Key Highlights

  • Revenue rose 25.6% to USD 302.3 million.
  • Adjusted EBITDA rose 44.3% to USD 132.1 million.
  • Annualized bookings were USD 66.1 million.
  • Net loss was USD 88.1 million, including IPO related costs.

Csquare, Inc. (NYSE:CSQR) reported third quarter 2026 Revenue of USD 302.3 million, up 25.6% year over year. Colocation revenue increased 26.7% to approximately USD 227 million, and total Recurring Revenue increased 23.4% to USD 264 million. Reported EPS was negative USD 0.58, compared with an estimate of negative USD 0.59. Recurring revenue was USD 264.05 million, which the company reported on the call.

The existing portfolio generated approximately 67% of recurring revenue growth, with acquisitions completed during 2025 contributing approximately 33%.

Earnings and Adjusted EBITDA

The net loss was USD 88.1 million, compared with USD 29.8 million. The year over year increase primarily reflected approximately USD 58.6 million of IPO related transaction costs, post IPO stock based compensation expense and costs associated with terminating certain pre-IPO compensation agreements.

Adjusted EBITDA increased 44.3% to USD 132.1 million, and adjusted EBITDA Margin expanded to 47.8% from 40.5%. Management said growth within the portfolio generated approximately USD 16.4 million of incremental adjusted EBITDA, including contributions from completed customer deployments, while portfolio margin expansion contributed approximately USD 15.5 million, together representing approximately 79% of year over year adjusted EBITDA growth.

Bookings and Backlog

Annualized bookings reached USD 66.1 million, the 14th consecutive quarter of sequential bookings growth. Annualized revenue Backlog increased from approximately USD 76 million at the end of the second quarter to approximately USD 114 million at the end of the third quarter, with about USD 104 million commencing over the next 12 months. Renewal spreads were approximately 17%, the highest over the past five quarters, booked pricing increased double digits and net revenue churn was 1.9%.

Management said more than 85% of monthly recurring revenue comes from core enterprise customers and more than 60% of the customer base is Investment grade or has investment grade Credit characteristics. The average customer relationship extends beyond 12 years, and the weighted average Lease term has increased to more than 37 months. Monthly Net Promoter Scores ranged from 88 to 93.

Management cited access to nearly 2 gigawatts of Utility feeder capacity, compared with approximately 1 gigawatt of transformer capacity installed and roughly 400 megawatts of installed sellable UPS capacity. About two thirds of available floor space is currently sold. The company implemented an increase to portions of its rate card near the end of the quarter. Management said time to delivery, long term cost certainty and the Placement of AI inference workloads within broader enterprise infrastructure increasingly dominate strategic discussions, and that it operates at essentially 100% uptime.

Capital and Leverage

The company invested approximately USD 149 million in growth Capital expenditures and approximately USD 16 million in recurring capital expenditures. Following the IPO, it repaid approximately USD 1.1 billion of indebtedness, including full repayment of its revolving credit facility, and ended the quarter with no revolver borrowings and approximately USD 1.1 billion of available liquidity. Net Leverage based on annualized year to date adjusted EBITDA was approximately 8.4x.

Bookings, Backlog and Capacity

Csquare reported revenue of USD 302.3 million, annualized bookings of USD 66.1 million and a net loss of USD 88.1 million that included IPO related costs. The call also covered the bookings streak, the backlog conversion figure, the renewal spread and the company's capacity measures.