Dallas, November 9 (Reuters/ PR Newswire ) – Csquare , Inc . ( NYSE : CSQR , hereinafter referred to as “ Csquare ” or “the Company”) today announced its financial results for the third quarter of fiscal year 2026, which ended on September 30, 2026. Csquare is a leading provider of carrier-neutral data center solutions.

The company stated that revenue in the third quarter increased by 25.6% year-over-year to $302.3 million, reflecting ongoing demand and continued customer deployments on its enterprise infrastructure platform. Bookings reached $66.1 million, setting a record. This is also the 14th consecutive quarter that Csquare has achieved Bookings quarter-over-quarter growth, covering enterprises, networks, cloud, and higher-density deployments.

The company stated that as of the fourth quarter, it had approximately $114 million in contracted annualized revenue backlog, of which about $104 million is expected to start generating revenue within the next 12 months. To meet the contracted demand, the company continued to expand its production capacity, with about 12 megawatts put into operation in the third quarter. By the end of the quarter, the contracted capacity was 428 megawatts, and the available capacity for sale was 397 megawatts.

Csquare also indicates that the company has maintained a strong customer retention rate, with a quarterly net revenue loss rate of 1.9%, and customer prepaid commitments continue to be strong. The company continues to maintain a prudent capital investment approach, investing $149 million at an average construction multiple of 4 times as planned for growth, and allocating approximately $16 million for recurring capital expenditures.

The company reported a net loss of $88.1 million in the third quarter, mainly due to transaction and compensation costs related to IPO amounting to $58 million, as well as higher interest expenses compared to the same period last year. The net profit margin for that quarter was negative 29.2%. Adjusted EBITDA increased by 44.3% year-over-year to $132.1 million, and the profit margin for Adjusted EBITDA expanded from 40.5% to 47.8%.

After July IPO, the company repaid approximately $1.1 billion in debt using the funds raised, thereby strengthening its balance sheet.

Csquare CEO Spencer Mullee stated: "Our third-quarter performance reflects the team's strong and prudent execution, as well as the continuous growth momentum of our business. We achieved strong revenue growth, record-breaking Bookings, and significant operational leverage, while continuing to benefit from the strong demand for our carrier-neutral digital infrastructure platform."

He also stated, "These results reflect the stability of our recurring revenue model and the low net revenue loss rate. They also demonstrate the strong demand from customers in our market, as well as the inherent operational leverage of our business. Our Adjusted EBITDA profit margin has expanded from 40.5% in the same period last year to 47.8%. After completing our initial public offering in July and thereby reducing our debt by $1.1 billion, our business is now ready to continue implementing our strategy and deliver high-quality digital infrastructure in asset portfolios focused on urban core areas."

The demand for our products and services remains strong, and it is even accelerating. The advantages of our platform are being recognized in the market, with both traditional enterprises and those with higher deployment densities deploying and expanding their workloads on it. We believe that a diversified portfolio of assets, a prudent capital allocation strategy, and deep customer relationships enable Csquare to continue to capitalize on this strong demand and favorable pricing environment. We remain focused on targeting high-quality customers, serving a diverse customer base across multiple industries, and securing contracts that provide long-term, predictable cash flows.

Key Points of the Third Quarter of 2026

• Revenues increased by 25.6% year-over-year to $302.3 million, compared to $240.8 million in the same period last year. The growth mainly came from the ongoing demand for the company's hosting platform, customer deployments in existing and newly acquired facilities, as well as the expansion of recurring infrastructure services. Excluding electricity measured on a table basis, revenues grew by 22.1% to $276.2 million, indicating that the company's recurring revenue base and customer expansion activities remain strong.
• In the third quarter, Bookings reached $66.1 million, marking the 14th consecutive quarter of quarter-on-quarter growth. The company stated that during this quarter, its business pipeline continued to expand, pricing remained strong, and customers were increasingly inclined to commit to capacity earlier than when deployment needs arose. Management believes this reflects supply constraints in many markets, as well as an increased emphasis by customers on delivery certainty and long-term infrastructure planning.
• Bookings comes from corporate clients, internet service providers, cloud-related deployments, and higher-density infrastructure requirements. In addition, a considerable portion of Bookings in the third quarter is expected to be implemented faster than historical averages, as these needs will be met through the utilization of existing capacity and targeted infrastructure upgrades, rather than relying on large-scale data center expansion projects.
• In the third quarter of 2026, the net loss was $88.1 million, compared to a net loss of $29.8 million in the same period last year. The increase in losses was mainly due to higher interest expenses year-on-year, IPO related transaction costs, IPO post-equity incentive expenses, as well as costs associated with the termination of certain IPO pre-employment compensation arrangements.
• Adjusted EBITDA increased by 44.3% year-on-year to $132.1 million, compared to $91.6 million in the same period last year. Adjusted EBITDA The profit margin rose to 47.8%, higher than 40.5% in the same period last year, reflecting revenue growth, prudent operational execution, and the inherent operational leverage brought about by the company's highly recurring business model.

The company stated that the adjustment table for Adjusted EBITDA and net losses is included in the financial statements attached to this press release.

2026 Annual Guidelines

For the entire year of 2026, Csquare expects total revenue to be between $1.14 billion and $1.16 billion, Adjusted EBITDA to be between $490 million and $500 million, recurring capital expenditures to be between $50 million and $60 million, and non-recurring capital expenditures for growth to be between $620 million and $640 million.

The company stated that since certain items that affect the comparability of the GAAP indicators cannot be reasonably provided without undue effort, no adjustment table is provided for the forward-looking Adjusted EBITDA.

Business Highlights

• Achieving a record Bookings of $66.1 million marks the company's 14th consecutive quarter of Bookings year-on-year growth, reflecting the ongoing demand from enterprise, cloud, and network customers.
• Customer retention is stable, with a quarterly net revenue loss rate of 1.9%, which is consistent with the same period last year and meets management's expectations.
• Supported by strategic acquisitions and continuous customer deployments, the contracted power capacity has increased by nearly 47% year-on-year, reaching 428 megawatts. The contracted utilization rate has reached 108%, indicating that demand exceeds the current available capacity, which is supported by the company's development pipeline and planned capacity expansion.
• An additional 12 megawatts of power capacity were put into operation compared to the previous quarter, raising the total available power to 397 megawatts. This is part of the company's ongoing investment in high-return capacity expansion projects.
• Continue to invest in long-term growth, with $149 million invested this quarter in capital expenditures for growth, and an additional $16 million in recurring capital expenditures to maintain and enhance the company's core infrastructure platform.

IPO Highlights

In July 2026, Csquare successfully completed its initial public offering (IPO), issuing 50 million ordinary shares at a price of $21.00 per share, and began trading on the New York Stock Exchange under the ticker symbol NYSE : CSQR.

On July 27, 2026, the underwriters exercised their over-allotment rights to purchase an additional 7.499 million shares at the initial public offering price. After deducting the underwriting discount and commissions, this issuance resulted in a total net proceeds of approximately $1.16 billion.

The company stated that IPO is an important milestone in its development history and has enhanced its ability to implement a long-term growth strategy. As a listed company, Csquare believes it will benefit from more convenient capital market financing channels, greater visibility among customers and investors, as well as greater strategic and financial flexibility.

The company has used the net funds raised to repay outstanding debts, significantly reducing leverage and strengthening its balance sheet in order to support future investment opportunities.

Telephone calls and live webcast information

Csquare will hold a teleconference to discuss its performance for the third quarter of 2026.

• Date: November 9, 2026
• Time: 5:00 PM Eastern Time, USA
• Live streaming: https :// app.webinar.net / BDWvy4K8QLk

The live broadcast of the teleconference can be watched on the company's website under the Investor Relations page. A replay of the live broadcast will be available shortly after the event is over.

About Csquare

Csquare is a leading digital infrastructure platform in North America, providing carrier-neutral managed data centers. The company owns and operates a wide-ranging network of data centers in major metropolitan markets across the United States, Canada, and the United Kingdom. Csquare offers secure and reliable infrastructure solutions for enterprises, networks, cloud, and technology customers, supporting critical workloads, hybrid cloud environments, and AI enabling applications. Headquartered in Coppell, Texas, the company is committed to excellence in operations and long-term customer collaboration. For more information, please visit www.Csquare.com.

Non-GAAP financial indicators

This press release on financial performance contains several financial indicators other than GAAP, including Adjusted EBITDA and FFO. Management believes that these indicators can provide useful supplementary information regarding the company's operational performance and underlying business trends.

These indicators should not be regarded as substitutes for financial indicators prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. A reconciliation table of the most directly comparable indicators is included in the accompanying financial statements.

The company prepares its financial statements in accordance with US GAAP, but believes that relying solely on GAAP financial indicators may be insufficient to assess the results of ongoing operations. Therefore, the company uses non-GAAP financial indicators to complement the assessment of its operating conditions.

The company believes that combining these non-GAAP financial indicators with its US GAAP financial statements may help investors better understand the indicators used by the company in operating its business and measuring performance, and facilitate the comparison of financial trends and results that may change over different periods while the business performance remains unchanged. These non-GAAP financial indicators are for supplementary information only and should not be considered a substitute for GAAP financial information. They may also differ from the non-GAAP indicators used by other companies. Due to these limitations, non-GAAP financial indicators should not be used alone, nor should they be considered a substitute for net (loss) income or any other indicators calculated according to US GAAP. They should be considered in conjunction with the company's GAAP financial indicators and the corresponding adjustment tables in this press release.

Adjusted EBITDA

The company defines Adjusted EBITDA as net (loss) income, excluding the following items: (i) income tax; ( ii ) interest expenses; ( iii ) depreciation and amortization; ( iv ) lease modification gains; (v) debt settlement losses; ( vi ) gain on low-price acquisitions; ( vii ) equity incentives; ( viii ) other net revenues (losses); and ( ix ) transaction and other costs. Transaction and other costs mainly include acquisition and integration costs, restructuring costs, costs related to initial public offerings, as well as employee bonuses and debt settlement expenses directly attributable to specific transactions. Employee bonuses and debt settlement costs are included in the sales, marketing, general and administrative expenses in the consolidated financial statements. Management uses Adjusted EBITDA as a key indicator of operational performance and to assess business performance after excluding certain items that they consider not to represent core operating results. In addition, the company believes that securities analysts, investors, and other stakeholders often use Adjusted EBITDA to evaluate data center and other real estate companies. However, since Adjusted EBITDA is calculated before deducting recurring cash expenditures (including interest expenses and income tax), which are significant recurring cash expenditures necessary for operating the business and do not take into account capital expenditures or other recurring cash needs, it should not be considered a liquidity or cash flow indicator, and its usefulness as a performance measure is limited. Furthermore, Adjusted EBITDA does not reflect the company's cash needs or its ability to generate cash to meet these obligations. Other companies may calculate Adjusted EBITDA in different ways, so this indicator may not be comparable to Adjusted EBITDA of other companies.Therefore, Adjusted EBITDA should not be viewed in isolation, nor should it be used as a substitute for net (loss) profit or any other performance indicator calculated according to the US GAAP.

Note: The Adjusted EBITDA profit margin does not include electricity revenue calculated according to the table.

Sources of operating funds ( FFO )

Management uses FFO, which is a non-GAAP financial indicator commonly used in the real estate industry. This indicator is used to evaluate performance corresponding to the retail managed data center industry, which has similarities with other types of real estate companies. FFO is calculated according to standards approved by the board of directors of the National Real Estate Investment Trust Association in the United States. FFO represents net (loss) income (calculated according to GAAP), and the following are excluded when applicable: (i) gains and losses from disposal of real estate assets; (ii) depreciation and amortization; and (iii) write-offs of impairment on real estate assets and investments in entities when the impairment directly results from a decline in the value of depreciable real estate held by the entity.

Management uses FFO as a supplementary performance indicator because, after excluding the items listed in the calculation, this indicator can reflect trends in utilization, pricing, and operating costs when compared year-over-year. Additionally, the company believes that securities analysts, investors, and other stakeholders often use FFO to evaluate data centers and other real estate companies. However, since FFO excludes depreciation and amortization, and does not reflect changes in the value of the company's data centers due to usage or market conditions, nor does it account for the level of capital expenditure required to maintain the operational performance of the data centers, which all have real economic impacts and may significantly affect the company's financial condition and operating results, the utility of FFO as a performance measure is limited. Other companies may calculate FFO in different ways, so this indicator may not be comparable to the FFO of other companies. Therefore, FFO should not be viewed in isolation, nor should it be used as a substitute for net (loss) income or any other performance indicators calculated according to U.S. GAAP.

Adjusted EBITDA increased by $40.5 million, or 44.3%, to $132.1 million within the three months ending September 30, 2026; whereas in the same period of 2025, it was $91.6 million. In the first nine months of 2026, Adjusted EBITDA increased by $83.4 million, or 30.1%, to $360.7 million; compared to $277.3 million in the first nine months of 2025. This growth reflects a continuous improvement in the company's platform operations, mainly driven by increases in recurring hosting and other revenues, the impact of acquired sites, and operational leverage resulting from cost structure improvements.

FFO decreased by $36.5 million, or 110%, to -$3.2 million within the three months ending September 30, 2026; whereas in the same period of 2025, it was $33.2 million. In the first nine months of 2026, FFO decreased by $56.2 million, or 50%, to $56.1 million; compared to $112.3 million in the same period of 2025. The decline is mainly attributed to an increase in net losses, which is primarily due to higher interest expenses year-over-year. This is related to the interest incurred on the ABS notes assumed in the 2025 portfolio acquisitions, as well as additional ABS notes issued later in 2025. It also includes transaction and compensation costs associated with IPO. These effects were partially offset by improved operational performance brought about by growth in recurring revenue, as well as lease modification gains recognized in the second quarter.

The following table presents the calculations for FFO during the specified period, and these are adjusted compared to the most comparable GAAP indicators:

Supplementary financial information

The following information is provided solely as supplementary financial data, intended to assist investors in evaluating certain aspects of the company's financial results and cash needs. Individual data is not intended to constitute, nor should it be combined or regarded as a separate financial performance or liquidity indicator:

Forward-looking Statements

This press release contains forward-looking statements as defined by the U.S. Federal Securities Laws. These forward-looking statements include, but are not limited to, the company's expectations, beliefs, objectives, plans, and strategies regarding future performance, growth opportunities, market demand, Bookings trends, portfolio optimization, AI adoption, embedded expansion opportunities, capital allocation strategies, financial conditions, and other non-historical factual matters. Forward-looking statements can be identified by words or phrases such as "expected," "believes," "continues," "may," "estimates," "expects," "intends," "perhaps," "plans," "potential," "seeks," "should," "aims," "will," "shall," 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 may cause actual results to differ significantly from those expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to: changes in the overall economic conditions; the company's concentration in certain geographical areas; demand for hosting and connectivity services; competition; availability of public power, fiber optic connections, and other key infrastructure; customer demand and retention; customer concentration; the speed and extent of adoption of AI; the long sales cycles for the company's products and services; the company's ability to implement growth strategies and expansion projects; capital market conditions; regulatory developments; cybersecurity incidents; delays in planned development projects; and other risks described in the documents submitted by the company to the U.S. Securities and Exchange Commission, including the "Risk Factors" section of the company's S-1 registration statement.

Readers are reminded not to rely excessively on these forward-looking statements, which are only valid as of the date they are made. Except as required by applicable law, Csquare assumes no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events, or other circumstances.