From The Motley Fool · Motley Fool Transcribing · · 2m
Csquare Q3 2026 Earnings Report Highlights Growth
Csquare reports 25.6% revenue growth and 44.3% adjusted EBITDA increase in Q3 2026.
In brief
Csquare reports 25.6% revenue growth and 44.3% adjusted EBITDA increase in Q3 2026. Csquare achieved $302.3 million revenue with 25.6% year-over-year growth and $132.1 million adjusted EBITDA, driven by enterprise colocation demand and AI infrastructure expansion. Originally reported by The Motley Fool.
Q3 2026 Results
Csquare reported $302.3 million revenue, a 25.6% year-over-year increase.
Adjusted EBITDA Growth
Adjusted EBITDA rose to $132.1 million, a 44.3% year-over-year increase.
Net Loss Details
Net loss of $88.1 million compared to $29.8 million in prior year, driven by $58.6 million in IPO-related costs.
Colocation Revenue
Colocation revenue grew 26.7% year-over-year to $227.0 million.
Annualized Bookings
Annualized bookings reached $66.1 million, marking 14th consecutive quarter of sequential growth.
Contracted Backlog
Contracted backlog increased to $114 million at quarter end, with $104 million expected to commence in next 12 months.
Pricing Strength
Renewal spreads reached 17%, driven by significant renewal with largest customer and constructive pricing environment.
Capital Deployment
Growth capital expenditures of $149 million at average build multiple of 4x for capacity expansion.
Power Capacity
Contracted power capacity expanded to 428 MW, representing nearly 47% year-over-year growth.
Net Leverage
Net leverage at 8.4x with target of 6 to 7x to be reached through adjusted EBITDA growth.
Available Liquidity
Available liquidity of $1.1 billion, consisting of cash and revolving credit facility.
Full-Year Guidance
Full-year revenue guidance of $1.14 billion to $1.16 billion with adjusted EBITDA of $490 million to $500 million.
AI Infrastructure
CEO stated AI is an incremental demand driver on top of diversified enterprise colocation business.
“AI is an incremental demand driver on top of a diversified enterprise colocation business with long-standing customer relationships and highly recurring revenue”
Customer Quality
More than 60% of customer base has investment-grade credit characteristics.
Infrastructure Reliability
99% of asset-backed securitization issuances are investment grade with 96% of nonrevolving debt maturing after 2028.
Next Steps
Csquare expects to convert $114 million contracted backlog into recurring revenue through existing infrastructure.
The main idea
Csquare achieved $302.3 million revenue with 25.6% year-over-year growth and $132.1 million adjusted EBITDA, driven by enterprise colocation demand and AI infrastructure expansion.
