VNET Group, Inc. (NASDAQ: VNET) Q1 2025 Earnings Call | 05/28/2025

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VNET Group, Inc. reported Q1 2025 results on May 28, 2025, delivering robust revenue growth and margin expansion driven by a record performance in its wholesale internet data center (IDC) business. Total net revenues rose 18.3% year-over-year to RMB2.25 billion (US$309.5 million), exceeding analyst expectations, with wholesale IDC revenues surging 86.5% to RMB673.2 million (US$92.8 million). Retail IDC revenues also grew to RMB968.3 million (US$133.4 million), while non-IDC business revenues edged down 1.4% to RMB604.8 million (US$83.3 million). Gross profit increased 37.6% to RMB565.3 million (US$77.9 million), and gross margin improved to 25.2% from 21.6% a year ago. Adjusted EBITDA climbed 26.4% to RMB682.4 million (US$94.0 million), with a margin of 30.4%, up 1.9 percentage points year-over-year. Wholesale capacity in service grew by 88MW quarter-over-quarter to 573MW, with utilization rising to 76.2%. Retail IDC utilization reached 63.7%. Despite operational gains, VNET reported a net loss attributable to shareholders of RMB237.6 million (US$32.7 million), widening from RMB187.0 million in Q1 2024, primarily due to changes in the fair value of financial instruments. Basic and diluted loss per share were RMB0.90 (US$0.12) per ADS. The company ended the quarter with RMB5.79 billion in cash and cash equivalents and generated RMB195.7 million in net operating cash flow. Capital expenditures for the quarter were RMB1.82 billion, with full-year CapEx expected to reach RMB10–12 billion as VNET invests in expanding capacity and technology. Outlook: Full-year 2025 revenue guidance: RMB9.1–9.3 billion (10–13% growth year-over-year) Adjusted EBITDA guidance: RMB2.7–2.76 billion (15–18% growth) Continued focus on wholesale IDC expansion, high utilization rates, and strategic investments to support China’s digital economy Management remains committed to sustainable, high-quality growth and margin improvement, while monitoring risks from electricity tariffs and macroeconomic factors. #VNET #EarningsCall #Q12025 #IDC #Wholesale #RevenueGrowth #ChinaTech #DataCenters #Investing #InsideTicker