VNET Group (VNET) Q4 2025 earnings summary

Executive summary

• Achieved record growth in 2025, driven by robust wholesale IDC demand, dual-core strategy, and Hyperscale 2.0 framework, capturing surging AI demand.

• Wholesale IDC business saw significant expansion, with capacity in service reaching 889MW (+404MW YoY) and utilization at 70.1%.

• Retail IDC business benefited from AI-driven demand, maintaining stable utilization at 64.0% and increasing MRR per cabinet to RMB9,420.

• Secured 135MW of new wholesale orders in Q4 2025 and multiple retail orders across various industries.

• Focused on advancing sustainable, high-quality growth and long-term value creation.

Financial highlights

• Q4 2025 net revenues rose 19.6% YoY to RMB2.69B; full-year 2025 net revenues up 20.5% YoY to RMB9.95B, both exceeding guidance.

• Q4 adjusted EBITDA increased 11.6% YoY to RMB805.1M; full-year adjusted EBITDA up 22.6% YoY to RMB2.98B.

• Adjusted cash gross margin improved to 42.3% in Q4 and 42.4% for FY2025; adjusted EBITDA margin stable at 29.9%–30.0%.

• Net income for Q4 2025 was RMB345M, reversing a prior loss; full-year net loss attributable was RMB251.8M, mainly due to tax and fair value losses.

• Net operating cash inflow for 2025 was RMB1.92B; cash and equivalents at year-end totaled RMB6.58B; total debt was RMB19.95B.

Outlook and guidance

• 2026 revenue guidance: RMB11.5B–11.8B, up 15.6%–18.6% YoY; adjusted EBITDA guidance: RMB3.55B–3.75B, up 19.2%–25.9% YoY.

• CapEx for 2026 expected at RMB10B–12B, mainly for 450–500MW planned delivery.

• Confident in maintaining utilization rate within 70%–75% for 2026, with quarterly fluctuations.