EQUINIX INC

Previous wording

Global enterprises, service providers and business ecosystems of industry partners rely on our IBX data centers and expertise around the world for the safe housing of their critical IT equipment and to protect and connect the world's most valued information assets. They also look to Equinix for the ability to directly and securely interconnect to the networks, clouds and content that enable today's information-driven global digital economy. Our recent IBX data center openings and acquisitions, as well as xScale TM data center investments, have expanded our total global footprint to 281 data centers, including 23 xScale data centers and the MC1 and SN1 data centers that are held in unconsolidated joint ventures, across 77 markets around the world. We offer the following solutions:

Current wording

Global enterprises, service providers and business ecosystems of industry partners rely on our IBX data centers and expertise around the world for the safe housing of their critical IT equipment and to protect and connect the world's most valued information assets. They also look to Equinix for the ability to directly and securely interconnect to the networks, clouds and content that enable today's information-driven global digital economy. Our recent IBX data center openings and acquisitions, as well as xScale TM data center investments, have expanded our total global footprint to 282 data centers, including 23 xScale data centers and the MC1 and SN1 data centers that are held in unconsolidated joint ventures, across 77 markets around the world. We offer the following solutions:

Previous wording

Annualized Gross Bookings represents the annualized revenue impact of stated monthly recurring revenues ("MRR") on newly executed contracts with a term of 12 months or more, net of any MRR decreases from cancellations or terminations associated with the new contracts and adjusted for the impact of pricing changes on existing contracts. This measure excludes contracts for recurring revenue from our joint ventures and the impact of power price adjustments. This measure only includes contracts that we anticipate will start generating revenue within 90 days. During the three months ended March 31, 2026, we had total Annualized Gross Bookings of $378 million, up 9% from three months ended March 31, 2025. This growth reflects an increase in customer demand and in our ability to capture that demand across our global platform.

Current wording

Annualized Gross Bookings represents the annualized revenue impact of stated monthly recurring revenues ("MRR") on newly executed contracts with a term of 12 months or more, net of any MRR decreases from cancellations or terminations associated with the new contracts and adjusted for the impact of pricing changes on existing contracts. This measure excludes contracts for recurring revenue from our joint ventures and the impact of power price adjustments. This measure only includes contracts that we anticipate will start generating revenue within 90 days. During the three and six months ended June 30, 2026, we had total Annualized Gross Bookings of $424 million and $802 million, up 23% and 16% from the three and six months ended June 30, 2025, respectively. This growth reflects an increase in customer demand and in our ability to capture that demand across our global platform.

Previous wording

Our cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, which is used to measure how efficiently we are managing our cabinet capacity. Our cabinet utilization rate varies from market to market among our IBX data centers across our Americas, EMEA and Asia-Pacific regions. Our cabinet utilization rates were approximately 77% and 78% as of March 31, 2026 and 2025, respectively. We continue to monitor the available capacity in each of our selected markets. To the extent we have limited capacity available in a given market, it may limit our ability for growth in that market. We perform demand studies on an ongoing basis to determine if future expansion is warranted in a market. In addition, power and cooling requirements for most customers are growing on a per unit basis. As a result, customers are consuming an increasing amount of power per cabinet. Although we generally do not control the amount of power our customers draw from installed circuits, we have negotiated power consumption limitations with certain high power-demand customers. This increased power consumption, which we expect to accelerate with the adoption of AI, has driven us to build out our new IBX data centers to support power and cooling needs twice that of previous IBX data centers. We could face power limitations in our existing IBX data centers, even though we may have additional physical cabinet capacity available within a specific IBX data center, and in our ability to expand our footprint in existing and new markets. Additionally, global supply chain challenges could result in a lack of availability or delays in the delivery of data center equipment. These challenges have driven us to invest in and commit to future purchases in advance of our standard practice to mitigate risks associated with these supply chain issues. These constraints could have a negative impact on our ability to grow revenues, affecting our financial performance, results of operations and cash flows and the growth opportunities presented by the adoption of new technologies, including AI.

Current wording

Our cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, which is used to measure how efficiently we are managing our cabinet capacity. Our cabinet utilization rate varies from market to market among our IBX data centers across our Americas, EMEA and Asia-Pacific regions. Our cabinet utilization rates were approximately 78% as of June 30, 2026 and 2025. We continue to monitor the available capacity in each of our selected markets. In certain markets, growth may increasingly depend on the timely delivery of new capacity and supporting power infrastructure. We perform demand studies on an ongoing basis to determine if future expansion is warranted in a market. In addition, power and cooling requirements for most customers are growing on a per unit basis. As a result, customers are consuming an increasing amount of power per cabinet. Although we generally do not control the amount of power our customers draw from installed circuits, we have negotiated power consumption limitations with certain high power-demand customers. This increased power consumption, which we expect to accelerate with the adoption of AI, has driven us to build out our new IBX data centers to support power and cooling needs twice that of previous IBX data centers. We could face power limitations in our existing IBX data centers, even though we may have additional physical cabinet capacity available within a specific IBX data center, and in our ability to expand our footprint in existing and new markets. Additionally, global supply chain challenges could result in a lack of availability or delays in the delivery of data center equipment. These challenges have driven us to invest in and commit to future purchases in advance of our standard practice to mitigate risks associated with these supply chain issues. These constraints could have a negative impact on our ability to grow revenues, affecting our financial performance, results of operations and cash flows and the growth opportunities presented by the adoption of new technologies, including AI.

Previous wording

Our business is primarily based on a recurring revenue model comprised of colocation, interconnection and managed infrastructure offerings. We consider these offerings recurring because our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which is generally one to five years in length and thereafter automatically renews in one-year increments. Our recurring revenues have comprised more than 90% of our total revenues during the past three years. In addition, during the past three years, more than 90% of our monthly recurring revenue bookings came from existing customers, contributing to our revenue growth. Our largest customer accounted for approximately 2% of our recurring revenues for the three months ended March 31, 2026 and 3% for the three months ended March 31, 2025. Our 50 largest customers accounted for approximately 36% of our recurring revenues for both the three months ended March 31, 2026 and 2025.

Current wording

Our business is primarily based on a recurring revenue model comprised of colocation, interconnection and managed infrastructure offerings. We consider these offerings recurring because our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which is generally one to five years in length and thereafter automatically renews in one-year increments. Our recurring revenues have comprised more than 90% of our total revenues during the past three years. In addition, during the past three years, more than 90% of our monthly recurring revenue bookings came from existing customers, contributing to our revenue growth. Our largest customer accounted for approximately 2% of our recurring revenues for the three and six months ended June 30, 2026 and 3% for the three and six months ended June 30, 2025. Our 50 largest customers accounted for approximately 36% of our recurring revenues for both the three and six months ended June 30, 2026 and 2025.

Previous wording

•In March, we issued $1.5 billion of senior notes due between 2031 and 2033. The issuances were denominated in U.S. dollars. See Note 8 within the condensed consolidated financial statements.

Current wording

•In the first half of 2026, we issued $2.4 billion of senior notes due between 2030 and 2035. The issuances were denominated in U.S. dollars and Canadian dollars and were translated at the exchange rates in effect on issuance. See Note 8 within the condensed consolidated financial statements.

Previous wording

Americas Revenues. During the three months ended March 31, 2026, Americas revenues increased by $90 million or 9% (8% on a constant currency basis). Growth in Americas revenues was primarily due to:

Current wording

Americas Revenues. During the three months ended June 30, 2026, Americas revenues increased by $247 million or 25% (24% on a constant currency basis). Growth in Americas revenues was primarily due to:

Previous wording

Asia-Pacific Revenues. During the three months ended March 31, 2026, Asia-Pacific revenues increased by $45 million or 9% (6% on a constant currency basis). Growth in Asia-Pacific revenues was primarily due to:

Current wording

Asia-Pacific Revenues. During the three months ended June 30, 2026, Asia-Pacific revenues increased by $44 million or 9% (9% on a constant currency basis). Increase in Asia-Pacific revenues was primarily due to:

Previous wording

Americas Cost of Revenues. During the three months ended March 31, 2026, Americas cost of revenues increased by $32 million or 7% (5% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

Current wording

Americas Cost of Revenues. During the three months ended June 30, 2026, Americas cost of revenues increased by $74 million or 16% (15% on a constant currency basis). The increase in our Americas cost of revenues was primarily due to:

Previous wording

•$19 million of higher depreciation expense driven by IBX data center expansions;

Current wording

•$19 million of higher depreciation expense driven by IBX data center expansions; and

Previous wording

EMEA Cost of Revenues. During the three months ended March 31, 2026, EMEA cost of revenues increased by $51 million or 13% (6% on a constant currency basis). The increase in our EMEA cost of revenues was primarily due to:

Current wording

EMEA Cost of Revenues. During the three months ended June 30, 2026, EMEA cost of revenues increased by $47 million or 12% (9% on a constant currency basis). The increase in our EMEA cost of revenues was primarily due to:

Previous wording

•approximately $24 million of incremental revenues generated from IBX data center expansion projects which were completed within the twelve months ended March 31, 2026; and

Current wording

•$24 million of higher depreciation expense driven by IBX data center expansions;

Previous wording

•$12 million of higher compensation costs.

Current wording

Americas Sales and Marketing Expenses. During the three months ended June 30, 2026, Americas sales and marketing expense increased by $15 million or 11% (10% on a constant currency basis) primarily due to $12 million of higher consulting and compensation costs, partially offset by lower advertising expense.

Previous wording

Impairment Charges. We did not record a significant amount of impairment charges during the three months ended March 31, 2026 and 2025.

Current wording

Impairment Charges. During the three months ended June 30, 2026, we recorded impairment charges of $17 million related to unrecoverable expenditures on a previously impaired asset. We did not record a significant amount of impairment charges during the three months ended June 30, 2025.

Previous wording

Income from Operations. Our income from operations increased by $119 million or 26% during the three months ended March 31, 2026 as compared to the same period in 2025. This increase is driven by the factors described above.

Current wording

Income from Operations. Our income from operations increased by $171 million or 35% during the three months ended June 30, 2026 as compared to the same period in 2025. This increase is driven by the factors described above.

Previous wording

Interest Expense. Interest expense increased to $148 million for the three months ended March 31, 2026 from $122 million for the three months ended March 31, 2025. The increase was primarily due to the issuance of senior notes in 2026 and 2025.

Current wording

Interest Expense. Interest expense increased to $151 million for the three months ended June 30, 2026 from $135 million for the three months ended June 30, 2025. The increase was primarily due to the issuance of senior notes in 2026 and 2025.

Previous wording

During the three months ended March 31, 2026 and 2025, we capitalized $32 million and $11 million, respectively, of interest expense to construction in progress. See Note 8 within the condensed consolidated financial statements.

Current wording

During the three months ended June 30, 2026 and 2025, we capitalized $38 million and $14 million, respectively, of interest expense to construction in progress. See Note 8 within the condensed consolidated financial statements.

Previous wording

Other Income or Expense. We did not record a significant amount of other income or expense during the three months ended March 31, 2026 and 2025. See Note 4 within the condensed consolidated financial statements.

Current wording

Other Income or Expense. We recorded net other expense of $28 million during the three months ended June 30, 2026, primarily related to our equity method investments. See Note 4 within the condensed consolidated financial statements. We did not record a significant amount of other income or expense during the three months ended June 30, 2025.

Previous wording

For the three months ended March 31, 2026 and 2025, we recorded $56 million and $49 million of income tax expense, respectively. Our effective tax rates were 11.9% and 12.5% for the three months ended March 31, 2026 and 2025, respectively.

Current wording

For the three months ended June 30, 2026 and 2025, we recorded $46 million and $38 million of income tax expense, respectively. Our effective tax rates were 8.8% and 9.4% for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Net Income. Our net income increased by $72 million or 21% in the three months ended March 31, 2026 as compared to the same period in 2025. This increase is driven by the factors described above.

Current wording

Net Income. Our net income increased by $110 million or 30% in the three months ended June 30, 2026 as compared to the same period in 2025. This increase is driven by the factors described above.

Previous wording

Americas Adjusted EBITDA. During the three months ended March 31, 2026, Americas adjusted EBITDA increased by $73 million or 16% (15% on a constant currency basis), primarily due to higher revenues, as described above, supported by disciplined operating expense management.

Current wording

Americas Adjusted EBITDA. During the three months ended June 30, 2026, Americas adjusted EBITDA increased by $175 million or 38% (37% on a constant currency basis), primarily due to higher revenues, as described above, supported by operating expense management.

Previous wording

EMEA Adjusted EBITDA. During the three months ended March 31, 2026, EMEA adjusted EBITDA increased by $59 million or 16% (10% on a constant currency basis), primarily due to higher revenues, as described above, supported by disciplined operating expense management.

Current wording

EMEA Adjusted EBITDA. During the three months ended June 30, 2026, EMEA adjusted EBITDA increased by $57 million or 14% (11% on a constant currency basis), primarily due to higher revenues, as described above, supported by operating expense management.

Previous wording

Asia-Pacific Adjusted EBITDA. During the three months ended March 31, 2026, Asia-Pacific adjusted EBITDA increased by $46 million or 18% (14% on a constant currency basis), primarily due to higher revenues, as described above, supported by disciplined operating expense management.

Current wording

Asia-Pacific Adjusted EBITDA. During the three months ended June 30, 2026, Asia-Pacific adjusted EBITDA increased by $35 million or 13% (13% on a constant currency basis), primarily due to higher revenues, as described above, supported by operating expense management.

Previous wording

EMEA Revenues. During the three months ended March 31, 2026, EMEA revenues increased by $84 million or 11% (6% on a constant currency basis). Growth in EMEA revenues was primarily due to:

Current wording

EMEA Revenues. During the six months ended June 30, 2026, EMEA revenues increased by $162 million or 11% (6% on a constant currency basis). Growth in EMEA revenues was primarily due to:

Previous wording

The increase was partially offset by a decrease of $16 million in revenues from non-recurring services provided to our joint ventures.

Current wording

The increase was partially offset by a decrease in revenues from non-recurring services provided to our joint ventures.

Previous wording

The remainder of the increase was driven by higher property tax and consulting expense, offset by lower costs to provide non-recurring services.

Current wording

The remainder of the increase was driven by higher property taxes, offset by lower costs to provide non-recurring services.

Previous wording

The remainder of the increase was driven by higher costs across various categories including utilities expense and repairs and maintenance.

Current wording

The remainder of the increase was driven by higher costs across various categories including repairs and maintenance and consulting costs, offset by lower property taxes.

Previous wording

Asia-Pacific Cost of Revenues. During the three months ended March 31, 2026, Asia-Pacific cost of revenues increased by $19 million or 8% (5% on a constant currency basis). The increase in our Asia-Pacific cost of revenues was primarily due to:

Current wording

Asia-Pacific Cost of Revenues. During the six months ended June 30, 2026, Asia-Pacific cost of revenues increased by $44 million or 9% (7% on a constant currency basis). The increase in our Asia-Pacific cost of revenues was primarily due to:

Previous wording

Restructuring and Other Exit Charges. During the three months ended March 31, 2026 and 2025, we recorded restructuring and other exit charges of $6 million and $10 million, respectively, primarily related to severance and other employee costs.

Current wording

Restructuring and Other Exit Charges. For both the six months ended June 30, 2026 and 2025, we recorded restructuring and other exit charges of $12 million, primarily related to severance and other employee costs.

Previous wording

Transaction Costs. During the three months ended March 31, 2026 and 2025, we recorded transaction costs totaling $8 million and $6 million, respectively. These transaction costs were incurred in connection with evaluating and completing acquisitions and the formation of joint ventures. See Note 4 within the condensed consolidated financial statements.

Current wording

Transaction Costs. During the six months ended June 30, 2026 and 2025, we recorded transaction costs totaling $11 million and $9 million, respectively. These transaction costs were incurred in connection with evaluating and completing acquisitions and the formation of joint ventures. See Note 4 within the condensed consolidated financial statements.

Previous wording

Gain or Loss on Asset Sales. During the three months ended March 31, 2026, we recorded a net gain on asset sales of $20 million, primarily related to the sale of the Hampton Campus to the AMER 3 Joint Venture. During the three months ended March 31, 2025, we did not record a significant amount of gain or loss on asset sales. See Note 4 within the condensed consolidated financial statements.

Current wording

Gain or Loss on Asset Sales. During the six months ended June 30, 2026, we recorded a net gain on asset sales of $17 million, primarily related to the sale of the Hampton Campus to the AMER 3 Joint Venture. We did not record a significant amount of gain or loss on asset sales during the six months ended June 30, 2025. See Note 4 within the condensed consolidated financial statements.

Previous wording

•adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items

Current wording

•adjustments related to unconsolidated joint ventures and non-controlling interests

Previous wording

•an adjustment to remove the impacts of straight-lining installation revenue

Current wording

•impacts of straight-lining installation revenue

Previous wording

•an adjustment to remove the impacts of straight-lining rent expense

Current wording

•impacts of straight-lining rent expense

Previous wording

•an adjustment to remove the impacts of straight-lining contract costs

Current wording

•impacts of straight-lining contract costs

Previous wording

•adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items

Current wording

•adjustments from FFO to AFFO related to unconsolidated joint ventures and non-controlling interests

Previous wording

Our revenues and certain operating expenses (cost of revenues, sales and marketing and general and administrative expenses) from our international operations have represented and will continue to represent a significant portion of our total revenues and certain operating expenses. As a result, our revenues and certain operating expenses have been and will continue to be affected by changes in the U.S. dollar against major international currencies. During the three months ended March 31, 2026 as compared to the same period in 2025, the U.S. dollar was weaker relative to the British pound and euro, which resulted in a favorable foreign currency impact on revenue and operating income, and an unfavorable foreign currency impact on operating expenses. There were no significant impacts from currencies that the U.S. dollar was comparably stronger to during the three months ended March 31, 2026 as compared to the same period in 2025. In order to provide a framework for assessing how each of our business segments performed excluding the impact of foreign currency fluctuations, we present period-over-period percentage changes in our revenues and certain operating expenses on a constant currency basis in addition to the historical amounts as reported. Our constant currency presentation excludes the impact of our foreign currency cash flow hedging activities. Presenting constant currency results of operations is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, we have presented this non-GAAP financial measure to provide investors with an additional tool to evaluate our results of operations. To present this information, our current period revenues and certain operating expenses denominated in currencies other than the U.S. dollar are converted into U.S. dollars at constant exchange rates rather than the actual exchange rates in effect during the respective periods (i.e. average rates in effect for the three months ended March 31, 2025 are used as exchange rates for the three months ended March 31, 2026 when comparing the three months ended March 31, 2026 with the three months ended March 31, 2025).

Current wording

Our revenues and certain operating expenses (cost of revenues, sales and marketing and general and administrative expenses) from our international operations have represented and will continue to represent a significant portion of our total revenues and certain operating expenses. As a result, our revenues and certain operating expenses have been and will continue to be affected by changes in the U.S. dollar against major international currencies. During the three and six months ended June 30, 2026 as compared to the same period in 2025, the U.S. dollar was stronger relative to the Japanese yen, which resulted in an unfavorable foreign currency impact on revenue and operating income, and a favorable foreign currency impact on operating expenses. During the three and six months ended June 30, 2026 as compared to the same period in 2025, the U.S. dollar was weaker relative to the British pound and euro, which resulted in a favorable foreign currency impact on revenue and operating income, and an unfavorable foreign currency impact on operating expenses. In order to provide a framework for assessing how each of our business segments performed excluding the impact of foreign currency fluctuations, we present period-over-period percentage changes in our revenues and certain operating expenses on a constant currency basis in addition to the historical amounts as reported. Our constant currency presentation excludes the impact of our foreign currency cash flow hedging activities. Presenting constant currency results of operations is a non-GAAP financial measure and is not meant to be considered in isolation or as an alternative to GAAP results of operations. However, we have presented this non-GAAP financial measure to provide investors with an additional tool to evaluate our results of operations. To present this information, our current period revenues and certain operating expenses denominated in currencies other than the U.S. dollar are converted into U.S. dollars at constant exchange rates rather than the actual exchange rates in effect during the respective periods (i.e. average rates in effect for the six months ended June 30, 2025 are used as exchange rates for the six months ended June 30, 2026 when comparing the six months ended June 30, 2026 with the six months ended June 30, 2025).

Previous wording

Customer collections are our primary source of cash. We believe we have a strong customer base, and have continued to experience relatively strong collections. As of March 31, 2026, our principal sources of liquidity were $3.1 billion of cash, cash equivalents and short-term investments. In addition to our cash balance, we had approximately $4.0 billion of additional liquidity available to us from our $4.0 billion revolving facility and general access to both public and private debt and equity capital markets. We also have additional liquidity available to us from our 2024 ATM Program, under which we may offer and sell from time to time our common stock in "at the market" transactions on either a spot or forward basis. As of March 31, 2026, we had approximately $1.2 billion available for sale remaining under the 2024 ATM Program.

Current wording

Customer collections are our primary source of cash. We believe we have a strong customer base, and have continued to experience relatively strong collections. As of June 30, 2026, our principal sources of liquidity were $2.2 billion of cash, cash equivalents and short-term investments. In addition to our cash balance, we had approximately $4.0 billion of additional liquidity available to us from our $4.0 billion revolving facility and general access to both public and private debt and equity capital markets. We also have additional liquidity available to us from our 2024 ATM Program, under which we may offer and sell from time to time our common stock in "at the market" transactions on either a spot or forward basis. As of June 30, 2026, we had approximately $700 million available for sale remaining under the 2024 ATM Program.

Previous wording

Our net cash provided by (used in) operating, investing and financing activities for the three months ended March 31, 2026 and 2025 were as follows (in millions):

Current wording

Our net cash provided by (used in) operating, investing and financing activities for the six months ended June 30, 2026 and 2025 were as follows (in millions):

Previous wording

Net cash provided by our operations is generated by colocation, interconnection, managed infrastructure and other revenues. Our primary uses of cash from our operating activities include compensation and related costs, interest payments, other general corporate expenditures and taxes. Net cash provided by operating activities decreased by $92 million during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily driven by increases in cash paid for costs and operating expenses, partially offset by improved results of operations.

Current wording

Net cash provided by our operations is generated by colocation, interconnection, managed infrastructure and other revenues. Our primary uses of cash from our operating activities include compensation and related costs, interest payments, other general corporate expenditures and taxes. Net cash provided by operating activities increased by $31 million during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily driven by increases in improved results of operations, partially offset by cash paid for costs and operating expenses.

Previous wording

Net cash used in investing activities increased by $495 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to:

Current wording

Net cash used in investing activities increased by $171 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily due to: