VNET Group, Inc. reported third‑quarter 2025 results that included total net revenues of RMB 2.58 billion, up 21.7% year‑over‑year, and adjusted EBITDA of RMB 758.3 million, a 27.5% increase from the same period in 2024. The company posted a net loss attributable to VNET of RMB 307 million, largely driven by a RMB 337.2 million fair‑value charge on financial instruments. Diluted earnings per share were a loss of RMB 1.14, versus consensus estimates of a small positive gain, and cash and cash equivalents stood at RMB 5.33 billion as of September 30, 2025.
The revenue growth was led by wholesale IDC sales, which rose to RMB 955.5 million, an 82.7% increase from the prior year, and included new orders for 63 MW of capacity. Retail IDC revenue was RMB 999.1 million, up 2.4% year‑over‑year, reflecting a modest expansion in the retail segment. Gross margin for the quarter was 20.9%, down from 23.2% in Q3 2024, while the adjusted EBITDA margin improved to 29.4% from 28.0% in the same period, indicating stronger operating leverage despite the margin compression at the gross level.
The diluted loss per share was driven by the fair‑value charge, which offset the company’s operating profitability. In Q3 2024 VNET had a net income of RMB 317.6 million, so the shift to a loss in 2025 highlights the impact of non‑operational items rather than a decline in core business performance. The company’s adjusted operating expenses as a percentage of revenue fell to 12.8% from 13.8% in Q3 2024, underscoring disciplined cost management.
Management raised its full‑year 2025 guidance, projecting total net revenues of RMB 9.55 billion to RMB 9.87 billion, up from the June guidance of RMB 9.15 billion to RMB 9.35 billion. Adjusted EBITDA guidance was increased to RMB 2.91 billion to RMB 2.95 billion, compared with the prior range of RMB 2.76 billion to RMB 2.82 billion. The company also reaffirmed a capital‑expenditure program of RMB 10 billion to RMB 12 billion for 2025, reflecting continued investment in AI‑driven data‑center capacity.
Chief Financial Officer Qiyu Wang said the quarter’s results “demonstrate the strength of our high‑margin wholesale IDC business and the effectiveness of our cost‑control program.” Executive Chairperson and interim CEO Josh Sheng Chen added that “the rapid move‑in pace of wholesale customers and the growing demand for AI‑driven data‑center capacity give us confidence to maintain our aggressive growth trajectory.”
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