EQUINIX INC (EQIX) Q1 2025 Earnings Summary

Executive Summary

EQIX delivered Q1 2025 revenues of $2.225B (+5% YoY as-reported; +8% normalized ex power pass-through), adjusted EBITDA $1.067B (48% margin), AFFO $947M, and diluted EPS $3.50; management raised FY25 guidance across revenues, adjusted EBITDA, AFFO and AFFO per share .
Versus Wall Street: EPS beat (actual $3.50 vs S&P Global consensus $2.99), revenue was roughly in line/slightly below (actual $2.225B vs consensus $2.230B); adjusted EBITDA was above company guidance, while standard EBITDA (SPGI definition) differs from EQIX’s non-GAAP adjusted EBITDA framework, creating a mixed comparison* *.
Bookings outperformed expectations with firm pricing; CFO reiterated margin expansion trajectory, targeting exit-year adjusted EBITDA margins at or near 50%, supporting multiple expansion narratives .
Catalyst: Broad-based AI demand (NVIDIA “Instant AI Factory” program, Groq scaling), robust interconnection adds (+3,900 net) and raised guidance; near-term headwind is lower non-recurring revenues in Q2 due to xScale fit-out completion .

What Went Well and What Went Wrong

What Went Well

Raised FY25 guidance: Revenues to $9.175–$9.275B (+$142M), adjusted EBITDA to $4.471–$4.551B (+$85M), AFFO to $3.675–$3.755B (+$69M), AFFO/share to $37.36–$38.17 (+$0.67) .
Operating leverage and execution: Adjusted EBITDA $1.067B at 48% margin, above the top-end of guidance on strong gross profit and lower SG&A .
AI momentum and interconnection strength: Partnerships with NVIDIA (first to offer DGX GB300/GB300 systems globally), Groq scaling; net +3,900 interconnections in Q1 .
Quote: “We delivered a strong start to the year, exceeding our expectations for both bookings and financial performance…we raised our guidance across our key financial metrics” — Adaire Fox‑Martin .
Quote: “We expect to exit the year at or near the 50% adjusted EBITDA level” — CFO Keith Taylor .

What Went Wrong

Non-recurring revenue normalization in Q2: Sequential decline (~$38M) expected as xScale fit-out activity completes in Q1, making Q2 more “pure” operationally .
EMEA softness and churn: MRR churn was 2.4% with large anticipated churn events (Amsterdam, London; Singapore) and unanticipated bankruptcies impacting EMEA cabinet additions .
Capacity constraints and delivery timing risks: Company working to accelerate capacity (NY3, DC16, LD14) and manage dense cabinet demand; delivery schedule shifts (more cabinets in Q4) require pre-leasing discipline .

Financial Results

Headline P&L and Margins

Metric	Q1 2024	Q4 2024	Q1 2025
Revenues ($USD Billions)	$2.127	$2.261	$2.225
Operating Income ($USD Millions)	$364	$103	$458
Net Income ($USD Millions)	$231	$(14)	$343
Diluted EPS ($USD)	$2.43	$(0.14)	$3.50
Adjusted EBITDA ($USD Billions)	$0.992	$1.021	$1.067
Adjusted EBITDA Margin (%)	47%	45%	48%

Estimates vs Actuals (S&P Global)

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Primary EPS ($)	2.99*	3.50	Beat
Revenue ($USD Billions)	2.230*	2.225	In line/slight miss
EBITDA ($USD Billions)	1.042*	1.067 (Adjusted EBITDA, company-reported)	Framework differs (see note)

Note: SPGI “EBITDA” reflects standard EBITDA, while EQIX reports “Adjusted EBITDA” (adds back SBC, restructuring, etc.). Use care comparing these frameworks; EQIX’s adjusted EBITDA exceeded its guidance, even as standard EBITDA comparisons may differ*.

Values retrieved from S&P Global.*

Geographic Revenue Breakdown

Region Revenues ($USD Billions)	Q1 2024	Q4 2024	Q1 2025
Americas	$0.939	$0.999	$1.001
EMEA	$0.727	$0.776	$0.743
Asia-Pacific	$0.461	$0.486	$0.481
Total	$2.127	$2.261	$2.225

KPIs

KPI	Q1 2025
Net interconnection adds	+3,900
Total interconnections	~486,000
MRR churn	2.4% (incl. large anticipated churn events)
MRR per cabinet yield YoY	+$113 per year on CC basis (+5%)
Recurring revenue underlying step-up	$27M QoQ (underlying)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenues ($B)	FY 2025	$9.033–$9.133	$9.175–$9.275	Raised
Adjusted EBITDA ($B)	FY 2025	$4.386–$4.466 (∼49%)	$4.471–$4.551 (∼49%)	Raised
AFFO ($B)	FY 2025	$3.606–$3.686	$3.675–$3.755	Raised
AFFO/share ($)	FY 2025	$36.69–$37.51	$37.36–$38.17	Raised
Non-recurring Capex ($B)	FY 2025	$2.985–$3.215	$3.168–$3.398	Raised
Recurring Capex ($MM, % of rev)	FY 2025	$237–$257 (~3%)	$258–$278 (~3%)	Raised
Expected Cash Dividends ($MM)	FY 2025	~$1,835	~$1,836	Raised (modest)
Revenues ($B)	Q2 2025	N/A	$2.244–$2.264	New
Adjusted EBITDA ($B)	Q2 2025	N/A	$1.095–$1.115 (∼49%)	New
Recurring Capex ($MM)	Q2 2025	N/A	$49–$69	New
Dividend declared ($/share)	Q2 pay date	N/A	$4.69 (pay 6/18/25)	Announced

Bridge commentary: FY25 raises driven by FX benefit (+$135M rev, +$78M adj. EBITDA, +$52M AFFO) and better-than-expected Q1 underlying performance (+$7M rev, +$7M adj. EBITDA, +$17M AFFO) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
AI/technology initiatives	Announced >$15B U.S. xScale JV; strong AI bookings; opened new metros; interconnection growth	NVIDIA “Instant AI Factory” with DGX GB300/B300; Groq scaling; Block deploying DGX SuperPod; 50% of top 25 deals AI-related; liquid cooling deployments across 5 markets	Strengthening
Interconnection/product performance	Q3 net interconnect adds +5,700; Fabric port growth; 40 Tbps IX peak	Net +3,900 interconnections; strong Fabric Cloud Router adoption	Healthy/in line seasonality
Regional trends	Solid booking momentum; capacity easing in NY/Tokyo; APAC/Johannesburg opens	APAC recurring +8% YoY; Americas best net bookings; EMEA impacted by churn; pricing firm	Mixed (EMEA soft; APAC/Amers strong)
Capacity/supply and pricing	Accelerating builds; green bonds; cabinet deliveries across 2025–2026	Build Bolder: 56 projects in 33 metros; accelerating capacity in NY3/DC16/LD14; pricing premium amid constraints	Tight supply, proactive builds
Tariffs/macro	N/A in Q3 PR; Q4 macro noted (FX, energy costs)	Tariffs minimal direct impact but customer caution in certain industries; diversified base supports resilience	Watchful
Sustainability/green financing	Green bonds $5.6B cumulative by Q3; CDP “A List”	S$500M green bonds; first Japan PPA (30 MW)	Advancing
Governance/leadership	N/A	New CDIO Harmeen Mehta appointed to drive digital/innovation agenda	Organizational strength

Management Commentary

“Demand for our digital infrastructure and services remains robust…we raised our guidance across our key financial metrics.” — Adaire Fox‑Martin .
“We had healthy gross bookings…MRR churn…was lower than forecast…we expect to exit the year at or near the 50% adjusted EBITDA level.” — Keith Taylor .
“We continue to cultivate and win significant opportunities on the back of strong demand for both AI and the broader set of workloads associated with cloud services.” — Company business highlights .

Q&A Highlights

Recurring revenue step-up: Second-half acceleration driven by conversion of H2’24 and H1’25 bookings; cabinet net adds to continue despite EMEA churn and specific bankruptcies .
Interconnection demand: Net adds +3,900; demand follows new deployments and market entries; portfolio view with Fabric Cloud Router gains .
xScale JV/non-recurring revenue: U.S. JV progressing (Atlanta/Hampton campus); Q2 non-recurring revenue down ~~$38M as fit-out completes; SG&A investments (~~$40M in 2025) to support xScale .
Pricing and capacity: Firm pricing, premium achievable; accelerating capacity in constrained metros via Build Bolder .
Cabinet deliveries/pre-leasing: Q4 cabinet deliveries heavy; pre-sales occurring to secure compute/energy futures and underpin 2026 exit growth .

Estimates Context

Q1 2025 vs S&P Global: EPS beat ($3.50 vs $2.99*), revenue in line/slight miss ($2.225B vs $2.230B*). Standard EBITDA consensus 1.042B* vs company-adjusted EBITDA 1.067B (different frameworks); we expect sell-side models to reflect company’s adjusted EBITDA beat while normalizing non-recurring items *.
Q2 2025 outlook: Company guides revenue $2.244–$2.264B vs S&P Global revenue consensus $2.257B*; Adjusted EBITDA guide $1.095–$1.115B aligns to consensus trajectory, with FX benefit and lower non-recurring revenue noted .
Values retrieved from S&P Global.

Key Takeaways for Investors

Guidance raise across revenues, adjusted EBITDA, AFFO and AFFO/share, with FX tailwinds and better Q1 execution, supports upward estimate revisions and a stronger margin narrative for 2H25 .
Firm pricing and dense cabinet trends, plus accelerating capacity delivery in key metros, mitigate supply constraints and underpin recurring revenue step-ups .
AI remains a multi-year growth vector: NVIDIA program and Groq scaling illustrate EQIX’s role across training/inferencing; expect continued AI-led bookings with distributed inferencing opportunities (edge, data residency) .
Interconnection strength is intact, with net adds and Fabric adoption sustaining high-margin revenue mix; watch EMEA churn normalization .
Near-term Q2 optics: More “pure” quarter as non-recurring revenue declines with xScale fit-out completion; underlying recurring growth and FX benefit partly offset headline deceleration .
Balance sheet flexibility: Green bond issuance (S$500M), ATM equity, and investment-grade credit underpin Build Bolder investments and dividend continuity (declared $4.69/share) .
Risk monitoring: Tariff-related uncertainty for customers in select industries, EMEA churn dynamics, and delivery timing are key watch items; diversified exposure and strong pipelines provide resilience .

Additional detail and source tables:

Consolidated financial statements, cash flow, debt summaries, and non-GAAP reconciliations are provided in EQIX’s Q1 2025 press release and 8-K, with regional revenue details and margin metrics .
Prior quarter benchmarks (Q3/Q4 2024) for trend analysis and guidance context are captured in the respective press releases .