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, with wholesale capacity in service reaching 889 MW and utilization rate at 70.1%.

• Total net revenues for FY2025 were RMB9.95 billion (+20.5% YoY), exceeding guidance, with adjusted EBITDA up 22.6% to RMB2.98 billion.

• Secured 135 MW of new wholesale orders in Q4 2025 and multiple retail orders across various industries, reinforcing strong order momentum.

• Retail IDC business maintained stable utilization at 64.0% and increased MRR per cabinet to RMB9,420, benefiting from AI-driven demand.

• Advanced capital recycling and asset monetization, including green ABS issuance and private REIT listings, with significant ESG recognitions.

Financial highlights

• Q4 2025 net revenues rose 19.6% YoY to RMB2.69 billion; wholesale revenues up 47.1% to RMB978.1 million.

• Adjusted EBITDA for Q4 increased 11.6% YoY to RMB805.1 million; full-year adjusted EBITDA up 22.6% to RMB2.98 billion.

• 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 RMB345 million, reversing a prior loss; full-year net loss attributable was RMB251.8 million, mainly due to tax and fair value losses.

• Cash and equivalents at year-end 2025 totaled RMB6.58 billion; net operating cash inflow for 2025 was RMB1.92 billion.

Outlook and guidance

• 2026 revenue expected at RMB11.5–11.8 billion, up 15.6%–18.6% YoY; adjusted EBITDA guidance is RMB3.55–3.75 billion, up 19.2%–25.9% YoY.

• CapEx for 2026 projected at RMB10–12 billion, mainly for 450–500 MW planned capacity delivery.

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