Equinix Reports Third-Quarter Results and Raises 2026 Guidance

Equinix Reports Third-Quarter Results and Raises 2026 Guidance REDWOOD CITY, Calif., Oct. 28, 2026 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company ®, today reported results for the quarter ended September 30, 2026.

"Our Q3 results and raised full-year guidance reflect the differentiated position and growing importance of Equinix," said Adaire Fox-Martin, CEO and President, Equinix. "We delivered double-digit growth across the key metrics that drive long-term value creation, including interconnection and monthly recurring revenue, and we accelerated capacity to meet broad-based demand. We also unveiled Equinix Fabric One and Equinix Inference Exchange to enable enterprise customers to run, connect, and orchestrate their most critical workloads. Our diverse customer base, expanding ecosystem, and balance sheet strength position us well for sustained, profitable growth and shareholder value."

Third-Quarter 2026 Results Summary

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.

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.

All per-share results are presented on a fully diluted basis.

2026 Guidance Summary

($ in millions, except per share data)

Prior FY 2026

Guidance

Underlying

Adjustment

atNorth

Joint

Venture

Foreign

Exchange

Impact

Revised FY

2026 Guidance

Q4 2026 Guidance

Revenues

$10,205 - 10,285

11 - 12%

+$84

+$16

$10,325 - 10,365

~12%

$2,684 - 2,724

12 - 13%

Adjusted EBITDA

Adjusted EBITDA Margin %

$5,210 - 5,270

~51%

+$59

+$11

$5,290 - 5,330

~51%

$1,328 - 1,368

49 - 50%

Recurring Capital Expenditures

% of Revenues

$290 - 310

~3%

$290 - 310

~3%

$141 - 161

5 - 6%

Non-recurring Capital Expenditures

(Excludes xScale and Real Estate

Acquisitions)

$4,710 - 5,690

-$2

+$2

$4,710 - 5,690

AFFO

$4,240 - 4,300

+$52

+$31

+$7

$4,340 - 4,380

AFFO per Share (Diluted)

$42.69 - 43.29

10 - 12%

+$0.54

+$0.31

+$0.07

$43.71 - 44.11

11 - 12%

Expected Cash Dividends

~$2,039

-$2

~$2,037

For the fourth quarter of 2026, the company expects revenues to range between $2.684 and $2.724 billion, an increase of 11 - 13% over the previous year on an as-reported basis, or 12 - 13% on a normalized and constant currency basis. Adjusted EBITDA is expected to range between $1.328 and $1.368 billion, reflecting an adjusted EBITDA margin of 49 - 50%.

For the full year of 2026, total revenues are expected to range between $10.325 and $10.365 billion, an increase of approximately 12% over the previous year on both an as-reported and a normalized and constant currency basis. Adjusted EBITDA is expected to range between $5.290 and $5.330 billion, reflecting an adjusted EBITDA margin of approximately 51%, an approximate 200 basis points expansion over the previous year. AFFO is expected to range between $4.340 and $4.380 billion. AFFO per share is expected to range between $43.71 and $44.11, an increase of 14 - 15% over the previous year on an as-reported basis, or 11 - 12% on a normalized and constant currency basis. Total capital expenditures are expected to range between $5 and $6 billion.

Q3 2026 Business Highlights

Q3 2026 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended September 30, 2026, along with its future outlook, in its quarterly conference call on Wednesday, October 28, 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 Thursday, December 31, 2026, by dialing 1-800-814-6745 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

Nine Months Ended

September

30, 2026

June 30,

2026

September

30, 2025

September

30, 2026

September

30, 2025

Recurring revenues

$ 2,442

$ 2,377

$ 2,215

$ 7,150

$ 6,445

Non-recurring revenues

129

248

101

490

352

Revenues

2,571

2,625

2,316

7,640

6,797

Cost of revenues

1,257

1,230

1,142

3,673

3,310

Gross profit

1,314

1,395

1,174

3,967

3,487

Operating expenses:

Sales and marketing

233

239

219

713

669

General and administrative

449

462

470

1,355

1,359

Restructuring and other exit charges

Transaction costs

Impairment charges

(Gain) loss on asset sales

—

(1)

(17)

(1)

Total operating expenses

714

730

700

2,125

2,061

Income from operations

600

665

474

1,842

1,426

Interest and other income (expense):

Interest income

123

152

Interest expense

(163)

(151)

(128)

(462)

(385)

Other income (expense)

(28)

—

Gain (loss) on debt extinguishment

—

Total interest and other, net

(63)

(142)

(75)

(311)

(230)

Income before income taxes

537

523

399

1,531

1,196

Income tax expense

(48)

(46)

(25)

(150)

(112)

Net income

489

477

374

1,381

1,084

Net (income) loss attributable to non-controlling interests

—

Net income attributable to common stockholders

$ 489

$ 479

$ 374

$ 1,383

$ 1,085

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

Basic EPS

$ 4.95

$ 4.86

$ 3.82

$ 14.03

$ 11.10

Diluted EPS

$ 4.93

$ 4.83

$ 3.81

$ 13.96

$ 11.07

Weighted-average shares for basic EPS (in thousands)

98,787

98,641

97,982

98,607

97,777

Weighted-average shares for diluted EPS (in thousands)

99,277

99,136

98,174

99,047

98,037

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in millions, except headcount)

(unaudited)

September

30, 2026

December

31, 2025

Assets

Cash and cash equivalents

$ 2,362

$ 1,727

Short-term investments

1,235

1,500

Accounts receivable, net

1,203

1,001

Other current assets

957

897

Total current assets

5,757

5,125

Property, plant and equipment, net

26,282

23,584

Operating lease right-of-use assets

1,317

1,392

Goodwill

5,874

5,984

Intangible assets, net

1,146

1,316

Other assets

4,069

2,740

Total assets

$ 44,445

$ 40,141

Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses

$ 1,425

$ 1,350

Accrued property, plant and equipment

676

564

Current portion of operating lease liabilities

155

Current portion of finance lease liabilities

182

168

Current portion of mortgage and loans payable

Current portion of senior notes

1,665

1,299

Other current liabilities

343

340

Total current liabilities

4,452

3,893

Operating lease liabilities, less current portion

1,231

1,304

Finance lease liabilities, less current portion

2,196

2,187

Mortgage and loans payable, less current portion

686

Senior notes, less current portion

20,963

16,910

Other liabilities

1,037

983

Total liabilities

29,892

25,963

Redeemable non-controlling interest

Common stockholders' equity:

Common stock

—

Additional paid-in capital

22,209

21,642

Treasury stock

(23)

(24)

Accumulated dividends

(13,748)

(12,202)

Accumulated other comprehensive loss

(1,385)

(1,359)

Retained earnings

7,484

6,099

Total common stockholders' equity

14,537

14,156

Non-controlling interests

(9)

(3)

Total stockholders' equity

14,528

14,153

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

$ 44,445

$ 40,141

Ending headcount by geographic region is as follows:

Americas headcount

6,021

5,917

EMEA headcount

4,768

4,706

Asia-Pacific headcount

3,253

3,093

Total headcount

14,042

13,716

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in millions)

(unaudited)

September

30, 2026

December

31, 2025

Finance lease liabilities

$ 2,378

$ 2,355

Term loans

673

Mortgage payable and other loans payable

Total mortgage and loans payable principal

703

Senior notes

22,628

18,209

Plus: debt issuance costs and debt discounts

192

150

Total senior notes principal

22,820

18,359

Total debt principal outstanding

$ 25,217

$ 21,417

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Nine Months Ended

September

30, 2026

September

30, 2025

Cash flows from operating activities:

Net income

$ 1,381

$ 1,084

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

1,649

1,515

Stock-based compensation

414

370

Impairment charges

(Gain) loss on asset sales

(17)

(1)

Other operating activities

Changes in operating assets and liabilities:

Accounts receivable

(210)

(180)

Income taxes, net

(44)

(91)

Operating lease right-of-use assets

119

122

Operating lease liabilities

(119)

(113)

Accounts payable and accrued expenses

(49)

Other assets and liabilities

(289)

Net cash provided by operating activities

3,027

2,767

Cash flows from investing activities:

Purchases of equity investments

(1,153)

(54)

Distributions from equity investments

105

Purchases of short-term investments

(972)

(1,092)

Maturities and sales of short-term investments

1,254

770

Business acquisitions, net of cash acquired

—

(182)

Real estate acquisitions

(234)

(391)

Purchases of other property, plant and equipment

(4,392)

(2,875)

Proceeds from sale of assets, net of cash transferred

415

—

Settlement of foreign currency hedges

101

Investment in loan receivable

—

(62)

Net cash used in investing activities

(4,876)

(3,774)

Cash flows from financing activities:

Proceeds from employee equity programs

Payment of dividends

(1,547)

(1,395)

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

—

Proceeds from senior notes, net of debt discounts

5,399

2,566

Repayment of finance lease liabilities

(129)

(111)

Contribution from non-controlling interest

—

Repayment of senior notes

(700)

(1,200)

Repayment of other debt

(686)

(1)

Other financing activities

(9)

Net cash provided by financing activities

2,433

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

(10)

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

574

(917)

Cash, cash equivalents and restricted cash at beginning of period

1,824

3,082

Cash, cash equivalents and restricted cash at end of period

$ 2,398

$ 2,165

Free cash flow (1)

$ (801)

$ (970)

Adjusted free cash flow (2)

$ (567)

$ (397)

(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

$ 3,027

$ 2,767

Net cash used in investing activities as presented above

(4,876)

(3,774)

Less purchases of equity investments, net of distributions

1,048

Free cash flow

$ (801)

$ (970)

(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)

$ (801)

$ (970)

Less business acquisitions, net of cash and restricted cash acquired

—

182

Less real estate acquisitions

234

391

Adjusted free cash flow

$ (567)

$ (397)

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

($ in millions, except per share data)

(unaudited)

Three Months Ended

Nine Months Ended

September

30, 2026

June 30,

2026

September

30, 2025

September

30, 2026

September

30, 2025

Recurring revenues

$ 2,442

$ 2,377

$ 2,215

$ 7,150

$ 6,445

Non-recurring revenues

129

248

101

490

352

Revenues (1)

2,571

2,625

2,316

7,640

6,797

Cash cost of revenues (2)

830

790

752

2,385

2,186

Cash gross profit (3)

1,741

1,835

1,564

5,255

4,611

Cash operating expenses (4):

Cash sales and marketing expenses

157

162

144

481

450

Cash general and administrative expenses

263

277

272

812

817

Total cash operating expenses (4)

420

439

416

1,293

1,267

Adjusted EBITDA (5)

$ 1,321

$ 1,396

$ 1,148

$ 3,962

$ 3,344

Cash gross margins (6)

68 %

70 %

68 %

69 %

68 %

Adjusted EBITDA margins (7)

51 %

53 %

50 %

52 %

49 %

FFO (8)

$ 858

$ 854

$ 707

$ 2,470

$ 2,043

AFFO (9)(10)

$ 1,156

$ 1,168

$ 965

$ 3,389

$ 2,884

Basic FFO per share (11)

$ 8.69

$ 8.66

$ 7.22

$ 25.05

$ 20.89

Diluted FFO per share (11)

$ 8.64

$ 8.61

$ 7.20

$ 24.94

$ 20.84

Basic AFFO per share (11)

$ 11.70

$ 11.84

$ 9.85

$ 34.37

$ 29.50

Diluted AFFO per share (11)

$ 11.64

$ 11.78

$ 9.83

$ 34.22

$ 29.42

(1)

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

Americas Revenues:

Colocation

$ 770

$ 747

$ 682

$ 2,248

$ 1,972

Interconnection

262

256

239

769

699

Managed infrastructure

165

186

Other

Recurring revenues

1,093

1,067

987

3,206

2,869

Non-recurring revenues

184

284

171

Revenues

$ 1,148

$ 1,251

$ 1,035

$ 3,490

$ 3,040

EMEA Revenues:

Colocation

$ 653

$ 633

$ 588

$ 1,899

$ 1,727

Interconnection

108

105

100

319

283

Managed infrastructure

121

112

Other

Recurring revenues

831

806

756

2,426

2,204

Non-recurring revenues

124

Revenues

$ 878

$ 845

$ 784

$ 2,550

$ 2,294

Asia-Pacific Revenues:

Colocation

$ 403

$ 392

$ 367

$ 1,181

$ 1,068

Interconnection

276

240

Managed infrastructure

Other

Recurring revenues

518

504

472

1,518

1,372

Non-recurring revenues

Revenues

$ 545

$ 529

$ 497

$ 1,600

$ 1,463

Worldwide Revenues:

Colocation

$ 1,826

$ 1,772

$ 1,637

$ 5,328

$ 4,767

Interconnection

465

453

422

1,364

1,222

Managed infrastructure

108

112

118

335

350

Other

123

106

Recurring revenues

2,442

2,377

2,215

7,150

6,445

Non-recurring revenues

129

248

101

490

352

Revenues

$ 2,571

$ 2,625

$ 2,316

$ 7,640

$ 6,797

(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

$ 1,257

$ 1,230

$ 1,142

$ 3,673

$ 3,310

Depreciation, amortization and accretion expense

(409)

(421)

(375)

(1,235)

(1,079)

Stock-based compensation expense

(18)

(19)

(15)

(53)

(45)

Cash cost of revenues

$ 830

$ 790

$ 752

$ 2,385

$ 2,186

(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

$ 233

$ 239

$ 219

$ 713

$ 669

Depreciation and amortization expense

(51)

(50)

(154)

(147)

Stock-based compensation expense

(25)

(26)

(25)

(78)

(72)

Cash sales and marketing expense

157

162

144

481

450

General and administrative expense

449

462

470

1,355

1,359

Depreciation and amortization expense

(88)

(85)

(108)

(260)

(289)

Stock-based compensation expense

(98)

(100)

(90)

(283)

(253)

Cash general and administrative expenses

263

277

272

812

817

Cash operating expense

$ 420

$ 439

$ 416

$ 1,293

$ 1,267

(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

$ 489

$ 477

$ 374

$ 1,381

$ 1,084

Income tax expense (benefit)

150

112

Interest income

(46)

(36)

(53)

(123)

(152)

Interest expense

163

151

128

462

385

Other (income) expense

(54)

—

(27)

(2)

(Gain) loss on debt extinguishment

—

(1)

—

(1)

Depreciation, amortization and accretion expense

548

557

533

1,649

1,515

Stock-based compensation expense

141

145

130

414

370

Restructuring and other exit charges

Impairment charges

Transaction costs

(Gain) loss on asset sales

—

(1)

(17)

(1)

Adjusted EBITDA

$ 1,321

$ 1,396

$ 1,148

$ 3,962

$ 3,344

Americas

560

641

489

1,717

1,398

EMEA

456

384

1,336

1,148

Asia-Pacific

305

299

275

909

798

Adjusted EBITDA

$ 1,321

$ 1,396

$ 1,148

$ 3,962

$ 3,344

(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

$ 489

$ 477

$ 374

$ 1,381

$ 1,084

Net (income) loss attributable to non-controlling interests

—

Net income (loss) attributable to common stockholders

489

479

374

1,383

1,085

Adjustments:

Real estate depreciation

358

361

324

1,070

933

(Gain) loss on disposition of real estate assets

—

(1)

(17)

—

Adjustments for FFO from unconsolidated joint ventures

FFO attributable to common stockholders

$ 858

$ 854

$ 707

$ 2,470

$ 2,043

(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 related to unconsolidated joint ventures and non-controlling interests.

FFO attributable to common stockholders

$ 858

$ 854

$ 707

$ 2,470

$ 2,043

Adjustments:

Installation revenue adjustment

Straight-line rent expense adjustment

(3)

(4)

(3)

Contract cost adjustment

(11)

(8)

(37)

(25)

Amortization of deferred financing costs and debt discounts

Stock-based compensation expense

141

145

130

414

370

Stock-based charitable contributions

—

Non-real estate depreciation expense

134

139

155

411

426

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

—

(3)

—

(1)

Amortization expense

155

149

Accretion expense adjustment

Recurring capital expenditures

(68)

(49)

(64)

(149)

(145)

(Gain) loss on debt extinguishment

—

(1)

—

(1)

Restructuring and other exit charges

Transaction costs

Impairment charges

Income tax expense adjustment

(8)

(29)

(7)

(19)

Adjustments for AFFO from unconsolidated joint ventures

—

(2)

—

AFFO attributable to common stockholders

$ 1,156

$ 1,168

$ 965

$ 3,389

$ 2,884

(10)

Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$ 1,321

$ 1,396

$ 1,148

$ 3,962

$ 3,344

Adjustments:

Interest expense, net of interest income

(117)

(115)

(75)

(339)

(233)

Amortization of deferred financing costs and debt discounts

Income tax expense

(48)

(46)

(25)

(150)

(112)

Income tax expense adjustment

(8)

(29)

(7)

(19)

Straight-line rent expense adjustment

(3)

(4)

(3)

Stock-based charitable contributions

—

Contract cost adjustment

(11)

(8)

(37)

(25)

Installation revenue adjustment

Recurring capital expenditures

(68)

(49)

(64)

(149)

(145)

Other income (expense)

(28)

—

Adjustments for (gain) loss on asset dispositions

—

(3)

—

Adjustments for unconsolidated JVs and non-controlling interests

AFFO attributable to common stockholders

$ 1,156

$ 1,168

$ 965

$ 3,389

$ 2,884

(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)

98,787

98,641

97,982

98,607

97,777

Effect of dilutive securities:

Employee equity awards (in thousands)

490

495

192

440

260

Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)

99,277

99,136

98,174

99,047

98,037

Basic FFO per share

$ 8.69

$ 8.66

$ 7.22

$ 25.05

$ 20.89

Diluted FFO per share

$ 8.64

$ 8.61

$ 7.20

$ 24.94

$ 20.84

Basic AFFO per share

$ 11.70

$ 11.84

$ 9.85

$ 34.37

$ 29.50

Diluted AFFO per share

$ 11.64

$ 11.78

$ 9.83

$ 34.22

$ 29.42

SOURCE Equinix, Inc.