Csquare Reports Record Second Quarter 2026 Results

Revenue Increased 14.5% Year-Over-Year, Record Bookings of $64.7 Million, Net Loss of $48.8 Million Reflects Pre-IPO Capital Structure, and Adjusted EBITDA Grew 21% to $120.3M

Second Quarter Highlights

• Successfully completed the Company's initial public offering on July 17 and commenced trading on the New York Stock Exchange under the ticker symbol CSQR.
• Total revenue increased 14.5% year-over-year to $280.4 million, driven by continued strength in the Company's core colocation business and recurring infrastructure services.
• Colocation revenue increased 17.5% year-over-year to $210.6 million, reflecting sustained customer demand and deployment activity.
• Achieved bookings of $64.7 million, a 13th consecutive quarter of record bookings, reflecting strong commercial execution and broad-based demand across all customer profiles.
• Net loss of $48.8 million, primarily reflecting higher interest expense associated with debt issued prior to IPO reduction in debt levels.
• Adjusted EBITDA increased 21.0% year-over-year to $120.3 million demonstrating the operating leverage of the Company's platform.

COPPELL, Texas, Aug. 6, 2026 — Csquare, Inc. (NYSE: CSQR) ("Csquare" or the "Company"), a leading provider of carrier-neutral data center solutions, today reported financial results for the quarter ended June 30, 2026.

"Our second quarter results demonstrate the disciplined execution by our team and the continued strength of Csquare's platform," said Spencer Mullee, Chief Executive Officer of Csquare. "We delivered 14.5% revenue growth, achieved a record $64.7 million in bookings, increased Adjusted EBITDA by 21%, and continued to benefit from strong demand for our carrier-neutral digital infrastructure platform."

"These results reflect the durability of our recurring revenue model, the strength of customer demand across our markets, and the operating leverage inherent in our business as Adjusted EBITDA margin increased 330 basis points to 46.2%. We also reached an important milestone with the successful completion of our initial public offering in July, positioning Csquare with enhanced financial flexibility to support our long-term growth strategy."

"Demand for high-quality digital infrastructure continues to accelerate as customers expand cloud deployments, AI-enabled workloads, and mission-critical connectivity requirements. We believe our diversified portfolio, disciplined capital allocation strategy, and deep customer relationships position Csquare to capitalize on these long-term secular growth trends while creating sustainable value for shareholders."

Second Quarter 2026 Results Summary Revenues Revenue excluding metered power increased 12.3% to $260.2 million, underscoring the continued strength of the Company's recurring revenue base and customer expansion activity.

Second quarter total revenue increased 14.5% year-over-year to $280.4 million, compared to $244.8 million in the prior-year period. Growth was driven by continued demand for the Company's colocation platform, customer deployments across existing and newly acquired facilities, and expansion of recurring infrastructure services.

Commercial Activity Commercial momentum remained strong throughout the quarter as Csquare generated record bookings of $64.7 million, exceeding management's expectations. Quarterly bookings represent the annualized value of new and expansion customer contracts executed during the quarter and serve as a leading indicator of future recurring revenue growth.

Demand was broad-based across enterprise customers, cloud and network providers, and large-scale infrastructure deployments. Management believes the diversity of bookings across customer segments, deployment sizes, workload types, and geographic markets demonstrates the resilience of demand and supports continued long-term growth across the platform.

Net Loss Net loss for the second quarter of 2026 was $48.8 million, compared to a net loss of $13.9 million in the second quarter of 2025. The increase was primarily driven by higher interest expense and one-time expenses related to the Company's initial public offering.

After quarter end, the Company completed its initial public offering and used a significant portion of the proceeds to repay debt, eliminating approximately $63 million of annualized interest expense. As a result, both the elevated interest expense and the one-time IPO-related costs reflected in the second quarter are not indicative of the Company's expected go-forward earnings profile.

Adjusted EBITDA Adjusted EBITDA increased 21.0% year-over-year to $120.3 million, compared to $99.4 million in the second quarter of 2025.Adjusted EBITDA margin expanded to 46.2%, compared to 42.9% in the prior-year period, reflecting continued revenue growth, disciplined operating execution, and the inherent operating leverage of the Company's highly recurring business model.

A reconciliation of Adjusted EBITDA to Net Loss is included in the financial tables accompanying this release.

Funds From Operations Funds from Operations for the second quarter of 2026 were $40.8 million, compared to funds from operations of $50.2 million during the second quarter of 2025, representing a 18.9% decline year-over-year. The decrease was primarily the result of an increase in net loss, which was primarily driven by higher interest expense.

A reconciliation of FFO to Net Loss, the most directly comparable GAAP measure, is included in the financial tables accompanying this release.

2026 Guidance Summary

Metric

2026 Outlook

Total Revenue

$1,130 – $1,170 million

Adjusted EBITDA

$460 – $480 million

Recurring Capital Expenditures

$55 - $65 million

Non-Recurring Growth Capital Expenditures

$610 - $660 million* ** - Includes two new large deals signed at end of Q2*

The Company does not provide a reconciliation of forward-looking Adjusted EBITDA because certain items that affect the comparable GAAP measure cannot be reasonably provided without unreasonable effort.

Business Highlights

• Generated record bookings of $64.7 million, marking the Company's 13th consecutive quarter of sequential bookings growth and reflecting sustained demand across enterprise, cloud, and network customers.
• Expanded contracted power capacity by 44% year-over-year to 410 MW, supported by strategic acquisitions and continued customer deployments. Contracted utilization reached 107%, demonstrating demand that exceeds current sellable capacity and is supported by the Company's development pipeline and planned capacity expansions.
• Executed strategic portfolio optimization initiatives through the divestiture of two underperforming leased data centers. As a result, sellable capacity totaled 385 MW as of June 30, 2026, while improving the overall quality and efficiency of the Company's operating portfolio.
• Improved customer retention, with quarterly net revenue churn declining to 2.4%, compared to 2.9% in the prior-year period, reflecting continued customer satisfaction and the resilience of the Company's recurring revenue base.
• Continued investing in long-term growth, deploying $128 million of growth capital expenditures during the quarter while investing an additional $15 million in recurring capital expenditures to maintain and enhance the Company's core infrastructure platform.

IPO Highlights During July 2026, Csquare successfully completed its initial public offering of 50.0 million shares of common stock at a public offering price of $21.00 per share and commenced trading on the New York Stock Exchange under the ticker symbol NYSE: CSQR.

The IPO represents a significant milestone in the Company's evolution and strengthens its ability to execute its long-term growth strategy. As a public company, Csquare believes it is well positioned to benefit from enhanced access to capital markets, increased visibility among customers and investors, and greater strategic and financial flexibility.

On July 27, 2026, the underwriters exercised their option to purchase an additional 7,499,000 shares at the initial public offering price. The offering generated approximately $1.16 billion in net proceeds, after underwriting discounts and commissions.

The Company used the net proceeds to repay outstanding indebtedness, significantly reducing leverage and strengthening its balance sheet to support future investment opportunities. The debt repayment is expected to reduce the Company's annual interest expense by approximately $63 million, improving future earnings and cash flow.

Management believes its strengthened capital structure, diversified digital infrastructure platform, and continued investment in capacity expansion position Csquare to capitalize on favorable long-term industry trends and create sustainable value for shareholders.

Conference Call and Webcast Information Csquare will host a conference call to discuss its second quarter 2026 results. Date: August 6, 2026 Time: 5:00pm ET

Webcast: https://app.webinar.net/x07g2Pl2BMQ A live webcast of the conference call will be available in the Investor Relations section of the Company's website. A replay of the webcast will be available shortly following the conclusion of the event.

About Csquare Csquare is a leading North American digital infrastructure platform providing carrier-neutral colocation and interconnection services that support the applications powering the modern economy. The company owns and operates a geographically diverse portfolio of highly engineered data centers across major metropolitan markets in the United States, Canada and the United Kingdom.

Csquare delivers mission-critical infrastructure solutions to a diversified base of enterprise, network, cloud and technology customers. Its facilities provide secure space, resilient power, advanced cooling and dense connectivity ecosystems that enable customers to deploy and operate critical IT infrastructure with confidence.

Through its enterprise-focused approach and interconnection-rich environments, Csquare helps organizations scale efficiently while supporting demanding workloads, including hybrid cloud architectures, latency-sensitive applications and emerging AI-enabled use cases.

Headquartered in Coppell, Texas, Csquare is committed to delivering exceptional reliability, operational excellence and long-term customer partnerships across its portfolio. For additional information, visit www.Csquare.com.

Key Business Metrics

Q2 2026

Q2 2025

Contracted Power Capacity (MW)

410 MW

285 MW

Sellable Power Capacity (MW)

385 MW

328 MW

Contracted Power Sold (%)

107 %

87 %

Net Revenue Churn (%)

2.4 %

2.9 %

Bookings (Annualized)

$64.7 M

$49.4 M

Non-GAAP Financial Measures This earnings release contains certain non-GAAP financial measures, including Adjusted EBITDA and FFO. Management believes these measures provide useful supplemental information regarding the Company's operating performance, cash-generating ability, and underlying business trends. These measures should not be considered as alternatives to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most directly comparable GAAP measures are included in the accompanying financial tables.

We prepare our financial statements in conformity with U.S. GAAP, though we believe evaluating our ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, we use non-GAAP financial measures to supplement our evaluation of our operations.

We believe that these non-GAAP financial measures, when taken collectively with our U.S. GAAP financial statements, may be helpful to investors because they allow for greater transparency into what measures we use in operating our business and measuring our performance and enable comparison of financial trends and results between periods where items may vary independent of business performance. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. Because of these limitations, our non-GAAP financial measures should not be considered in isolation or as substitutes for net (loss) income, or any other measure calculated in accordance with U.S. GAAP, as applicable, and should be considered together with our GAAP financial measures and the reconciliations to the corresponding GAAP financial measures set forth in this press release.

Adjusted EBITDA We define Adjusted EBITDA as net (loss) income, excluding (i) income taxes, (ii) interest expense, (iii) depreciation and amortization, (iv) gain on lease modification, (v) loss on extinguishment of debt, (vi) bargain purchase gain, (vii) other income (loss), net, and (viii) transaction and other costs. Transaction and other costs consist primarily of acquisition and integration costs, restructuring costs, costs associated with our initial public offering, and employee loan extinguishment expenses directly attributable to specific transactions. The employee loan extinguishment costs are recorded within Selling, marketing, general and administrative expenses in our Condensed Consolidated Statements of Operations. Management uses Adjusted EBITDA as a key measure of our operating performance and to assess the results of our business excluding certain items that we believe are not indicative of our core operating results. In addition, we believe Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of data centers and other real estate companies. However, because Adjusted EBITDA is calculated before recurring cash charges, including interest expense and income taxes, which represent significant recurring cash charges necessary to operate our business, and is not adjusted for capital expenditures or other recurring cash requirements of our business, it should not be considered a measure of liquidity or an indicator of our cash flows and its utility as a measure of our performance is limited. Further, Adjusted EBITDA does not reflect our cash requirements or our ability to generate cash to meet those obligations. Other companies may calculate Adjusted EBITDA differently than we do and, as a result, Adjusted EBITDA may not be comparable to other companies' Adjusted EBITDA. Accordingly, Adjusted EBITDA should not be viewed in isolation or as a substitute for net (loss) income or any other performance measure calculated in accordance with U.S. GAAP. Note: Adjusted EBITDA margin excludes metered power revenue.

Funds from Operations Management uses FFO, which is a non-GAAP financial measure commonly used in the real estate industry. This measure is used by management to evaluate performance corresponding to the retail colocation data center industry which has similarities to other real estate type companies. FFO is calculated in accordance with the standards approved by the Board of Governors of the National Association of Real Estate Investment Trusts. FFO represents net (loss) income (calculated in accordance with GAAP), excluding, when applicable (i) loss or gain from the disposition of real estate assets, (ii) depreciation and amortization and (iii) impairment write-downs of real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Management uses FFO as a supplemental performance measure because, in excluding the items identified in the calculation, it provides a performance measure that, when compared year over year, captures trends in utilization rates, pricing and operating costs. In addition, we believe FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of data centers and other real estate companies. However, because FFO excludes depreciation and amortization and does not capture the changes in the value of our data centers that result from use or market conditions, or the level of capital expenditures necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other companies may calculate FFO differently than we do and, as a result, FFO may not be comparable to other companies' FFO. Accordingly, FFO should not be considered in isolation or as a substitute for net (loss) income or any other performance measure calculated in accordance with U.S. GAAP.

Discussion of Non-GAAP Financial Measures

Three months ended June 30,

(dollars in thousands)

2026

2025

Adjusted EBITDA

$ 120,315

$ 99,418

FFO

$ 40,754

$ 50,223

Six months ended June 30,

(dollars in thousands)

2026

2025

Adjusted EBITDA

$ 228,601

$ 185,724

FFO

$ 59,299

$ 79,041

Adjusted EBITDA increased by $20.9 million, or 21%, to $120.3 million for the three months ended June 30, 2026, compared to $99.4 million for the three months ended June 30, 2025, and increased by $42.9 million, or 23%, to $228.6 million for the six months ended June 30, 2026, compared to $185.7 million for the six months ended June 30, 2025. This increase reflected continued improvement in operating performance across our platform, driven by growth in recurring colocation and interconnection revenues and operating leverage from our cost structure.

Three months ended June 30,

(dollars in thousands)

2026

2025

Net loss

$ (48,827)

$ (13,928)

Adjustments:

Interest expense

92,826

51,566

Income tax expense (benefit)

12,231

(2,199)

Depreciation and amortization

89,581

64,151

Other loss (income), net

2,933

(1,929)

Gain on lease modification

(40,043)

—

Transaction and other costs

11,614

1,757

Adjusted EBITDA

$ 120,315

$ 99,418

Six months ended June 30,

(dollars in thousands)

2026

2025

Net loss

$ (114,780)

$ (48,843)

Adjustments:

Interest expense

181,189

106,119

Income tax expense (benefit)

482

(7,657)

Depreciation and amortization

174,079

127,884

Loss on extinguishment of debt

—

5,313

Other loss (income), net

5,551

(1,625)

Gain on lease modification

(40,043)

(51)

Transaction and other costs

22,123

4,584

Adjusted EBITDA

$ 228,601

$ 185,724

FFO decreased by $9.5 million, or 18.9%, to $40.8 million for the three months ended June 30, 2026, compared to $50.2 million for the three months ended June 30, 2025 and decreased by $19.7 million, or 25%, to $59.3 million for the six months ended June 30, 2026, compared to $79.0 million for the six months ended June 30, 2025. This decrease was primarily attributable to an increase in net loss, primarily driven by higher interest expense resulting from the assumption of the 2021 ABS Notes in connection with the 2025 Portfolio Acquisition and interest incurred on additional ABS notes issued during the latter part of 2025. These impacts were partially offset by improved operating performance driven by growth in recurring revenue and a gain on lease modification incurred during the second quarter.

The following table presents the calculation of FFO for the periods presented, with a reconciliation to the most comparable GAAP metric:

For the three months ended June 30,

(dollars in thousands)

2026

2025

Net loss

$ (48,827)

$ (13,928)

Adjustments:

Depreciation and amortization

89,581

64,151

FFO

$ 40,754

$ 50,223

For the six months ended June 30,

(dollars in thousands)

2026

2025

Net loss

$ (114,780)

$ (48,843)

Adjustments:

Depreciation and amortization

174,079

127,884

FFO

$ 59,299

$ 79,041

Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the Company's expectations, beliefs, objectives, plans, strategies, future performance, growth opportunities, market demand, trends in bookings, portfolio optimization, AI inference adoption, embedded expansion opportunities, capital allocation strategy, financial position and other statements that are not historical facts. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "seek," "should," "target," "will," "would," 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 could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among others, changes in general economic conditions; our concentration in certain geographic areas; demand for colocation and connectivity services; competition; the availability of utility power, fiber connectivity and other critical infrastructure; customer demand and retention; our customer concentration; the pace and extent of AI adoption; a long sales cycle for our products and services; the Company's ability to execute its growth strategy and expansion projects; capital market conditions; regulatory developments; cybersecurity incidents; and the other risks described in the Company's filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" section of the Company's Registration Statement on Form S-1.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, Csquare undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Csquare, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues

$ 280,351

$ 244,751

$ 550,813

$ 477,510

Costs and operating expenses:

Cost of revenues, excluding depreciation and amortization

133,206

122,613

269,660

246,138

Selling, marketing, general and administrative

35,170

22,720

60,892

45,648

Depreciation and amortization

89,581

64,151

174,079

127,884

Gain on lease modification

(40,043)

—

(40,043)

(51)

Transaction and other costs

3,274

1,757

13,783

4,584

Total costs and operating expenses

221,188

211,241

478,371

424,203

Income from operations

59,163

33,510

72,442

53,307

Interest expense

(92,826)

(51,566)

(181,189)

(106,119)

Loss on extinguishment of debt

—

—

—

(5,313)

Other (loss) income, net

(2,933)

1,929

(5,551)

1,625

Loss before income taxes

(36,596)

(16,127)

(114,298)

(56,500)

Income tax (expense) benefit

(12,231)

2,199

(482)

7,657

Net loss

$ (48,827)

$ (13,928)

$ (114,780)

$ (48,843)

Net loss per share:

Basic and diluted

$ (0.47)

$ (0.13)

$ (1.10)

$ (0.47)

Weighted average common shares outstanding:

Basic and diluted

103,887

103,887

103,887

103,887

Csquare, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands)

As of June 30,

As of December 31,

2026

2025

Assets

Current assets:

Cash and cash equivalents

$ 120,843

$ 140,159

Restricted cash

209,517

263,257

Due from related parties

7,768

144,451

Accounts receivable, net

134,711

90,708

Prepaid assets

14,359

7,013

Other current assets

61,143

73,307

Total current assets

548,341

718,895

Property and equipment, net

4,062,607

3,951,089

Right-of-use assets

319,863

355,237

Goodwill

537,233

541,493

Intangible assets, net

404,825

436,299

Other assets

130,445

91,410

Total assets

$ 6,003,314

$ 6,094,423

Liabilities and stockholders'/member's deficit

Current liabilities:

Accounts payable

$ 47,933

$ 34,477

Accrued expenses

123,578

128,606

Due to related parties

3,335

—

Contract liabilities, current

100,653

96,358

Operating lease liabilities, current

39,566

41,755

Finance lease liabilities, current

13,209

15,020

Total current liabilities

328,274

316,216

Contract liabilities, net of current portion

159,990

122,762

Long-term related party loan

75,000

—

Long-term debt, net of deferred financing costs

4,890,179

4,755,553

Operating lease liabilities, net of current portion

320,117

391,577

Finance lease liabilities, net of current portion

422,787

428,364

Deferred tax liabilities

154,669

165,600

Other liabilities, non-current

40,915

41,097

Total liabilities

6,391,931

6,221,169

Stockholders'/member's deficit:

Member's interest

—

1,094,620

Common stock

1,039

—

Additional paid-in capital

1,092,791

—

Accumulated deficit

(1,469,893)

(1,225,641)

Accumulated other comprehensive (loss) income

(12,554)

4,275

Total stockholders'/member's deficit

(388,617)

(126,746)

Total liabilities and stockholders'/member's deficit

$ 6,003,314

$ 6,094,423

Csquare, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)

Six Months Ended June 30,

2026

2025

Operating activities

Net loss

$ (114,780)

$ (48,843)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

174,079

127,884

Amortization of deferred financing costs

24,116

11,837

Employee loan extinguishment

8,340

—

Loss on extinguishment of debt

—

5,313

Deferred income tax benefit

(6,562)

(8,167)

Gain on modification of leases

(40,043)

(51)

Unrealized loss on foreign exchange transactions

10,247

—

Other operating activities

4,103

370

Changes in operating assets and liabilities:

Accounts receivable

(47,309)

(25,144)

Prepaid and other current assets

3,682

(1,736)

Operating lease right-of-use assets

20,708

26,552

Due to (from) related parties

4,161

260

Other assets

(36,669)

(21,771)

Accounts payable and accrued expenses

8,474

(46,343)

Other long-term liabilities

40,012

63,499

Operating lease liabilities

(18,938)

(18,130)

Net cash provided by operating activities

33,621

65,530

Investing activities

Purchase of property and equipment

(277,976)

(113,200)

Related party loans and deposits

127,590

—

Net cash used in investing activities

(150,386)

(113,200)

Financing activities

Borrowings on long term debt, net of discount

—

908,204

Repayments on long-term debt

—

(646,695)

Borrowings on revolving credit facility

112,000

60,000

Repayments on revolving credit facility

—

(207,900)

Repayment of finance lease liabilities

(6,116)

(8,066))

Distributions to members

(130,528)

—

Contributions from members

266

732

Borrowings - related party

75,000

—

Payment of debt financing cost

(443)

(20,847)

Net cash provided by financing activities

50,179

85,428

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

(1,216)

(66)

Cash, cash equivalents and restricted cash

Net change in cash, cash equivalents and restricted cash

$ (67,802)

$ 37,692

Balance, beginning of period

403,416

120,587

Balance, end of period

$ 335,614

$ 158,279

Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets

Cash and cash equivalents

$ 120,843

$ 32,296

Restricted cash

209,517

125,983

Long-term restricted cash held within Other Assets

5,254

—

Total cash and cash equivalents and restricted cash

$ 335,614

$ 158,279

Supplemental disclosure of cash flow information:

Taxes paid (received)

$ 5,016

$ (217)

Interest paid

$ 156,597

$ 98,576

Csquare, Inc. Disaggregation of Revenues (in thousands)

Revenues

Three months ended June 30,

(dollars in thousands)

2026

2025

$ Change

% Change

Colocation

$ 210,616

$ 179,313

$ 31,303

17.5 %

Interconnection

24,661

27,493

(2,832)

(10.3 %)

Other

12,580

12,885

(305)

(2.4 %)

Recurring revenues

247,857

219,691

28,166

12.8 %

Non-recurring revenues

12,345

12,028

317

2.6 %

Metered power revenues

20,149

13,032

7,117

54.6 %

Total revenues

$ 280,351

244,751

$ 35,600

14.5 %

Six months ended June 30,

(dollars in thousands)

2026

2025

$ Change

% Change

Colocation

$ 413,957

$ 354,558

$ 59,399

16.8 %

Interconnection

49,614

54,034

(4,420)

(8.2 %)

Other

25,603

22,498

3,105

13.8 %

Recurring revenues

489,174

431,090

58,084

13.5 %

Non-recurring revenues

19,701

21,005

(1,304)

(6.2 %)

Metered power revenues

41,938

25,415

16,523

65.0 %

Total revenues

$ 550,813

$ 477,510

$ 73,303

15.4 %