Item 1. Condensed Consolidated Financial Statements

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Item 1. Condensed Consolidated Financial Statements

EQUINIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

June 30, 2025December 31, 2024
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$3,660$3,081
Short-term investments872527
Accounts receivable, net of allowance of $20 and $191,137949
Other current assets881890
Total current assets6,5505,447
Property, plant and equipment, net21,20719,249
Operating lease right-of-use assets1,4811,419
Goodwill5,9825,504
Intangible assets, net1,3891,417
Other assets2,2402,049
Total assets$38,849$35,085
Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses$1,213$1,193
Accrued property, plant and equipment378387
Current portion of operating lease liabilities158144
Current portion of finance lease liabilities211189
Current portion of mortgage and loans payable145
Current portion of senior notes1,8991,199
Other current liabilities368232
Total current liabilities4,2413,349
Operating lease liabilities, less current portion1,3781,331
Finance lease liabilities, less current portion2,1692,086
Mortgage and loans payable, less current portion702644
Senior notes, less current portion15,32013,363
Other liabilities932760
Total liabilities24,74221,533
Commitments and contingencies (Note 10)
Redeemable non-controlling interest2525
Common stockholders’ equity (shares in thousands):
Common stock, $0.001 par value per share: 300,000 shares authorized; 97,944 issued and 97,865 outstanding in 2025 and 97,390 issued and 97,287 outstanding in 2024——
Additional paid-in capital21,32420,895
Treasury stock, at cost; 79 shares in 2025 and 103 shares in 2024(30)(39)
Accumulated dividends(11,271)(10,342)
Accumulated other comprehensive loss(1,399)(1,735)
Retained earnings5,4604,749
Total common stockholders' equity14,08413,528
Non-controlling interests(2)(1)
Total stockholders’ equity14,08213,527
Total liabilities, redeemable non-controlling interest and stockholders’ equity$38,849$35,085

See accompanying notes to condensed consolidated financial statements.

Table of Contents

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data)

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Unaudited)
Revenues$2,256$2,159$4,481$4,286
Costs and operating expenses:
Cost of revenues1,0841,0822,1682,173
Sales and marketing221219450445
General and administrative451437889881
Restructuring charges2—12—
Transaction costs3395
Impairment charges1—1—
(Gain) loss on asset sales—(18)—(18)
Total costs and operating expenses1,7621,7233,5293,486
Income from operations494436952800
Interest income52299953
Interest expense(135)(110)(257)(214)
Other income (expense)(7)(7)2(13)
Gain (loss) on debt extinguishment1—1(1)
Income before income taxes405348797625
Income tax expense(38)(47)(87)(93)
Net income367301710532
Net (income) loss attributable to non-controlling interests1—1—
Net income attributable to common stockholders$368$301$711$532
Earnings per share (“EPS”) attributable to common stockholders:
Basic EPS$3.76$3.17$7.28$5.61
Weighted-average shares for basic EPS (in thousands)97,83594,91997,67494,792
Diluted EPS$3.75$3.16$7.26$5.59
Weighted-average shares for diluted EPS (in thousands)98,05095,16697,96895,161

See accompanying notes to condensed consolidated financial statements.

Table of Contents

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Unaudited)
Net income$367$301$710$532
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment ("CTA"):
CTA gain (loss)505(78)824(436)
Income tax effects————
CTA gain (loss), net of tax505(78)824(436)
Change in net investment hedge CTA gain (loss):
Net investment hedge CTA gain (loss)(245)24(373)154
Income tax effects(4)—(5)—
Net investment hedge CTA gain (loss), net of tax(249)24(378)154
Change in unrealized gain (loss) on cash flow hedges:
Unrealized gain (loss) on cash flow hedges(129)12(158)38
Income tax effects33(1)48(7)
Unrealized gain (loss) on cash flow hedges, net of tax(96)11(110)31
Total other comprehensive income (loss), net of tax160(43)336(251)
Comprehensive income, net of tax5272581,046281
Net (income) loss attributable to non-controlling interests1—1—
Comprehensive income attributable to common stockholders$528$258$1,047$281

See accompanying notes to condensed consolidated financial statements.

Table of Contents

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Six Months Ended June 30,
20252024
(Unaudited)
Cash flows from operating activities:
Net income$710$532
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation880912
Stock-based compensation240226
Amortization of intangible assets98103
Impairment charges1—
(Gain) loss on asset sales—(18)
Other operating activities2742
Changes in operating assets and liabilities:
Accounts receivable(169)(141)
Income taxes, net(45)3
Other assets152(153)
Operating lease right-of-use assets7976
Operating lease liabilities(71)(65)
Accounts payable and accrued expenses(149)4
Other liabilities—(11)
Net cash provided by operating activities1,7531,510
Cash flows from investing activities:
Purchases of equity investments(48)(36)
Distributions from equity investments4—
Purchases of short-term investments(795)—
Maturity of short-term investments450—
Business acquisitions, net of cash acquired(182)—
Real estate acquisitions(99)(125)
Purchases of other property, plant and equipment(1,739)(1,355)
Proceeds from sale of assets, net of cash transferred—247
Settlement of foreign currency hedges50—
Investment in loan receivable(45)(196)
Loan receivable upfront fee—4
Net cash used in investing activities(2,404)(1,461)
Cash flows from financing activities:
Proceeds from employee equity programs5048
Payment of dividends(928)(817)
Proceeds from public offering of common stock, net of issuance costs99—
Proceeds from senior notes, net of debt discounts2,066744
Repayment of finance lease liabilities(72)(66)
Debt issuance costs(15)(8)
Other financing activities6(4)
Net cash provided by (used in) financing activities1,206(103)
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash53(46)
Net increase (decrease) in cash, cash equivalents and restricted cash608(100)
Cash, cash equivalents and restricted cash at beginning of period3,0822,096
Cash, cash equivalents and restricted cash at end of period$3,690$1,996
Cash and cash equivalents$3,660$1,993
Current portion of restricted cash included in other current assets53
Non-current portion of restricted cash included in other assets25—
Total cash, cash equivalents and restricted cash at end of period$3,690$1,996

See accompanying notes to condensed consolidated financial statements.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. (collectively with its consolidated subsidiaries referred to as "Equinix," the "Company," "we," "our," or "us") and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented.

Our condensed consolidated balance sheet data as of December 31, 2024 has been derived from audited consolidated financial statements as of that date. Our condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP" or "GAAP"). For further information, refer to the Consolidated Financial Statements and Notes thereto included in our Form 10-K as filed with the SEC on February 12, 2025. Results for the interim periods are not necessarily indicative of results for the entire fiscal year.

All intercompany accounts and transactions have been eliminated in consolidation.

Income Taxes

We elected to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with our 2015 taxable year. As a result, we may deduct the dividends paid to our stockholders from taxable income generated by our REIT and qualified REIT subsidiaries ("QRSs"). Our dividends paid deduction generally eliminates the U.S. federal taxable income of our REIT and QRSs, resulting in no U.S. federal income tax due. However, our domestic taxable REIT subsidiaries ("TRSs") are subject to U.S. corporate income taxes on any taxable income generated by them. In addition, our foreign operations are subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs.

We accrue for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as our operating performance, tax law changes and future business acquisitions.

Our effective tax rates were 10.9% and 14.9% for the six months ended June 30, 2025 and 2024, respectively.

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03: Disaggregation of Income Statement Expenses ("DISE"). The ASU requires additional disclosure of the nature of expenses included in the income statement. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our condensed consolidated financial statements.

In December 2023, FASB issued ASU 2023-09, Income Taxes ("Topic 740"): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. The ASU is effective for annual reporting periods beginning after December 15, 2024 and should be applied prospectively, with retrospective application and early adoption both permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our condensed consolidated financial statements.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Accounting Standards Adopted

Segment Reporting

In November 2023, FASB issued ASU 2023-07, Segment Reporting ("Topic 280"): Improvements to Reportable Segment Disclosure. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods within fiscal years beginning after December 15, 2024, with early adoption permitted and retrospective adoption required. We adopted this ASU for the 2024 annual reporting period and the 2025 interim reporting periods. Refer to Note 13 for disclosures required by this ASU.

2. Revenue

Contract Balances

The following table summarizes the opening and closing balances of our accounts receivable, net; contract assets, current; contract assets, non-current; deferred revenue, current; and deferred revenue, non-current (in millions):

Accounts receivable, net (1)Contract assets, currentContract assets, non-currentDeferred revenue, currentDeferred revenue, non-current
Beginning balances as of January 1, 2025$949$102$113$123$150
Closing balances as of June 30, 20251,13784102132164
Increase (Decrease)$188$(18)$(11)$9$14

(1) The net change in our allowance for credit losses was insignificant during the six months ended June 30, 2025.

The difference between the opening and closing balances of our accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of our performance obligation and the customer's payment. The amount of revenue recognized during the six months ended June 30, 2025 from the opening deferred revenue balance as of January 1, 2025 was $55 million. The amount of revenue recognized during the six months ended June 30, 2024 from the opening deferred revenue balance as of January 1, 2024 was $54 million.

Remaining performance obligations

Approximately $12.2 billion of revenues, including deferred installation revenues, are expected to be recognized in future periods related to unsatisfied performance obligations as of June 30, 2025. Most of our revenue contracts have an initial term varying from one to five years, and thereafter, automatically renew in one-year increments. Included in the remaining performance obligations are contracts that are either under the initial term or under one-year renewal periods. We expect to recognize approximately 65% of our remaining performance obligations as revenues over the next two years, with more revenues expected to be recognized in the first year due to the impact of contract renewals. The remainder of the balance is generally expected to be recognized over the next three to five years. We estimate our remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates due to changes in actual deployment dates, contract modifications, scheduled price increases, renewals and/or terminations.

The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScale® data centers that are based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties including the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where we are considered the lessor.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

3. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented ($ in millions except per share data; share data in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net income$367$301$710$532
Net (income) loss attributable to non-controlling interests1—1—
Net income attributable to common stockholders$368$301$711$532
Weighted-average shares used to calculate basic EPS97,83594,91997,67494,792
Effect of dilutive securities:
Employee equity awards215247294369
Weighted-average shares used to calculate diluted EPS98,05095,16697,96895,161
EPS attributable to common stockholders:
Basic EPS$3.76$3.17$7.28$5.61
Diluted EPS$3.75$3.16$7.26$5.59

The following table sets forth potential shares of common stock that are not included in the diluted EPS calculation above because to do so would be anti-dilutive for the periods presented (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Common stock related to employee equity awards219857145608

4. Acquisitions

Acquisition of TIM NextGen DC Corporation (the "TIM Acquisition")

On June 2, 2025, we completed the acquisition of all outstanding shares of TIM NextGen DC Corporation from Total Information Management (“TIM”) and Zenutna Development & Realty Corporation ("ZDRC"), consisting of three data centers in the Philippines, for total purchase consideration of $183 million. The TIM Acquisition supports our ongoing expansion to meet customer demand in the Asia-Pacific market.

We incurred insignificant transaction costs and recognized insignificant revenues and net income from the TIM Acquisition during the three and six months ended June 30, 2025.

Purchase Price Allocation

The TIM Acquisition was accounted for as a business combination using the acquisition method of accounting. Under this method, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition, except where alternative measurement is required under GAAP.

As of June 30, 2025, we had not finalized the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed from the TIM Acquisition, including property, plant and equipment, intangible assets and the related tax impacts; therefore, the purchase price allocation is based on provisional estimates subject to management's continued analysis.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

A summary of the preliminary allocation of total purchase consideration is presented as follows (in millions):

TIM Acquisition
Total Purchase Consideration$183
Identifiable assets acquired and liabilities assumed
Property, plant and equipment42
Intangible assets21
Other assets4
Liabilities(11)
Total identifiable net assets56
Goodwill127
Net assets acquired$183

Property, plant and equipment - The fair values of property, plant and equipment acquired from the TIM Acquisition were estimated by applying the cost approach. The key assumptions of the cost approach include replacement cost (new), physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age.

Intangible assets - The following table presents certain information on the acquired intangible assets (in millions):

Intangible AssetsFair ValueEstimated Useful Lives (Years)Discount Rate
Customer relationships (1)2115.012.5%

(1)The fair value of the customer relationships were estimated by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The discount rates reflect the nature of the assets, the uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the acquisition, including on expansion capacity acquired. Goodwill is attributable to the Asia-Pacific region and is generally not deductible for local tax purposes.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

5. Equity Method Investments

We hold various equity method investments, primarily interests in joint venture partnership arrangements, in order to invest in certain entities that are in line with our business development objectives, including the development and operation of xScale data centers. Some of these joint ventures are classified as Variable Interest Entities ("VIEs").

The following table summarizes our equity method investments, which are included in other assets on the condensed consolidated balance sheets (in millions):

InvesteeOwnership PercentageJune 30, 2025December 31, 2024
EMEA 1 Joint Venture20%$145$131
VIE Joint Ventures (1)20%459374
OtherVarious1414
Total$618$519

(1)Includes investments in the following xScale joint ventures in each of our three regions: "Asia-Pacific 1 Joint Venture", "Asia-Pacific 2 Joint Venture", "Asia-Pacific 3 Joint Venture", "EMEA 2 Joint Venture", "AMER 1 Joint Venture" and "AMER 2 Joint Venture". These investments share a similar purpose, design and nature of assets.

EMEA 1 Joint Venture

The EMEA 1 Joint Venture is not a VIE given that both equity investors' interests have the characteristics of a controlling financial interest and it is sufficiently capitalized to sustain its operations, requiring additional funding from its partners only when expanding operations. Our share of income and losses of equity method investments from this joint venture was insignificant for the three and six months ended June 30, 2025 and 2024 and was included in other income (expense) in our condensed consolidated statements of operations.

We committed to make future equity contributions to the EMEA 1 Joint Venture for funding its future development. As of June 30, 2025, we had future equity contribution commitments of $48 million.

VIE Joint Ventures

The VIE Joint Ventures are considered VIEs because they do not have sufficient funds from operations to be self-sustaining. While we provide certain management services to these joint ventures and earn fees for the performance of such services, the power to direct the activities of these joint ventures that most significantly impact economic performance is shared equally between us and our partners. These activities include data center construction and operations, sales and marketing, financing, and real estate purchases or sales. Decisions about these activities require the consent of both Equinix and our partners. We concluded that neither party is deemed to have predominant control over the VIE Joint Ventures and neither party is considered to be the primary beneficiary. Our share of losses of equity method investments from the VIE Joint Ventures was $5 million and $6 million for the three and six months ended June 30, 2025, respectively, and $7 million and $11 million for the three and six months ended June 30, 2024, respectively. These amounts were included in other income (expense) in our condensed consolidated statements of operations.

AMER 2 Joint Venture

On April 10, 2024, we invested in a joint venture to develop and operate an xScale data center in the Americas region (the “AMER 2 Joint Venture”). At closing, we sold the assets and liabilities of the Silicon Valley 12 (“SV12x”) data center site, which were included within our Americas region, for total consideration of $293 million, which was comprised of $246 million of net cash proceeds, a 20% partnership interest in the AMER 2 Joint Venture with a fair value of $26 million, and $21 million of receivables. We recognized a gain of $18 million on the sale of the SV12x data center in the second quarter of 2024.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The following table summarizes our maximum exposure to loss related to the VIE Joint Ventures as of June 30, 2025 (in millions):

VIE Joint Ventures
Equity Investment$459
Outstanding Accounts Receivable72
Other Receivables59
Contract Assets82
Loan Commitment (1)392
Future Equity Contribution Commitments (2)118
Maximum Future Payments under Debt Guarantees (3)28
Total$1,210

(1)Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement with the AMER 2 Joint Venture, as a lender, further discussed below.

(2)The joint ventures' partners are required to make additional equity contributions proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments on their outstanding debt.

(3)In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with our guarantee covering 20% of all payments of principal and interest due under one of the EMEA 2 Joint Venture's credit facility agreements. A portion of the guarantee relates to our AMER 1 Joint Venture. Refer to Note 10.

AMER 3 Joint Venture

On October 1, 2024, we entered into an agreement to form a joint venture to develop and operate xScale data centers in the Americas region (the "AMER 3 Joint Venture"), subject to regulatory approval and other closing conditions which were satisfied on October 30, 2024. As of June 30, 2025 there have been no equity contributions made to the AMER 3 Joint Venture.

Joint Venture Related Party Transactions

Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement (the "AMER 2 Loan") with the AMER 2 Joint Venture, as a lender, with a maximum commitment of $392 million and a maturity date of April 10, 2028. We received an upfront fee of $4 million in connection with the origination of the loan, and earn interest at a contractual rate of 10% per annum on the drawn portion plus an unused commitment fee of 0.75% per annum on the undrawn portion, each payable quarterly. The term of the loan may be extended at the option of the borrower for one additional year subject to an extension fee, and may be prepaid subject to a penalty if such prepayment occurs within the first 18 months of issuance. The AMER 2 Loan is secured by the assets of the AMER 2 Joint Venture, including the SV12x data center site. The equity partners of the AMER 2 Joint Venture have provided limited guarantees in connection with the AMER 2 Loan, which require payments to the lender proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments. Additionally, the equity partners may be liable for repayment of up to the entire debt balance upon the occurrence of certain adverse acts such as a non-permitted transfer of the SV12x data center site. The AMER 2 Loan was negotiated at arm's length. We have assessed the credit risk associated with the AMER 2 Loan to be low and the allowance for credit loss as of June 30, 2025 is insignificant. The maximum amount of credit loss we are exposed to is the outstanding principal, plus accrued interest and unused commitment fees. As of June 30, 2025, the total amount outstanding under the AMER 2 Loan, net of the unamortized upfront fee, was $303 million. Additional amounts may be drawn down by the borrower periodically as needed for the continuation of development and other working capital needs.

We have lease arrangements and provide various services to the EMEA 1 Joint Venture and the VIE Joint Ventures (collectively, the "Joint Ventures") through multiple agreements, including sales and marketing, development management, facilities management, asset management and procurement service agreements. These transactions are generally considered to have been negotiated at arm's length.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The following table presents the income and expenses from these arrangements with the Joint Ventures in our condensed consolidated statements of operations (in millions):

Three Months Ended June 30,Six Months Ended June 30,
Related PartyNature of Transaction2025202420252024
EMEA 1 Joint VentureIncome (1)$6$6$12$12
EMEA 1 Joint VentureExpenses (2)4387
VIE Joint VenturesIncome (3)29619099
VIE Joint VenturesExpenses (4)3—51

(1)Primarily consists of revenues related to service arrangements as described above.

(2)Primarily consists of rent expenses for a sub-lease agreement with the EMEA 1 Joint Venture for a London data center with a remaining lease term of approximately 14 years as of June 30, 2025.

(3)Primarily consists of revenues related to service arrangements as described above and also includes interest income earned on the AMER 2 Loan during the three months ended June 30, 2025 and 2024 of $7 million and $5 million, respectively, and during the six months ended June 30, 2025 and 2024 of $14 million and $5 million, respectively.

(4)Primarily consists of rent expenses for lease arrangements with the VIE Joint Ventures.

We have also sold certain data center facilities to our Joint Ventures and recognized gains or losses on asset sales as described above.

The following table presents the assets and liabilities from related party transactions with the Joint Ventures in our condensed consolidated balance sheets (in millions):

EMEA 1 Joint VentureVIE Joint Ventures
Balance SheetJune 30, 2025December 31, 2024June 30, 2025December 31, 2024
Accounts receivable, net$20$4$72$50
Other current assets (1)819123128
Property, plant and equipment, net (2)1521457574
Operating lease right-of-use assets22312
Other assets (3)——321302
Other current liabilities75810
Finance lease liabilities1801648178
Operating lease liabilities22292
Other liabilities (4)53481111

(1)The balance primarily relates to contract assets and other receivables.

(2)The balance relates to finance lease right-of-use assets.

(3)The balance primarily relates to contract assets and the AMER 2 Loan receivable.

(4)The balance primarily relates to the obligation to pay for future construction for certain sites sold as a part of the EMEA 1 Joint Venture transaction.

6. Derivatives and Hedging Instruments

Derivatives and Other Instruments Designated as Hedging Instruments

Net Investment Hedges

Foreign Currency Debt: We are exposed to the impact of foreign exchange rate fluctuations on the value of investments in our foreign subsidiaries whose functional currencies are other than the U.S. dollar. In order to mitigate the impact of foreign currency exchange rates, we have entered into various foreign currency debt obligations, which are designated as hedges against our net investments in foreign subsidiaries. As of June 30,

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

2025 and December 31, 2024, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $1.6 billion and $1.0 billion, respectively.

Foreign Currency Forward Contracts: We use foreign currency forward contracts, designated as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude forward points from the assessment of hedge effectiveness and amortize the initial value of the excluded component through interest expense. The difference between fair value changes from the excluded component and the amount amortized is recognized in other comprehensive income (loss).

Embedded Derivatives: Certain of our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved are deemed to have foreign currency forward contracts embedded in them. These embedded derivatives are separated from their host contracts and carried on our balance sheet at their fair value. The majority of these embedded derivatives arise as a result of our foreign subsidiaries pricing their customer contracts in U.S. dollars. We use these forward contracts embedded within our customer agreements to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. As of June 30, 2025 and December 31, 2024, the total remaining contract value of such customer agreements outstanding under this hedging program was $200 million and $213 million, respectively.

Cross-currency Interest Rate Swaps: We also use cross-currency interest rate swaps, designated as net investment hedges, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt, to hedge the currency exposure associated with our net investment in our foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).

Cash Flow Hedges

Foreign Currency Forward Contracts: We enter into intercompany foreign currency forward contracts ("intercompany derivatives") with our wholly-owned subsidiaries in our EMEA region in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. dollar (primarily the British pound and the euro). Simultaneously, we enter into foreign currency forward contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. We designate the intercompany derivatives as cash flow hedges. We do not exclude any components from the assessment of hedge effectiveness and the change in fair value of these derivatives is recognized in other comprehensive income (loss) until the hedged transaction occurs.

As of June 30, 2025, our foreign currency forward contracts had maturity dates ranging from July 2025 to December 2027 and we had a net loss of $71 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that will mature in the next 12 months. As of December 31, 2024, our foreign currency forward contracts had maturity dates ranging from January 2025 to December 2026 and we had a net gain of $38 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that will mature in the 12 months following December 31, 2024.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Cross-currency Interest Rate Swaps: We use cross-currency swaps, designated as cash flow hedges, to manage the foreign currency exposure associated with a portion of our foreign currency-denominated variable-rate debt and our U.S. dollar-denominated fixed-rate debt issued by our foreign subsidiaries. As of June 30, 2025, these cross-currency interest rate swaps had maturity dates ranging from March 2026 to June 2034. We had a net gain of $8 million recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months. As of December 31, 2024, our cross-currency interest rate swaps had maturity dates ranging from March 2026 to June 2034. We had a net gain of $13 million recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the 12 months following December 31, 2024. We use the spot method to assess hedge effectiveness. Fair value changes from spot rates are recognized in other comprehensive income initially and immediately reclassified to earnings to offset the gain or loss from remeasuring the associated debt. We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).

Interest Rate Locks: We hedge the interest rate exposure created by anticipated fixed-rate debt issuances through the use of treasury locks and swap locks (collectively, interest rate locks), which are designated as cash flow hedges. As of both June 30, 2025 and December 31, 2024, we had no interest rate locks outstanding. When interest rate locks are settled, any gain or loss from the transactions is deferred and included as a component of other comprehensive income (loss) and is amortized to interest expense over the term of the forecasted hedged transaction which is equivalent to the term of the interest rate locks. As of June 30, 2025 and December 31, 2024, we had a net gain of $4 million and $3 million, recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the 12 months following June 30, 2025 and December 31, 2024, respectively, for interest rate locks.

Derivatives Not Designated as Hedging Instruments

Foreign Currency Forward Contracts: We also use foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of our foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts.

Cross-currency Interest Rate Swaps: We may, from time to time, elect to dedesignate a portion of our cross-currency interest rate swaps previously designated as hedging instruments. Gains and losses subsequent to the dedesignation are recognized in other income (expense).

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Notional Amounts and Fair Value of Derivative Instruments

The following table presents the composition of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest (in millions):

June 30, 2025December 31, 2024
Notional Amount (1)Fair ValueNotional Amount (1)Fair Value
Assets (2)Liabilities (3)Assets (2)Liabilities (3)
Net investment hedges:
Foreign currency forward contracts$1,820$3$19$966$39$17
Cross-currency interest rate swaps7715361,9861891
Cash flow hedges:
Foreign currency forward contracts1,797—1321,36553—
Cross-currency interest rate swaps1,03062541,03048—
Non-designated derivatives:
Foreign currency forward contracts4,64267743,536809
Cross-currency interest rate swaps2,411134201,39518245
Total$12,471$271$335$10,278$591$72

(1)Excludes embedded derivatives.

(2)As presented in our condensed consolidated balance sheets within other current assets and other assets.

(3)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.

Impact on Accumulated Other Comprehensive Income (Loss)

The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income (loss) were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net investment hedges:
Foreign currency debt$(111)$5$(152)$34
Foreign currency forward contracts (included component)(39)8(45)35
Cross-currency interest rate swaps (included component)(94)8(190)84
Cross-currency interest rate swaps (excluded component)(1)3141
Total$(245)$24$(373)$154
Cash flow hedges:
Foreign currency forward contracts$(128)$2$(185)$29
Cross-currency interest rate swaps (excluded component)(2)10268
Interest rate locks1—11
Total$(129)$12$(158)$38

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Impact on Earnings

The gains (losses) from derivative instruments recognized in earnings, and the location of such gains (losses) in our condensed consolidated statements of operations were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
Location of gain (loss)2025202420252024
Net investment hedges:
Foreign currency forward contracts (excluded component)Interest expense$3$3$5$5
Cross-currency interest rate swaps (excluded component)Interest expense37815
Total$6$10$13$20
Cash flow hedges:
Foreign currency forward contractsRevenues$(12)$8$6$5
Foreign currency forward contractsCosts and operating expenses6(4)(3)(2)
Cross-currency interest rate swaps (excluded component)Interest expense3171
Cross-currency interest rate swaps (included component)Other income (expense)(43)10(64)7
Interest rate locksInterest expense1—1—
Total$(45)$15$(53)$11
Non designated hedges:
Foreign currency forward contractsOther income (expense)$(59)$(10)$(103)$66
Cross-currency interest rate swapsOther income (expense)(56)10(54)10
Total$(115)$—$(157)$76

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Offsetting Derivative Assets and Liabilities

We enter into master netting agreements with our counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation in our condensed consolidated balance sheets, we do not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements, inclusive of accrued interest (in millions):

Gross AmountsGross Amounts Offset in the Balance SheetsNet AmountsGross Amounts Not Offset in the Balance SheetsNet
June 30, 2025
Derivative assets$278$—$278$(137)$141
Derivative liabilities339—339(137)202
December 31, 2024
Derivative assets$605$—$605$(75)$530
Derivative liabilities79—79(75)4

7. Fair Value Measurements

We perform fair value measurements in accordance with ASC 820, Fair Value Measurement, which establishes three levels of inputs that we use to measure fair value:

  • Level 1: quoted prices in active markets for identical assets or liabilities.

*•*Level 2: observable inputs (e.g., spot rates and other data from the third-party pricing vendors for our derivative instruments, credit rating and current prices of similar debt instruments that are publicly traded for our debt instruments) other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the assets or liabilities.

  • Level 3: unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities, including indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.

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The fair value of certain financial assets and liabilities were as follows (in millions):

June 30, 2025December 31, 2024
Fair ValueFair Value Measurement UsingFair ValueFair Value Measurement Using
Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Money market funds (1)$2,517$2,517$—$—$2,401$2,401$—$—
Time deposits (2)1,016194822—642115527—
U.S. government securities (3)5050——————
Loan receivable (4)328——328280——280
Derivative instruments (5)271—271—591—591—
Total$4,182$2,761$1,093$328$3,914$2,516$1,118$280
Liabilities:
Derivative instruments (5)$335$—$335$—$72$—$72$—
Mortgage and loans payable (6)720—720—654—654—
Senior notes (6)16,18215,671511—13,34212,851491—
Total$17,237$15,671$1,566$—$14,068$12,851$1,217$—

(1)Instruments are included within cash and cash equivalents in our condensed consolidated balance sheets, and are measured at fair value.

(2)Instruments are included within cash and cash equivalents and short-term investments in our condensed consolidated balance sheets, and are measured at amortized cost.

(3)Instruments are included within cash and cash equivalents and short-term investments in our condensed consolidated balance sheets, and are measured at amortized cost. All of our U.S. government securities are held to maturity and mature within one year. As of June 30, 2025, no allowance for credit losses was recorded for these securities and there are insignificant unrecognized gains and losses.

(4)Instrument is included within other assets in our condensed consolidated balance sheets, and is measured at amortized cost. Refer to Note 5.

(5)Instruments are included within other current assets, other assets, other current liabilities and other liabilities in our condensed consolidated balance sheets, and are measured at fair value. Refer to Note 6.

(6)Include current and non-current portions and are measured at amortized cost. Refer to Note 9.

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8. Leases

Lease Expenses

The components of lease expenses were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Finance lease cost
Amortization of right-of-use assets (1)$47$43$91$91
Interest on lease liabilities31276155
Total finance lease cost7870152146
Operating lease cost6056118112
Variable lease cost19204137
Total lease cost$157$146$311$295

(1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in our condensed consolidated statements of operations.

Other Information

Other information related to leases is presented in the following tables (in millions):

Six Months Ended June 30,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$59$53
Operating cash flows from operating leases110101
Financing cash flows from finance leases7266
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases$88$87
Operating leases7034
June 30, 2025December 31, 2024
Weighted-average remaining lease term - finance leases (2)14 years14 years
Weighted-average remaining lease term - operating leases (2)13 years12 years
Weighted-average discount rate - finance leases6%6%
Weighted-average discount rate - operating leases5%5%
Finance lease right-of-use assets (3)$2,263$2,158

(1)Represents all non-cash changes in right-of-use assets.

(2)Includes lease renewal options that are reasonably certain to be exercised.

(3)As of June 30, 2025 and December 31, 2024, we have recorded accumulated amortization of finance lease right-of-use assets of $1.1 billion and $964 million, respectively. Finance lease assets are recorded within property, plant and equipment, net in our condensed consolidated balance sheets.

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Maturities of Lease Liabilities

The maturities of our lease liabilities as of June 30, 2025 are as follows (in millions):

Operating LeasesFinance LeasesTotal
2025 (6 months remaining)$109$189$298
2026231272503
2027212277489
2028181265446
2029152256408
Thereafter1,2232,1593,382
Total lease payments2,1083,4185,526
Less imputed interest(572)(1,038)(1,610)
Total$1,536$2,380$3,916

We entered into agreements with various landlords, primarily to lease data center spaces, which have not yet commenced as of June 30, 2025. These leases are expected to commence between 2025 and 2027, with lease terms of 1 to 15 years and total lease commitments of approximately $103 million.

9. Debt Facilities

Mortgage and Loans Payable

Our mortgage and loans payable balance consisted of the following (in millions):

June 30, 2025December 31, 2024
Term loans$687$628
Mortgage payable and other loans payable2921
716649
Less current portion(14)(5)
Total$702$644

Senior Credit Facility

In 2022, we entered into a credit agreement (the "2022 Credit Agreement") with a group of lenders for a senior unsecured credit facility, comprised of a $4.0 billion senior unsecured multicurrency revolving credit facility (the "2022 Revolving Facility") and a £500 million senior unsecured term loan facility (the "2022 Term Loan Facility" and, together with the 2022 Revolving Facility, collectively, the "2022 Credit Facilities").

As of June 30, 2025 and December 31, 2024, the total amounts outstanding under the 2022 Term Loan Facility, net of debt issuance costs, were $686 million and $625 million, respectively.

As of June 30, 2025, we had 43 irrevocable letters of credit totaling $63 million issued and outstanding under the 2022 Revolving Facility, with approximately $3.9 billion remaining available to borrow under the 2022 Revolving Facility. As of both June 30, 2025 and December 31, 2024, unamortized debt issuance costs for the 2022 Revolving Facility of $3 million, were presented in other assets in our condensed consolidated balance sheets.

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Senior Notes

Our senior notes balance consisted of the following (in millions):

June 30, 2025December 31, 2024
AmountEffective RateAmountEffective Rate
1.250% Senior Notes due 2025$5001.46%$5001.46%
1.000% Senior Notes due 20257001.18%7001.18%
1.450% Senior Notes due 20267001.64%7001.64%
2.900% Senior Notes due 20266003.04%6003.04%
0.250% Euro Senior Notes due 20275890.45%5180.45%
1.800% Senior Notes due 20275001.96%5001.96%
1.550% Senior Notes due 20286501.67%6501.67%
2.000% Senior Notes due 20284002.21%4002.21%
2.875% Swiss Franc Senior Notes due 20283783.05%3313.05%
3.250% Euro Senior Notes due 20298833.45%——%
1.558% Swiss Franc Senior Notes due 20291261.79%1101.79%
3.200% Senior Notes due 20291,2003.30%1,2003.30%
3.500% Singapore Dollar Senior Notes due 20303933.67%——%
2.150% Senior Notes due 20301,1002.27%1,1002.27%
3.250% Euro Senior Notes due 20317663.46%6733.46%
2.500% Senior Notes due 20311,0002.65%1,0002.65%
3.900% Senior Notes due 20321,2004.07%1,2004.07%
1.000% Euro Senior Notes due 20337071.18%6221.18%
3.650% Euro Senior Notes due 20337073.78%6223.78%
4.000% Euro Senior Notes due 20348834.17%——%
5.500% Senior Notes due 20347505.74%7505.74%
3.625% Euro Senior Notes due 20345893.75%5183.75%
2.000% Japanese Yen Senior Notes Series A due 20352612.07%2392.07%
2.130% Japanese Yen Senior Notes Series C due 20351032.20%942.20%
2.370% Japanese Yen Senior Notes Series B due 2043712.42%652.42%
2.570% Japanese Yen Senior Notes Series D due 2043322.62%292.62%
2.570% Japanese Yen Senior Notes Series E due 2043692.62%642.62%
3.000% Senior Notes due 20505003.09%5003.09%
2.950% Senior Notes due 20515003.00%5003.00%
3.400% Senior Notes due 20525003.50%5003.50%
17,35714,685
Less amount representing unamortized debt issuance costs and debt discounts(138)(123)
17,21914,562
Less current portion(1,899)(1,199)
Total$15,320$13,363

3.500% Singapore Dollar Senior Notes due 2030

On March 13, 2025, we issued SGD500 million, or approximately $370 million, at the exchange rate in effect on that date, aggregate principal amount of 3.500% senior notes due March 15, 2030 (the "2030 SGD Notes"). Interest on the notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2025. Total debt issuance costs related to the 2030 SGD Notes were $3 million.

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3.250% Euro Senior Notes due 2029 and 4.000% Euro Senior Notes due 2034

On May 19, 2025, we issued €750 million, or approximately $851 million, at the exchange rate in effect on that date, aggregate principal amount of 3.250% senior notes due May 19, 2029 (the "2029 Euro Notes") and €750 million, or approximately $851 million, at the exchange rate in effect on that date, aggregate principal amount of 4.000% senior notes due May 19, 2034 (the "2034 Euro Notes"). Interest on the 2029 Euro Notes and the 2034 Euro Notes is payable annually in arrears on May 19 of each year, commencing on May 19, 2026. Total debt discounts and debt issuance costs related to the 2029 and 2034 Euro Notes were $6 million and $11 million, respectively.

Maturities of Debt Instruments

The following table sets forth maturities of our debt, including mortgage and loans payable and senior notes, gross of debt issuance costs and debt discounts, as of June 30, 2025 (in millions):

Years ending:
2025 (6 months remaining)$1,211
20261,305
20271,780
20281,433
20292,214
Thereafter10,130
Total$18,073

Interest Charges

Other information related to interest is presented in the following tables (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Interest expense$135$110$257$214
Interest capitalized1492518
Interest charges incurred$149$119$282$232
Six Months Ended June 30,
20252024
Interest paid in cash, net of capitalized interest$212$209

10. Commitments and Contingencies

Purchase Commitments

As a result of our various IBX data center expansion projects, as of June 30, 2025, we were contractually committed for approximately $5.8 billion of unaccrued capital expenditures, primarily for IBX infrastructure equipment not yet delivered and labor not yet provided, in connection with the work necessary to open these IBX data centers and make them available to our customers for installation. We also had numerous other, non-capital purchase commitments in place as of June 30, 2025, such as commitments to purchase power in select locations through the remainder of 2025 and thereafter, and other open purchase orders for goods or services to be delivered or provided during the remainder of 2025 and thereafter. Such other miscellaneous purchase commitments totaled approximately $2.1 billion as of June 30, 2025. For further information on our equity method investment commitments and lease commitments, see Note 5 and Note 8, respectively, above.

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Contingent Liabilities

We estimate our exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, we record what we can reasonably estimate based on prior payment history, assessed value by the assessor's office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond our control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of our IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, our property tax obligations may vary from period to period. Based upon the most current facts and circumstances, we make the necessary property tax accruals for each of our reporting periods. However, revisions in our estimates of the potential or actual liability could materially impact our financial position, results of operations or cash flows.

Our indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. Although we believe that we have adequately assessed and accounted for our potential tax liabilities, and that our tax estimates are reasonable, there can be no certainty that additional taxes will not be due upon audit of our tax returns or as a result of further changes to the tax laws and interpretations thereof. For example, we are currently undergoing several indirect tax audits and appealing tentative assessments in Brazil and Loudoun County, Virginia. The final settlement of the audits and the outcomes of the appeals are uncertain and may not be resolved in our favor. We regularly assess the likelihood of adverse outcomes resulting from these examinations and appeals that would affect the adequacy of our tax accruals for each of the reporting periods. If any issues arising from the tax examinations and appeals are resolved in a manner inconsistent with our expectations, the revision of the estimates of the potential or actual liabilities could materially impact our financial position, results of operations, or cash flows.

We are and may continue to be party to certain legal and regulatory proceedings with respect to various matters. We evaluate the likelihood of an unfavorable outcome of all legal and regulatory proceedings to which we are a party. Contingent liabilities are accrued when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. These judgments are subjective based on the status of the legal or regulatory proceedings, the merits of our defenses and consultation with in-house and external legal counsel. Loss contingencies are generally recorded in other current liabilities in the consolidated balance sheets and legal costs are expensed as incurred and are recorded in general and administrative expenses in the consolidated statement of operations.

On March 20, 2024, the Company received a subpoena from the U.S. Attorney’s Office for the Northern District of California. On April 30, 2024, the Company received a subpoena from the Securities and Exchange Commission. The Company is cooperating fully with both government agencies.

On May 2, 2024, a putative stockholder class action was filed against the Company and certain of our officers in the United States District Court for the Northern District of California. The named plaintiff alleges violations of Section 10(b) of the Exchange Act and Securities and Exchange Commission Rule 10b-5, and Section 20(a) of the Exchange Act, on the basis that the defendants allegedly made false and misleading statements about our business, results, internal controls, and accounting practices between May 3, 2019 and March 24, 2024. The lawsuit seeks, among other relief, a determination that the alleged claims may be asserted on a class-wide basis, unspecified damages, attorneys' fees, other expenses and costs. We filed a motion to dismiss the lawsuit on October 10, 2024. The motion was granted in part on January 6, 2025. On July 15, 2025, the parties entered a Stipulation of Settlement to resolve the action. The settlement is subject to court approval. We expect the amount paid in settlement to be fully covered by our insurance. As of June 30, 2025, we have recorded a settlement liability and an insurance receivable related to this matter.

On February 14, 2025, and February 26, 2025, respectively, certain of the Company’s current and former directors and officers were named as defendants in two shareholder derivative lawsuits (in which the Company is a nominal defendant) filed in the United States District Court for the Northern District of California. The lawsuits allege, among other things, violations of Section 14(a) of the Exchange Act, breach of fiduciary duty, unjust enrichment, and waste of corporate assets and generally allege the same purported misconduct as alleged in the putative stockholder class action described above. The lawsuits seek, among other relief, unspecified damages, restitution, attorneys’ fees, and other expenses and costs. On April 17, 2025, and April 18, 2025, respectively, the plaintiffs filed

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(Unaudited)

notices of voluntary dismissal without prejudice, subject to court approval, to pursue remedies under Delaware law. On April 28, 2025, the Court approved the voluntary dismissal in one of the actions. It has not yet ruled on the voluntary dismissal in the other action.

These matters are subject to uncertainties and we cannot predict the outcome nor reasonably estimate a range of loss or penalties, if any, relating to these matters, except as described above.

In the opinion of management, there are no other pending claims for which the outcome is expected to result in a material adverse effect in the financial position, results of operations or cash flows.

Employment Agreements

We have entered into a severance agreement with certain of our executive officers that provides for a severance payment equal to 100% of the executive officer's annual base salary and maximum bonus in the event his or her employment is terminated for any reason other than cause or he or she voluntarily resigns under certain circumstances as described in the agreement, or 200% of the executive officer's annual base salary and maximum bonus in the event this occurs after a change-in-control of our company. For certain other executive officers, these benefits are only triggered after a change-in-control of our company, in which case the officer is entitled to 200% of the executive officer's annual base salary and maximum bonus. In addition, under these agreements, the executive officer is entitled to the payment of his or her monthly health care premiums under the Consolidated Omnibus Budget Reconciliation Act for up to 24 months.

Indemnification and Guarantor Arrangements

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. The term of the indemnification period is for the officer's or director's lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of June 30, 2025.

We enter into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, we may agree to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally a business partner or a customer, in connection with matters such as any U.S. patent, or any copyright or other intellectual property infringement claim by any third party with respect to our offerings; a breach of confidentiality obligations and certain other contractual warranties; our gross negligence, willful misconduct, fraud, misrepresentation, or violation of law; and/or if we cause tangible property damage, personal injury or death. The term of any such indemnification agreement is generally perpetual after execution of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of June 30, 2025.

We enter into arrangements with certain business partners, whereby the business partner agrees to provide services as a subcontractor for our installations. Accordingly, we enter into standard indemnification agreements with our customers, whereby we indemnify them for certain acts, such as personal property damage, by our subcontractors. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of June 30, 2025.

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We have service level commitment obligations to certain of our customers. As a result, service interruptions or significant equipment damage in our IBX data centers, whether or not within our control, could result in obligations to these customers. While we have purchased insurance that could limit our exposure, our liability insurance may not be adequate to cover those expenses. In addition, any loss of service, equipment damage or inability to meet our service level commitment obligations could reduce the confidence our customers have in us, and could consequently impair our ability to obtain and retain customers, which would adversely affect both our ability to generate revenues and our operating results. We generally have the ability to determine such service level credits prior to the associated revenue being recognized. We do not have significant liabilities in connection with service level credits as of June 30, 2025.

Concurrent with the closing of the EMEA 2 Joint Venture, the EMEA 2 Joint Venture entered into a credit facility agreement with a group of lenders under which it could borrow up to approximately $1.1 billion in total at the exchange rate in effect on June 30, 2025, with such facility maturing in 2026. In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with a guarantee covering 20% of all payments of principal and interest due and payable by the EMEA 2 Joint Venture under the credit facility, up to a limit of $236 million in total at the exchange rate in effect on June 30, 2025. As of June 30, 2025, the maximum potential amount of our future payments under this guarantee was approximately $28 million at the exchange rates in effect on that date. We and our co-investor entered into an ancillary agreement to allocate funding under the credit facility agreement for use by our AMER 1 Joint Venture. As of June 30, 2025, $10 million of the guarantee related to the AMER 1 Joint Venture. Our estimated fair value of this guarantee is minimal as the likelihood of making a payout under the guarantee is remote.

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11. Stockholders' Equity

Stockholders' Equity Rollforward

The following tables provide a rollforward of our stockholders' equity for the three and six months ended June 30, 2025 and 2024 ($ in millions except per share data; share data in thousands):

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Common StockTreasury StockAdditional Paid-in CapitalAccumulated DividendsAOCI (Loss)Retained EarningsCommon Stockholders' EquityNon-controlling InterestsTotal Common Stockholders' Equity
SharesAmountSharesAmount
Balance as of December 31, 202497,390$—(103)$(39)$20,895$(10,342)$(1,735)$4,749$13,528$(1)$13,527
Net income———————343343—343
Other comprehensive income——————176—176—176
Issuance of common stock and release of treasury stock for employee equity awards406—19742———49—49
Issuance of common stock under ATM Program107———99———99—99
Dividend distribution on common stock, $4.69 per share—————(457)——(457)—(457)
Settlement of accrued dividends on vested equity awards—————(1)——(1)—(1)
Accrued dividends on unvested equity awards—————2——2—2
Stock-based compensation, net of estimated forfeitures————150———150—150
Balance as of March 31, 202597,903—(84)(32)21,186(10,798)(1,559)5,09213,889(1)13,888
Net income (loss)———————368368(1)367
Other comprehensive income——————160—160—160
Issuance of common stock and release of treasury stock for employee equity awards41—52————2—2
Dividend distribution on common stock, $4.69 per share—————(459)——(459)—(459)
Accrued dividends on unvested equity awards—————(14)——(14)—(14)
Stock-based compensation, net of estimated forfeitures————138———138—138
Balance as of June 30, 202597,944$—(79)$(30)$21,324$(11,271)$(1,399)$5,460$14,084$(2)$14,082

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Common StockTreasury StockAdditional Paid-in CapitalAccumulated DividendsAOCI (Loss)Retained EarningsCommon Stockholders' EquityNon-controlling interestsTotal Common Stockholders' Equity
SharesAmountSharesAmount
Balance as of December 31, 202394,630$—(151)$(56)$18,596$(8,695)$(1,290)$3,934$12,489$—$12,489
Net income———————231231—231
Other comprehensive loss——————(208)—(208)—(208)
Issuance of common stock and release of treasury stock for employee equity awards407—18642———48—48
Dividend distribution on common stock, $4.26 per share—————(402)——(402)—(402)
Settlement of accrued dividends on vested equity awards—————(1)——(1)—(1)
Accrued dividends on unvested equity awards—————1——1—1
Stock-based compensation, net of estimated forfeitures————141———141—141
Balance as of March 31, 202495,037—(133)(50)18,779(9,097)(1,498)4,16512,299—12,299
Net income———————301301—301
Other comprehensive loss——————(43)—(43)—(43)
Issuance of common stock and release of treasury stock for employee equity awards35—62————2—2
Dividend distribution on common stock, $4.26 per share—————(405)——(405)—(405)
Accrued dividends on unvested equity awards—————(12)——(12)—(12)
Stock-based compensation, net of estimated forfeitures————136———136—136
Balance as of June 30, 202495,072$—(127)$(48)$18,915$(9,514)$(1,541)$4,466$12,278$—$12,278

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss, net of tax, by component were as follows (in millions):

Balance as of December 31, 2024Net ChangeBalance as of June 30, 2025
Foreign currency translation adjustment (“CTA”) loss$(2,360)$824$(1,536)
Unrealized gain on cash flow hedges (1)47(110)(63)
Net investment hedge CTA gain (1)579(378)201
Net actuarial loss on defined benefit plans (2)(1)—(1)
$(1,735)$336$(1,399)
Accumulated other comprehensive loss attributable to non-controlling interests———
Total accumulated other comprehensive loss$(1,735)$336$(1,399)

(1)Refer to Note 6 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.

(2)We have two defined benefit pension plans covering all employees in two countries where such plans are mandated by law. We do not have any defined benefit plans in any other countries.

Changes in foreign currencies can have a significant impact on our condensed consolidated balance sheets (as evidenced above in our cumulative foreign currency translation loss), as well as our condensed consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. dollars when the U.S. dollar weakens or less U.S. dollars when the U.S. dollar strengthens. As of June 30, 2025, the U.S. dollar was generally weaker relative to certain of the currencies of the foreign countries in which we operate as compared to December 31, 2024. Because of this, the U.S. dollar had an overall favorable impact on our condensed consolidated financial position because the foreign denominations translated into more U.S. dollars as evidenced by a decrease in foreign currency translation loss for the six months ended June 30, 2025 as reflected in the above table. The volatility of the U.S. dollar as compared to the other currencies in which we operate could have a significant impact on our condensed consolidated financial position and results of operations including the amount of revenue that we report in future periods.

Common Stock

In November 2022, we established a program under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $1.5 billion of our common stock to or through sales agents in “at the market” transactions (the "2022 ATM Program"). The 2022 ATM Program was fully utilized by the end of the third quarter of 2024.

In October 2024, we established a program to succeed the 2022 ATM Program, under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $2.0 billion of our common stock to or through sales agents in "at the market" transactions (the "2024 ATM Program"). The forward sale agreements provide three settlement alternatives to us: physical settlement, cash settlement or net share settlement. In accordance with ASC 815, the forward sale agreements are classified as equity for balance sheet purposes.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Forward sale activity under the 2022 and 2024 ATM Programs (collectively, the "ATM Programs") is summarized as follows ($ in millions except per share data; shares in thousands):

Contractual Maturity DatesExecution DateNumber of Shares (1)Weighted Average Price per Share (2)Settlement Value (2)
Outstanding, December 31, 2023November 2024643$776.23$499
Forward Sale Shares Physically SettledNovember 2024 to December 2024September 2024(643)790.41509
Outstanding, December 31, 2024—$—$—
Outstanding, June 30, 2025—$—$—

(1)For agreements settled, the amount represents the actual number of shares issued. For agreements executed and outstanding, the amount represents the number of shares that we would issue upon physical settlement.

(2)For agreements settled, the value represents the actual weighted average settlement value, net of commissions and other offering expenses. For agreements executed and outstanding, the value represents the forward amount that we would receive upon physical settlement as of that date and will be subject to adjustments for a discount rate factor equal to a specified benchmark rate less a spread minus scheduled dividends during the terms of the agreements.

We did not sell any shares on a spot basis under the 2024 ATM Program during the three months ended June 30, 2025. During the six months ended June 30, 2025, we sold 107,493 shares on a spot basis under the 2024 ATM Program for approximately $99 million, net of commissions and other offering expenses. There were no shares sold on a spot basis under the ATM Programs during the three and six months ended June 30, 2024.

As of June 30, 2025, we had approximately $1.2 billion of common stock available for sale under the 2024 ATM Program.

Stock-Based Compensation

For the six months ended June 30, 2025, the Talent, Culture and Compensation Committee and/or the Stock Award Committee of our Board of Directors, as the case may be, granted an aggregate of 696,171 restricted stock units ("RSUs") to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $840.66 per share and a weighted-average requisite service period of 3.62 years. The valuation of RSUs with only a service condition or a service and performance condition require no significant assumptions as the fair value for these types of equity awards is based solely on the fair value of our stock price on the date of grant. We use revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the RSUs with both service and performance conditions that were granted in the six months ended June 30, 2025.

We use a Monte Carlo simulation option-pricing model to determine the fair value of RSUs with a service and market condition. We used total shareholder return ("TSR") as the performance measurement in the RSUs with a service and market condition that were granted in the six months ended June 30, 2025. There were no significant changes in the assumptions used to determine the fair value of RSUs with a service and market condition that were granted in 2025 compared to the prior year.

The following table presents, by operating expense category, our stock-based compensation expense recognized in our condensed consolidated statements of operations (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cost of revenues$16$15$30$28
Sales and marketing25254746
General and administrative8685163152
Total$127$125$240$226

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Redeemable Non-controlling Interest

On April 3, 2023, we issued additional shares in our Indonesian operating entity to a third party investor for $25 million, which resulted in the third party investor owning a 25% interest in the entity.

The Indonesian operating entity is a VIE because it does not have sufficient funds from its operations to be self-sustaining. We provide certain management services to the entity and earn fees for the performance of such services. We have the power to direct the activities that most significantly impact the economic performance of the entity and have concluded that we are its primary beneficiary.

Under the terms of the stockholders’ agreement, the investor may put its 25% ownership stake in the entity to us for a maximum exercise price of $25 million, subject to certain contingent conditions. Accordingly, we present the investor’s contingently redeemable non-controlling interest ("NCI") outside of permanent equity at the higher of its maximum redemption amount of $25 million and its balance after attribution of gains and losses in our condensed consolidated balance sheets. There were no changes in the carrying value of the redeemable NCI for the three and six months ended June 30, 2025.

The following table presents the assets and liabilities of the Indonesian VIE (in millions):

June 30, 2025December 31, 2024
Cash and cash equivalents$6$16
Property, plant and equipment, net5725
Other95
Total assets$72$46
Finance lease liabilities25—
Other105
Total liabilities$35$5

The income and losses attributable to us as well as to the redeemable NCI from the Indonesian VIE were insignificant for the three and six months ended June 30, 2025 and 2024.

12. Restructuring and Other Exit Activities

Q4 2024 Restructuring Plan

In the fourth quarter of 2024, we initiated a restructuring plan to realign the organization and enable further investment in key priority areas (the "Q4 2024 Restructuring Plan"), resulting in costs of $33 million being incurred up to March 31, 2025. The activities under the Q4 2024 Restructuring Plan have been completed with no further costs expected to be incurred under this plan subsequent to March 31, 2025.

Equinix Metal Wind Down

In the fourth quarter of 2024, we announced the decision to make Equinix Metal no longer commercially available as a product and to wind down operations that support this product by June 2026 (the "Equinix Metal Wind Down"). We have incurred restructuring charges of $10 million to date and we expect to incur up to approximately $4 million of incremental costs. We expect substantially all costs under this plan to be incurred and paid by the end of the fourth quarter of 2026. The actual amounts and timing of incremental costs and cash payments may differ from these estimates should we make further decisions which impact the execution of these activities.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The following tables summarize costs incurred under the Q4 2024 Restructuring Plan and the Equinix Metal Wind Down, which were included in restructuring charges in our condensed consolidated statements of operations (in millions):

Three Months Ended June 30, 2025
Nature of expenseQ4 2024 Restructuring PlanEquinix Metal Wind DownTotal (1)
Other exit costs$—$2$2
Total$—$2$2
Six Months Ended June 30, 2025
Nature of expenseQ4 2024 Restructuring PlanEquinix Metal Wind DownTotal (2)
Severance and other employee costs$3$2$5
Other exit costs347
Total$6$6$12
Total Costs Incurred to Date
Nature of expenseQ4 2024 Restructuring PlanEquinix Metal Wind DownTotal
Severance and other employee costs$22$6$28
Stock-based compensation expense3—3
Other exit costs8412
Total$33$10$43

(1)Restructuring charges were incurred in the Americas region during the three months ended June 30, 2025.

(2)Restructuring charges were incurred in each of our three regions during the six months ended June 30, 2025 with $10 million in the Americas, $1 million in EMEA and $1 million in Asia-Pacific.

The following table summarizes the activity in our restructuring accrual, included in other current liabilities in our condensed consolidated balance sheets (in millions):

Q4 2024 Restructuring PlanEquinix Metal Wind DownTotal
Balance as of December 31, 2024$13$2$15
Charges6612
Cash payments(18)(6)(24)
Balance as of June 30, 2025$1$2$3

We had no restructuring activity during the three and six months ended June 30, 2024.

13. Segment Information

While we have one primary line of business, which is the design, build-out and operation of IBX data centers, we have determined that we have three reportable segments comprised of our Americas, EMEA and Asia-Pacific geographic regions. Each of our three reportable segments are managed by regional presidents and require unique strategies due to the varying microeconomic and macroeconomic conditions within each region. Our chief executive officer is our chief operating decision maker and evaluates performance, makes operating decisions and allocates resources primarily based on our revenues and adjusted EBITDA, both on a consolidated basis and for these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

We define adjusted EBITDA, our measure of segment profit or loss, as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies, except that segment expenses exclude depreciation, amortization and accretion expense and stock-based compensation expense, consistent with the definition of adjusted EBITDA.

The following tables present segment information, including revenue information disaggregated by product lines and segment adjusted EBITDA, and a reconciliation to total consolidated income before income taxes (in millions):

Three Months Ended June 30, 2025Six Months Ended June 30, 2025
AmericasEMEAAsia-PacificTotalAmericasEMEAAsia-PacificTotal
Colocation (1)$654$572$359$1,585$1,290$1,139$701$3,130
Interconnection2319680407460183157800
Managed infrastructure6238171171257334232
Other (1)426434753868
Recurring revenues9517324602,1431,8821,4489004,230
Non-recurring revenues5335251131236266251
Total revenues (2)1,0047674852,2562,0051,5109664,481
Less:
Segment cost of revenues2902641537075805453091,434
Other segment items (3)24810468420516201134851
Segment adjusted EBITDA$466$399$264$1,129$909$764$523$2,196
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense$(502)$(982)
Stock-based compensation expense(127)(240)
Transaction costs(3)(9)
Restructuring charges(2)(12)
Impairment charges(1)(1)
Interest income5299
Interest expense(135)(257)
Other income (expense)(7)2
Gain (loss) on debt extinguishment11
Income before income taxes$405$797

(1) Includes some leasing and hedging activities.

(2) Total revenues attributed to the U.S. were $871 million and $1.7 billion during the three and six months ended June 30, 2025. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the three and six months ended June 30, 2025.

(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Three Months Ended June 30, 2024Six Months Ended June 30, 2024
AmericasEMEAAsia-PacificTotalAmericasEMEAAsia-PacificTotal
Colocation (1)$624$543$333$1,500$1,231$1,092$667$2,990
Interconnection2198471374434167141742
Managed infrastructure6634161161326933234
Other (1)7243341348768
Recurring revenues9166854232,0241,8101,3768484,034
Non-recurring revenues503649135957285252
Total revenues (2)9667214722,1591,9051,4489334,286
Less:
Segment cost of revenues2732991447165436042831,430
Other segment items (3)2429867407502192134828
Segment adjusted EBITDA$451$324$261$1,036$860$652$516$2,028
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense$(490)$(1,015)
Stock-based compensation expense(125)(226)
Transaction costs(3)(5)
Gain (loss) on asset sales1818
Interest income2953
Interest expense(110)(214)
Other income (expense)(7)(13)
Gain (loss) on debt extinguishment—(1)
Income before income taxes$348$625

(1) Includes some leasing and hedging activities.

(2) Total revenues attributed to the U.S. were $825 million and $1.6 billion during the three and six months ended June 30, 2024, respectively. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the three and six months ended June 30, 2024.

(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.

We provide the following additional segment disclosures for the three and six months ended June 30, 2025 and 2024 (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Depreciation and amortization:
Americas$272$269$541$576
EMEA134133257265
Asia-Pacific9387180174
Total$499$489$978$1,015
Capital expenditures:
Americas$642$393$1,143$818
EMEA252146423337
Asia-Pacific95109173200
Total$989$648$1,739$1,355

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Our long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, were located in the following geographic regions (in millions):

Property, plant and equipment, netOperating lease right-of-use assets
June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Americas$9,817$9,193$369$389
EMEA7,3596,405459398
Asia-Pacific4,0313,651653632
Total$21,207$19,249$1,481$1,419

14. Subsequent Events

Declaration of dividends

On July 30, 2025, we declared a quarterly cash dividend of $4.69 per share, which is payable on September 17, 2025 to our common stockholders of record as of the close of business on August 20, 2025.

Enactment of U.S. Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA makes permanent or extends key elements of the Tax Cuts and Jobs Act (“TCJA”), including 100% bonus depreciation, domestic research cost expensing, the business interest expense limitation and the eligibility of ordinary REIT dividends for the qualified business income deduction. In addition, the OBBBA modifies the international tax provisions of the TCJA such as the global intangible low-taxed income inclusion and increases the REIT qualification threshold for the value of the REIT’s assets that may be represented by securities of one or more taxable REIT subsidiaries from 20% to 25%, effective for tax years beginning after December 31, 2025. We are currently evaluating the impact of this legislation on our condensed consolidated financial statements.

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