VNET Group (VNET) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 growth in both wholesale and retail IDC businesses, driven by rapid AI adoption and robust customer demand for high-performance data centers.

• Wholesale IDC capacity in service grew 16.1% quarter over quarter to 783 MW, with utilization rate at 74.3%; retail MRR per cabinet increased for six consecutive quarters to RMB 8,948.

• Secured three new wholesale orders totaling 63 MW in Q3 and a 32 MW order in Q4, reflecting continued order momentum.

• Positioned to capitalize on AI-driven demand with a dual-core strategy and Hyperscale 2.0 framework.

Financial highlights

• Total net revenues rose 21.7% year over year to RMB 2.58 billion in Q3 2025.

• Wholesale IDC revenues surged 82.7% year over year to RMB 956 million; retail IDC revenues increased 2.4% to RMB 999.1 million.

• Adjusted EBITDA grew 27.5% year over year to RMB 758 million, with margin at 29.4%.

• Adjusted cash gross profit up 22.1% to RMB 1.05 billion; adjusted cash gross margin improved to 40.7%.

• Net loss for the quarter was RMB 307 million, mainly due to fair value changes and absence of prior year debt extinguishment gain.

Outlook and guidance

• Full-year 2025 revenue guidance raised to RMB 9.55–9.867 billion (up 16–19% YoY); adjusted EBITDA guidance increased to RMB 2.91–2.945 billion (up 20–21% YoY; 24–26% YoY excluding 2024 one-time gain).

• CapEx for 2025 expected at RMB 10–12 billion, mainly for wholesale IDC expansion and a delivery plan three times greater than 2024.

• Guidance reflects impact of recent private REIT transactions.

• Confident in sustaining order momentum and utilization rates, with a five-year resource planning horizon.