GDS (GDS) Q4 2025 earnings summary

Executive summary

• FY25 net revenue grew 10.8% year-over-year to RMB 11,432.3 million ($1,634.8 million), with adjusted EBITDA up 10.8% to RMB 5,403.5 million ($772.7 million), and a margin of 47.3%.

• Achieved positive free cash flow and strengthened liquidity through significant asset monetization (ABS, C-REIT IPO) and capital raises, including $385 million from DayOne and $300 million from convertible preferred shares.

• Strong AI-driven demand recovery in China, with major customers investing in hyperscale computing infrastructure, driving robust bookings and move-ins.

• Total area committed and pre-committed rose 6.4% year-over-year to 670,106 sqm, and area utilized increased 11.4% to 504,843 sqm, with a utilization rate of 75.5% at year-end.

• Cash reserves increased to nearly RMB 20 billion ($2.8 billion), supporting accelerated expansion and new growth markets.

Financial highlights

• Pro forma FY25 revenue (including asset monetization effects) was RMB 11,681 million, up 13.2% year-over-year; pro forma adjusted EBITDA was RMB 5,571 million, up 14.2%.

• Operating cash flow for FY25 reached RMB 3,365.3 million, with positive cash flow pre-financing of RMB 1 billion after asset monetization.

• Net debt to last quarter annualized adjusted EBITDA decreased from 6.8x to 5.8x year-over-year, and further to 4.8x pro forma for 1Q26 capital raises.

• Adjusted gross profit margin for FY25 was 51.7%, and adjusted EBITDA margin was 47.3%.

• Full-year 2025 net income margin was 8.4%, reversing a net loss margin of 7.5% in 2024.

Outlook and guidance

• FY26 revenue guidance: RMB 12,400–12,900 million (8.5%–12.8% year-on-year growth); adjusted EBITDA guidance: RMB 5,750–6,000 million (6.4%–11% year-on-year growth).

• FY26 pro forma revenue guidance: RMB 12,860–13,360 million (+10.1% to +14.4% year-over-year); pro forma adjusted EBITDA: RMB 6,020–6,270 million (+8.1% to +12.5%).

• CapEx guidance for 2026 is RMB 9 billion, aligned with sales targets and new project starts.

• Targeting over 500 MW of gross new bookings in 2026, with 60%-70% expected from AI-related demand.

• Organic CapEx for 2025 was RMB 4,706.3 million; after asset monetization, capex was RMB 2,365.1 million.