Csquare (CSQR) Q2 2026 earnings summary

Executive summary

• Revenue grew 14.5%–15% year-over-year to $280.4 million, driven by strong demand, commercial execution, and the 2025 Portfolio Acquisition.

• Adjusted EBITDA increased 21% year-over-year to $120.3 million, with margin expanding to 46.2%.

• Achieved record annualized bookings of $64.7 million, marking the 13th consecutive quarter of sequential bookings growth.

• Net loss widened to $48.8 million, primarily due to higher interest expense, depreciation/amortization, and IPO-related costs.

• Completed a successful IPO in July 2026, raising $1.16 billion in net proceeds and significantly reducing leverage.

Financial highlights

• Q2 2026 revenue: $280.4 million, up 14.5%–15% year-over-year; colocation revenue up 17%–17.5% to $210.6 million.

• Adjusted EBITDA for Q2 2026: $120.3 million, up 21% year-over-year, with margin expanding by 330 basis points to 46.2%.

• Net loss for Q2 2026: $48.8 million (vs. $13.9 million in Q2 2025), mainly due to higher interest and IPO costs.

• Funds from Operations (FFO) declined 18.9%–19% year-over-year to $40.8 million.

• Approximately 95% of revenue was recurring, supported by long-term contracts and strong customer retention.

Outlook and guidance

• Full-year 2026 guidance: revenue of $1.13–$1.17 billion, adjusted EBITDA of $440–$480 million.

• Recurring capital expenditures expected at $55–$65 million; growth capital expenditures at $610–$660 million.

• Focus areas include commercial execution, timing of customer deployments, and development pipeline execution.

• Bookings up 31% for Q2 2026 and 38% for the first half, with net revenue churn improved to 2.4%.