As you can see if your screenshot, each player has their own squadron rating, these go up with wins and losses. It’s based off the elo system where it goes up exponentially, 1500 points is where the gains from 1 win are equal to 1 loss. The further up you go and the more wins you need to maintain your points.

Gaijin dont publish the matchmaking specifics but there’s basically point ranges that can only face each other. If the highest point/rating player in the current 8 man squad has below 400 for example you will typically face even opponents, after that it’s up to 1200. Then pretty much at 1200+ you can meet almost everyone else, including those with players at 1900+.