GDS (GDS) Q2 2025 earnings summary

Executive summary

• Net revenue for 2Q25 increased 12.4% year-over-year to RMB 2,900.3 million (US$404.9 million), with adjusted EBITDA up 11.2% to RMB 1,371.8 million (US$191.5 million) and a margin of 47.3%.

• Utilization rate reached 77.5%, with area utilized up 14.1% and total area committed rising 8.1% to 663,959 sqm.

• Raised $676 million via convertible bonds and equity, completed a landmark C-REIT IPO, and enhanced access to capital.

• Net loss narrowed to RMB 70.6 million (US$9.9 million), down from RMB 231.8 million a year ago.

• Day One, the equity investment, added 246 MW of new commitments, surpassing 780 MW total, and expanded in Thailand and Finland.

Financial highlights

• Adjusted gross profit for 2Q25 was RMB 1,509.5 million, up 14.0% year-over-year, with a margin of 52.0%.

• Adjusted EBITDA margin was 47.3% in 2Q25, slightly down from 47.8% year-over-year.

• C-REIT IPO achieved a 16.9x EV/EBITDA multiple; C-REIT units up 35% since IPO, now trading at 22.8x projected 2026 EBITDA.

• Capex guidance reduced to RMB 2,700 million after factoring in ABS and C-REIT proceeds.

• Operating cash flow for 2Q25 reached RMB 865.1 million, with annualized net debt/EBITDA improving to 6.1x.

Outlook and guidance

• Full-year 2025 revenue guidance remains at RMB 11,290–11,590 million; adjusted EBITDA guidance unchanged at RMB 5,190–5,390 million.

• Expect to deliver 35% of current backlog in 2H 2025; maintaining FY2025 guidance despite C-REIT deconsolidation.

• Targeting high single-digit EBITDA growth year-on-year; growth acceleration depends on new bookings and AI demand recovery.