Second Quarter Net Revenue Totaled $178.7 Million, Representing Year-over-Year Growth of 27%

Second Quarter GAAP Net Income of $10.3 Million and diluted GAAP EPS of $0.06; Second Quarter Non-GAAP Adjusted Net Income1 of $23.4 Million and Non-GAAP Adjusted EPS1 of $0.18

Second Quarter Non-GAAP Adjusted EBITDA2 Totaled $39.8 Million, Representing Year-over-Year Growth of 46%

AUSTIN, Texas, Nov. 9, 2026 /PRNewswire/ — Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal second quarter ended September 30, 2026.

Recent Financial Highlights:

Fiscal second quarter of 2027 revenue totaled $178.7 million, representing an increase of 27% year-over-year as compared to the fiscal second quarter of 2026.GAAP net income for the fiscal second quarter of 2027 was $10.3 million, or $0.06 per diluted share. Non-GAAP adjusted net income1 for the fiscal second quarter of 2027 was $23.4 million, or $0.18 per share, as compared to non-GAAP adjusted net income1 of $16.5 million, or $0.15 per share, in the fiscal second quarter of 2026.Non-GAAP adjusted EBITDA2 for the fiscal second quarter of 2027 was $39.8 million, representing an increase of 46% year-over-year as compared to non-GAAP adjusted EBITDA2 of $27.2 million in the fiscal second quarter of 2026.Non-GAAP free cash flow3 totaled $10.5 million in the fiscal second quarter of 2027.

“Our strong second quarter results are further testament to the positive momentum underlying the business,” said Bill Stone, CEO.  “Our team’s focused execution continues to accelerate the flywheel effect, whereby data- and AI-driven improvements are self-sustaining greater overall platform performance across all aspects of the business, which in turn is attracting higher levels of partner adoption and advertiser investment across the platform.  The resultant 20+% revenue growth in both our ODS segment and AGP segment during the second quarter, along with operating leverage efficiencies, enabled us to achieve 46% adjusted EBITDA growth in the quarter. The stronger-than-expected second quarter performance and continuing flywheel momentum provide us with greater conviction that Digital Turbine has the right team, platform, market position, and vision to fully exploit the wealth of opportunities directly in front of us.”

Fiscal 2027 Second Quarter Financial Results

Total revenue for the second quarter of fiscal 2027 was $178.7 million, representing year-over-year growth of 27% as compared to total revenue of $140.4 million for the second quarter of fiscal 2026. Total On Device Solutions net revenue before intercompany eliminations was  $115.6 million, representing year-over-year growth of 20%. Total App Growth Platform net revenue before intercompany eliminations was $63.5 million, representing year-over year growth of 42%.

GAAP net income for the second quarter of fiscal 2027 was $10.3 million, or $0.06 per diluted share, as compared to GAAP net loss for the second quarter of fiscal 2026 of $21.4 million, or $(0.20) per share.

Non-GAAP adjusted net income1 for the second quarter of fiscal 2027 was $23.4 million, or $0.18 per share, as compared to non-GAAP adjusted net income1 of $16.5 million, or $0.15 per share, in the second quarter of fiscal 2026.

Non-GAAP adjusted EBITDA2 for the second quarter of fiscal 2027 was $39.8 million, representing year-over-year growth of 46% as compared to non-GAAP adjusted EBITDA2 for the second quarter of fiscal 2026 of $27.2 million.

Business Outlook

Based on information available as of November 9, 2026, the Company currently expects the following for fiscal year 2027:

Revenue of between $670 million and $690 millionNon-GAAP adjusted EBITDA2 of between $145 million and $155 million

It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company’s stock price, or other items that are difficult to predict with precision.

About Digital Turbine, Inc.

Digital Turbine empowers superior mobile consumer experiences and results for the world’s leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners’ abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com. 

Conference Call

Management will host a conference call and webcast today at 4:30pm ET/1:30p PT to discuss its fiscal 2027 second quarter results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed via webcast link: https://app.webinar.net/AQjXr7E0lMd.  The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 0136244. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine’s website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine’s website.

For those unable to join the live call, a playback will be available through November 16th, 2026. The replay can be accessed by dialing 855-669-9658 in the United States or 412-317-0088 from international locations, passcode 1562528.

An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine’s website.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share (“EPS”), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management’s internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

1Non-GAAP adjusted net income (loss) and EPS are defined as GAAP net income (loss) and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction related expenses, severance costs, impairment of goodwill, contract settlement fees, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs and exit and duration fees, unrealized (gain)/loss on derivatives, non-cash fair value adjustments to non-marketable equity securities and (gain)/loss on the disposition of assets other than in the ordinary course of business. The Company added non-cash fair value adjustments to non-marketable securities and (gain)/loss on disposition of assets other than in the ordinary course of business as described in footnote 2 to the reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income below, as these items are one-time adjustments that are non-recurring in nature. Readers are cautioned that non-GAAP adjusted net income (loss) and EPS should not be construed as an alternative to comparable GAAP net income (loss) figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

2Non-GAAP adjusted EBITDA is calculated as GAAP net income (loss) excluding the following cash and non-cash expenses, if any: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax expense (benefit), transaction related expenses, impairment of goodwill, contract settlement fees, severance costs, (gain)/loss on extinguishment of debt, and unrealized (gain)/loss on derivatives. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.

3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.

4Non-GAAP gross profit is defined as GAAP income (loss) from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, impairment of goodwill, and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company’s financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.

Revision of Prior Period Financial Statements

The Company has revised, during the current quarter, its previously issued financial statements as it identified immaterial adjustments resulting in incremental costs related to its contractual revenue share obligations that originated in prior periods. This resulted in an understatement of revenue share expense in the amount of $3.5 million for the three months ended June 30, 2026 and a corresponding understatement of its accrued revenue share liabilities. This adjustment did not impact the Company’s previously reported net cash provided from operations or compliance with debt covenants and was not material to the previously reported interim results of operations. The adjusted financial statements for the impacted periods noted will be included in the Company’s Form 10-Q as of September 30, 2026.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:

Risks Specific to our Business

We may not achieve the expected benefits of our transformation program and similar measures we take in the future, and our efforts may adversely affect our business.We have a history of net losses.We have a limited operating history for our current portfolio of assets.Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial, and economic risks as a result of our international operations.Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.A significant portion of our revenue is derived from a limited number of wireless carriers and customers.The development and use of artificial intelligence (“AI”) in our business, combined with an uncertain regulatory environment, may adversely affect our business, reputation, financial condition, and results of operations.System security risks, data protection breaches, cyber-attacks, and systems integration issues could disrupt our business.Our business may involve the use, transmission, and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.The effects of the current and any future general downturns in the United States (“U.S”). and the global economy, including financial market disruptions.Our products, services, and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.Our business and reputation could be impacted by information technology system failures and network disruptionsOur business may suffer if we are unable to hire and retain key talent.Our corporate culture has contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity, passion, and teamwork that we believe contribute to our success and our business may be harmed.If we make future acquisitions, this could require significant management attention and disrupt our business.Adverse developments affecting the financial services industry, including events involving liquidity, defaults or non-performance, could adversely affect our business, financial condition, and results of operations.Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.Litigation may harm our business.

Risks Related to the Mobile Advertising Industry

The mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.The markets for our products and services are rapidly evolving and may decline or experience limited growth.Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.We may be subject to legal liability associated with providing mobile and online services.Risks of public health issues, such as a major epidemic or pandemic.Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, inflation, global supply chain, and tariffs.Risk related to the geopolitical relationship between the U.S. and China or changes in China’s economic and regulatory landscape, including recent tariff increases and trade tensions.Changes to the policies, technologies, practices of, or the laws and regulations that govern, third-party platforms and other ecosystem participants could materially limit our ability to deliver, measure and monetize advertising.

Risks Related to Laws and Regulations

We are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.We are subject to anti-bribery, anti-corruption, and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation.We are subject to governmental economic sanction requirements and export and import controls that could impair our ability to compete in international markets.Our ability to use our net operating losses, credits, and certain other tax attributes to offset future taxable income or taxes may be subject to certain limitations.Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products, and services available in certain jurisdictions.

Risks Related to Our Intellectual Property and Potential Liability

Third parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rights.Third parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.Our platform contains open source software.Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.

Risks Relating to Our Common Stock and Capital Structure

We have significant indebtedness, which could limit our financial flexibility.To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.Risk of not being able to raise capital to grow our business.Risk to trading volume of lack of securities or industry analysts research coverage.If our goodwill becomes impaired, we may be required to record significant charges to earnings.A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.Maintaining and improving financial controls and being a public company may strain resources.Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.Our bylaws designate Delaware as the exclusive forum for certain disputes.

For further information over our risks, see the risk factors in Item 1A of Annual Report under the heading “Risk Factors.”

You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com 

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SOURCE Digital Turbine, Inc.

Delivered 25.6% year-over-year revenue growth to $302.3 million, reflecting sustained demand and continued customer deployments across Csquare’s enterprise infrastructure platform.Achieved record bookings of $66.1 million, marking Csquare’s 14th consecutive quarter of sequential bookings growth across enterprise, network, cloud and higher-density deployments.Entered Q4 with approximately $114 million of contracted annualized revenue backlog, including approximately $104 million expected to commence over the next twelve months.Continued to expand capacity to meet contracted demand, commissioning approximately 12 MW during Q3 and ending the quarter with 428 MW contracted against 397 MW of sellable capacity.Maintained strong customer retention, with quarterly net revenue churn of 1.9% and continued strength in advance customer commitments.Continued disciplined capital deployment, investing $149 million in growth at an average build multiple of approximately 4x and approximately $16 million in recurring capital expenditures.Reported net loss of $88.1 million, primarily reflecting $58.6 million of IPO-related transaction and compensation costs, as well as higher year-over-year interest expense. Net margin for the quarter was (29.2%).Adjusted EBITDA increased 44.3% to $132.1 million, with Adjusted EBITDA margin expanding to 47.8% from 40.5%.Strengthened the balance sheet following the July IPO, using proceeds to repay approximately $1.1 billion of debt.

DALLAS, Nov. 9, 2026 /PRNewswire/ — Csquare, Inc. (NYSE: CSQR) (“Csquare” or the “Company”), a leading provider of carrier-neutral data center solutions, today reported financial results for its fiscal third quarter ended September 30, 2026.

“Our third quarter results demonstrate strong and disciplined execution by our team and continued momentum across the business,” said Spencer Mullee, Chief Executive Officer of Csquare. “We delivered strong revenue growth, record bookings and meaningful operating leverage while continuing to benefit from strong demand for our carrier-neutral digital infrastructure platform.”

“These results reflect the solidity of our recurring revenue model and low net revenue churn, the strength of customer demand across our markets, and the operating leverage inherent in our business as Adjusted EBITDA margin expanded to 47.8% from 40.5% in the prior year period. Following our initial public offering in July, which resulted in $1.1 billion of debt reduction, our business is well positioned to continue executing on our strategy to deliver high-quality digital infrastructure across our urban core-focused portfolio.”

“Demand for our offering remains strong and continues to accelerate. The strength of our platform is resonating in the market across traditional enterprise and higher density deployments as new and existing customers deploy and expand workloads on our platform. We believe our diversified portfolio, disciplined capital allocation strategy, and deep customer relationships position Csquare to continue capitalizing on a strong demand and pricing environment.  We remain focused on targeting high-quality customers, a diverse set of customers spanning multiple industries, and contracts that provide long-term, predictable cash flow.”

Third Quarter 2026 Highlights

Revenues
Third quarter total revenue increased 25.6% year-over-year to $302.3 million, compared to $240.8 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. Revenue excluding metered power increased 22.1% to $276.2 million, underscoring the continued strength of the Company’s recurring revenue base and customer expansion activity. 

Commercial Activity
Csquare posted bookings of $66.1 million in the third quarter, representing the Company’s 14th consecutive quarter of sequential bookings growth. The quarter was characterized by continued expansion of the commercial pipeline, strong pricing, and customers increasingly committing capacity further in advance of deployment requirements. Management believes these trends reflect ongoing supply constraints in many markets and growing customer focus on delivery certainty and long-term infrastructure planning.

Bookings were generated across enterprise customers, network providers, cloud-related deployments and higher-density infrastructure requirements. In addition, a significant portion of third-quarter bookings are expected to be deployed on shorter timelines than historical averages due to the utilization of existing capacity and targeted infrastructure upgrades rather than large-scale shell expansion projects.

Net Loss   
Net loss for the third quarter of 2026 was $88.1 million, compared to a net loss of $29.8 million in the third quarter of 2025. The increase in net loss was primarily driven by higher year-over-year interest expense, IPO-related transaction costs, post-IPO stock-based compensation expenses, and costs associated with terminating certain pre-IPO compensation arrangements.

Adjusted EBITDA
Adjusted EBITDA increased 44.3% year-over-year to $132.1 million, compared to $91.6 million in the third quarter of 2025. Adjusted EBITDA margin expanded to 47.8%, compared to 40.5% 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. 

2026 Guidance Summary

For the full year 2026, Csquare expects total revenues between $1.14 and $1.16 billion, Adjusted EBITDA between $490 and $500 million, recurring capital expenditures between $50 and $60 million, and non-recurring growth capital expenditures between $620 and $640 million.

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 $66.1 million, marking the Company’s 14th consecutive quarter of sequential bookings growth and reflecting sustained demand across enterprise, cloud, and network customers.Solid customer retention, with quarterly net revenue churn of 1.9% in line with the prior year period and within management expectations.Expanded contracted power capacity by nearly 47% year-over-year to 428 MW, supported by strategic acquisitions and continued customer deployments. Contracted utilization reached 108%, demonstrating demand that exceeds current sellable capacity and is supported by the Company’s development pipeline and planned capacity expansions.Commissioned approximately 12 MW of additional power capacity vs. prior quarter to increase sellable power to 397 MW as part of the Company’s ongoing focus to invest in attractive, high return capacity expansion projects.Continued investing in long-term growth, deploying $149 million of growth capital expenditures during the quarter while investing an additional $16 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.

On July 27, 2026, the underwriters exercised their option to purchase an additional 7.499 million shares at the initial public offering price. In aggregate, the offering generated approximately $1.16 billion in net proceeds after underwriting discounts and commissions.

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.

The Company used the net proceeds to repay outstanding indebtedness, significantly reducing leverage and strengthening its balance sheet to support future investment opportunities.

Conference Call and Webcast Information
Csquare will host a conference call to discuss its third quarter 2026 results.
Date: November 9, 2026
Time: 5:00 p.m. ET

Webcast: https://app.webinar.net/BDWvy4K8QLk
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 data centers. The company owns and operates a geographically diverse portfolio of data centers across major metropolitan markets in the United States, Canada and the United Kingdom. Csquare delivers secure, reliable infrastructure solutions to enterprise, network, cloud and technology customers, supporting critical workloads, hybrid cloud environments and AI-enabled applications. Headquartered in Coppell, Texas, Csquare is committed to operational excellence and long-term customer partnerships. Learn more at www.Csquare.com.

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, 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) stock-based compensation, (viii) other income (loss), net, and (ix) 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 bonuses and loan extinguishment expenses directly attributable to specific transactions. The employee bonuses and 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.

Adjusted EBITDA increased by $40.5 million, or 44.3%, to $132.1 million for the three months ended September 30, 2026, compared to $91.6 million for the three months ended September 30, 2025, and increased by $83.4 million, or 30.1%, to $360.7 million for the nine months ended September 30, 2026, compared to $277.3 million for the nine months ended September 30, 2025. This increase reflected continued improvement in operating performance across our platform, driven by growth in recurring colocation and other revenues, the impact of acquired sites, and operating leverage from our cost structure.

FFO decreased by $36.5 million, or 110%, to negative $3.2 million for the three months ended September 30, 2026, compared to $33.2 million for the three months ended September 30, 2025, and decreased by $56.2 million, or 50%, to $56.1 million for the nine months ended September 30, 2026, compared to $112.3 million for the nine months ended September 30, 2025. This decrease was primarily attributable to an increase in net loss, primarily driven by higher year-over-year 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, as well as from transaction and compensation costs related to our IPO. These impacts were partially offset by improved operating performance driven by growth in recurring revenue and 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:

Supplemental Financial Information

The following information is presented solely as supplemental financial information to assist investors in evaluating certain components of our financial results and cash requirements. The individual items are not intended to represent, and should not be aggregated or considered, a separate financial performance or liquidity measure:

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; delays in planned development projects; 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.

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SOURCE Csquare, Inc.

~ Third Quarter Revenue, Net Income, EPS and Adjusted EBITDA All Exceed Guidance ~

 ~ Raises Full Year 2026 Guidance Across All Key Metrics ~

CHARLES TOWN, W.Va., Nov. 9, 2026 /PRNewswire/ — American Public Education, Inc. (the “Company”) (Nasdaq: APEI), a company that transforms lives, advances careers and improves communities by providing online and campus-based postsecondary education to approximately 106,600 students, has reported financial and operational results for the third quarter ended September 30, 2026.

“We exceeded our guidance for third quarter revenue, net income, adjusted EBITDA and diluted earnings per share. These results reflect continued growth in Health+ driven primarily by campus and online healthcare enrollments and pricing. The third quarter was also our first partially operating as a single Higher Learning Commission-accredited institution, American Public University System, following completion of our institutional combination in early August,” said Angela Selden, President and Chief Executive Officer.

Selden concluded, “With the institutional combination largely behind us, we remain focused on executing our long-range plan and accelerating our momentum in Health+ and Military+.”

Key Third Quarter 2026 Highlights (as Compared to Third Quarter 2025)

Consolidated revenue of $169.1 million, a 3.6% year-over-year increase, compared to $163.2 million.Excluding revenue from Graduate School USA (GSUSA), which was sold in July 2025, consolidated revenue would have increased 4.2% when compared to the prior period.Consolidated revenue also reflects a shift of approximately $6.0 million of revenue into the fourth quarter of 2026 due to Military+ registration timing.Health+ segment revenue growth of 9.0% year-over-year to $86.4 million, primarily driven by increased healthcare enrollments, which were supported by the continued success of the Fill the Back Row campus enrollment initiative, and modest tuition increases implemented in the second half of 2025. Military+ segment revenue decreased 0.5% year-over-year to $82.7 million, primarily reflecting the revenue shift into the fourth quarter of 2026 due to registration timing.Net income available to common stockholders increased 6.0% to $5.9 million, compared to $5.6 million.Adjusted EBITDA was $17.5 million, compared to $20.7 million, reflecting the revenue shift into the fourth quarter, a $5.7 million increase in selling and promotional expense, which supported registration and enrollment growth, and investments in marketing optimization and integration.Net income per diluted common share increased 6.7% to $0.32, compared to $0.30.Cash flows from operations were $11.8 million, compared to $21.7 million, reflecting what we believe to be a temporary implementation matter related to Title IV disbursements following the institutional combination.

Balance Sheet and Liquidity

Total cash, cash equivalents, restricted cash and short-term investments were $216.4 million at September 30, 2026, compared to $176.5 million at December 31, 2025, representing an increase of $39.9 million, or 22.6%.

Repurchase Program

As previously announced, on March 10, 2026, the Company’s Board of Directors approved a common stock repurchase program of up to $50 million in the aggregate. During the three and nine months ended September 30, 2026, the Company repurchased 186,032 and 274,237 shares of common stock, respectively. Weighted average diluted shares outstanding decreased to 18.7 million for the three months ended September 30, 2026, compared to 18.8 million for the same period last year.

Registrations and Enrollment 

Fourth Quarter and Full Year 2026 Outlook

The following statements are based on APEI’s current expectations. These statements are forward-looking and actual results may differ materially. APEI undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law. Refer to APEI’s earnings conference call and presentation for further details. 

Third Quarter 2026 Earnings Call

The Company will hold a conference call on Monday, November 9, 2026, at 5:00 PM Eastern Time to discuss its financial results for the third quarter ended September 30, 2026.

Date: Monday, November 9, 2026
Time: 5:00 PM Eastern Time (2:00 PM Pacific Time)
USA – Toll-Free Dial-in: 1 833-461-5787
International: 1 585-542-9983
Conference ID: 619 738 671
Webcast: 3Q26 Webcast Link

The Company will also provide a link on its website at https://www.apei.com/overview/default.aspx for those who wish to stream the call via webcast. If dialing in, please call the conference telephone number 5 to 10 minutes prior to the start time.

A replay of the conference call will also be available through the Company’s website through November 9, 2027.

Non-GAAP Financial Measures

This press release contains the non-GAAP financial measures of EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted EBITDA (EBITDA less non-cash expenses such as stock compensation and non-recurring expenses), adjusted EBITDA margin, segment EBITDA, and segment EBITDA margin. APEI believes that the use of these measures is useful because they allow investors to better evaluate APEI’s operating profit and cash generation capabilities.

Adjusted EBITDA for the three months ended September 30, 2026, and 2025, excludes stock compensation, loss on disposals of long-lived assets, severance, other professional fees, and in the three months ended September 30, 2025, loss on sale of subsidiary and loss on leases.

These non-GAAP measures should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of our non-GAAP measures is that they exclude expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

APEI is presenting EBITDA and adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of EBITDA and adjusted EBITDA to the comparable GAAP financial measures that are included in the tables following this press release (under the captions “GAAP Net Income to Adjusted EBITDA” “GAAP Outlook Net Income to Outlook Adjusted EBITDA”, and “Education Unit Profile – Segment Summary”) and not to rely on any single financial measure to evaluate its business.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI), through American Public University System (the “System”) empowers students through education to transform lives, advance careers, and serve their communities locally and globally. With approximately 106,600 students and over 250,0001 alumni worldwide, the System includes four academic units: American Military University (AMU), American Public University (APU), Rasmussen University (RU), and Hondros College of Nursing (HCN). The System is accredited by the Higher Learning Commission, an institutional accreditation agency recognized by the U.S. Department of Education. The System is a wholly owned subsidiary of American Public Education, Inc. (Nasdaq: APEI).

1As of September 30, 2026.

The System, including AMU, APU, RU, and HCN, is not affiliated with the U.S. Military or American University.

Forward Looking Statements

Statements made in this press release regarding American Public Education, Inc. (“APEI” or the “Company”) that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, demand, revenues, net income, earnings per share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, the growth and profitability of APEI, and related growth strategies, and plans with respect to and future impacts of recent, current and future initiatives, including the recently completed institutional combination and the expected benefits and future impacts thereof.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: APEI’s failure to comply with, or adverse actions relating to, regulatory and accrediting agency requirements, including the “90/10 Rule”, and to maintain institutional accreditation and the impacts of any actions APEI may take to prevent or correct such failure; changes in the post-secondary education regulatory environment as a result of U.S. federal elections, including any changes by or as a result of actions of the current administration to the operations of the Department of Education or changes to or the elimination or implementation of laws, regulations, standards, policies, and practices; potential or actual government shutdowns and uncertainties in the estimated impacts of any such shutdowns on APEI and Military+ and its prospective and current students, and APEI’s inability to mitigate these impacts; government budget and federal workforce uncertainty; the institutional combination; APEI’s dependence on the effectiveness of its ability to attract students who persist in its institutions’ programs; changing market demands; declines in enrollments at APEI’s subsidiaries; APEI’s inability to effectively market its institutions’ programs; APEI’s inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; the loss or disruption of APEI’s ability to receive funds under Title IV or TA programs, including the delays in the Department of Education’s implementation of systems changes to reflect the institutional combination, which affected the timing of Title IV financial aid processing, or the reduction, elimination, or suspension of federal funds; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI’s need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI’s loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficulties involving acquisitions; APEI’s indebtedness, including the refinancing thereof; APEI’s dependence on and the need to continue to invest in its technology infrastructure, including with respect to third-party vendors; the inability to recognize the intended benefits of APEI’s cost savings and reduction and revenue generating efforts; APEI’s ability to manage and limit its exposure to bad debt; and the various risks described in the “Risk Factors” section and elsewhere in APEI’s Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

Company Contact
Frank Tutalo
Director, Public Relations
American Public Education, Inc.
ftutalo@apei.com 

Investor Relations
Shannon Devine
MZ North America
Direct: 203-741-8811
APEI@mzgroup.us

GAAP Net Income to Adjusted EBITDA:
The following table sets forth the reconciliation of the Company’s reported GAAP net income to the calculation of adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025:

GAAP Net Income to Adjusted EBITDA:
The following table sets forth the reconciliation of the Company’s outlook GAAP net income to the calculation of outlook adjusted EBITDA for the three and twelve months ending December 31, 2026:             

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SOURCE American Public Education, Inc.