Csquare, Inc.

What they do

Csquare owns and operates carrier-neutral data centers providing secure space, redundant power, advanced cooling, physical security, and dense interconnection to more than 1,700 enterprise, network, cloud, and technology customers. As of June 30, 2026, the platform delivered approximately 385 MW of Sellable Power Capacity and over 35,275 interconnection products across 21 major metropolitan markets in the United States, Canada, and the United Kingdom. The company completed its initial public offering on July 17, 2026 and began trading on the New York Stock Exchange under the ticker CSQR.

Revenue drivers

• Colocation — Colocation revenue rose 17.5% year-over-year to $210.6 million in Q2 2026, the largest piece of the $280.4 million total, driven by customer deployments across existing and newly acquired facilities.
• Recurring infrastructure services — Revenue excluding metered power increased 12.3% to $260.2 million, reflecting the recurring base of power, connectivity, and related services sold alongside colocation.
• Bookings as forward indicator — Q2 2026 bookings reached a record $64.7 million, the 13th consecutive quarter of record bookings, representing the annualized value of new and expansion contracts; demand was broad-based across enterprise, cloud, network, and large-scale infrastructure customers.

Recent performance

Second quarter 2026 total revenue increased 14.5% year-over-year to $280.4 million from $244.8 million, with colocation revenue up 17.5% to $210.6 million and revenue excluding metered power up 12.3% to $260.2 million. Adjusted EBITDA grew 21.0% to $120.3 million from $99.4 million, and Adjusted EBITDA margin expanded 330 basis points to 46.2% from 42.9%. Net loss was $48.8 million versus a $13.9 million net loss in the prior-year quarter, driven by higher interest expense and one-time IPO-related costs. Net revenue churn improved to 2.4% for the three months ended June 30, 2026 from 2.9% a year earlier, and was 4.2% for the six-month period versus 4.4%. Contracted Power Capacity was 410 MW as of June 30, 2026, up from 376 MW at December 31, 2025, while Sellable Power Capacity was 385 MW versus 389 MW.

Strategy

Management describes the strategy as disciplined execution of a recurring-revenue colocation model supported by a diversified portfolio and disciplined capital allocation. The July 2026 IPO is positioned as providing enhanced financial flexibility, and a significant portion of proceeds was used to repay debt, eliminating approximately $63 million of annualized interest expense. The company continues to point to demand for cloud deployments, AI-enabled workloads, and mission-critical connectivity as the basis for expansion across existing and newly acquired facilities. Management also cites its carrier-neutral platform and customer relationships as the foundation for capturing long-term secular growth.

Risks

• Customer concentration — Csquare's own risk disclosures identify customer concentration and customer demand and retention as factors that could cause actual results to differ materially.
• Infrastructure availability — The company cites availability of utility power, fiber connectivity, and other critical infrastructure as a risk to executing its expansion and growth strategy.
• Geographic concentration — Management identifies concentration in certain geographic areas as a risk, despite operating across 21 metropolitan markets in the U.S., Canada, and the United Kingdom.
• Leverage and negative equity — As of June 30, 2026, total liabilities of $6.39 billion exceeded total assets of $6.00 billion, producing shareholders' equity of negative $388.6 million, with long-term debt of $4.89 billion and cash of $120.8 million.

Outlook

Management said the elevated interest expense and one-time IPO-related costs reflected in the second quarter are not indicative of the company's expected go-forward earnings profile, following the post-quarter debt repayment that eliminated approximately $63 million of annualized interest expense. The company characterizes bookings as a leading indicator of future recurring revenue growth and cites its diversified portfolio and deep customer relationships as positioning it to capitalize on long-term secular growth trends. Csquare's forward-looking statements also reference AI inference adoption, portfolio optimization, embedded expansion opportunities, and its capital allocation strategy as areas of focus.