Csquare Grows Revenue 25.6% to $302.3 Million, Widens Net Loss to $88.1 Million

Csquare, Inc. (NYSE: CSQR) grew third-quarter revenue 25.6% to $302.3 million from $240.8 million a year earlier, yet its net loss widened to $88.1 million from $29.8 million, according to its earnings release furnished on Form 8-K dated Nov. 9, 2026. The data center operator also raised its 2026 Adjusted EBITDA (a non-GAAP earnings measure excluding interest, taxes, depreciation and amortization) outlook. Growth, it appears, still has not reached GAAP profit.

Where did the growth come from?

Colocation (the business of renting space, power and cooling in company-operated data centers) led in dollars, rising 26.7% to $227.0 million. Metered power grew fastest, up 80.7% to $26.1 million. Interconnection fell 7.0% to $24.3 million. Revenue excluding metered power rose 22.1% to $276.2 million, slower than the total because metered power outpaced everything else.

Bookings reached $66.1 million, a company record and its 14th consecutive quarter of sequential growth, against $49.5 million a year earlier on an annualized basis. The company entered the fourth quarter with about $114 million of contracted annualized revenue backlog. Roughly $104 million of that should start billing within twelve months.

Capacity is tight by the company's own arithmetic. Csquare reports 428 MW contracted against 397 MW of sellable power, having commissioned about 12 MW in the quarter. Net revenue churn held at 1.9%, level with a year earlier. Demand, evidently, is not the problem.

Why did the loss widen?

Adjusted EBITDA rose 44.3% to $132.1 million from $91.6 million, with margin expanding to 47.8% from 40.5% — a margin the filing notes excludes metered power revenue. Below that line, costs piled up.

The company attributes the net loss mainly to $58.6 million of IPO-related transaction and compensation costs plus higher interest expense:

• Interest expense: $71.4 million, versus $59.7 million a year earlier
• Selling, marketing, general and administrative costs: $85.6 million, up from $20.0 million
• Operating result: a loss of $14.6 million, versus operating income of $26.4 million
• Funds from operations (a non-GAAP cash flow measure): negative $3.2 million, versus positive $33.2 million

The filing ties higher interest to the 2021 ABS Notes (asset-backed securities debt) assumed in the 2025 Portfolio Acquisition and to additional ABS notes issued late in 2025.

What did the IPO change?

The July IPO reshaped the balance sheet more than the income statement. Csquare sold 50.0 million shares at $21.00 each, and underwriters bought another 7.499 million shares on July 27. Net proceeds of $1.16 billion, after underwriting discounts and commissions, repaid about $1.1 billion of debt.

Long-term debt, net of deferred financing costs, fell 19.2% to $3.84 billion on Sept. 30 from $4.76 billion on Dec. 31, 2025 — a drop of $912.89 million. Total stockholders' equity reached $697.3 million, against a deficit of $126.7 million at year-end.

Cash is thinner. Cash and equivalents stood at $34.7 million, down from $140.2 million at year-end, with another $209.3 million restricted. Nine-month operating cash flow was $103.4 million, down from $118.9 million. Purchases of property and equipment climbed to $442.6 million from $150.8 million.

What does the updated outlook say?

Csquare now expects 2026 Adjusted EBITDA of $490 million to $500 million, up from $460 million to $480 million. Revenue guidance narrowed to $1.14 billion to $1.16 billion from $1.13 billion to $1.17 billion.

• Recurring capital spending: $50 million to $60 million, down from $55 million to $65 million
• Growth capital spending: $620 million to $640 million, tighter than the prior $610 million to $660 million

In the quarter, the company invested $149 million in growth at an average build multiple of approximately 4x, plus about $16 million in recurring capital.

Is the equity case proven?

Not yet, on this evidence. The debt paydown and margin gain support the argument that the assets can produce durable cash flow before the liabilities absorb the upside. The quarterly loss and heavy capital spending keep it unproven.

Csquare holds a conference call and webcast at 5:00pm ET on Nov. 9. The next quarterly report is the cleaner test: a narrowing loss once IPO costs fall away would strengthen the case, as would bookings extending the streak. Another loss of this size without comparable one-time costs would weaken it. So would Adjusted EBITDA missing the raised outlook. The verdict waits.