Csquare (CSQR)
Market Price (8/7/2026): $19.85 | Market Cap: $-Sector: Information Technology | Industry: IT Consulting & Other Services
Csquare (CSQR)
Market Price (8/7/2026): $19.85Market Cap: $-Sector: Information TechnologyIndustry: IT Consulting & Other Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Weak multi-year price returns2Y Excs Rtn is -44%, 3Y Excs Rtn is -71% | Key risksCSQR key risks include [1] a substantial debt load from acquisitions that contributes to persistent net losses, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -44%, 3Y Excs Rtn is -71% |
| Key risksCSQR key risks include [1] a substantial debt load from acquisitions that contributes to persistent net losses, Show more. |
Qualitative Assessment
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Csquare (CSQR) stock has lost about 5% since it went public on 7/16/2026 because of the following key factors:
1. Csquare (CSQR) priced its initial public offering on July 16, 2026, at $21.00 per share, which was below the anticipated range of $23.00 to $27.00 per share. The stock experienced a weak debut on the New York Stock Exchange, opening at $20.90 and declining to $20.45 by mid-afternoon on its first trading day, representing a 2.62% drop from its IPO price. This initial lukewarm reception indicated cautious investor sentiment from the outset.
2. A significant portion of the IPO proceeds was allocated to repay the company's substantial debt rather than to fund growth initiatives. Csquare had approximately $5 billion in outstanding debt as of March 31, 2026. The company intended to use the gross IPO proceeds of approximately $1.05 billion, with $1.17 billion specifically for debt repayment, including a $771 million revolving credit facility. This focus on deleveraging, rather than direct expansion, may have deterred growth-oriented investors.
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Csquare (CSQR) stock has lost about 5% since it went public on 7/16/2026 because of the following key factors:
1. Csquare (CSQR) priced its initial public offering on July 16, 2026, at $21.00 per share, which was below the anticipated range of $23.00 to $27.00 per share. The stock experienced a weak debut on the New York Stock Exchange, opening at $20.90 and declining to $20.45 by mid-afternoon on its first trading day, representing a 2.62% drop from its IPO price. This initial lukewarm reception indicated cautious investor sentiment from the outset.
2. A significant portion of the IPO proceeds was allocated to repay the company's substantial debt rather than to fund growth initiatives. Csquare had approximately $5 billion in outstanding debt as of March 31, 2026. The company intended to use the gross IPO proceeds of approximately $1.05 billion, with $1.17 billion specifically for debt repayment, including a $771 million revolving credit facility. This focus on deleveraging, rather than direct expansion, may have deterred growth-oriented investors.
3. Csquare's lack of profitability and high financing costs compared to its industry peers likely contributed to the stock's performance. The company reported a net loss of $150.9 million for the twelve months ending March 31, 2026, and a $66.0 million net loss in fiscal Q1 2026 (ended March 31, 2026) on revenue of $270.5 million. In contrast, public rivals such as Equinix and Digital Realty are profitable. Furthermore, Csquare's financing costs were projected to outpace revenue growth, with first-half interest expense expected to rise by 71% and cash flow from operations anticipated to decline by 21%-35%.
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
4/30/2026 to 8/6/2026| Return | Correlation | |
|---|---|---|
| CSQR | ||
| Market (SPY) | 6.9% | 42.6% |
| Sector (XLK) | 16.2% | 44.9% |
Fundamental Drivers
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Market Drivers
1/31/2026 to 8/6/2026| Return | Correlation | |
|---|---|---|
| CSQR | ||
| Market (SPY) | 11.4% | 42.6% |
| Sector (XLK) | 29.0% | 44.9% |
Fundamental Drivers
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Market Drivers
7/31/2025 to 8/6/2026| Return | Correlation | |
|---|---|---|
| CSQR | ||
| Market (SPY) | 22.6% | 42.6% |
| Sector (XLK) | 41.6% | 44.9% |
Fundamental Drivers
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Market Drivers
7/31/2023 to 8/6/2026| Return | Correlation | |
|---|---|---|
| CSQR | ||
| Market (SPY) | 73.8% | 42.6% |
| Sector (XLK) | 111.7% | 44.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CSQR Return | - | - | - | - | - | -2% | -2% |
| Peers Return | 6% | -1% | 12% | 1% | -8% | 123005% | 134539% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| CSQR Win Rate | - | - | - | - | - | 50% | |
| Peers Win Rate | 33% | 17% | 33% | 25% | 25% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| CSQR Max Drawdown | - | - | - | - | - | - | |
| Peers Max Drawdown | -5% | -8% | -6% | -9% | -15% | -36% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: GIB, CHRN, CSQR, EFOR, KEEL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/6/2026 (YTD)
How Low Can It Go
CSQR has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.7% | -18.8% |
| % Gain to Breakeven | 34.5% | 23.1% |
| Time to Breakeven | 65 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -17.0% | -7.8% |
| % Gain to Breakeven | 20.4% | 8.5% |
| Time to Breakeven | 92 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -10.0% | -9.5% |
| % Gain to Breakeven | 11.2% | 10.5% |
| Time to Breakeven | 15 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.1% | -24.5% |
| % Gain to Breakeven | 49.5% | 32.4% |
| Time to Breakeven | 246 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.2% | -33.7% |
| % Gain to Breakeven | 45.2% | 50.9% |
| Time to Breakeven | 78 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.8% | -19.2% |
| % Gain to Breakeven | 31.2% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
In The Past
State Street Technology Select Sector SPDR ETF's stock fell -25.7% during the 2025 US Tariff Shock. Such a loss loss requires a 34.5% gain to breakeven.
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CSQR has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.7% | -18.8% |
| % Gain to Breakeven | 34.5% | 23.1% |
| Time to Breakeven | 65 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.1% | -24.5% |
| % Gain to Breakeven | 49.5% | 32.4% |
| Time to Breakeven | 246 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.2% | -33.7% |
| % Gain to Breakeven | 45.2% | 50.9% |
| Time to Breakeven | 78 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.8% | -19.2% |
| % Gain to Breakeven | 31.2% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -51.5% | -53.4% |
| % Gain to Breakeven | 106.2% | 114.4% |
| Time to Breakeven | 797 days | 1085 days |
In The Past
State Street Technology Select Sector SPDR ETF's stock fell -25.7% during the 2025 US Tariff Shock. Such a loss loss requires a 34.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Csquare (CSQR)
Csquare (CSQR) is a leading North American enterprise digital infrastructure platform specializing in carrier-neutral colocation and interconnection services. The company owns and operates a geographically diverse portfolio of 64 highly engineered data centers across 21 major metropolitan markets in the United States, Canada, and the United Kingdom. These facilities provide essential infrastructure, including secure space, redundant power, advanced cooling systems, and physical security, enabling customers to deploy and operate their critical IT and network infrastructure with high reliability and low latency.
Csquare's main products and services revolve around providing mission-critical data center space and connectivity, primarily focusing on sub-5 MW colocation deployments within multi-customer, interconnection-rich environments. The company serves a diversified customer base of over 1,700 enterprise, network, cloud, and technology customers. These clients rely on Csquare to support availability-sensitive workloads, benefiting from the platform's pre-built infrastructure, quick scalability, predictable costs, and reduced execution risk compared to self-build or greenfield alternatives.
A majority of Csquare's revenue comes from recurring colocation and interconnection services under contractual arrangements, characterized by strong customer retention and low net revenue churn. The company's capital-efficient expansion model focuses on leveraging existing facilities to add incremental capacity, positioning it to benefit from long-term secular trends such as increased enterprise outsourcing of data center infrastructure, growth in network-intensive and latency-sensitive applications, and the rising demand for AI inference capabilities.
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- Public Storage for the internet's physical infrastructure.
- Prologis for digital warehouses.
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- Colocation Services: Provides secure, carrier-neutral data center space, redundant power, advanced cooling systems, and physical security for customers to house their critical IT and network infrastructure.
- Interconnection Services: Offers dense connectivity solutions, including cross-connects, within data centers to enable low-latency and secure communication between customers, networks, and cloud providers.
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Csquare (CSQR) primarily sells its services to other companies (B2B).
Based on the provided information, Csquare serves a diversified customer base and does not disclose specific major customer names, emphasizing that its multi-customer operating model is designed to limit reliance on any single customer or industry vertical. Therefore, individual customer company names and their symbols are not available.
However, the company broadly identifies its customers as:
- Enterprise customers
- Network customers
- Cloud customers
- Technology customers
These customers are often described as "blue-chip customers" seeking mission-critical digital infrastructure.
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Spencer Mullee, Chief Executive Officer
Spencer Mullee serves as the Chief Executive Officer of Csquare. Prior to its formation, he was the CEO of Evoque. He also founded DCI Data Centers, a notable data center developer in Australia and the Asia Pacific market, where he held positions including Chief Financial Officer, Chief Operating Officer, and Board Member from 2001 to 2019. Csquare itself was formed after Brookfield Infrastructure Partners acquired Cyxtera Technologies and merged it with Evoque Data Center Solutions, and Brookfield is expected to maintain voting control post-IPO, designating Csquare as a "controlled company".
Steven Cook, Chief Financial Officer; Chief Investment and Strategy Officer
Steven Cook is the Chief Financial Officer and Chief Investment and Strategy Officer for Csquare, having joined the company in 2021. He brings extensive experience in corporate strategy, capital allocation, growth implementation, and cost reduction initiatives from previous leadership roles at Wells Fargo, Rent-A-Center, and HundredX. His involvement with Csquare, a Brookfield-backed entity, aligns with the management of private equity-backed companies.
Sean Charnock, Chief Operating Officer
Sean Charnock is the Chief Operating Officer at Csquare. He previously founded SoftLayer Technologies, a pioneering company in the cloud and IaaS sectors. His executive leadership experience spans multiple industries, including data centers, IaaS/SaaS, cloud, and cybersecurity technologies. He has played a crucial role in several large-scale venture and private equity-backed companies, which led to successful acquisitions by Siemens, IBM, and FireEye Technologies.
Catherine Smith, Chief Legal Officer and Chief Administrative Officer; Corporate Secretary
Catherine Smith serves as Csquare's Chief Legal Officer, Chief Administrative Officer, and Corporate Secretary, joining the company in 2021. She has extensive experience from both public companies and private equity-backed organizations, including senior legal roles at Motorola and Brightstar Corp.
Jaclyn Mispagel, Chief Information and Product Officer
Jaclyn Mispagel is the Chief Information and Product Officer at Csquare, responsible for leading information technology strategy and product initiatives. She joined the company in 2021 and has over 20 years of experience in leadership positions in product, information systems, and marketing at companies such as Cyxtera, CenturyLink, Windstream, and Verizon.
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Colocation Services
- United States: The U.S. data center colocation market size by investment was valued at USD 43.71 billion in 2025 and is expected to reach USD 85.18 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.76%. Other estimates place the U.S. market at USD 38.80 billion in 2025, projected to grow to USD 65.45 billion by 2030.
- Canada: The Canada data center colocation market was valued at USD 1.38 billion in 2024 and is projected to reach USD 2.11 billion by 2030, expanding at a CAGR of 7.33%. However, other reports indicate a market size of USD 2,541.4 million in 2024, expected to reach USD 4,597.8 million by 2030, with a CAGR of 10.7%. Another projection suggests the Canadian colocation market is estimated at US$7.832 billion in 2024 and is projected to reach US$14.360 billion in 2029.
- United Kingdom: The UK data center colocation market was valued at USD 4.12 billion in 2024 and is projected to reach USD 9.01 billion by 2030, growing at a CAGR of 13.94%.
Interconnection Services
- North America: The North America Data Center Interconnect Market size was valued at USD 3.37 billion in 2025 and is expected to reach USD 8.43 billion by 2033, at a CAGR of 12.15%. North America held the largest market share, over 38%, in the global data center interconnect market in 2024.
- United States: The U.S. data center interconnect market generated a revenue of USD 3,275.2 million in 2025 and is expected to reach USD 8,943.4 million by 2033, growing at a CAGR of 13.6% from 2026 to 2033.
- Canada: The Canada data center interconnect market is projected to reach USD 1,531.1 million by 2033, making it the fastest-growing regional market in North America.
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Csquare (CSQR) anticipates several key drivers for its future revenue growth over the next two to three years, primarily stemming from its strategic operational model and prevailing market trends:
- Capital-Efficient Expansion within Existing Facilities: Csquare plans to drive revenue growth by expanding capacity within its current data center portfolio. The company has approximately 670 megawatts of embedded expansion capacity available through under-roof expansion, electrical upgrades, and infrastructure optimization, which is a more cost-effective approach than building new data centers. This strategy allows for faster deployment of customer capacity with lower capital expenditure per megawatt.
- Increased Spending and Expansion from Existing Customers: A significant portion of Csquare's new monthly recurring revenue is generated from its existing customer base. The company's interconnection-rich facilities and the mission-critical nature of its services foster strong customer retention and support incremental revenue growth through expansion deployments and additional interconnection services.
- Growing Demand from Artificial Intelligence (AI) and High-Performance Computing (HPC) Workloads: The rapid growth in AI development and deployment is a significant catalyst for Csquare. The company's facilities are designed to support high-density and AI workloads, with AI and HPC-related customers accounting for a notable percentage of recent bookings and monthly recurring revenue. Csquare can support high-density deployments through advanced cooling technologies, positioning it to benefit from the increasing demand for enterprise AI infrastructure.
- Overall Colocation Market Growth and Rising Contract Rates: Csquare operates within a colocation market that is projected to experience substantial growth. The global data center colocation services market is expected to increase significantly, with average contract rates also anticipated to rise on a compound annual basis over the next several years. This broader market expansion provides a tailwind for Csquare's core services.
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Outbound Investments
- The company made acquisitions in January 2024.
- The company made acquisitions in October 2025.
Capital Expenditures
- Expansions are typically executed within existing, transformer-enabled facilities, costing approximately $4 million to $8 million per MW on a net basis.
- The primary focus of capital expenditures is on adding incremental revenue with limited reliance on new building construction.
- Capital investments support a durable runway for scalable growth, including hybrid cloud and inference use cases, within the company's portfolio of urban, carrier-neutral data centers.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 20.25 |
| Mkt Cap | 2.3 |
| Rev LTM | 3,967 |
| Op Inc LTM | 193 |
| FCF LTM | 221 |
| FCF 3Y Avg | 318 |
| CFO LTM | 257 |
| CFO 3Y Avg | 354 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 5.7% |
| Rev Chg 3Y Avg | 5.4% |
| Rev Chg Q | -1.3% |
| QoQ Delta Rev Chg LTM | -0.3% |
| Op Inc Chg LTM | -25.6% |
| Op Inc Chg 3Y Avg | -20.1% |
| Op Mgn LTM | 4.9% |
| Op Mgn 3Y Avg | 6.4% |
| QoQ Delta Op Mgn LTM | -0.4% |
| CFO/Rev LTM | 6.5% |
| CFO/Rev 3Y Avg | 8.6% |
| FCF/Rev LTM | 5.6% |
| FCF/Rev 3Y Avg | 7.8% |
Price Behavior
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.06 | -1.10 | 2.86 | 0.16 | 0.20 | 0.90 |
| Up Beta | 3.54 | -0.61 | -3.69 | 4.24 | 4.62 | -2.32 |
| Down Beta | 1.41 | 1.05 | -0.74 | -1.11 | 0.16 | 1.11 |
| Up Capture | 25% | 10% | 7% | 3% | 1% | 0% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 4 | 4 | 4 | 4 | 4 | 4 |
| Down Capture | 80% | 34% | 29% | 15% | 10% | 6% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 7 | 7 | 7 | 7 | 7 | 7 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSQR | |
|---|---|---|---|---|
| CSQR | -2.9% | 51.3% | -0.82 | - |
| Sector ETF (XLK) | 43.3% | 25.9% | 1.35 | 44.9% |
| Equity (SPY) | 23.5% | 12.9% | 1.37 | 42.6% |
| Gold (GLD) | 25.3% | 28.3% | 0.79 | 17.9% |
| Commodities (DBC) | 32.4% | 19.8% | 1.30 | -12.5% |
| Real Estate (VNQ) | 12.9% | 13.8% | 0.64 | 46.2% |
| Bitcoin (BTCUSD) | -43.6% | 43.0% | -1.21 | 22.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSQR | |
|---|---|---|---|---|
| CSQR | -0.6% | 51.3% | -0.82 | - |
| Sector ETF (XLK) | 20.2% | 25.8% | 0.70 | 44.9% |
| Equity (SPY) | 13.2% | 17.2% | 0.59 | 42.6% |
| Gold (GLD) | 17.9% | 18.5% | 0.78 | 17.9% |
| Commodities (DBC) | 8.0% | 19.6% | 0.31 | -12.5% |
| Real Estate (VNQ) | 2.3% | 18.9% | 0.02 | 46.2% |
| Bitcoin (BTCUSD) | 10.0% | 53.0% | 0.38 | 22.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSQR | |
|---|---|---|---|---|
| CSQR | -0.3% | 51.3% | -0.82 | - |
| Sector ETF (XLK) | 24.4% | 24.9% | 0.89 | 44.9% |
| Equity (SPY) | 15.3% | 17.9% | 0.73 | 42.6% |
| Gold (GLD) | 11.8% | 16.2% | 0.59 | 17.9% |
| Commodities (DBC) | 7.4% | 18.0% | 0.33 | -12.5% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 46.2% |
| Bitcoin (BTCUSD) | 58.3% | 66.2% | 0.98 | 22.7% |
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SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 06/16/2026 | S-1 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 06/16/2026 | S-1 |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| IT Consulting & Other Services Resources |
| IDC |
| Forrester |
| Consultancy.org |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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