Csquare Reports Third Quarter 2026 Results and Business Highlights

Contracted power exceeded sellable capacity, while Csquare commissioned approximately 12 MW during the quarter.

Rhea-AI Summary

Csquare (CSQR) reported third-quarter 2026 revenue of $302.3 million, up year over year as customer deployments supported growth. Revenue rose 25.6%, while net loss widened to $88.1 million from $29.8 million. IPO-related transaction and compensation costs totaled $58.6 million. Adjusted EBITDA, a non-GAAP operating measure, increased 44.3% to $132.1 million.

Annualized bookings reached $66.1 million, the 14th consecutive quarter of sequential growth. Contracted capacity was 428 MW against 397 MW of sellable capacity. Csquare entered Q4 with approximately $114 million of contracted annualized revenue backlog, including approximately $104 million expected to commence within twelve months. July IPO proceeds helped repay approximately $1.1 billion of debt. For 2026, Csquare expects revenue of $1.14–$1.16 billion and raised its adjusted EBITDA outlook to $490–$500 million from $460–$480 million.

15 points · 3 major

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Positive

• Major pointJuly IPO generated approximately $1.16 billion net proceeds after underwriting discounts and commissions. 49% of market cap
• Major pointApproximately $1.1 billion of debt repaid using IPO proceeds. 46% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA outlook raised to $490–$500 million from $460–$480 million.
• Moderate pointQ3 revenue rose 25.6% year over year to $302.3 million from $240.8 million.
• Moderate pointAdjusted EBITDA increased 44.3% year over year to $132.1 million from $91.6 million.
• Moderate pointAnnualized bookings reached $66.1 million versus $49.5 million a year earlier, marking 14 consecutive quarters of sequential growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately $114 million contracted annualized revenue backlog entered Q4; approximately $104 million is expected to commence within twelve months.
• Moderate pointContracted power capacity reached 428 MW, up nearly 47% year over year from 292 MW.
• Moderate pointSellable capacity reached 397 MW versus 331 MW a year earlier; approximately 12 MW was commissioned during Q3.
• Moderate pointQ3 growth investment totaled $149 million at an average build multiple of approximately 4x. 6.2% of market cap

5 minor points

• Minor pointRevenue excluding metered power rose 22.1% year over year to $276.2 million.
• Minor pointAdjusted EBITDA margin reached 47.8% versus 40.5% a year earlier, excluding metered power revenue.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook narrowed to $1,140–$1,160 million from $1,130–$1,170 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 recurring capital expenditure outlook lowered to $50–$60 million from $55–$65 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 growth capital expenditure outlook narrowed to $620–$640 million from $610–$660 million.

Negative

• Major pointIPO issued 50.0 million common shares at $21.00 each, plus 7.499 million option shares at that price, diluting holders.
• Moderate pointQ3 net loss widened to $88.1 million from $29.8 million a year earlier; net margin was (29.2%).
• Moderate pointContracted utilization reached 108% versus 88% a year earlier, exceeding sellable capacity and relying on planned expansion.
• Minor pointIPO-related transaction and compensation costs totaled $58.6 million during Q3.
• Minor pointInterest expense increased year over year, contributing to the wider Q3 net loss.

Key Figures

Revenue: $302.3 million (+25.6% year-over-year) Bookings: $66.1 million Net loss: $88.1 million +5 more

Revenue

$302.3 million (+25.6% year-over-year)

Third quarter 2026

Bookings

$66.1 million

Third quarter 2026; record bookings

Net loss

$88.1 million

Third quarter 2026

Adjusted EBITDA

$132.1 million (+44.3% year-over-year)

Third quarter 2026

Adjusted EBITDA margin

47.8%, versus 40.5%

Third quarter 2026 versus prior-year period

2026 revenue outlook

$1.14–$1.16 billion

Updated outlook; prior outlook was $1.13–$1.17 billion

2026 Adjusted EBITDA outlook

$490–$500 million

Updated outlook; prior outlook was $460–$480 million

Debt repayment

Approximately $1.1 billion

IPO proceeds used to repay debt

Previous Earnings Reports

1 past event · Latest: Aug 06

Same Type 1 event

1. Aug 06

   earnings report

   24h Move

   +7.2%

   Reported revenue growth, record bookings, expanding EBITDA margin, and full-year guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, initial public offering, gaap, ffo

4 terms

adjusted ebitda financial

"Adjusted EBITDA increased 44.3% year-over-year to $132.1 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

initial public offering financial

"completed its initial public offering of 50.0 million shares"

An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.

gaap financial

"financial measures prepared in accordance with U.S. generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ffo financial

"including Adjusted EBITDA and FFO"

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

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• Delivered 25.6% year-over-year revenue growth to $302.3 million, reflecting sustained demand and continued customer deployments across Csquare's enterprise infrastructure platform.
• Achieved record bookings of $66.1 million, marking Csquare's 14th consecutive quarter of sequential bookings growth across enterprise, network, cloud and higher-density deployments.
• Entered Q4 with approximately $114 million of contracted annualized revenue backlog, including approximately $104 million expected to commence over the next twelve months.
• Continued to expand capacity to meet contracted demand, commissioning approximately 12 MW during Q3 and ending the quarter with 428 MW contracted against 397 MW of sellable capacity.
• Maintained strong customer retention, with quarterly net revenue churn of 1.9% and continued strength in advance customer commitments.
• Continued disciplined capital deployment, investing $149 million in growth at an average build multiple of approximately 4x and approximately $16 million in recurring capital expenditures.
• Reported net loss of $88.1 million, primarily reflecting $58.6 million of IPO-related transaction and compensation costs, as well as higher year-over-year interest expense. Net margin for the quarter was (29.2%).
• Adjusted EBITDA increased 44.3% to $132.1 million, with Adjusted EBITDA margin expanding to 47.8% from 40.5%.
• Strengthened the balance sheet following the July IPO, using proceeds to repay approximately $1.1 billion of debt.

DALLAS, Nov. 9, 2026 /PRNewswire/ -- Csquare, Inc. (NYSE: CSQR) ("Csquare" or the "Company"), a leading provider of carrier-neutral data center solutions, today reported financial results for its fiscal third quarter ended September 30, 2026.

"Our third quarter results demonstrate strong and disciplined execution by our team and continued momentum across the business," said Spencer Mullee, Chief Executive Officer of Csquare. "We delivered strong revenue growth, record bookings and meaningful operating leverage while continuing to benefit from strong demand for our carrier-neutral digital infrastructure platform."

"These results reflect the solidity of our recurring revenue model and low net revenue churn, the strength of customer demand across our markets, and the operating leverage inherent in our business as Adjusted EBITDA margin expanded to 47.8% from 40.5% in the prior year period. Following our initial public offering in July, which resulted in $1.1 billion of debt reduction, our business is well positioned to continue executing on our strategy to deliver high-quality digital infrastructure across our urban core-focused portfolio."

"Demand for our offering remains strong and continues to accelerate. The strength of our platform is resonating in the market across traditional enterprise and higher density deployments as new and existing customers deploy and expand workloads on our platform. We believe our diversified portfolio, disciplined capital allocation strategy, and deep customer relationships position Csquare to continue capitalizing on a strong demand and pricing environment.  We remain focused on targeting high-quality customers, a diverse set of customers spanning multiple industries, and contracts that provide long-term, predictable cash flow."

Third Quarter 2026 Highlights

Revenues
Third quarter total revenue increased 25.6% year-over-year to $302.3 million, compared to $240.8 million in the prior year period. Growth was driven by continued demand for the Company's colocation platform, customer deployments across existing and newly acquired facilities, and expansion of recurring infrastructure services. Revenue excluding metered power increased 22.1% to $276.2 million, underscoring the continued strength of the Company's recurring revenue base and customer expansion activity. 

Commercial Activity
Csquare posted bookings of $66.1 million in the third quarter, representing the Company's 14th consecutive quarter of sequential bookings growth. The quarter was characterized by continued expansion of the commercial pipeline, strong pricing, and customers increasingly committing capacity further in advance of deployment requirements. Management believes these trends reflect ongoing supply constraints in many markets and growing customer focus on delivery certainty and long-term infrastructure planning.

Bookings were generated across enterprise customers, network providers, cloud-related deployments and higher-density infrastructure requirements. In addition, a significant portion of third-quarter bookings are expected to be deployed on shorter timelines than historical averages due to the utilization of existing capacity and targeted infrastructure upgrades rather than large-scale shell expansion projects.

Net Loss   
Net loss for the third quarter of 2026 was $88.1 million, compared to a net loss of $29.8 million in the third quarter of 2025. The increase in net loss was primarily driven by higher year-over-year interest expense, IPO-related transaction costs, post-IPO stock-based compensation expenses, and costs associated with terminating certain pre-IPO compensation arrangements.

Adjusted EBITDA
Adjusted EBITDA increased 44.3% year-over-year to $132.1 million, compared to $91.6 million in the third quarter of 2025. Adjusted EBITDA margin expanded to 47.8%, compared to 40.5% in the prior-year period, reflecting continued revenue growth, disciplined operating execution, and the inherent operating leverage of the Company's highly recurring business model.

A reconciliation of Adjusted EBITDA to Net Loss is included in the financial tables accompanying this release. 

2026 Guidance Summary

For the full year 2026, Csquare expects total revenues between $1.14 and $1.16 billion, Adjusted EBITDA between $490 and $500 million, recurring capital expenditures between $50 and $60 million, and non-recurring growth capital expenditures between $620 and $640 million.

Metric	Updated 2026 Outlook	Prior Outlook
Total Revenue	$1,140 – $1,160 million	$1,130 – $1,170 million
Adjusted EBITDA	$490 – $500 million	$460 – $480 million
Recurring Capital Expenditures	$50 – $60 million	$55 – $65 million
Growth Capital Expenditures	$620 – $640 million	$610 – $660 million

The Company does not provide a reconciliation of forward-looking Adjusted EBITDA because certain items that affect the comparable GAAP measure cannot be reasonably provided without unreasonable effort.

Business Highlights

• Generated record bookings of $66.1 million, marking the Company's 14th consecutive quarter of sequential bookings growth and reflecting sustained demand across enterprise, cloud, and network customers.
• Solid customer retention, with quarterly net revenue churn of 1.9% in line with the prior year period and within management expectations.
• Expanded contracted power capacity by nearly 47% year-over-year to 428 MW, supported by strategic acquisitions and continued customer deployments. Contracted utilization reached 108%, demonstrating demand that exceeds current sellable capacity and is supported by the Company's development pipeline and planned capacity expansions.
• Commissioned approximately 12 MW of additional power capacity vs. prior quarter to increase sellable power to 397 MW as part of the Company's ongoing focus to invest in attractive, high return capacity expansion projects.
• Continued investing in long-term growth, deploying $149 million of growth capital expenditures during the quarter while investing an additional $16 million in recurring capital expenditures to maintain and enhance the Company's core infrastructure platform. 

IPO Highlights
During July 2026, Csquare successfully completed its initial public offering of 50.0 million shares of common stock at a public offering price of $21.00 per share and commenced trading on the New York Stock Exchange under the ticker symbol NYSE: CSQR.

On July 27, 2026, the underwriters exercised their option to purchase an additional 7.499 million shares at the initial public offering price. In aggregate, the offering generated approximately $1.16 billion in net proceeds after underwriting discounts and commissions.

The IPO represents a significant milestone in the Company's evolution and strengthens its ability to execute its long-term growth strategy. As a public company, Csquare believes it is well positioned to benefit from enhanced access to capital markets, increased visibility among customers and investors, and greater strategic and financial flexibility.

The Company used the net proceeds to repay outstanding indebtedness, significantly reducing leverage and strengthening its balance sheet to support future investment opportunities.

Conference Call and Webcast Information
Csquare will host a conference call to discuss its third quarter 2026 results.
Date: November 9, 2026
Time: 5:00 p.m. ET

Webcast: https://app.webinar.net/BDWvy4K8QLk
A live webcast of the conference call will be available in the Investor Relations section of the Company's website. A replay of the webcast will be available shortly following the conclusion of the event.

About Csquare
Csquare is a leading North American digital infrastructure platform providing carrier-neutral colocation data centers. The company owns and operates a geographically diverse portfolio of data centers across major metropolitan markets in the United States, Canada and the United Kingdom. Csquare delivers secure, reliable infrastructure solutions to enterprise, network, cloud and technology customers, supporting critical workloads, hybrid cloud environments and AI-enabled applications. Headquartered in Coppell, Texas, Csquare is committed to operational excellence and long-term customer partnerships. Learn more at www.Csquare.com.

Key Business Metrics
	Q3 2026	Q3 2025
Contracted Power Capacity (MW)	428 MW	292 MW
Sellable Power Capacity (MW)	397 MW	331 MW
Contracted Power Sold (%)	108 %	88 %
Net Revenue Churn (%)	1.9 %	1.9 %
Bookings (Annualized)	$66.1M	$49.5M

Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures, including Adjusted EBITDA and FFO. Management believes these measures provide useful supplemental information regarding the Company's operating performance, and underlying business trends.

These measures should not be considered as alternatives to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most directly comparable GAAP measures are included in the accompanying financial tables.

We prepare our financial statements in conformity with U.S. GAAP, though we believe evaluating our ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, we use non-GAAP financial measures to supplement our evaluation of our operations.

We believe that these non-GAAP financial measures, when taken collectively with our U.S. GAAP financial statements, may be helpful to investors because they allow for greater transparency into what measures we use in operating our business and measuring our performance and enable comparison of financial trends and results between periods where items may vary independent of business performance. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. Because of these limitations, our non-GAAP financial measures should not be considered in isolation or as substitutes for net (loss) income, or any other measure calculated in accordance with U.S. GAAP, as applicable, and should be considered together with our GAAP financial measures and the reconciliations to the corresponding GAAP financial measures set forth in this press release.

Adjusted EBITDA
We define Adjusted EBITDA as net (loss) income, excluding (i) income taxes, (ii) interest expense, (iii) depreciation and amortization, (iv) gain on lease modification, (v) loss on extinguishment of debt, (vi) bargain purchase gain, (vii) stock-based compensation, (viii) other income (loss), net, and (ix) transaction and other costs. Transaction and other costs consist primarily of acquisition and integration costs, restructuring costs, costs associated with our initial public offering, and employee bonuses and loan extinguishment expenses directly attributable to specific transactions. The employee bonuses and loan extinguishment costs are recorded within Selling, marketing, general and administrative expenses in our Condensed Consolidated Statements of Operations. Management uses Adjusted EBITDA as a key measure of our operating performance and to assess the results of our business excluding certain items that we believe are not indicative of our core operating results. In addition, we believe Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of data centers and other real estate companies. However, because Adjusted EBITDA is calculated before recurring cash charges, including interest expense and income taxes, which represent significant recurring cash charges necessary to operate our business, and is not adjusted for capital expenditures or other recurring cash requirements of our business, it should not be considered a measure of liquidity or an indicator of our cash flows and its utility as a measure of our performance is limited. Further, Adjusted EBITDA does not reflect our cash requirements or our ability to generate cash to meet those obligations. Other companies may calculate Adjusted EBITDA differently than we do and, as a result, Adjusted EBITDA may not be comparable to other companies' Adjusted EBITDA. Accordingly, Adjusted EBITDA should not be viewed in isolation or as a substitute for net (loss) income or any other performance measure calculated in accordance with U.S. GAAP.

Note: Adjusted EBITDA margin excludes metered power revenue.

Funds from Operations
Management uses FFO, which is a non-GAAP financial measure commonly used in the real estate industry. This measure is used by management to evaluate performance corresponding to the retail colocation data center industry which has similarities to other real estate type companies. FFO is calculated in accordance with the standards approved by the Board of Governors of the National Association of Real Estate Investment Trusts. FFO represents net (loss) income (calculated in accordance with GAAP), excluding, when applicable (i) loss or gain from the disposition of real estate assets, (ii) depreciation and amortization and (iii) impairment write-downs of real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Management uses FFO as a supplemental performance measure because, in excluding the items identified in the calculation, it provides a performance measure that, when compared year over year, captures trends in utilization rates, pricing and operating costs. In addition, we believe FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of data centers and other real estate companies. However, because FFO excludes depreciation and amortization and does not capture the changes in the value of our data centers that result from use or market conditions, or the level of capital expenditures necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other companies may calculate FFO differently than we do and, as a result, FFO may not be comparable to other companies' FFO. Accordingly, FFO should not be considered in isolation or as a substitute for net (loss) income or any other performance measure calculated in accordance with U.S. GAAP.

Discussion of Non-GAAP Financial Measures
		Three Months Ended September 30,
(dollars in thousands)		2026				2025
Adjusted EBITDA		$	132,096			$	91,566
FFO		$	(3,242)			$	33,242
		Nine Months Ended September 30,
(dollars in thousands)		2026				2025
Adjusted EBITDA		$	360,697			$	277,290
FFO		$	56,057			$	112,283

Adjusted EBITDA increased by $40.5 million, or 44.3%, to $132.1 million for the three months ended September 30, 2026, compared to $91.6 million for the three months ended September 30, 2025, and increased by $83.4 million, or 30.1%, to $360.7 million for the nine months ended September 30, 2026, compared to $277.3 million for the nine months ended September 30, 2025. This increase reflected continued improvement in operating performance across our platform, driven by growth in recurring colocation and other revenues, the impact of acquired sites, and operating leverage from our cost structure.

		Three Months Ended September 30,
(dollars in thousands)		2026				2025
Net loss		$	(88,149)			$	(29,811)
Adjustments:
Interest expense			71,448				59,668
Income tax expense (benefit)			14				(4,556)
Depreciation and amortization			84,907				63,053
Loss on extinguishment of debt			6,833				1,568
Other loss (income), net			(4,791)				(472)
Stock-based compensation			32,116				—
Transaction and other costs			29,718				2,116
Adjusted EBITDA		$	132,096			$	91,566
		Nine Months Ended September 30,
(dollars in thousands)		2026				2025
Net loss		$	(202,929)			$	(78,654)
Adjustments:
Interest expense			252,637				165,787
Income tax expense (benefit)			495				(12,213)
Depreciation and amortization			258,986				190,937
Loss on extinguishment of debt			6,833				6,881
Other loss (income), net			762				(2,097)
Gain on lease modification			(40,043)				(51)
Stock-based compensation			32,116				—
Transaction and other costs			51,840				6,700
Adjusted EBITDA		$	360,697			$	277,290

FFO decreased by $36.5 million, or 110%, to negative $3.2 million for the three months ended September 30, 2026, compared to $33.2 million for the three months ended September 30, 2025, and decreased by $56.2 million, or 50%, to $56.1 million for the nine months ended September 30, 2026, compared to $112.3 million for the nine months ended September 30, 2025. This decrease was primarily attributable to an increase in net loss, primarily driven by higher year-over-year interest expense resulting from the assumption of the 2021 ABS Notes in connection with the 2025 Portfolio Acquisition and interest incurred on additional ABS notes issued during the latter part of 2025, as well as from transaction and compensation costs related to our IPO. These impacts were partially offset by improved operating performance driven by growth in recurring revenue and gain on lease modification incurred during the second quarter.

The following table presents the calculation of FFO for the periods presented, with a reconciliation to the most comparable GAAP metric:

		Three Months Ended September 30,
(dollars in thousands)		2026				2025
Net loss		$	(88,149)			$	(29,811)
Adjustments:
Depreciation and amortization			84,907				63,053
FFO		$	(3,242)			$	33,242
		Nine Months Ended September 30,
(dollars in thousands)		2026				2025
Net loss		$	(202,929)			$	(78,654)
Adjustments:
Depreciation and amortization			258,986				190,937
FFO		$	56,057			$	112,283

Supplemental Financial Information

The following information is presented solely as supplemental financial information to assist investors in evaluating certain components of our financial results and cash requirements. The individual items are not intended to represent, and should not be aggregated or considered, a separate financial performance or liquidity measure:

		Three Months Ended September 30,
(dollars in thousands)		2026				2025
Selected supplemental financial information:
Net favorable leasehold interest amortization(1)		$	1,029			$	2,333
Transaction and other costs(2)			29,718				2,116
Stock-based compensation			32,116				—
Amortization of deferred financing costs			10,546				6,992
Loss on extinguishment of debt			6,833				1,568
Deferred income tax loss (benefit)			112				(4,860)
Recurring capital expenditures(3)			(15,762)				(12,916)
		Nine Months Ended September 30,
(dollars in thousands)		2026				2025
Selected supplemental financial information:
Net favorable leasehold interest amortization(1)		$	3,054			$	7,006
Transaction and other costs(2)			51,840				6,700
Stock-based compensation			32,116				—
Amortization of deferred financing costs			34,662				18,829
Loss on extinguishment of debt			6,833				6,881
Deferred income tax loss (benefit)			(6,451)				(13,027)
Recurring capital expenditures(3)			(41,009)				(31,364)

(1) Net favorable/unfavorable leasehold interest amortization represents the periodic amortization of favorable and unfavorable lease terms associated with operating leasehold interests acquired in conjunction with business acquisitions. A favorable leasehold interest is recorded when the acquired lease terms are below current market rates. Conversely, an unfavorable leasehold interest is recorded when the acquired lease terms are above current market rates. These amounts are amortized on a straight-line basis over the remaining lease term, including renewal periods that are reasonably certain to be exercised. For operating leases, the favorable and unfavorable lease terms are recognized as a component of operating lease cost and presented within cost of revenues, excluding depreciation and amortization in the Consolidated Statements of Operations.

(2) Transaction and other costs include cash incentive compensation and loan extinguishment costs associated with the settlement of legacy pre-IPO incentive compensation arrangements in connection with the IPO. The cash incentive compensation and loan extinguishment costs associated with the settlement of legacy pre-IPO incentive compensation arrangements totaled $25.3 million and $33.6 million for the three and nine months ended September 30, 2026, respectively, and were recorded within Selling, marketing, general and administrative expenses in our unaudited condensed consolidated statements of operations. No such costs were recorded during the three and nine months ended September 30, 2025.

(3) Recurring capital expenditures represent capital expenditures associated with maintaining and extending the useful lives of data centers and other assets that support current revenues.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the Company's expectations, beliefs, objectives, plans, strategies, future performance, growth opportunities, market demand, trends in bookings, portfolio optimization, AI inference adoption, embedded expansion opportunities, capital allocation strategy, financial position and other statements that are not historical facts. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "seek," "should," "target," "will," "would," and similar expressions.

Forward-looking statements are based on management's current expectations and assumptions and are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among others, changes in general economic conditions; our concentration in certain geographic areas; demand for colocation and connectivity services; competition; the availability of utility power, fiber connectivity and other critical infrastructure; customer demand and retention; our customer concentration; the pace and extent of AI adoption; a long sales cycle for our products and services; the Company's ability to execute its growth strategy and expansion projects; capital market conditions; regulatory developments; cybersecurity incidents; delays in planned development projects; and the other risks described in the Company's filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section of the Company's Registration Statement on Form S-1.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, Csquare undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Csquare, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues		$	302,332			$	240,758			$	853,145			$	718,268
Costs and operating expenses:
Cost of revenues, excluding depreciation and amortization			141,995				129,230				411,655				375,368
Selling, marketing, general and administrative			85,622				19,962				146,514				65,610
Depreciation and amortization			84,907				63,053				258,986				190,937
Gain on lease modification			—				—				(40,043)				(51)
Transaction and other costs			4,453				2,116				18,235				6,700
Total costs and operating expenses			316,977				214,361				795,347				638,564
Income (Loss) from operations			(14,645)				26,397				57,798				79,704
Interest expense			(71,448)				(59,668)				(252,637)				(165,787)
Loss on extinguishment of debt			(6,833)				(1,568)				(6,833)				(6,881)
Other income (loss), net			4,791				472				(762)				2,097
Loss before income taxes			(88,135)				(34,367)				(202,434)				(90,867)
Income tax (expense) benefit			(14)				4,556				(495)				12,213
Net loss		$	(88,149)			$	(29,811)			$	(202,929)			$	(78,654)
Net loss per share:
Basic and diluted		$	(0.58)			$	(0.29)			$	(1.70)			$	(0.76)
Weighted average common shares outstanding:
Basic and diluted			151,369				103,887				119,674				103,887

 

Csquare, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands)
		September 30, 2026				December 31, 2025
Assets
Current assets:
Cash and cash equivalents		$	34,743			$	140,159
Restricted cash			209,282				263,257
Due from related parties			7,557				144,451
Accounts receivable, net			162,690				90,708
Prepaid assets			12,517				7,013
Other current assets			74,089				73,307
Current assets held for sale			30,165				—
Total current assets			531,043				718,895
Property and equipment, net			4,165,581				3,951,089
Right-of-use assets			301,455				355,237
Goodwill			503,529				541,493
Intangible assets, net			390,881				436,299
Other assets			139,716				91,410
Total assets		$	6,032,205			$	6,094,423
Liabilities and stockholders'/member's equity (deficit)
Current liabilities:
Accounts payable		$	72,705			$	34,477
Accrued expenses			126,181				128,606
Due to related parties			8,821				—
Contract liabilities, current			111,140				96,358
Operating lease liabilities, current			40,584				41,755
Finance lease liabilities, current			11,384				15,020
Current liabilities held for sale			19,596				—
Total current liabilities			390,411				316,216
Contract liabilities, net of current portion			228,146				122,762
Long-term debt, net of deferred financing costs			3,842,667				4,755,553
Operating lease liabilities, net of current portion			290,511				391,577
Finance lease liabilities, net of current portion			421,842				428,364
Deferred tax liabilities			121,148				165,600
Other liabilities, non-current			40,219				41,097
Total liabilities			5,334,944				6,221,169
Stockholders'/member's equity (deficit):
Member's interest			—				1,094,620
Common stock			1,666				—
Additional paid-in capital			2,268,253				—
Accumulated deficit			(1,558,042)				(1,225,641)
Accumulated other comprehensive (loss) income			(14,616)				4,275
Total stockholders'/member's equity (deficit)			697,261				(126,746)
Total liabilities and stockholders'/member's equity (deficit)		$	6,032,205			$	6,094,423

 

Csquare, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)
		Nine Months Ended September 30,
		2026				2025
Operating activities
Net loss		$	(202,929)			$	(78,654)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			258,986				190,937
Amortization of deferred financing costs			34,662				18,829
Employee loan extinguishment			8,340				—
Stock-based compensation			32,116				—
Loss on extinguishment of debt			6,833				6,881
Deferred income tax benefit			(6,451)				(13,027)
Gain on modification of leases			(40,043)				(51)
Unrealized loss on foreign exchange transactions			8,398				—
Other operating activities			6,135				56
Changes in operating assets and liabilities:
Accounts receivable			(77,791)				16,229
Prepaid and other current assets			(7,409)				2,784
Operating lease right-of-use assets			31,115				39,128
Due to (from) related parties			3,017				262
Other assets			(47,696)				(25,705)
Accounts payable and accrued expenses			5,563				(56,899)
Other long-term liabilities			118,798				46,251
Operating lease liabilities			(28,285)				(28,160)
Net cash provided by operating activities			103,359				118,861
Investing activities
Purchase of property and equipment			(442,576)				(150,809)
Purchase of previously leased property			—				(23,989)
Related party loans and deposits			127,590				(9,138)
Net cash used in investing activities			(314,986)				(183,936)
Financing activities
Proceeds from issuance of common stock, net of underwriting discounts and commissions			1,159,605				—
Borrowings on long term debt, net of discount			—				1,681,488
Repayments on long-term debt			(219,500)				(1,078,024)
Borrowings on revolving credit facility			177,000				322,000
Repayments on revolving credit facility			(911,000)				(217,900)
Repayment of finance lease liabilities			(8,953)				(12,144)
Distributions to members			(130,528)				(250,000)
Contributions from members			266				839
Borrowings - related party			75,000				—
Repayment on borrowings - related party			(75,000)				—
Payment of debt financing cost			(443)				(39,924)
Payment of deferred offering costs			(8,170)				—
Net cash provided by financing activities			58,277				406,335
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash			(781)				(189)
Cash, cash equivalents and restricted cash
Net change in cash, cash equivalents and restricted cash		$	(154,131)			$	341,071
Balance, beginning of period			403,416				120,587
Balance, end of period		$	249,285			$	461,658
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets
Cash and cash equivalents		$	34,743			$	315,546
Restricted cash			209,282				146,112
Long-term restricted cash held within other assets			5,260				—
Total cash and cash equivalents and restricted cash		$	249,285			$	461,658
Supplemental disclosure of cash flow information:
Taxes paid		$	5,058			$	1,740
Interest paid		$	219,762			$	154,130

 

Csquare, Inc. Disaggregation of Revenues (in thousands)
Revenues
		Three Months Ended September 30,
(dollars in thousands)		2026				2025				$ Change				% Change
Colocation		$	227,038			$	179,242			$	47,796				26.7	%
Interconnection			24,286				26,117				(1,831)				(7.0)	%
Other			12,724				8,635				4,089				47.4	%
Recurring revenues			264,048				213,994				50,054				23.4	%
Non-recurring revenues			12,158				12,306				(148)				(1.2)	%
Metered power revenues			26,126				14,458				11,668				80.7	%
Total revenues		$	302,332			$	240,758			$	61,574				25.6	%
		Nine Months Ended September 30,
(dollars in thousands)		2026				2025				$ Change				% Change
Colocation		$	640,996			$	533,800			$	107,196				20.1	%
Interconnection			73,899				80,151				(6,252)				(7.8)	%
Other			38,327				31,133				7,194				23.1	%
Recurring revenues			753,222				645,084				108,138				16.8	%
Non-recurring revenues			31,859				33,311				(1,452)				(4.4)	%
Metered power revenues			68,064				39,873				28,191				70.7	%
Total revenues		$	853,145			$	718,268			$	134,877				18.8	%

 

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SOURCE Csquare, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Csquare's third-quarter 2026 revenue and net loss?

Csquare reported $302.3 million in revenue and a $88.1 million net loss for the quarter ended September 30, 2026. Revenue increased 25.6% from $240.8 million a year earlier, while net loss widened from $29.8 million.

What is Csquare's updated 2026 financial outlook?

Csquare expects $1,140–$1,160 million in revenue and $490–$500 million in adjusted EBITDA for 2026. Its recurring capital expenditure outlook is $50–$60 million, and its growth capital expenditure outlook is $620–$640 million.

How does Csquare calculate its adjusted EBITDA margin?

Csquare's adjusted EBITDA margin excludes metered power revenue. The margin was 47.8% in Q3 2026, compared with 40.5% in the prior-year period. Adjusted EBITDA is a non-GAAP measure and is not a substitute for net income or loss.

Why does Csquare expect some third-quarter bookings to deploy sooner?

Csquare expects a significant portion of Q3 bookings to deploy on shorter timelines than historical averages because they use existing capacity and targeted infrastructure upgrades rather than large-scale shell expansion projects.