Csquare Raises Adjusted EBITDA Outlook as Revenue Jumps 26%

Data center operator Csquare raised its full-year adjusted EBITDA outlook on November 9, 2026, after third-quarter revenue rose 25.6% to $302.3 million. Its net loss nevertheless widened to $88.1 million from $29.8 million a year earlier, primarily reflecting $58.6 million of IPO-related transaction and compensation costs and higher interest expense.

Colocation revenue increased 26.7% to $227.0 million. Csquare attributed the growth to continued demand, customer deployments across existing and newly acquired facilities and expanded recurring infrastructure services. Adjusted EBITDA, Csquare’s company-defined measure of operating performance, rose 44.3% to $132.1 million, while the corresponding margin expanded to 47.8% from 40.5% on a basis that excludes metered-power revenue.

Interest expense increased to $71.4 million from $59.7 million, while Csquare swung from $26.4 million of operating income to a $14.6 million operating loss. Those figures explain why stronger adjusted operating performance did not translate into a smaller net loss.

Bookings Run Ahead of Sellable Power

Annualized bookings reached a company-reported record of $66.1 million, marking Csquare’s 14th consecutive quarter of sequential growth.

Csquare entered the fourth quarter with approximately $114 million of contracted annualized revenue backlog and expects about $104 million of that amount to commence over the following twelve months.

Contracted power capacity ended the quarter at 428 MW against 397 MW of sellable capacity, resulting in 108% contracted power sold. Csquare commissioned approximately 12 MW of additional capacity during the quarter, while quarterly net revenue churn remained 1.9%, unchanged from the prior-year period. Customers have committed to more power than Csquare currently has available to sell, tying the backlog’s conversion to both existing deployments and planned expansion.

Management attributed strong pricing and earlier customer commitments to supply constraints in many markets and demand for delivery certainty, and expects a significant portion of the quarter’s bookings to deploy faster than historical averages because they use existing capacity and targeted upgrades rather than large shell expansions.

Spending and Debt Frame the Outlook

Csquare invested $149 million in growth capital expenditures during the quarter. The company used proceeds from its July 2026 IPO to repay approximately $1.1 billion of debt. Long-term debt net of deferred financing costs was $3.84 billion at September 30, 2026.

Csquare’s revised full-year outlook raises its adjusted EBITDA forecast and narrows the revenue and growth-spending ranges:

The quarter leaves Csquare with a substantial delivery task: contracted demand exceeds sellable power, while expansion spending and debt remain material. The central execution question is whether the company can bring customer commitments into service on the timelines management expects, converting record bookings into revenue while preserving the operating leverage reflected in this quarter’s adjusted EBITDA margin.