Equinix(EQIX) - 2025 Q4 - Annual Results

Financial Performance - Q4 2025 monthly recurring revenue (MRR) increased by 10% year over year, with full-year MRR up 7% on an as-reported basis[3] - Annualized gross bookings reached a record $474 million in Q4, a 42% increase from the previous year, totaling $1.6 billion for 2025, up 27%[3] - Revenues for FY 2025 were $9.217 billion, a 5% increase year over year, with adjusted EBITDA of $4.530 billion, reflecting an adjusted EBITDA margin of 49%[8] - Net income attributable to common stockholders was $1.350 billion, a 66% increase from the previous year, resulting in net income per share of $13.76, a 62% increase[8] - For FY 2026, total revenues are expected to range between $10.123 and $10.223 billion, representing a 10-11% increase over the previous year[11] - Adjusted EBITDA for FY 2026 is projected to be between $5.141 and $5.221 billion, with an adjusted EBITDA margin of approximately 51%[11] - AFFO for FY 2026 is expected to range between $4.158 and $4.238 billion, an increase of 11-13% over the previous year[11] Cash and Dividends - The quarterly cash dividend was increased by 10% to $5.16 per share, marking the 11th consecutive year of dividend growth[3] - Cash flows from operating activities for the twelve months ended December 31, 2025, were $3,911 million, compared to $3,249 million in 2024, reflecting an increase of 20.4%[41] - Free cash flow for the twelve months ended December 31, 2025, was $(2,572) million, worsening from $(601) million in 2024[44] Revenue and Income Growth - Recurring revenues for the three months ended December 31, 2025, were $2,294 million, an increase from $2,215 million in the previous quarter and $2,091 million year-over-year[35] - Total revenues for the twelve months ended December 31, 2025, reached $9,217 million, compared to $8,748 million in 2024, reflecting a growth of 5.4%[35] - Net income from continuing operations for the twelve months ended December 31, 2025, was $1,348 million, up from $814 million in 2024, representing a year-over-year increase of 65.5%[35] - Total revenues for the twelve months ended December 31, 2025, reached $9,217 million, an increase from $8,748 million in 2024, representing a growth of 5.4%[44] - Recurring revenues for the twelve months ended December 31, 2025, were $8,739 million, up from $8,184 million in 2024, indicating a year-over-year increase of 6.8%[44] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $4,530 million, compared to $4,097 million in 2024, reflecting a growth of 10.6%[44] Assets and Liabilities - Total assets as of December 31, 2025, amounted to $40,141 million, compared to $35,085 million as of December 31, 2024, indicating a growth of 14.5%[37] - Total debt principal outstanding increased to $21,417 million as of December 31, 2025, from $17,609 million in 2024, marking a rise of 21.6%[39] - Total current liabilities as of December 31, 2025, were $3,893 million, an increase from $3,349 million in 2024, representing a growth of 16.3%[37] - The company’s total common stockholders' equity increased to $14,156 million as of December 31, 2025, from $13,528 million in 2024, a rise of 4.6%[37] Operational Metrics - Equinix closed over 4,500 deals in Q4, with approximately 60% driven by AI workloads, highlighting strong customer demand[13] - The company plans to deploy $15 billion of capital with its joint venture partners in major metros, starting with the Hampton, Georgia asset[14] - The total headcount as of December 31, 2025, was 13,716, up from 13,606 in 2024, indicating a growth in workforce[37] Earnings Per Share and Funds from Operations - The company reported a basic EPS of $2.70 for the three months ended December 31, 2025, compared to $3.82 in the previous quarter and a loss of $0.14 in the same quarter last year[35] - Funds from Operations (FFO) attributable to common stockholders for Q4 2025 was $625 million, down from $707 million in Q3 2025 and up from $302 million in Q4 2024, totaling $2,668 million for the full year 2025 compared to $2,061 million in 2024[51] - Adjusted Funds from Operations (AFFO) attributable to common stockholders for Q4 2025 was $877 million, down from $965 million in Q3 2025 and up from $770 million in Q4 2024, totaling $3,761 million for the full year 2025 compared to $3,356 million in 2024[53] - Basic FFO per share for the twelve months ended December 31, 2025, was $27.26, up from $21.59 in 2024, representing a significant increase of 26.3%[44] - Basic FFO per share for Q4 2025 was $6.36, down from $7.22 in Q3 2025 and up from $3.12 in Q4 2024, with a full year figure of $27.26 compared to $21.59 in 2024[54] Profitability Metrics - Cash gross profit for the twelve months ended December 31, 2025, was $6,258 million, an increase from $5,765 million in 2024, showing a growth of 8.6%[44] - Cash operating expenses for the twelve months ended December 31, 2025, totaled $1,728 million, compared to $1,668 million in 2024, marking an increase of 3.6%[44] - The company reported cash gross margins of 68% for the twelve months ended December 31, 2025, compared to 66% in 2024, indicating an improvement in profitability[44] - Cash gross margins were defined as cash gross profit divided by revenues, indicating a focus on profitability metrics[49] Depreciation and Impairment - Real estate depreciation for Q4 2025 was $349 million, up from $324 million in Q3 2025 and $309 million in Q4 2024, totaling $1,282 million for the full year 2025 compared to $1,239 million in 2024[50] - The company experienced impairment charges of $63 million in Q4 2025, compared to $4 million in Q3 2025 and $233 million in Q4 2024, indicating fluctuations in asset valuations[53]