Key Highlights

  • Csquare (NYSE:CSQR) rose about 6% in after-hours trading on November 9, 2026 after its second Quarterly Report as a public company, which showed Revenue of USD 302.3 million, up 25.6%, ahead of the roughly USD 289.8 million expected.
  • Annualised bookings reached a record USD 66.1 million, up from USD 49.5 million a year earlier, marking a 14th consecutive quarter of sequential bookings growth.
  • Adjusted EBITDA rose 44.3% to USD 132.1 million, and the company raised its 2026 adjusted EBITDA guidance to USD 490 million to USD 500 million from USD 460 million to USD 480 million.
  • The net loss widened to USD 88.1 million, or USD 0.58 per share, mainly because of USD 58.6 million in IPO-related transaction and compensation costs.

What Drove the Move

Investors in Csquare (NYSE:CSQR) bought the stock after hours because the report showed Demand running ahead of supply. Contracted power rose nearly 47% to 428 megawatts from 292 megawatts a year earlier, while sellable capacity reached 397 megawatts, meaning contracted utilisation is now 108%, up from 88%. In other words, customers have signed for more power than the company can currently deliver, which supports pricing and future growth as new capacity comes online. The company entered the fourth quarter with about USD 114 million in contracted annualised backlog, of which about USD 104 million is expected to start within 12 months. Net revenue churn was low at 1.9%. Chief executive Spencer Mullee said demand remains strong and continues to accelerate, a message that resonates after the previous week's selloff in AI infrastructure stocks.

The Numbers in Context

Colocation revenue, the core Business of renting Data Center space and power, grew 26.7% to USD 227.0 million, and Recurring Revenue rose 23.4% to USD 264.0 million. Metered power revenue jumped 80.7% to USD 26.1 million, reflecting higher customer usage. Excluding metered power, revenue rose 22.1% to USD 276.2 million, and the adjusted EBITDA Margin on that basis improved to 47.8% from 40.5%. The net loss reflects one-time costs from the IPO in July 2026, when the company sold 50.0 million shares at USD 21.00, and interest expense of USD 71.4 million. About USD 1.1 billion of IPO proceeds went to repaying debt, which should reduce interest costs in future quarters. The company narrowed its 2026 revenue guide to USD 1.14 billion to USD 1.16 billion and trimmed recurring Capital spending plans. Over the first nine months of 2026, revenue reached USD 853.1 million, up 18.8%, and adjusted EBITDA rose 30.1% to USD 360.7 million.

Risks and What to Watch

Data center operators need heavy, ongoing investment, and Csquare (NYSE:CSQR) plans growth capital spending of USD 620 million to USD 640 million this year. Cash stood at USD 34.7 million at September 30, so the company relies on Credit facilities and Operating Cash Flow to fund expansion. Political pressure on data center power use and grid connection delays could slow new capacity. The stock trades below its USD 21.00 IPO price, which shows that public investors remain cautious about the sector. Investors should watch new capacity commissioning, the conversion of the USD 114 million Backlog into revenue, further bookings records and the pace of interest savings as Debt falls. Growth capital invested in the third quarter totalled USD 149 million at a build multiple of about four times, a measure of expected returns on new capacity.

Where Things Stand

Csquare rose about 6% after hours on November 9, 2026 as revenue grew 25.6% to USD 302.3 million, bookings hit a record USD 66.1 million and adjusted EBITDA guidance was raised. Contracted power now exceeds sellable capacity, pointing to continued growth as new space is built. Funding the expansion and delivering capacity on time are the main tests ahead. Shares remain below the IPO price, so continued delivery could narrow that gap.