data centers, limiting the ability to fully utilize space[323](index=323&type=chunk) [Risks Related to our Offerings and Customers](index=79&type=section&id=Risks%20Related%20to%20our%20Offerings%20and%20Customers) Risks include long sales cycles, intense competition, customer shifts to cloud solutions, and the need to develop new offerings for evolving customer needs, especially for AI - The company faces a long sales cycle for its offerings, which can harm revenue and may be prolonged by market instability[327](index=327&type=chunk)[328](index=328&type=chunk) - The company operates in a highly fragmented and competitive market and faces pricing pressure and the risk of losing customers to competitors or full cloud infrastructure offerings[329](index=329&type=chunk)[330](index=330&type=chunk) - Success depends on the ability to develop new offerings that meet evolving customer requirements, such as for AI workloads, and to attract and retain a balanced customer base to drive interconnection revenues[332](index=332&type=chunk)[340](index=340&type=chunk) [Risks Related to our Financial Results](index=82&type=section&id=Risks%20Related%20to%20our%20Financial%20Results) Financial results face risks from stock price volatility, operational fluctuations due to capital expenditures and demand, and potential impairment charges on assets - The company's stock price has been and may continue to be highly volatile, influenced by market conditions, operational announcements, and speculation, including a recent short-seller report in March 2024[342](index=342&type=chunk)[344](index=344&type=chunk) - Results of operations may fluctuate due to various factors, including the timing of large expenses, demand for services, power costs, and economic conditions[347](index=347&type=chunk) - The company may incur significant non-cash impairment charges on goodwill, other intangible assets, or property, plant, and equipment, which could materially reduce earnings[349](index=349&type=chunk)[350](index=350&type=chunk) [Risks Related to Our Expansion Plans](index=84&type=section&id=Risks%20Related%20to%20Our%20Expansion%20Plans) Expansion plans face risks from construction delays, cost overruns, acquisition integration challenges, joint venture complexities, and international operational hurdles - Construction of new IBX data centers involves significant risks, including delays, cost overruns, supply chain disruptions, and permitting issues, which are currently being experienced[354](index=354&type=chunk)[360](index=360&type=chunk) - Acquisitions present numerous risks, including integration challenges, potential customer and employee loss, and failure to realize anticipated financial or strategic goals[363](index=363&type=chunk) - Joint venture investments, crucial for the xScale strategy, expose the company to risks of shared decision-making authority and reliance on partners whose interests may not align with Equinix's[369](index=369&type=chunk)[371](index=371&type=chunk) - Managing international operations and expansion plans is subject to risks including political/economic instability, regulatory changes, and currency fluctuations[373](index=373&type=chunk)[375](index=375&type=chunk) [Risks Related to Our Capital Needs and Capital Strategy](index=90&type=section&id=Risks%20Related%20to%20Our%20Capital%20Needs%20and%20Capital%20Strategy) Substantial debt could constrain cash flow and flexibility, potentially requiring additional capital raises that may dilute existing shareholders or limit expansion if financing is insufficient - As of June 30, 2025, the company has total indebtedness of approximately **$20.5 billion**, which could require dedicating substantial cash flow to debt service, reducing availability for other corporate purposes[378](index=378&type=chunk) - Future sales of common stock, including through the **$2.0 billion** 2024 ATM Program, may adversely affect the market price of the stock and dilute existing shareholders[382](index=382&type=chunk) - If operating cash flows or external financing are insufficient, the ability to fund incremental expansion plans may be limited, potentially requiring the company to curtail capital expenditures[383](index=383&type=chunk) [Risks Related to Environmental Laws and Climate Change](index=91&type=section&id=Risks%20Related%20to%20Environmental%20Laws%20and%20Climate%20Change) Environmental risks include compliance costs, physical climate change impacts on facilities, and pressures to meet sustainability objectives, with potential reputational harm if goals are not met - The company is subject to various environmental laws and regulations which may impose unexpected costs related to hazardous substance management and cleanup[385](index=385&type=chunk) - Physical risks from climate change, such as severe weather events, pose threats to data centers through physical damage and power disruptions[391](index=391&type=chunk) - The company has established sustainability objectives, including a goal of **100%** clean and renewable energy coverage. Failure to achieve these goals could adversely affect public perception and stakeholder relationships[393](index=393&type=chunk)[395](index=395&type=chunk) [Risks Related to Certain Regulations and Laws, Including Tax Laws](index=93&type=section&id=Risks%20Related%20to%20Certain%20Regulations%20and%20Laws,%20Including%20Tax%20Laws) Regulatory risks include evolving global regulations in areas like AI and data privacy, potential adverse impacts from changes in tax laws, and challenges in maintaining a complex global legal entity structure - Evolving government regulations in areas like AI, cybersecurity, data privacy, and sustainability could impose additional burdens and costs on the business[397](index=397&type=chunk)[398](index=398&type=chunk) - Changes in U.S. or foreign tax laws, including the OECD's Pillar Two global minimum tax framework, may adversely affect the company's tax liabilities and financial statements[404](index=404&type=chunk)[405](index=405&type=chunk) - The company's complex global legal entity structure, required for REIT compliance and other business purposes, is complex to maintain and poses legal and tax risks if controls fail[407](index=407&type=chunk)[408](index=408&type=chunk) [Risks Related to Our REIT Status in the U.S.](index=95&type=section&id=Risks%20Related%20to%20Our%20REIT%20Status%20in%20the%20U.S.) Maintaining REIT status is critical but complex, with risks including substantial tax liability upon disqualification, distribution requirements limiting growth funding, and limitations on Taxable REIT Subsidiaries - Failure to remain qualified for taxation as a REIT would subject the company to substantial corporate income tax and prevent re-electing REIT status for five years[409](index=409&type=chunk)[410](index=410&type=chunk) - The requirement to distribute at least **90%** of REIT taxable income annually could limit the ability to fund future capital needs from operating cash flow[411](index=411&type=chunk)[415](index=415&type=chunk) - The value of securities in Taxable REIT Subsidiaries (TRSs) cannot exceed **20%** of total assets (**25%** from 2026), a rule that limits investments in non-REIT qualifying operations and could be breached, risking REIT status[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) Executive officers adopted Rule 10b5-1 trading plans during Q2 2025 for managing company stock sales in compliance with insider trading regulations - During Q2 2025, CEO Adaire Fox-Martin, CFO Keith Taylor, and other executive officers adopted Rule 10b5-1 trading plans for future sales of company stock[437](index=437&type=chunk)[438](index=438&type=chunk) [Item 6. Exhibits](index=102&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including debt instruments, corporate governance documents, compensation plans, and CEO/CFO certifications - The filing includes numerous exhibits detailing debt instruments, such as supplemental indentures for various Euro, Swiss Franc, and Singapore Dollar senior notes issued in 2024 and 2025[443](index=443&type=chunk) - Management contracts and compensation plans are filed as exhibits, including severance agreements and forms of restricted stock unit agreements for executive officers[445](index=445&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[446](index=446&type=chunk)

[Equinix Q2 2025 Earnings Release](index=1&type=section&id=Equinix%20Q2%202025%20Earnings%20Release) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Equinix reported strong Q2 2025 results with robust bookings and significant operating leverage, leading to an upward revision of its full-year financial guidance across all key metrics. - CEO Adaire Fox-Martin highlighted a **strong first half**, **robust bookings**, and **strong financial results**, expressing confidence in the company's trajectory and market position due to its diverse ecosystems, interconnection capabilities, and global presence[2](index=2&type=chunk) - Key operational achievements in Q2 2025 include: - Closed **4,100 deals** across more than **3,300 customers** - Generated **$345 million** in annualized gross bookings - Added **6,200 net interconnections**, reaching a total of over **492,000**[3](index=3&type=chunk) Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenues | $2.256 billion | +4% | | Operating Income | $494 million | +13% | | Net Income | $368 million | +22% | | Diluted EPS | $3.75 | +19% | | Adjusted EBITDA | $1.129 billion | +9% | | AFFO | $972 million | +11% | | AFFO per Share | $9.91 | +7% | Raised 2025 Annual Guidance Summary | Metric | Revised FY 2025 Guidance | | :--- | :--- | | Revenues | $9.233 - $9.333 billion | | Adjusted EBITDA | $4.517 - $4.597 billion | | AFFO | $3.703 - $3.783 billion | | AFFO per Share | $37.67 - $38.48 | [Business Highlights](index=3&type=section&id=Business%20Highlights) The company is expanding globally with 59 major projects, including 12 xScale projects, to meet rising demand, particularly for AI and multi-cloud infrastructure. - Equinix has **59 major projects** underway in **34 metros** across **25 countries**, including **9 new projects** started in Q2, and completed its acquisition of three data centers in Manila, Philippines[9](index=9&type=chunk) - Demand for AI, hybrid and multi-cloud infrastructure is fueling customer wins, including: - **Hyundai Motor Group**: Deployed a private-cloud platform for its connected-car ecosystem - **EssilorLuxottica**: Chose Equinix for operational efficiency and global expansion - **Groq & Lyceum**: Expanded AI deployments, leveraging Equinix Fabric for connectivity - **Zetaris**: Collaborating to accelerate agentic AI innovation[9](index=9&type=chunk)[10](index=10&type=chunk) - Interconnection revenues exceeded **$400 million** for the first time, a **9% YoY increase**, with **6,200 net interconnections** added in Q2, reaching a total of over **492,000**, and Equinix Fabric provisioned capacity now exceeds **100 terabits**[10](index=10&type=chunk) - Key leadership appointments were made to strengthen the global team: - **Shane Paladin** joined as Executive Vice President and Chief Customer and Revenue Officer - **Arquelle Shaw** was appointed President, Americas[10](index=10&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) Equinix raised its full-year 2025 guidance for revenues, Adjusted EBITDA, and AFFO, citing strong Q2 performance and favorable foreign currency movements. Q3 2025 Guidance | Metric | Q3 2025 Guidance | | :--- | :--- | | Revenues | $2.314 - $2.334 billion | | Adjusted EBITDA | $1.139 - $1.159 billion | | Recurring Capital Expenditures | $70 - $90 million | Full Year 2025 Guidance Update (in millions) | Metric | Prior Guidance | Revised Guidance | Change | | :--- | :--- | :--- | :--- | | Revenues | $9,175 - 9,275 | $9,233 - 9,333 | +$58 | | Adjusted EBITDA | $4,471 - 4,551 | $4,517 - 4,597 | +$46 | | AFFO | $3,675 - 3,755 | $3,703 - 3,783 | +$28 | | Non-recurring CapEx | $3,168 - 3,398 | $3,520 - 4,000 | +$449 | - The **$58 million** revenue guidance increase is driven by a **$53 million** foreign currency benefit and a **$5 million** impact from an acquisition, with Adjusted EBITDA and AFFO increases due to strong Q2 operating performance and FX benefits[12](index=12&type=chunk) - Total capital expenditures for 2025 are expected to be **$3.792 - $4.292 billion**, including a significant increase in non-recurring CapEx which incorporates approximately **$450 million** for on-balance-sheet xScale-related spend[13](index=13&type=chunk) [Financial Statements](index=13&type=section&id=Financial%20Statements) This section provides the detailed, unaudited consolidated financial statements for the period ended June 30, 2025, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows, along with non-GAAP reconciliations and supplemental data. [Condensed Consolidated Statements of Operations](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenues grew to $2.256 billion from $2.159 billion in Q2 2024. Net income attributable to common stockholders increased by 22.3% year-over-year to $368 million, resulting in a diluted EPS of $3.75. Q2 2025 Statement of Operations Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $2,256 | $2,159 | +4.5% | | Gross Profit | $1,172 | $1,077 | +8.8% | | Income from Operations | $494 | $436 | +13.3% | | Net Income Attributable to Common Stockholders | $368 | $301 | +22.3% | | Diluted EPS | $3.75 | $3.16 | +18.7% | [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $38.8 billion from $35.1 billion at year-end 2024. This was driven by increases in property, plant and equipment, and cash. Balance Sheet Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $6,550 | $5,447 | | Property, Plant and Equipment, net | $21,207 | $19,249 | | **Total Assets** | **$38,849** | **$35,085** | | Total Current Liabilities | $4,241 | $3,349 | | Total Liabilities | $24,742 | $21,533 | | **Total Stockholders' Equity** | **$14,082** | **$13,527** | [Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $1.753 billion. Net cash used in investing activities was $2.854 billion, largely for property and equipment purchases. Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,753 | $1,510 | | Net Cash used in Investing Activities | $(2,854) | $(1,461) | | Net Cash from (used in) Financing Activities | $1,206 | $(103) | | Net Increase (Decrease) in Cash | $158 | $(100) | [Non-GAAP Measures and Other Supplemental Data](index=18&type=section&id=Non-GAAP%20Measures%20and%20Other%20Supplemental%20Data) This section details non-GAAP financial metrics. For Q2 2025, Adjusted EBITDA was $1.129 billion with a 50% margin, and AFFO was $972 million. Q2 2025 Non-GAAP Financial Metrics (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $1,129 | $1,036 | +9.0% | | Adjusted EBITDA Margin | 50% | 48% | +200 bps | | AFFO | $972 | $877 | +10.8% | | Diluted AFFO per Share | $9.91 | $9.22 | +7.5% | Q2 2025 Revenues by Geography (in millions) | Region | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $1,004 | $966 | +4.0% | | EMEA | $767 | $721 | +6.4% | | Asia-Pacific | $485 | $472 | +2.8% | | **Total** | **$2,256** | **$2,159** | **+4.5%** | Q2 2025 Revenues by Service (in millions) | Service | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Colocation | $1,585 | $1,500 | +5.7% | | Interconnection | $407 | $374 | +8.8% | | Managed Infrastructure | $117 | $116 | +0.9% | [Important Information](index=6&type=section&id=Important%20Information) This section provides logistical details for the investor conference call, defines the non-GAAP financial measures used throughout the report, and includes the standard forward-looking statements disclaimer outlining potential risks. [Conference Call and Additional Resources](index=6&type=section&id=Conference%20Call%20and%20Additional%20Resources) Provides details for the Q2 2025 results conference call held on July 30, 2025, including dial-in information, replay availability, and a link to the investor relations website for supplemental materials. - The conference call to discuss Q2 2025 results is scheduled for Wednesday, July 30, 2025, at 5:30 PM ET, with a live webcast and replay available on the company's investor relations website[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Equinix explains its use of non-GAAP measures like Adjusted EBITDA, FFO, and AFFO to provide a clearer view of its ongoing operating performance by excluding items like depreciation, amortization, and certain non-recurring charges. - Equinix uses non-GAAP measures to evaluate its operations, believing they provide a better view of ongoing performance by excluding items that are not good indicators of current or future operations[21](index=21&type=chunk)[24](index=24&type=chunk) - Adjusted EBITDA is defined as net income excluding items such as income tax expense, interest, depreciation, amortization, stock-based compensation expense, restructuring charges, and transaction costs[23](index=23&type=chunk) - FFO and AFFO are presented as supplemental performance measures common in the REIT industry to offer a perspective on underlying operating performance when compared to other REIT companies[29](index=29&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section contains a standard legal disclaimer warning that actual results may differ from the forward-looking statements in the press release due to various risks and uncertainties, such as inflation, currency fluctuations, and challenges in building and operating data centers. - The press release contains forward-looking statements that are subject to risks and uncertainties, with factors that could cause results to differ materially including inflation, foreign currency fluctuations, competition, and risks related to the company's taxation as a REIT[37](index=37&type=chunk)

Core Insights - Equinix reported strong financial results for the second quarter of 2025, indicating robust bookings and a positive trajectory for the company [2][3][5] Financial Performance - Revenues reached $2.256 billion, a 4% increase year-over-year, or a 5% increase on a normalized and constant currency basis [6] - Operating income was $494 million, with an operating margin of 22%, reflecting a 13% increase from the previous year [6] - Net income attributable to common stockholders was $368 million, a 22% increase year-over-year, translating to $3.75 per share, a 19% increase [6] - Adjusted EBITDA was $1.129 billion, with a margin of 50%, representing a 9% increase year-over-year [6] - Annualized gross bookings totaled $345 million, with 4,100 deals closed across more than 3,300 customers [5] Guidance and Outlook - The company raised its annual revenue guidance to a range of $9.233 to $9.333 billion, reflecting a 6-7% increase year-over-year [12] - Adjusted EBITDA guidance was raised to $4.517 to $4.597 billion, maintaining an adjusted EBITDA margin of approximately 49% [12] - AFFO is expected to range between $3.703 and $3.783 billion, indicating a 10-13% increase year-over-year [12] Business Highlights - Equinix is actively engaged in 59 major projects across 34 metros in 25 countries, including 12 xScale projects [10] - The company completed the acquisition of three data centers in Manila, enhancing its presence in Southeast Asia [10] - Equinix's interconnection revenues surpassed $400 million for the first time, with a year-over-year increase of 9% [10] - The company added 6,200 net interconnections in Q2 2025, bringing the total to over 492,000 [5][10] Strategic Initiatives - Partnerships with major companies like Hyundai Motor Group and EssilorLuxottica highlight Equinix's role in supporting digital infrastructure and operational efficiency [10] - The company continues to focus on AI, hybrid and multi-cloud solutions, driving demand for its services [10]

Core Viewpoint - Equinix, Inc. (EQIX) is expected to report second-quarter 2025 results on July 30, with anticipated revenue growth but a potential decline in adjusted funds from operations (AFFO) per share [1][9]. Financial Performance - In the previous quarter, Equinix reported an AFFO of $9.67 per share, exceeding the Zacks Consensus Estimate of $8.96 per share, driven by increased revenues from strong demand for digital infrastructure [2]. - Over the last four quarters, EQIX's AFFO per share surpassed consensus estimates three times, with an average beat of 3.6% [2]. Demand Drivers - The company is likely to benefit from robust demand for interconnected data center infrastructure, fueled by enterprises' and service providers' integration of artificial intelligence (AI) and digital transformation efforts [3]. - Strong demand for Equinix's interconnected ecosystem is supported by accelerated enterprise cloud adoption and increasing customer needs for interconnected data center space [4]. Revenue Projections - The Zacks Consensus Estimate for colocation revenues is $1.57 billion, reflecting a 4.6% increase from $1.50 billion in the prior-year period, while interconnection revenues are estimated at $398.9 million, indicating a 6.7% growth from $374 million [5]. - Equinix projects revenues between $2.244 billion and $2.264 billion for Q2 2025, with a consensus estimate of $2.26 billion, representing a 4.5% year-over-year increase [6]. Cost Considerations - High interest expenses are expected to impact the company's quarterly performance, with an estimated year-over-year increase of 12.6% for interest expenses [7]. - The Zacks Consensus Estimate for quarterly AFFO per share has been revised down by one cent to $9.19, indicating a 0.3% decrease from the prior-year quarter [7]. Earnings Prediction - Despite anticipated revenue growth, EQIX's AFFO per share may decline by 0.3% due to rising interest expenses [9]. - The current Earnings ESP for Equinix is -1.20%, and it holds a Zacks Rank of 4 (Sell), suggesting limited potential for an AFFO surprise this quarter [10].

Core Viewpoint - Equinix (EQIX) is expected to report quarterly earnings of $9.19 per share, a slight decline of 0.3% year-over-year, with revenues projected at $2.26 billion, reflecting a 4.5% increase compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 0.4%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Forecasts - Analysts predict 'Revenue- Non-recurring revenues' to be $122.85 million, a decrease of 9% from the prior-year quarter [5]. - 'Revenue- Recurring revenues' is expected to reach $2.13 billion, indicating a year-over-year increase of 5.3% [5]. - 'Revenue- Recurring revenues- Managed infrastructure' is forecasted at $117.36 million, reflecting a 1.2% increase year-over-year [5]. - 'Revenue- Recurring revenues- Colocation' is estimated at $1.57 billion, showing a 4.6% increase year-over-year [6]. Geographic Revenue Projections - 'Geographic Revenues- Asia-Pacific' is projected to be $499.59 million, a 5.8% increase year-over-year [6]. - 'Geographic Revenues- Americas' is expected to reach $1.00 billion, reflecting a 3.9% increase year-over-year [6]. - 'Geographic Revenues- EMEA' is estimated at $752.69 million, indicating a 4.4% increase from the previous year [7]. Capacity and Pricing Metrics - 'EMEA - Cabinet Equivalent Capacity' is predicted to be 139,013, up from 134,100 year-over-year [7]. - 'Asia-Pacific - Cabinet Equivalent Capacity' is expected to reach 90,138, compared to 80,500 last year [8]. - 'EMEA - Weighted average price per cabinet (MRR per cabinet)' is forecasted at $2,216.59, up from $1,890.00 in the same quarter last year [8]. - 'Asia-Pacific - Weighted average price per cabinet (MRR per cabinet)' is projected to be $2,214.71, compared to $2,108.00 in the same quarter last year [9]. Stock Performance - Equinix shares have increased by 5.9% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.6% [9].

Investment & Stake - Elliott Investment Management has increased its stake in Equinix [1] - Elliott is urging Equinix to implement measures to increase its share price [1] Company Strategy - Equinix is being pressured to take actions aimed at boosting its stock value [1]

Company Overview - Equinix, Inc. has appointed Arquelle Shaw as President, Americas, effective immediately, responsible for management, strategy, and growth in the Americas region [1][2] - The company focuses on shortening the path for customers and partners to leverage digital innovation and global connectivity [1] Leadership and Experience - Arquelle Shaw brings over two decades of experience in enterprise technology, sales, and business transformation to her new role [2] - She previously served as SVP, Sales, Americas, for six years and will continue in this capacity until the end of Q3 to ensure a smooth transition [2] - Shaw has held senior roles at Accenture, American Express, and AT&T before joining Equinix in 2019 [3] Strategic Vision - Jon Lin, Chief Business Officer, highlighted Shaw's ability to align global strategy with regional nuances and her track record of driving transformational growth [3] - Shaw expressed her commitment to advancing customers' digital transformation journeys and accelerating innovation in the Americas [3] - The company aims to shape the digital future with greater ambition, leveraging the strength of its exceptional team [3] Company Mission - Equinix aims to empower innovations that enhance work, life, and the planet through its digital infrastructure and interconnected ecosystems [4] - The company connects economies, countries, organizations, and communities to deliver seamless digital experiences and cutting-edge AI solutions [4]

Core Insights - Green bond issuance by US equity real estate investment trusts (REITs) decreased in the first half of 2025 according to an analysis by S&P Global Market Intelligence [2] - Equinix Inc. (EQIX), a datacenter REIT, was the only issuer of green bonds during this period [2]

Core Insights - Accelsius will deploy its NeuCool™ IR80 system at Equinix's Co-Innovation Facility in Q3 2025, enhancing data center cooling solutions [1] - The collaboration aims to demonstrate technology in real-world scenarios, making it tangible for customers [2] - Accelsius' two-phase, direct-to-chip cooling solution allows for warmer inlet water temperatures, leading to energy efficiency and reduced reliance on compressors [2] - The partnership is part of ARPA-E's COOLERCHIPS program, targeting a reduction of cooling energy use to below 5% of a data center's IT load [2] - Accelsius' cooling system is designed to protect valuable assets like GPUs, using a non-conductive dielectric fluid [3] Company Overview - Accelsius, founded by Innventure, Inc. (NASDAQ:INV), focuses on advanced cooling solutions for data centers and edge operators [4] - The NeuCool platform offers thermal efficiencies through a safe, two-phase liquid cooling system scalable from single racks to entire data centers [4]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the transition from financial struggle to freedom within a six-year period [2]. Group 1: Financial Independence Journey - The individual began blogging in 2011 about achieving financial independence by living below means and investing wisely [2]. - Achieved financial freedom by age 33 after starting from a position of being "below broke" at age 27 [2]. Group 2: Investment Focus - The content created focuses on dividend growth investing, emphasizing the importance of living off dividends and identifying undervalued high-quality dividend growth stocks [2]. - The strategy includes exploring high-yield investment opportunities and other long-term investment prospects [2].