Equinix(US:EQIX)2025-10-29 20:11Financial Performance - Record annualized gross bookings of $394 million, up 25% year over year and 14% over Q2 2025[3] - Revenues reached $2.316 billion, a 5% increase year over year, with a significant quarter-over-quarter increase in recurring revenues[9] - Adjusted EBITDA of $1.148 billion, representing a 10% increase year over year, with an adjusted EBITDA margin of 50%[5] - Net income attributable to common stockholders was $374 million, a 26% increase year over year, with net income per share at $3.81, a 23% increase[9] - Equinix reported recurring revenues of $2,215 million for the three months ended September 30, 2025, an increase from $2,059 million in the same period last year, representing a growth of 7.6%[40] - The company's total revenues for the nine months ended September 30, 2025, reached $6,797 million, compared to $6,487 million for the same period in 2024, reflecting a year-over-year increase of 4.8%[40] - Net income for the nine months ended September 30, 2025, increased to $1,084 million, up from $828 million in the same period of 2024, representing a growth of 31%[46] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,344 million, up from $3,076 million in 2024, indicating an 8.7% increase[49] - Net income for the three months ended September 30, 2025, was $374 million, compared to $367 million in the previous quarter and $296 million in the same quarter last year, reflecting a year-over-year increase of 26.4%[57] Future Guidance - For Q4 2025, Equinix expects revenues between $2.411 and $2.531 billion, reflecting a 7% increase at the midpoint over the previous quarter[14] - Full-year 2025 revenue guidance is set between $9.208 and $9.328 billion, an increase of approximately 5-7% year over year[15] - AFFO is expected to range between $3.731 and $3.811 billion, an increase of 11-14% year over year[16] Operational Highlights - Equinix plans to double its data center capacity by 2029, with total developable capacity reaching approximately 3 gigawatts[10] - The company added 7,100 net physical and virtual connections in Q3, with interconnection revenues growing to $422 million, a 10% year-over-year increase[11] - Equinix's Distributed AI infrastructure solution was unveiled, optimizing infrastructure for AI workloads across 273 data centers in 77 markets[11] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended September 30, 2025, were $2,767 million, compared to $2,268 million for the same period in 2024, reflecting a 22% increase[46] - Free cash flow for the nine months ended September 30, 2025, was $(970) million, compared to $(493) million in 2024, showing a decline in cash generation[47] - Total cash operating expenses for the nine months ended September 30, 2025, were $1,267 million, compared to $1,249 million in 2024, reflecting a slight increase of 1.4%[49] - The company reported cash gross margins of 68% for the nine months ended September 30, 2025, consistent with the 67% margin reported in 2024[49] - The company reported a cash general and administrative expense of $272 million for the three months ended September 30, 2025, down from $274 million in the previous quarter[54] Balance Sheet - Equinix's total assets increased to $38,060 million as of September 30, 2025, compared to $35,085 million at the end of 2024, representing an increase of 8.4%[42] - The total liabilities of Equinix stood at $23,880 million as of September 30, 2025, up from $21,533 million at the end of 2024, reflecting a growth of 10.9%[42] - Total debt principal outstanding as of September 30, 2025, was $19,625 million, an increase of 11.4% from $17,609 million as of December 31, 2024[44] - The company’s total mortgage and loans payable principal increased to $704 million as of September 30, 2025, from $649 million as of December 31, 2024, marking an 8.5% increase[44] Workforce and Risks - Equinix's headcount increased to 13,853 as of September 30, 2025, compared to 13,606 at the end of 2024, indicating a growth in workforce[42] - The company highlighted risks related to inflation, foreign currency fluctuations, and competition as potential factors affecting future performance[37] Funds from Operations - FFO attributable to common stockholders for the three months ended September 30, 2025, was $707 million, up from $689 million in the previous quarter and $609 million year-over-year[58] - Basic FFO per share for the three months ended September 30, 2025, was $7.22, compared to $7.04 in the previous quarter and $6.38 in the same quarter last year[61] - AFFO attributable to common stockholders for the three months ended September 30, 2025, was $965 million, compared to $972 million in the previous quarter and $866 million year-over-year[59] Regional Performance - The Americas region contributed $489 million to adjusted EBITDA for the three months ended September 30, 2025, an increase from $466 million in the previous quarter[55] - The EMEA region's adjusted EBITDA was $384 million for the three months ended September 30, 2025, compared to $399 million in the previous quarter[55] - The Asia-Pacific region's adjusted EBITDA was $275 million for the three months ended September 30, 2025, up from $264 million in the previous quarter[55]