EQUINIX INC (EQIX) Q2 2025 Earnings Summary

Executive Summary

Solid quarter with resilient top line and strong profitability: revenue $2.256B (+4% y/y), adjusted EBITDA $1.129B (50% margin), AFFO $972M; diluted EPS $3.75 (+19% y/y) .
Guidance raised across all key FY metrics (revenue, adjusted EBITDA, AFFO, AFFO/share); Q3 guidance implies sequential revenue growth and margins ~49–50% .
Results versus consensus: EPS beat ($3.75 vs $3.47*), revenue essentially in-line ($2.256B vs $2.257B*). Beat driven by operating leverage and lower-than-expected SG&A/taxes; non-recurring xScale-related fees were lower as planned . Values retrieved from S&P Global*.
Strategic and demand signals remain favorable: 4,100 deals; $345M annualized gross bookings; +6,200 net interconnections (total >492k); interconnection revenue crossed $400M for the first time . Guidance raise was supported by better Q2 operating performance and favorable FX .

What Went Well and What Went Wrong

What Went Well
- Operating leverage: adjusted EBITDA margin hit 50% (first time), above guidance top-end on strong operating performance and lower SG&A timing .
- Demand indicators: 4,100 deals across >3,300 customers, $345M annualized gross bookings; interconnections +6,200 (total >492k); interconnection revenue crossed $400M .
- Guidance raised across revenue, EBITDA, AFFO, AFFO/share; Q3 guide implies sequential growth and margins ~49–50% .
- Quote: “Our strategy is meeting the opportunity… we are confident in Equinix’s trajectory and… resilient market position.” — CEO Adaire Fox‑Martin .
What Went Wrong
- MRR churn slightly elevated at 2.6% (above range) due to the Edge EO bankruptcy; would have been ~2.4% absent this item .
- Non-recurring revenue softness: lower xScale fees in Q2 as expected; NRR remains lumpy with step-down in Q3 and step-up in Q4 .
- Capacity constraints still a gating factor in some Tier 1 metros; company is accelerating projects (Build Bolder) and pre-buying equipment to shorten RFS timelines .

Financial Results

Overall P&L and per-share metrics

Metric	Q2 2024	Q1 2025	Q2 2025	S&P Consensus (Q2 2025)
Revenue ($B)	$2.159	$2.225	$2.256	$2.257*
Diluted EPS (GAAP)	$3.16	$3.50	$3.75	$3.47*
Adjusted EBITDA ($B)	$1.036	$1.067	$1.129	—
Adjusted EBITDA Margin (%)	48%	48%	50%	—
AFFO ($B)	$0.877	$0.947	$0.972	—
AFFO per Share (Diluted)	$9.22	$9.67	$9.91	—

Values retrieved from S&P Global*.

Regional revenue mix ($B)

Region	Q2 2024	Q1 2025	Q2 2025
Americas	$0.966	$1.001	$1.004
EMEA	$0.721	$0.743	$0.767
Asia-Pacific	$0.472	$0.481	$0.485

Product revenue mix, worldwide ($B)

Product	Q2 2024	Q1 2025	Q2 2025
Colocation	$1.500	$1.545	$1.585
Interconnection	$0.374	$0.393	$0.407
Managed Infrastructure	$0.116	$0.115	$0.117
Other	$0.034	$0.034	$0.034

Key KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Net Interconnections Added	+6,000 (underlying)	+3,900	+6,200
Total Interconnections (EoP)	>482,000	>486,000	>492,000
MRR Churn (%)	2.5 (timing; normalized 2.2)	2.4	2.6 (affected by Edge EO bankruptcy)
Annualized Gross Bookings ($M)	—	—	345

Notes: Interconnection revenue crossed $400M for the first time in Q2 (as‑reported +9% y/y) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$9.175–$9.275B	$9.233–$9.333B	Raised
Adjusted EBITDA (Margin)	FY 2025	$4.471–$4.551B (~49%)	$4.517–$4.597B (~49%)	Raised
AFFO	FY 2025	$3.675–$3.755B	$3.703–$3.783B	Raised
AFFO per Share (Diluted)	FY 2025	$37.36–$38.17	$37.67–$38.48	Raised
Recurring Capex	FY 2025	$258–$278M (~3% rev)	$272–$292M (~3% rev)	Raised
Non‑recurring Capex (incl. xScale)	FY 2025	$3.168–$3.398B	$3.520–$4.000B	Raised (incl. ~$450M on‑balance sheet xScale)
Expected Cash Dividends	FY 2025	~$1.836B	~$1.836B	Maintained
Revenue	Q3 2025	—	$2.314–$2.334B	New
Adjusted EBITDA (Margin)	Q3 2025	—	$1.139–$1.159B (49–50%)	New
Recurring Capex	Q3 2025	—	$70–$90M (3–4% rev)	New

Management attributed FY raises to better-than-expected Q2 operating performance and FX tailwinds; Q3 revenue guide includes ~$27M FX benefit vs Q2 rates .

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
AI/private AI, inference vs training	>50% of top 25 deals HPC/AI; Equinix as “place where private AI happens”	Continued AI wins; NVIDIA Instant AI Factory; liquid cooling deployments; 50% of top 25 AI‑related	Enterprise use cases scaling; inference workloads rising; Fabric + on‑ramps key	Accelerating
Capacity & Build Bolder	Capacity constraints in Tier 1 metros; plan to build bigger, fewer phases	56 projects under way; aiming for double‑digit revenue growth longer term	59 projects; presales, fewer/single phases; pre‑buys to accelerate RFS	Improving (supply response)
Interconnection & Fabric	+6k underlying adds; 19% of recurring rev	+3.9k net adds; Fabric Cloud Router adoption	+6.2k net adds; interconnection revenue >$400M; 100+ Tbps capacity	Strong, stable
Pricing, churn	Positive pricing actions; churn 2.5% (timing)	Firm pricing; churn 2.4%	Strong pricing; churn 2.6% on bankruptcy, otherwise 2.4%; FY 2.0–2.5%	Positive pricing; churn stable
xScale & NRR	>400 MW leased; JV expansion; NRR lumpy	85%+ leased/pre‑leased; NRR step-down Q2	>85% leased/pre‑leased; NRR ~4.5% Q3 then ~6% Q4 of revenue	Back‑half weighted
FX, capital & leverage	Issued €1.15B green; 3.4x net leverage	SGD green notes; 2025 raises biased to lower‑cost debt	€ notes at 3.625%; net leverage 3.5x; comfortable up to 4.5x for growth	Proactive funding
Macro/supply chain	Monitoring tariffs; minimal immediate impact	Same	Pre‑purchasing long‑lead equipment; energy access constraints remain	Managing proactively

Management Commentary

“Adjusted EBITDA margins increased to 50% of revenues for the first time in our history… results were above our expectations due to strong operating performance and lower‑than‑expected SG&A expenses.” — CFO Keith Taylor .
“We closed 4,100 deals across more than 3,300 customers, resulting in $345 million of annualized gross bookings… a new metric that we disclosed at analyst day.” — CEO Adaire Fox‑Martin .
“Across our open and announced projects, our xScale assets are more than 85% leased or pre‑leased… pipeline of opportunities primed for execution in the second half.” — CEO .
“Our balance sheet increased to approximately $39 billion, including elevated cash and short‑term investments, totaling approximately $4.5 billion… net leverage was 3.5x annualized adjusted EBITDA.” — CFO .

Q&A Highlights

Interconnection momentum: Adds rebounded to +6,200, driven by cloud/AI expansion; management expects continued growth with Fabric pull‑through .
Bookings cadence: As of the call, >40% of Q3 bookings plan already closed; strong pipeline into Q4, aided by capacity adds in key metros (Dallas, Chicago) .
Build Bolder execution: Plan to accelerate stabilization by building in fewer/single phases, larger enterprise footprints, and pre‑selling before RFS to de‑risk .
Capex ramp & pre‑buys: Increased non‑recurring capex includes pre‑purchase of long‑lead equipment and U.S. xScale investments that are expected to be reimbursed upon JV asset transfer .
Churn dynamics: Q2 churn 2.6% elevated by Edge EO bankruptcy; underlying would have been 2.4%; full‑year expected within 2.0–2.5% range .
xScale revenue cadence: NRR ~4.5% of revenue in Q3 and ~6% in Q4; inherently lumpy and dependent on RFS timing .

Estimates Context

Q2 2025 vs S&P Global consensus: revenue $2.256B vs $2.257B* (in‑line); diluted EPS $3.75 vs $3.47* (beat). Management outperformance on EPS tied to stronger gross profit and lower SG&A/taxes; non‑recurring xScale fees were lower as planned . Values retrieved from S&P Global*.
Forward consensus: Q3 2025 consensus revenue ~$2.327B*, EPS ~$3.89*; company Q3 guide is $2.314–$2.334B revenue and adjusted EBITDA $1.139–$1.159B, indicating in‑line to modestly conservative topline framing with margin discipline . Values retrieved from S&P Global*.

Key Takeaways for Investors

Quality of beat: Margin outperformance and EPS beat alongside in‑line revenue signal healthy operating leverage; FY guidance raised on underlying strength and FX tailwind .
Demand underpinned by AI and connectivity: Interconnection and Fabric remain durable growth engines; first‑ever >$400M quarterly interconnection revenue validates pricing power and usage intensity .
Capacity remains the swing factor: Build Bolder (bigger phases, pre‑buys, presales) seeks to alleviate Tier 1 constraints and accelerate stabilization; near‑term growth still driven by recurring revenue conversion and late‑year xScale .
Watch NRR lumpiness and churn: Non‑recurring revenue cadence skews to Q4; churn should normalize within 2.0–2.5% barring idiosyncratic events .
Balance sheet optionality: Incremental green issuance at attractive rates and comfort taking leverage toward 4.5x support accelerated investment without sacrificing investment‑grade status .
Dividend continuity: Quarterly dividend declared at $4.69 per share (payable Sept 17, 2025), underscoring cash flow durability .
Trading setup: Raised guide, 50% margin print, robust bookings pipeline, and Q4 NRR step‑up are near‑term catalysts; medium‑term thesis rests on Build Bolder execution and AI‑driven interconnection scaling .

Additional details and source references

Q2 press release headline metrics and business highlights .
P&L, EPS, revenue and non‑GAAP tables .
Guidance bridges and FX commentary .
Q2 call discussion of bookings, margins, churn, capex, xScale cadence .
Prior quarters for trend context: Q1 2025 release/call and Q4 2024 release/call .

Values retrieved from S&P Global* for consensus estimates.