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

REDWOOD 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 Summary

Q4 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 - 1,323

51 - 52%

Recurring Capital Expenditures

% of Revenues

$270 - 290

~3%

$28 - 48

1 - 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 Highlights

FY 2025 Results Conference Call and Replay Information

Equinix 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 Resources

About Equinix

Equinix, 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 Measures

Equinix 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:

AFFO 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:

Equinix defines AFFO as FFO adjusted for:

Equinix 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 Statements

This 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, 2024

Recurring revenues

$ 2,294

$ 2,215

$ 2,091

$ 8,739

$ 8,184

Non-recurring revenues

126

101

170

478

564

Revenues

2,420

2,316

2,261

9,217

8,748

Cost of revenues

1,198

1,142

1,196

4,508

4,467

Gross profit

1,222

1,174

1,065

4,709

4,281

Operating expenses:

Sales and marketing

234

219

209

903

891

General and administrative

481

470

451

1,840

1,766

Restructuring and other exit charges

Transaction costs

Impairment charges

233

(Gain) loss on asset sales

—

(1)

—

(1)

(18)

Total operating expenses

800

700

962

2,861

2,953

Income from operations

422

474

103

1,848

1,328

Interest and other income (expense):

Interest income

193

137

Interest expense

(142)

(128)

(126)

(527)

(457)

Other income (expense)

(9)

—

(11)

(7)

(17)

Gain (loss) on debt extinguishment

—

(15)

(16)

Total interest and other, net

(110)

(75)

(103)

(340)

(353)

Income before income taxes

312

399

—

1,508

975

Income tax expense

(48)

(25)

(14)

(160)

(161)

Net income from continuing operations

264

374

(14)

1,348

814

Net (income) loss attributable to non-controlling interests

—

Net income (loss) attributable to common stockholders

$ 265

$ 374

$ (14)

$ 1,350

$ 815

Earnings (loss) per share ("EPS") attributable to common stockholders:

Basic EPS

$ 2.70

$ 3.82

$ (0.14)

$ 13.79

$ 8.54

Diluted EPS

$ 2.69

$ 3.81

$ (0.14)

$ 13.76

$ 8.50

Weighted-average shares for basic EPS (in thousands)

98,200

97,982

96,849

97,883

95,457

Weighted-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, 2024

Assets

Cash and cash equivalents

$ 1,727

$ 3,081

Short-term investments

1,500

527

Accounts receivable, net

1,001

949

Other current assets

897

890

Total current assets

5,125

5,447

Property, plant and equipment, net

23,584

19,249

Operating lease right-of-use assets

1,392

1,419

Goodwill

5,984

5,504

Intangible assets, net

1,316

1,417

Other assets

2,740

2,049

Total assets

$ 40,141

$ 35,085

Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses

$ 1,350

$ 1,193

Accrued property, plant and equipment

564

387

Current portion of operating lease liabilities

155

144

Current portion of finance lease liabilities

168

189

Current portion of mortgage and loans payable

Current portion of senior notes

1,299

1,199

Other current liabilities

340

232

Total current liabilities

3,893

3,349

Operating lease liabilities, less current portion

1,304

1,331

Finance lease liabilities, less current portion

2,187

2,086

Mortgage and loans payable, less current portion

686

644

Senior notes, less current portion

16,910

13,363

Other liabilities

983

760

Total liabilities

25,963

21,533

Redeemable non-controlling interest

Common stockholders' equity:

Common stock

—

Additional paid-in capital

21,642

20,895

Treasury stock

(24)

(39)

Accumulated dividends

(12,202)

(10,342)

Accumulated other comprehensive loss

(1,359)

(1,735)

Retained earnings

6,099

4,749

Total common stockholders' equity

14,156

13,528

Non-controlling interests

(3)

(1)

Total stockholders' equity

14,153

13,527

Total liabilities, redeemable non-controlling interest and stockholders' equity

$ 40,141

$ 35,085

Ending headcount by geographic region is as follows:

Americas headcount

5,917

5,952

EMEA headcount

4,706

4,653

Asia-Pacific headcount

3,093

3,001

Total headcount

13,716

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 loans

673

628

Mortgage payable and other loans payable

Total mortgage and loans payable principal

703

649

Senior notes

18,209

14,562

Plus: debt issuance costs and debt discounts

150

123

Total senior notes principal

18,359

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, 2024

Cash 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

233

(Gain) loss on asset sales

(1)

(18)

Other operating activities

Changes in operating assets and liabilities:

Accounts receivable

(40)

Income taxes, net

(78)

(9)

Operating lease right-of-use assets

161

150

Operating lease liabilities

(156)

(153)

Accounts payable and accrued expenses

Other assets and liabilities

(13)

(450)

Net cash provided by operating activities

3,911

3,249

Cash flows from investing activities:

Purchases of equity investments

(60)

(98)

Distributions from equity investments

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

Investment in loan receivable

(69)

(261)

Loan receivable upfront fee

—

Net cash used in investing activities

(6,484)

(3,937)

Cash flows from financing activities:

Proceeds from employee equity programs

Payment of dividends

(1,856)

(1,643)

Proceeds from public offering of common stock, net of issuance costs

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

Repayment of senior notes

(1,200)

(1,000)

Other financing activities

(26)

(30)

Net cash provided by financing activities

1,272

1,723

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

(49)

Net increase (decrease) in cash, cash equivalents and restricted cash

(1,258)

986

Cash, cash equivalents and restricted cash at beginning of period

3,082

2,096

Cash, 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

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 revenues

126

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 %

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

Interconnection

245

239

227

944

885

Managed infrastructure

245

261

Other

Recurring revenues

1,020

987

923

3,889

3,647

Non-recurring revenues

222

215

Revenues

$ 1,071

$ 1,035

$ 999

$ 4,111

$ 3,862

EMEA Revenues:

Colocation

$ 619

$ 588

$ 577

$ 2,346

$ 2,235

Interconnection

102

100

385

340

Managed infrastructure

152

138

Other

110

Recurring revenues

789

756

723

2,993

2,812

Non-recurring revenues

137

155

Revenues

$ 836

$ 784

$ 776

$ 3,130

$ 2,967

Asia-Pacific Revenues:

Colocation

$ 378

$ 367

$ 345

$ 1,446

$ 1,349

Interconnection

326

294

Managed infrastructure

Other

Recurring revenues

485

472

445

1,857

1,725

Non-recurring revenues

119

194

Revenues

$ 513

$ 497

$ 486

$ 1,976

$ 1,919

Worldwide Revenues:

Colocation

$ 1,708

$ 1,637

$ 1,548

$ 6,475

$ 6,058

Interconnection

433

422

393

1,655

1,519

Managed infrastructure

116

118

115

466

467

Other

143

140

Recurring revenues

2,294

2,215

2,091

8,739

8,184

Non-recurring revenues

126

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)

(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)

(197)

(201)

Stock-based compensation expense

(24)

(25)

(23)

(96)

(94)

Cash sales and marketing expense

160

144

136

610

596

General and administrative expense

481

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 expenses

301

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)

160

161

Interest income

(41)

(53)

(49)

(193)

(137)

Interest expense

142

128

126

527

457

Other (income) expense

—

(Gain) loss on debt extinguishment

—

(1)

Depreciation, amortization and accretion expense

551

533

502

2,066

2,011

Stock-based compensation expense

128

130

114

498

462

Restructuring and other exit charges

Impairment charges

233

Transaction costs

(Gain) loss on asset sales

—

(1)

—

(1)

(18)

Adjusted EBITDA

$ 1,186

$ 1,148

$ 1,021

$ 4,530

$ 4,097

Americas

492

489

422

1,890

1,709

EMEA

413

384

354

1,561

1,378

Asia-Pacific

281

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 interests

—

Net income (loss) attributable to common stockholders

265

374

(14)

1,350

815

Adjustments:

Real estate depreciation

349

324

309

1,282

1,239

(Gain) loss on disposition of real estate assets

—

(1)

—

(20)

Adjustments for FFO from unconsolidated joint ventures

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 adjustment

(1)

(4)

Straight-line rent expense adjustment

(4)

(18)

(3)

Contract cost adjustment

(27)

(8)

(11)

(52)

(27)

Amortization of deferred financing costs and debt discounts

Stock-based compensation expense

128

130

114

498

462

Stock-based charitable contributions

—

Non-real estate depreciation expense

142

155

136

568

562

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

—

(3)

—

(1)

—

Amortization expense

200

208

Accretion expense adjustment

Recurring capital expenditures

(139)

(64)

(115)

(284)

(250)

(Gain) loss on debt extinguishment

—

(1)

Restructuring and other exit charges

Transaction costs

Impairment charges

233

Income tax expense adjustment

(5)

(29)

(16)

(24)

(2)

Adjustments for AFFO from unconsolidated joint ventures

(2)

—

(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

Income tax expense

(48)

(25)

(14)

(160)

(161)

Income tax expense adjustment

(5)

(29)

(16)

(24)

(2)

Straight-line rent expense adjustment

(4)

(18)

(3)

Stock-based charitable contributions

—

Contract cost adjustment

(27)

(8)

(11)

(52)

(27)

Installation revenue adjustment

(1)

(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 interests

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

SOURCE Equinix, Inc.