Csquare Sales Rise 26% — But IPO Costs And Interest Widen Its Loss

Csquare, which houses customers’ servers in its data centers, grew third-quarter sales about 26% to $302.3 million as customers expanded deployments, but IPO costs and higher interest widened its loss. Results accompanying Monday’s SEC earnings filing also showed customer power commitments exceeding capacity available to sell.

Deployments Lift Sales, Costs Bite

Revenue rose 25.6% from $240.8 million a year earlier, with existing sites, purchased facilities and recurring infrastructure services contributing to growth, according to the accompanying earnings release. Excluding metered power, sales increased 22.1% to $276.2 million.

Colocation—space and infrastructure for customers’ computing equipment—generated $227 million, up 26.7%. Interconnection revenue fell 7% to $24.3 million, while metered-power revenue rose 80.7% to $26.1 million.

The net loss reached $88.1 million, versus $29.8 million a year earlier. Csquare attributed the deterioration primarily to IPO-related transaction and compensation costs totaling $58.6 million and higher interest expense; loss per share increased to $0.58 from $0.29.

Interest expense rose to $71.4 million from $59.7 million. Adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, increased 44.3% to $132.1 million from $91.6 million. Its margin, calculated without metered-power revenue, rose to 47.8% from 40.5%.

Power Commitments Outrun Available Capacity

Customers contracted for 428 megawatts, compared with 292 megawatts a year earlier. Capacity available to sell reached 397 megawatts, up from 331 megawatts, including approximately 12 megawatts added during the quarter. Contracted utilization reached 108%, versus 88% a year earlier.

Annualized bookings totaled $66.1 million, compared with $49.5 million. Csquare called that a record and its 14th consecutive quarter of bookings growth over the previous quarter. Quarterly net revenue churn—the net revenue lost through customer departures and reductions—was 1.9%, matching the year-earlier reading.

“Demand for our offering remains strong and continues to accelerate,” Csquare Chief Executive Officer Spencer Mullee said in the earnings release.

Csquare supplies power, cooling, security and connections to networks and cloud platforms for more than 1,700 customers. Most revenue comes from recurring colocation and interconnection contracts generally lasting one to seven years. As of March 31, 2026, it operated 64 sites in 21 major metropolitan markets across the United States, Canada and United Kingdom.

A Higher Outlook After Debt Repayment

Management raised its full-year adjusted EBITDA forecast to $490–$500 million from $460–$480 million. It narrowed expected revenue to $1.14–$1.16 billion from $1.13–$1.17 billion.

Csquare invested $149 million in growth during the quarter and approximately $16 million in maintenance. It now expects annual growth spending of $620–$640 million, versus $610–$660 million previously, and maintenance spending of $50–$60 million, versus $55–$65 million.

The July IPO sold 50 million shares at $21.00 each, with underwriters buying another 7.499 million through their option. Approximately $1.16 billion in net proceeds helped repay approximately $1.1 billion of debt. Higher interest costs nevertheless partly stemmed from debt assumed with the 2025 portfolio purchase and additional notes issued later in 2025.

Csquare entered the fourth quarter with undeployed contracts representing approximately $114 million in annual revenue. Management expects a significant portion of third-quarter bookings to deploy faster than historical averages, using existing capacity and targeted upgrades rather than large-scale building expansions.

Csquare expects approximately $104 million of that contracted annual revenue to start generating sales over the next twelve months.

Sources

• 8-K Filing — Csquare, Inc. (CSQR) — SEC EDGAR
• Exhibit csqr-ex99_1.htm — Csquare, Inc. 8-K exhibit — SEC EDGAR
• Csquare Reports Third Quarter 2026 Results and Business Highlights — prnewswire.com