Equinix Inc【EQIX】株式ニュース

Equinix Reports First-Quarter Results and Raises Full-Year Financial OutlookApril 29, 2026 4:05 PM
PR Newswire (US)

Grew monthly recurring revenue 12% on an as-reported basis and 10% on a normalized and constant currency basis year over year Delivered largest first-quarter annualized gross bookings in company's history, leading to a record backlog Increased stabilized assets' revenues 9% on an as-reported basis and 6% on a constant currency basis year over year, and continued to generate attractive 26% cash-on-cash returnsRaising full-year financial outlook across key metricsREDWOOD CITY, Calif., April 29, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today reported results for the quarter ended March 31, 2026."Our results reflect continued strength across the business. We delivered double-digit recurring revenue growth whilst improving our margins as we capitalise on robust customer demand for our AI, cloud and networking solutions," said Adaire Fox-Martin, CEO and President, Equinix. "We are raising our 2026 financial outlook based on the underlying strength of our Q1 performance and disciplined execution by our teams. The essential infrastructure we provide is enabling companies to accelerate innovation and enhancing our market position."First-Quarter 2026 Results SummaryRevenues$2.444 billion, a 10% increase over the same quarter of the previous year on an as-reported basis, or an 8% increase on a normalized and constant currency basisOperating Income$577 million, a 26% increase over the same quarter of the previous year, primarily from strong underlying operating performanceNet Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders$415 million, a 21% increase over the same quarter of the previous year, primarily from higher operating income$4.20 per share, a 20% increase over the same quarter of the previous yearAdjusted EBITDA$1.245 billion, a record adjusted EBITDA margin of 51%, a 17% increase over the same quarter of the previous year on an as-reported basis, or a 13% increase on a normalized and constant currency basisAFFO and AFFO per Share$1.065 billion, a 12% increase over the same quarter of the previous year on an as-reported basis, or an 11% increase on a normalized and constant currency basis driven by strong operating performance$10.79 per share, a 12% increase over the same quarter of the previous year on an as-reported basis, or a 10% increase on a normalized and constant currency basisQ1 results do not include the xScale® Hampton lease transaction. Adjusting for the timing of that deal, Q1 results were above the midpoint of the company's Q1 guidance ranges.Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.All per-share results are presented on a fully diluted basis.2026 Annual Guidance Summary(in millions, except per share data)
Prior FY 2026
GuidanceGuidance
AdjustmentForeign
Exchange
ImpactRevised FY 2026
GuidanceQ2 2026
GuidanceRevenues$10,123 - 10,223+$20+$1$10,144 - 10,244$2,571 - 2,611Adjusted EBITDA Adjusted EBITDA Margin %$5,141 - 5,221~51%+$23+$1$5,165 - 5,245~51%$1,349 - 1,38952 - 53%Recurring Capital Expenditures% of Revenues$270 - 290~3%+$11($1)$280 - 300~3%$46 - 662 - 3%Non-recurring Capital Expenditures(Excludes xScale and Land Acquisitions)$3,385 - 3,865+$188($13)~$3,800
AFFO$4,158 - 4,238+$40($0)$4,198 - 4,278
AFFO per Share (Diluted)$41.93 - 42.74+$0.38($0.00)$42.31 - 43.11
Expected Cash Dividends~$2,036+$1$0~$2,037
Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.For the second quarter of 2026, the company expects revenues to range between $2.571 and $2.611 billion, an increase of 6% at the midpoint over the previous quarter, on both an as-reported and a normalized and constant currency basis. This guidance includes a $6 million foreign currency benefit when compared to the average FX rates in Q1 2026. Adjusted EBITDA is expected to range between $1.349 and $1.389 billion. This guidance includes a $4 million foreign currency benefit when compared to the average FX rates in Q1 2026. Recurring capital expenditures are expected to range between $46 and $66 million.For the full year of 2026, total revenues are expected to range between $10.144 and $10.244 billion, an increase of approximately 10 - 11% over the previous year on both an as-reported and a normalized and constant currency basis. This guidance includes a $21 million raise from better-than-expected Q1 operating performance. It also includes a minimal foreign currency benefit when compared to prior guidance. Adjusted EBITDA is expected to range between $5.165 and $5.245 billion, reflecting an adjusted EBITDA margin of 51%, an approximate +2% expansion over the previous year. This guidance includes a $24 million raise from better-than-expected Q1 operating performance. It also includes a minimal foreign currency benefit when compared to prior guidance. AFFO is expected to range between $4.198 and $4.278 billion, an increase of 12 - 14% over the previous year on an as-reported basis, or 10 - 12% on a normalized and constant currency basis. This guidance includes a $40 million raise from better-than-expected Q1 operating performance. This guidance also includes a minimal foreign currency impact when compared to prior guidance rates. AFFO per share is expected to range between $42.31 and $43.11, an increase of 10 - 12% over the previous year on an as-reported basis, or 9 - 11% on a normalized and constant currency basis. Total capital expenditures are expected to be approximately $4.100 billion. Non-recurring capital expenditures, excluding on-balance sheet xScale-related spend, are expected to be approximately $3.800 billion. Recurring capital expenditures are expected to range between $280 and $300 million.The U.S. dollar exchange rates used for 2026 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.14 to the Euro, $1.31 to the British Pound, S$1.27 to the U.S. Dollar, ¥159 to the U.S. Dollar, A$1.40 to the U.S. Dollar, R$4.97 to the U.S. Dollar, HK$7.83 to the U.S. Dollar and C$1.37 to the U.S. Dollar. The Q1 2026 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Brazilian Real, Hong Kong Dollar, and Canadian Dollar is 20%, 9%, 9%, 5%, 3%, 3%, 2% and 2%, respectively.Business HighlightsDelivered $378 million of annualized gross bookings and record annualized presales of approximately $140 million.Approximately 60% of the company's largest deals were AI-related.Introduced Equinix Fabric Intelligence™, an industry-leading solution that embeds AI directly into the network to interpret telemetry in real time and autonomously take action to optimize performance and workflows.Launched the Distributed AI Hub, a neutral, low-latency on-ramp to AI model companies, GPU clouds, data platforms and security services that enable companies to build their own AI stacks from best-of-breed providers.Announced definitive agreement with Canada Pension Plan Investment Board to acquire atNorth, a deal that will further enhance the company's position in the Nordics and is expected to be immediately accretive to AFFO per share upon close.Strengthened position across the AI inferencing ecosystem, with eight of the top 10 AI model providers and four of the top five neoclouds actively expanding with Equinix to enable mission-critical, latency-sensitive elements of their architectures.Published 11th annual sustainability report, detailing the significant investments Equinix is making to expand critical energy infrastructure without burdening residential ratepayers while also achieving new levels of energy efficiency and environmental stewardship across the company's operations.Q1 2026 Results Conference Call and Replay InformationEquinix will discuss its quarterly results for the period ended March 31, 2026, along with its future outlook, in its quarterly conference call on Wednesday, April 29, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.A replay of the call will be available one hour after the call through Tuesday, June 30, 2026, by dialing 1-800-308-6785 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required).Investor Presentation and Supplemental Financial Information Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.Additional ResourcesEquinix Investor Relations ResourcesAbout EquinixEquinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.Non-GAAP Financial MeasuresEquinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations.Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies.Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively.Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods.Equinix defines adjusted EBITDA as net income excluding:income tax expenseinterest incomeinterest expenseother income or expensegain or loss on debt extinguishmentdepreciation, amortization and accretion expensestock-based compensation expenserestructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activitiesimpairment chargestransaction costsgain or loss on asset salesAFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures.Equinix defines FFO as net income attributable to common stockholders excluding:gain or loss from the disposition of real estate assetsdepreciation and amortization expense on real estate assetsadjustments for unconsolidated joint ventures' and non-controlling interests' share of these itemsEquinix defines AFFO as FFO adjusted for:depreciation and amortization expense on non-real estate assetsaccretion expensestock-based compensation expensestock-based charitable contributionsrestructuring and other exit charges, as described aboveimpairment chargestransaction costsan adjustment to remove the impacts of straight-lining installation revenuean adjustment to remove the impacts of straight-lining rent expensean adjustment to remove the impacts of straight-lining contract costsamortization of deferred financing costs and debt discounts and premiumsgain or loss from the disposition of non-real estate assetsgain or loss on debt extinguishmentan income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxesrecurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenuesnet income or loss from discontinued operations, net of taxadjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these itemsEquinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements.Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above.Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.Forward-Looking StatementsThis press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.EQUINIX, INC.Condensed Consolidated Statements of Operations(in millions, except share and per share data)(unaudited)

Three Months Ended
March 31,
2026
December 31,
2025
March 31,
2025Recurring revenues$     2,331
$    2,294
$     2,087Non-recurring revenues113
126
138    Revenues2,444
2,420
2,225Cost of revenues1,186
1,198
1,084           Gross profit1,258
1,222
1,141Operating expenses:

Sales and marketing241
234
229General and administrative444
481
438Restructuring and other exit charges6
16
10Transaction costs8
6
6Impairment charges2
63
—(Gain) loss on asset sales(20)
—
—         Total operating expenses681
800
683Income from operations577
422
458Interest and other income (expense):

Interest income41
41
47Interest expense(148)
(142)
(122)Other income (expense)1
(9)
9         Total interest and other, net(106)
(110)
(66)Income before income taxes471
312
392Income tax expense(56)
(48)
(49)Net income from continuing operations415
264
343Net (income) loss attributable to non-controlling interests—
1
—Net income attributable to common stockholders$       415
$       265
$       343Earnings (loss) per share ("EPS") attributable to common stockholders:Basic EPS$      4.22
$      2.70
$      3.52Diluted EPS$      4.20
$      2.69
$      3.50Weighted-average shares for basic EPS (in thousands)98,392
98,200
97,514Weighted-average shares for diluted EPS (in thousands)98,727
98,378
97,887 EQUINIX, INC.Condensed Consolidated Balance Sheets(in millions, except headcount)(unaudited)

March 31,
2026
December 31,
2025Assets

Cash and cash equivalents$     1,362
$     1,727Short-term investments1,692
1,500Accounts receivable, net1,108
1,001Other current assets1,184
897          Total current assets5,346
5,125Property, plant and equipment, net24,169
23,584Operating lease right-of-use assets1,345
1,392Goodwill5,931
5,984Intangible assets, net1,258
1,316Other assets2,849
2,740          Total assets$   40,898
$   40,141Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses$     1,321
$     1,350Accrued property, plant and equipment703
564Current portion of operating lease liabilities161
155Current portion of finance lease liabilities173
168Current portion of mortgage and loans payable16
17Current portion of senior notes1,876
1,299Other current liabilities288
340          Total current liabilities4,538
3,893Operating lease liabilities, less current portion1,256
1,304Finance lease liabilities, less current portion2,126
2,187Mortgage and loans payable, less current portion13
686Senior notes, less current portion17,715
16,910Other liabilities930
983          Total liabilities26,578
25,963Redeemable non-controlling interest25
25Common stockholders' equity:

Common stock—
—Additional paid-in capital21,858
21,642Treasury stock(24)
(24)Accumulated dividends(12,707)
(12,202)Accumulated other comprehensive loss(1,343)
(1,359)Retained earnings6,514
6,099          Total common stockholders' equity14,298
14,156Non-controlling interests(3)
(3)          Total stockholders' equity14,295
14,153Total liabilities, redeemable non-controlling interest and stockholders'
equity$   40,898
$   40,141

Ending headcount by geographic region is as follows:

          Americas headcount5,964
5,917          EMEA headcount4,721
4,706          Asia-Pacific headcount3,132
3,093                    Total headcount13,817
13,716 EQUINIX, INC.Summary of Debt Principal Outstanding(in millions)(unaudited)

March 31,
2026
December 31,
2025

Finance lease liabilities$     2,299
$     2,355

Term loans1
673Mortgage payable and other loans payable28
30           Total mortgage and loans payable principal29
703

Senior notes19,591
18,209Plus: debt issuance costs and debt discounts165
150          Total senior notes principal19,756
18,359

Total debt principal outstanding$   22,084
$   21,417 EQUINIX, INC.Condensed Consolidated Statements of Cash Flows(in millions)(unaudited)

Three Months Ended

March 31,
2026
March 31,
2025

Cash flows from operating activities:
Net income
$       415
$       343
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion
544
480
Stock-based compensation
128
113
Impairment charges
2
—
(Gain) loss on asset sales
(20)
—
Other operating activities
(3)
(1)
Changes in operating assets and liabilities:

Accounts receivable
(106)
(133)
Income taxes, net
(7)
(2)
Operating lease right-of-use assets
41
42
Operating lease liabilities
(35)
(39)
Accounts payable and accrued expenses
(62)
(149)
Other assets and liabilities
(180)
155Net cash provided by operating activities
717
809Cash flows from investing activities:
Purchases of equity investments
(146)
(43)
Distributions from equity investments
—
4
Purchases of short-term investments
(784)
(190)
Maturity of short-term investments
595
—
Real estate acquisitions
(123)
(17)
Purchases of other property, plant and equipment
(1,256)
(750)
Proceeds from sale of assets, net of cash transferred
258
—
Settlement of foreign currency hedges
(3)
32Net cash used in investing activities
(1,459)
(964)Cash flows from financing activities:
Proceeds from employee equity programs
49
50
Payment of dividends
(519)
(468)
Proceeds from public offering of common stock, net of issuance costs
—
99
Proceeds from senior notes, net of debt discounts
1,492
370
Repayment of finance lease liabilities
(41)
(32)
Repayment of other debt
(674)
—
Other financing activities
42
(4)Net cash provided by financing activities
349
15Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
(6)
20Net decrease in cash, cash equivalents and restricted cash
(399)
(120)Cash, cash equivalents and restricted cash at beginning of period
1,824
3,082Cash, cash equivalents and restricted cash at end of period
$     1,425
$     2,962

Free cash flow (1)
$      (596)
$      (116)

Adjusted free cash flow (2)
$      (473)
$       (99)

(1)We define free cash flow as net cash provided by operating activities plus net cash used in investing activities
(excluding the net purchases of and distributions from equity investments) as presented below:
Net cash provided by operating activities as presented above
$       717
$       809
Net cash used in investing activities as presented above
(1,459)
(964)
Less purchases of equity investments, net of distributions
146
39
Free cash flow
$      (596)
$      (116)

(2)We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business
acquisitions, net of cash and restricted cash acquired as presented below:
Free cash flow (as defined above)
$      (596)
$      (116)
Less real estate acquisitions
123
17
Adjusted free cash flow
$      (473)
$       (99) EQUINIX, INC.Non-GAAP Measures and Other Supplemental Data($ in millions, except per share data)(unaudited)

Three Months Ended

March 31,
2026
December 31,
2025
March 31,
2025
Recurring revenues$      2,331
$      2,294
$      2,087
Non-recurring revenues113
126
138
Revenues (1)2,444
2,420
2,225

Cash cost of revenues (2)765
773
727
Cash gross profit (3)1,679
1,647
1,498

Cash operating expenses (4):

Cash sales and marketing expenses 162
160
160
Cash general and administrative expenses 272
301
271
Total cash operating expenses (4)434
461
431

Adjusted EBITDA (5)$      1,245
$      1,186
$      1,067

Cash gross margins (6)69 %
68 %
67 %

Adjusted EBITDA margins (7)51 %
49 %
48 %

FFO (8)$         758
$         625
$         647

AFFO (9)(10)$      1,065
$         877
$         947

Basic FFO per share (11)$        7.70
$        6.36
$        6.63

Diluted FFO per share (11)$        7.68
$        6.35
$        6.61

Basic AFFO per share (11)$      10.82
$        8.93
$        9.71

Diluted AFFO per share (11)$      10.79
$        8.91
$        9.67

(1)The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation$         731
$         711
$         636
Interconnection251
245
229
Managed infrastructure57
59
63
Other7
5
3
Recurring revenues1,046
1,020
931
Non-recurring revenues45
51
70
Revenues$      1,091
$      1,071
$      1,001

EMEA Revenues:

Colocation$         613
$         619
$         567
Interconnection106
102
87
Managed infrastructure41
40
35
Other29
28
27
Recurring revenues789
789
716
Non-recurring revenues38
47
27
Revenues$         827
$         836
$         743

Asia-Pacific Revenues:

Colocation$         386
$         378
$         342
Interconnection89
86
77
Managed infrastructure17
17
17
Other4
4
4
Recurring revenues496
485
440
Non-recurring revenues30
28
41
Revenues$         526
$         513
$         481

Worldwide Revenues:

Colocation$      1,730
$      1,708
$      1,545
Interconnection446
433
393
Managed infrastructure115
116
115
Other40
37
34
Recurring revenues2,331
2,294
2,087
Non-recurring revenues113
126
138
Revenues$      2,444
$      2,420
$      2,225

(2)We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-
based compensation as presented below:

Cost of revenues$      1,186
$      1,198
$      1,084
Depreciation, amortization and accretion expense(405)
(409)
(343)
Stock-based compensation expense(16)
(16)
(14)
Cash cost of revenues$         765
$         773
$         727

(3)We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization
and stock-based compensation as presented below. We define cash general and administrative expense as
general and administrative expense less depreciation, amortization and stock-based compensation as
presented below. We define cash operating expense as selling, general, and administrative expense less
depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash
selling, general and administrative expense or "cash SG&A".

Sales and marketing expense$         241
$         234
$         229
Depreciation and amortization expense(52)
(50)
(47)
Stock-based compensation expense(27)
(24)
(22)
Cash sales and marketing expense162
160
160
General and administrative expense444
481
438
Depreciation and amortization expense(87)
(92)
(90)
Stock-based compensation expense(85)
(88)
(77)
Cash general and administrative expenses272
301
271
Cash operating expense$         434
$         461
$         431

(5)We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest
expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization,
accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges,
transaction costs, and gain or loss on asset sales as presented below:

Net income$         415
$         264
$         343
Income tax expense (benefit)56
48
49
Interest income(41)
(41)
(47)
Interest expense148
142
122
Other (income) expense(1)
9
(9)
Depreciation, amortization and accretion expense544
551
480
Stock-based compensation expense128
128
113
Restructuring and other exit charges6
16
10
Impairment charges2
63
—
Transaction costs8
6
6
(Gain) loss on asset sales(20)
—
—
Adjusted EBITDA$      1,245
$      1,186
$      1,067
Americas516
492
443
EMEA424
413
365
Asia-Pacific305
281
259
Adjusted EBITDA$      1,245
$      1,186
$      1,067

(6)We define cash gross margins as cash gross profit divided by revenues.

(7)We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

(8)FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the
disposition of real estate assets, depreciation and amortization expense on real estate assets
and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Net income$         415
$         264
$         343
Net (income) loss attributable to non-controlling interests—
1
—
Net income (loss) attributable to common stockholders415
265
343
Adjustments:

Real estate depreciation351
349
297
(Gain) loss on disposition of real estate assets(20)
—
—
Adjustments for FFO from unconsolidated joint ventures12
11
7
FFO attributable to common stockholders$         758
$         625
$         647

(9)AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets,
accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit
charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent
expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts
and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt
extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from
discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures'
and non-controlling interests' share of these items.

FFO attributable to common stockholders$         758
$         625
$         647
Adjustments:

Installation revenue adjustment8
4
2
Straight-line rent expense adjustment4
(4)
3
Contract cost adjustment(15)
(27)
(7)
Amortization of deferred financing costs and debt discounts 7
6
5
Stock-based compensation expense128
128
113
Non-real estate depreciation expense138
142
134
(Gain) loss on disposition of non-real estate assets—
—
2
Amortization expense52
51
48
Accretion expense adjustment3
9
1
Recurring capital expenditures(32)
(139)
(26)
Restructuring and other exit charges6
16
10
Transaction costs8
6
6
Impairment charges 2
63
—
Income tax expense adjustment—
(5)
6
Adjustments for AFFO from unconsolidated joint ventures(2)
2
3
AFFO attributable to common stockholders$      1,065
$         877
$         947

(10) Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA$      1,245
$      1,186
$      1,067
Adjustments:

Interest expense, net of interest income(107)
(101)
(75)
Amortization of deferred financing costs and debt discounts 7
6
5
Income tax expense(56)
(48)
(49)
Income tax expense adjustment—
(5)
6
Straight-line rent expense adjustment4
(4)
3
Contract cost adjustment(15)
(27)
(7)
Installation revenue adjustment8
4
2
Recurring capital expenditures(32)
(139)
(26)
Other income (expense)1
(9)
9
Adjustments for (gain) loss on asset dispositions—
—
2
Adjustments for unconsolidated JVs and non-controlling interests10
14
10
AFFO attributable to common stockholders$      1,065
$         877
$         947

(11)The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common
stockholders is presented below:

Shares used in computing basic net income per share, FFO per share
and AFFO per share (in thousands)98,392
98,200
97,514
Effect of dilutive securities:

Employee equity awards (in thousands)335
178
373
Shares used in computing diluted net income per share, FFO per share
and AFFO per share (in thousands)98,727
98,378
97,887

Basic FFO per share$        7.70
$        6.36
$        6.63
Diluted FFO per share$        7.68
$        6.35
$        6.61

Basic AFFO per share$      10.82
$        8.93
$        9.71
Diluted AFFO per share$      10.79
$        8.91
$        9.67

View original content to download multimedia:https://www.prnewswire.com/news-releases/equinix-reports-first-quarter-results-and-raises-full-year-financial-outlook-302757572.htmlSOURCE Equinix, Inc.

Original: Equinix Reports First-Quarter Results and Raises Full-Year Financial Outlook

Equinix Provides Robust 2026 Outlook Driven by Strong Fourth-Quarter Results and Accelerating Business MomentumFebruary 11, 2026 4:05 PM
PR Newswire (US)

Increased Q4 monthly recurring revenue (MRR) 10% year over year on both an as-reported and a normalized and constant currency basis; increased full-year MRR 7% on an as-reported basis and 8% on a normalized and constant currency basisDelivered record annualized gross bookings of $474 million in Q4, up 42% over the previous year; delivered $1.6 billion of annualized gross bookings in 2025, up 27% for the full yearSurpassed 500,000 interconnections globally, the most in the industry, as enterprises depend on Equinix to connect their AI, cloud and network ecosystemsIncreased quarterly cash dividend by 10% to $5.16 per share, marking the 11th consecutive year of dividend growthREDWOOD CITY, Calif., Feb. 11, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today reported results for the quarter and full year ended December 31, 2025."Our team executed exceptionally well in Q4, marking a very strong close to a pivotal year for Equinix. Demand for our solutions has never been higher, as demonstrated by accelerated growth in both bookings and recurring revenue, and we are confident in our plan to deliver robust revenue and AFFO per share growth in 2026," said Adaire Fox-Martin, CEO and President, Equinix. "Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage that positions us well to meet our customers' greatest needs and create shareholder value." 2025 Results SummaryRevenues$9.217 billion, a 5% increase over the previous year on an as-reported basis, or a 6% increase on a normalized and constant currency basisOperating Income$1.848 billion, a 39% increase from the previous year, primarily from strong underlying operating performance and lower impairment charges and transaction costsNet Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders$1.350 billion, a 66% increase from the previous year, primarily from higher income from operations$13.76 per share, a 62% increase from the previous yearAdjusted EBITDA$4.530 billion, an adjusted EBITDA margin of 49%, an 11% increase over the previous year on an as-reported basis, or a 10% increase on a normalized and constant currency basisAFFO and AFFO per Share$3.761 billion, a 12% increase over the previous year on both an as-reported and a normalized and constant currency basis driven by strong operating performance and lower net interest expense from disciplined balance sheet management$38.33 per share, a 9% increase over the previous year on both an as-reported and a normalized and constant currency basisQ4 results were modestly impacted by the timing of the xScale® Hampton lease transaction, which is now expected to close in early 2026.Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.All per-share results are presented on a fully diluted basis.2026 Annual Guidance Summary(in millions, except per share data)

FY 2026 Guidance
Q1 2026 Guidance

Revenues
$10,123 - 10,223
$2,496 - 2,536

Adjusted EBITDA Adjusted EBITDA Margin %
$5,141 - 5,221~51%
$1,283 - 1,32351 - 52%

Recurring Capital Expenditures% of Revenues
$270 - 290~3%
$28 - 481 - 2%

Non-recurring Capital Expenditures(Excludes xScale)
$3,385 - 3,865

AFFO
$4,158 - 4,238

AFFO per Share (Diluted)
$41.93 - 42.74

Expected Cash Dividends
~$2,036

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.For the first quarter of 2026, the company expects revenues to range between $2.496 and $2.536 billion, an increase of 4% at the midpoint over the previous quarter, on both an as-reported and a normalized and constant currency basis. This guidance includes a $20 million foreign currency benefit when compared to the average FX rates in Q4 2025. Adjusted EBITDA is expected to range between $1.283 and $1.323 billion. This guidance includes an $11 million foreign currency benefit when compared to the average FX rates in Q4 2025. Recurring capital expenditures are expected to range between $28 and $48 million.For the full year of 2026, total revenues are expected to range between $10.123 and $10.223 billion, an as-reported increase of approximately 10 - 11% over the previous year, or 9 - 10% on a normalized and constant currency basis. This guidance includes a $36 million foreign currency benefit when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $5.141 and $5.221 billion, reflecting an adjusted EBITDA margin of 51%, an approximate 200 basis-point expansion over the previous year. This guidance also includes a $17 million foreign currency benefit when compared to prior guidance. AFFO is expected to range between $4.158 and $4.238 billion, an increase of 11 - 13% over the previous year on an as-reported basis, or 9 - 11% on a normalized and constant currency basis. This guidance also includes a $13 million foreign currency benefit when compared to prior guidance rates. AFFO per share is expected to range between $41.93 and $42.74, a 9 - 12% as-reported increase over the previous year, or 8 - 10% on a normalized and constant currency basis. Total capital expenditures are expected to range between $3.655 and $4.155 billion. Non-recurring capital expenditures, excluding on-balance sheet xScale-related spend, are expected to range between $3.385 and $3.865 billion. Recurring capital expenditures are expected to range between $270 and $290 million.The U.S. dollar exchange rates used for 2026 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.14 to the Euro, $1.31 to the British Pound, S$1.27 to the U.S. Dollar, ¥157 to the U.S. Dollar, A$1.43 to the U.S. Dollar, HK$7.81 to the U.S. Dollar, R$5.22 to the U.S. Dollar and C$1.37 to the U.S. Dollar. The Q4 2025 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 21%, 10%, 8%, 5%, 3%, 3%, 3% and 2%, respectively.Business HighlightsCapitalized on strong customer demand to close more than 4,500 deals in Q4, with approximately 60% of the largest deals driven by AI workloads.Salesforce has deepened its partnership with Equinix to build a private network for Data 360 – the activation engine inside Salesforce's data and AI foundation. By using Equinix Fabric Cloud Router across 14 countries, Salesforce can privately connect its systems across AWS, Azure, and other clouds – enabling real-time data analysis and stronger, lower-latency AI performance.More than 60% of existing customers added new services in 2025, reflecting the importance of the company's neutral global footprint as an essential layer of connectivity across increasingly complex and distributed technology workloads.Delivered record capacity in 2025, with 23,250 retail cabinets and 90+ MW of xScale capacity, while continuing to expand capacity to meet growing demand across the business. Opened 16 projects in 14 metros globally and added 10 new expansion projects since October, bringing the company's current number of major expansion projects underway to 52. Also closed on a number of strategic land acquisitions in 2025, adding approximately 1 GW to Equinix's powered land-under-control balance.In January, Equinix contributed the Hampton, Georgia asset to its xScale joint venture in the United States, an important first step to deploying $15 billion of capital with its JV partners in major metros, and enabling the JV to enter a lease arrangement with a customer.FY 2025 Results Conference Call and Replay InformationEquinix will discuss its quarterly results for the period ended December 31, 2025, along with its future outlook, in its quarterly conference call on Wednesday, February 11, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.A replay of the call will be available one hour after the call through Tuesday, March 31, 2026, by dialing 1-866-360-7719 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required).Investor Presentation and Supplemental Financial Information Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.Additional ResourcesEquinix Investor Relations ResourcesAbout EquinixEquinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.Non-GAAP Financial MeasuresEquinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations.Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies.Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively.Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods.Equinix defines adjusted EBITDA as net income excluding:income tax expenseinterest incomeinterest expenseother income or expensegain or loss on debt extinguishmentdepreciation, amortization and accretion expensestock-based compensation expenserestructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activitiesimpairment chargestransaction costsgain or loss on asset salesAFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures.Equinix defines FFO as net income attributable to common stockholders excluding:gain or loss from the disposition of real estate assetsdepreciation and amortization expense on real estate assetsadjustments for unconsolidated joint ventures' and non-controlling interests' share of these itemsEquinix defines AFFO as FFO adjusted for:depreciation and amortization expense on non-real estate assetsaccretion expensestock-based compensation expensestock-based charitable contributionsrestructuring and other exit charges, as described aboveimpairment chargestransaction costsan adjustment to remove the impacts of straight-lining installation revenuean adjustment to remove the impacts of straight-lining rent expensean adjustment to remove the impacts of straight-lining contract costsamortization of deferred financing costs and debt discounts and premiumsgain or loss from the disposition of non-real estate assetsgain or loss on debt extinguishmentan income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxesrecurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenuesnet income or loss from discontinued operations, net of taxadjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these itemsEquinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements.Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above.Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.Forward-Looking StatementsThis press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.EQUINIX, INC.Condensed Consolidated Statements of Operations(in millions, except share and per share data)(unaudited)

Three Months Ended
Twelve Months Ended
December
31, 2025
September
30, 2025
December
31, 2024
December
31, 2025
December
31, 2024Recurring revenues$       2,294
$       2,215
$       2,091
$       8,739
$       8,184Non-recurring revenues126
101
170
478
564    Revenues2,420
2,316
2,261
9,217
8,748Cost of revenues1,198
1,142
1,196
4,508
4,467           Gross profit1,222
1,174
1,065
4,709
4,281Operating expenses:

Sales and marketing234
219
209
903
891General and administrative481
470
451
1,840
1,766Restructuring and other exit charges16
5
31
33
31Transaction costs6
3
38
18
50Impairment charges63
4
233
68
233(Gain) loss on asset sales—
(1)
—
(1)
(18)         Total operating expenses800
700
962
2,861
2,953Income from operations422
474
103
1,848
1,328Interest and other income (expense):

Interest income41
53
49
193
137Interest expense(142)
(128)
(126)
(527)
(457)Other income (expense)(9)
—
(11)
(7)
(17)Gain (loss) on debt extinguishment—
—
(15)
1
(16)         Total interest and other, net(110)
(75)
(103)
(340)
(353)Income before income taxes312
399
—
1,508
975Income tax expense(48)
(25)
(14)
(160)
(161)Net income from continuing operations264
374
(14)
1,348
814Net (income) loss attributable to non-controlling interests1
—
—
2
1Net income (loss) attributable to common stockholders$           265
$          374
$           (14)
$       1,350
$           815Earnings (loss) per share ("EPS") attributable to common stockholders:Basic EPS$         2.70
$         3.82
$        (0.14)
$       13.79
$         8.54Diluted EPS$         2.69
$         3.81
$        (0.14)
$       13.76
$         8.50Weighted-average shares for basic EPS (in thousands)98,200
97,982
96,849
97,883
95,457Weighted-average shares for diluted EPS (in thousands)98,378
98,174
96,849
98,123
95,827 EQUINIX, INC.Condensed Consolidated Balance Sheets(in millions, except headcount)(unaudited)

December
31, 2025
December
31, 2024Assets

Cash and cash equivalents$       1,727
$       3,081Short-term investments1,500
527Accounts receivable, net1,001
949Other current assets897
890          Total current assets5,125
5,447Property, plant and equipment, net23,584
19,249Operating lease right-of-use assets1,392
1,419Goodwill5,984
5,504Intangible assets, net1,316
1,417Other assets2,740
2,049          Total assets$     40,141
$     35,085Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses$       1,350
$       1,193Accrued property, plant and equipment564
387Current portion of operating lease liabilities155
144Current portion of finance lease liabilities168
189Current portion of mortgage and loans payable17
5Current portion of senior notes1,299
1,199Other current liabilities340
232          Total current liabilities3,893
3,349Operating lease liabilities, less current portion1,304
1,331Finance lease liabilities, less current portion2,187
2,086Mortgage and loans payable, less current portion686
644Senior notes, less current portion16,910
13,363Other liabilities983
760          Total liabilities25,963
21,533Redeemable non-controlling interest25
25Common stockholders' equity:

Common stock—
—Additional paid-in capital21,642
20,895Treasury stock(24)
(39)Accumulated dividends(12,202)
(10,342)Accumulated other comprehensive loss(1,359)
(1,735)Retained earnings6,099
4,749          Total common stockholders' equity14,156
13,528Non-controlling interests(3)
(1)          Total stockholders' equity14,153
13,527Total liabilities, redeemable non-controlling interest and stockholders' equity$     40,141
$     35,085

Ending headcount by geographic region is as follows:

          Americas headcount5,917
5,952          EMEA headcount4,706
4,653          Asia-Pacific headcount3,093
3,001                    Total headcount13,716
13,606 EQUINIX, INC.Summary of Debt Principal Outstanding(in millions)(unaudited)

December
31, 2025
December
31, 2024

Finance lease liabilities$       2,355
$       2,275

Term loans673
628Mortgage payable and other loans payable30
21           Total mortgage and loans payable principal703
649

Senior notes18,209
14,562Plus: debt issuance costs and debt discounts150
123          Total senior notes principal18,359
14,685

Total debt principal outstanding$     21,417
$     17,609 EQUINIX, INC.Condensed Consolidated Statements of Cash Flows(in millions)(unaudited)

Twelve Months Ended

December
31, 2025
December
31, 2024Cash flows from operating activities:
Net income
$       1,348
$           814
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion
2,066
2,011
Stock-based compensation
498
462
Impairment charges
68
233
(Gain) loss on asset sales
(1)
(18)
Other operating activities
33
87
Changes in operating assets and liabilities:

Accounts receivable
(40)
27
Income taxes, net
(78)
(9)
Operating lease right-of-use assets
161
150
Operating lease liabilities
(156)
(153)
Accounts payable and accrued expenses
25
95
Other assets and liabilities
(13)
(450)Net cash provided by operating activities
3,911
3,249Cash flows from investing activities:
Purchases of equity investments
(60)
(98)
Distributions from equity investments
59
11
Purchases of short-term investments
(1,967)
(520)
Maturity of short-term investments
1,005
—
Business acquisitions, net of cash acquired
(251)
—
Real estate acquisitions
(994)
(337)
Purchases of other property, plant and equipment
(4,311)
(3,066)
Proceeds from sale of assets, net of cash transferred
—
247
Settlement of foreign currency hedges
104
83
Investment in loan receivable
(69)
(261)
Loan receivable upfront fee
—
4Net cash used in investing activities
(6,484)
(3,937)Cash flows from financing activities:
Proceeds from employee equity programs
95
91
Payment of dividends
(1,856)
(1,643)
Proceeds from public offering of common stock, net of issuance costs
99
1,673
Proceeds from senior notes, net of debt discounts
4,311
2,768
Repayment of finance lease liabilities
(155)
(140)
Contribution from non-controlling interest
4
4
Repayment of senior notes
(1,200)
(1,000)
Other financing activities
(26)
(30)Net cash provided by financing activities
1,272
1,723Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
43
(49)Net increase (decrease) in cash, cash equivalents and restricted cash
(1,258)
986Cash, cash equivalents and restricted cash at beginning of period
3,082
2,096Cash, cash equivalents and restricted cash at end of period
$       1,824
$       3,082

Free cash flow (1)
$     (2,572)
$         (601)

Adjusted free cash flow (2)
$     (1,327)
$         (264)

(1)We define free cash flow as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases of and distributions from equity investments) as presented below:
Net cash provided by operating activities as presented above
$       3,911
$       3,249
Net cash used in investing activities as presented above
(6,484)
(3,937)
Less purchases of equity investments, net of distributions
1
87
Free cash flow
$     (2,572)
$         (601)

(2)We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:
Free cash flow (as defined above)
$     (2,572)
$         (601)
Less business acquisitions, net of cash and restricted cash acquired
251
—
Less real estate acquisitions
994
337
Adjusted free cash flow
$     (1,327)
$         (264) EQUINIX, INC.Non-GAAP Measures and Other Supplemental Data($ in millions, except per share data)(unaudited)

Three Months Ended
Twelve Months Ended

December
31, 2025
September
30, 2025
December
31, 2024
December
31, 2025
December
31, 2024

Recurring revenues$      2,294
$      2,215
$      2,091
$        8,739
$        8,184

Non-recurring revenues126
101
170
478
564

Revenues (1)2,420
2,316
2,261
9,217
8,748

Cash cost of revenues (2)773
752
821
2,959
2,983

Cash gross profit (3)1,647
1,564
1,440
6,258
5,765

Cash operating expenses (4):

Cash sales and marketing expenses 160
144
136
610
596

Cash general and administrative expenses 301
272
283
1,118
1,072

Total cash operating expenses (4)461
416
419
1,728
1,668

Adjusted EBITDA (5)$      1,186
$      1,148
$      1,021
$        4,530
$        4,097

Cash gross margins (6)68 %
68 %
64 %
68 %
66 %

Adjusted EBITDA margins (7)49 %
50 %
45 %
49 %
47 %

FFO (8)$         625
$         707
$         302
$        2,668
$        2,061

AFFO (9)(10)$         877
$         965
$         770
$        3,761
$        3,356

Basic FFO per share (11)$        6.36
$        7.22
$        3.12
$        27.26
$        21.59

Diluted FFO per share (11)$        6.35
$        7.20
$        3.11
$        27.19
$        21.51

Basic AFFO per share (11)$        8.93
$        9.85
$        7.95
$        38.42
$        35.16

Diluted AFFO per share (11)$        8.91
$        9.83
$        7.92
$        38.33
$        35.02

(1)The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation$         711
$         682
$         626
$        2,683
$        2,474

Interconnection245
239
227
944
885

Managed infrastructure59
61
63
245
261

Other5
5
7
17
27

Recurring revenues1,020
987
923
3,889
3,647

Non-recurring revenues51
48
76
222
215

Revenues$      1,071
$      1,035
$         999
$        4,111
$        3,862

EMEA Revenues:

Colocation$         619
$         588
$         577
$        2,346
$        2,235

Interconnection102
100
87
385
340

Managed infrastructure40
39
34
152
138

Other28
29
25
110
99

Recurring revenues789
756
723
2,993
2,812

Non-recurring revenues47
28
53
137
155

Revenues$         836
$         784
$         776
$        3,130
$        2,967

Asia-Pacific Revenues:

Colocation$         378
$         367
$         345
$        1,446
$        1,349

Interconnection86
83
79
326
294

Managed infrastructure17
18
18
69
68

Other4
4
3
16
14

Recurring revenues485
472
445
1,857
1,725

Non-recurring revenues28
25
41
119
194

Revenues$         513
$         497
$         486
$        1,976
$        1,919

Worldwide Revenues:

Colocation$      1,708
$      1,637
$      1,548
$        6,475
$        6,058

Interconnection433
422
393
1,655
1,519

Managed infrastructure116
118
115
466
467

Other37
38
35
143
140

Recurring revenues2,294
2,215
2,091
8,739
8,184

Non-recurring revenues126
101
170
478
564

Revenues$      2,420
$      2,316
$      2,261
$        9,217
$        8,748

(2)We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues$      1,198
$      1,142
$      1,196
$        4,508
$        4,467

Depreciation, amortization and accretion expense(409)
(375)
(360)
(1,488)
(1,426)

Stock-based compensation expense(16)
(15)
(15)
(61)
(58)

Cash cost of revenues$         773
$         752
$         821
$        2,959
$        2,983

(3)We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below. We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below. We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".

Sales and marketing expense$         234
$         219
$         209
$           903
$           891

Depreciation and amortization expense(50)
(50)
(50)
(197)
(201)

Stock-based compensation expense(24)
(25)
(23)
(96)
(94)

Cash sales and marketing expense160
144
136
610
596

General and administrative expense481
470
451
1,840
1,766

Depreciation and amortization expense(92)
(108)
(92)
(381)
(384)

Stock-based compensation expense(88)
(90)
(76)
(341)
(310)

Cash general and administrative expenses301
272
283
1,118
1,072

Cash operating expense$         461
$         416
$         419
$        1,728
$        1,668

(5)We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:

Net income (loss)$         264
$         374
$        (14)
$        1,348
$           814

Income tax expense (benefit)48
25
14
160
161

Interest income(41)
(53)
(49)
(193)
(137)

Interest expense142
128
126
527
457

Other (income) expense9
—
11
7
17

(Gain) loss on debt extinguishment—
—
15
(1)
16

Depreciation, amortization and accretion expense551
533
502
2,066
2,011

Stock-based compensation expense128
130
114
498
462

Restructuring and other exit charges16
5
31
33
31

Impairment charges63
4
233
68
233

Transaction costs6
3
38
18
50

(Gain) loss on asset sales—
(1)
—
(1)
(18)

Adjusted EBITDA$      1,186
$      1,148
$      1,021
$        4,530
$        4,097

Americas492
489
422
1,890
1,709

EMEA413
384
354
1,561
1,378

Asia-Pacific281
275
245
1,079
1,010

Adjusted EBITDA$      1,186
$      1,148
$      1,021
$        4,530
$        4,097

(6)We define cash gross margins as cash gross profit divided by revenues.

(7)We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

(8)FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the disposition of real estate assets, depreciation and amortization expense on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Net income (loss)$         264
$         374
$        (14)
$        1,348
$           814

Net (income) loss attributable to non-controlling interests1
—
—
2
1

Net income (loss) attributable to common stockholders265
374
(14)
1,350
815

Adjustments:

Real estate depreciation349
324
309
1,282
1,239

(Gain) loss on disposition of real estate assets—
(1)
(1)
—
(20)

Adjustments for FFO from unconsolidated joint ventures11
10
8
36
27

FFO attributable to common stockholders$         625
$         707
$         302
$        2,668
$        2,061

(9)AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.

FFO attributable to common stockholders$         625
$         707
$         302
$        2,668
$        2,061

Adjustments:

Installation revenue adjustment4
6
(1)
20
(4)

Straight-line rent expense adjustment(4)
1
(18)
5
(3)

Contract cost adjustment(27)
(8)
(11)
(52)
(27)

Amortization of deferred financing costs and debt discounts 6
6
5
23
20

Stock-based compensation expense128
130
114
498
462

Stock-based charitable contributions—
—
—
3
3

Non-real estate depreciation expense142
155
136
568
562

(Gain) loss on disposition of non-real estate assets—
(3)
—
(1)
—

Amortization expense51
51
53
200
208

Accretion expense adjustment9
3
4
16
2

Recurring capital expenditures(139)
(64)
(115)
(284)
(250)

(Gain) loss on debt extinguishment—
—
15
(1)
16

Restructuring and other exit charges16
5
31
33
31

Transaction costs6
3
38
18
50

Impairment charges 63
4
233
68
233

Income tax expense adjustment(5)
(29)
(16)
(24)
(2)

Adjustments for AFFO from unconsolidated joint ventures2
(2)
—
3
(6)

AFFO attributable to common stockholders$         877
$         965
$         770
$        3,761
$        3,356

(10) Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA$      1,186
$      1,148
$      1,021
$        4,530
$        4,097

Adjustments:

Interest expense, net of interest income(101)
(75)
(77)
(334)
(320)

Amortization of deferred financing costs and debt discounts 6
6
5
23
20

Income tax expense(48)
(25)
(14)
(160)
(161)

Income tax expense adjustment(5)
(29)
(16)
(24)
(2)

Straight-line rent expense adjustment(4)
1
(18)
5
(3)

Stock-based charitable contributions—
—
—
3
3

Contract cost adjustment(27)
(8)
(11)
(52)
(27)

Installation revenue adjustment4
6
(1)
20
(4)

Recurring capital expenditures(139)
(64)
(115)
(284)
(250)

Other income (expense)(9)
—
(11)
(7)
(17)

Adjustments for (gain) loss on asset dispositions—
(3)
(1)
—
(2)

Adjustments for unconsolidated JVs and non-controlling interests14
8
8
41
22

AFFO attributable to common stockholders$         877
$         965
$         770
$        3,761
$        3,356

(11)The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common stockholders is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share (in thousands)98,200
97,982
96,849
97,883
95,457

Effect of dilutive securities:

Employee equity awards (in thousands)178
192
404
240
370

Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)98,378
98,174
97,253
98,123
95,827

Basic FFO per share$        6.36
$        7.22
$        3.12
$        27.26
$        21.59

Diluted FFO per share$        6.35
$        7.20
$        3.11
$        27.19
$        21.51

Basic AFFO per share$        8.93
$        9.85
$        7.95
$        38.42
$        35.16

Diluted AFFO per share$        8.91
$        9.83
$        7.92
$        38.33
$        35.02


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Original: Equinix Provides Robust 2026 Outlook Driven by Strong Fourth-Quarter Results and Accelerating Business Momentum