VNET Group (VNET) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 results with robust growth in both wholesale and retail IDC businesses, driven by rapid delivery and high customer demand for AI-driven data center services.

• Total net revenues reached RMB2.58 billion, up 21.7% year-over-year and 6.1% quarter-over-quarter.

• Wholesale IDC capacity in service grew 16.1% quarter over quarter to 783MW, with utilization rate at 74.3%.

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

• Retail IDC MRR per cabinet increased for six consecutive quarters to RMB8,948, with utilization rate at 64.8%.

Financial highlights

• Adjusted EBITDA increased 27.5% year over year to RMB758 million, with margin at 29.4%.

• Adjusted cash gross profit rose 22.1% to RMB1.05 billion; adjusted cash gross margin reached 40.7%.

• Wholesale IDC revenues surged 82.7% year over year to RMB956 million; retail IDC revenues grew 2.4% to RMB999.1 million.

• Net loss for the quarter was RMB307 million, mainly due to fair value changes and absence of prior year gains.

• Cash and equivalents, restricted cash, and short-term investments at RMB5.33 billion as of September 30, 2025.

Outlook and guidance

• Full-year 2025 revenue guidance raised to RMB9.55–9.867 billion (up 16–19% year over year); adjusted EBITDA guidance increased to RMB2.91–2.945 billion (up 20–21%; 24–26% excluding one-off gains).

• CapEx for 2025 expected at RMB10–12 billion, mainly for wholesale IDC expansion and delivery plan three times greater than 2024.

• Guidance reflects impact of recent private REIT transactions.

• Confident in sustaining order momentum and growth into 2026, with focus on AI-driven demand and resource planning over a five-year horizon.