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Equinix Inc.’s EQIX first-quarter 2025 adjusted funds from operations (AFFO) per share of $9.67 outpaced the Zacks Consensus Estimate of $8.96. Moreover, the figure improved 9.1% from the prior-year quarter.
Results reflect higher revenues and expanding margins, led by strong demand for digital infrastructure and services. At year-end 2024, Equinix had total interconnections of more than 486,000, rising 3.8% year over year. The company also raised its outlook for 2025.
Total quarterly revenues of $2.23 billion surpassed the Zacks Consensus Estimate of $2.22 billion. Moreover, the top line increased 4.6% year over year.
Per Adaire Fox-Martin, CEO and president of Equinix, “Demand for our digital infrastructure and services remains robust. This, together with a healthy balance sheet and customer momentum across a full breadth of geographies, industries, segments, and products, reaffirms our confidence in our strategy and ability to create even greater value.”
EQIX’s First Quarter in Detail
Recurring revenues were $2.087 billion, up 3.8% from the year-ago quarter. Our projection for the metric was $2.069 billion. Non-recurring revenues rose 17.9% to $138 million. We estimated the metric to be $143.5 million.
Revenues from the Americas, the EMEA and the Asia Pacific rose 6.6%, 2.2% and 4.3% to $1.001 billion, $743 million and $481 million, year over year, respectively.
Adjusted EBITDA came in at $1.067 billion, up 7.6% year over year. We projected the metric at $1.050 billion. The adjusted EBITDA margin was reported at 48%.
AFFO rose 12.3% from the year-ago period to $947 million.
EQIX spent $26 million on recurring capital expenditure in the first quarter, up 23.8% on a year-over-year basis. Recurring capital expenditure was 1.2% of revenues in the reported quarter. Non-recurring capital expenditure was $724 million, up 5.5% year over year.
EQIX’s Balance Sheet Position
Equinix had $7.6 billion of available liquidity as of March 31, 2025. This comprised cash, cash equivalents, short-term investments and its undrawn revolver. It excludes restricted cash.
As of March 31, 2025, total debt was around $18.2 billion. Its net leverage ratio was 3.4, and the weighted average maturity was seven years as of March 31, 2025.
EQIX’s Dividend
Concurrent with its first quarter earnings, Equinix’s board of directors announced a quarterly cash dividend of $4.69 per share. The dividend will be paid out on June 18 to shareholders on record as of May 21, 2025.
2025 Guidance Revision by EQIX
For the second quarter of 2025, Equinix projects revenues between $2.244 billion and $2.264 billion, implying a 1% increase over the prior quarter. The adjusted EBITDA is expected to be in the range of $1.095-$1.115 billion.