VNET Group (VNET) Q4 2025 earnings summary

Executive summary

• Achieved record growth in 2025, surpassing guidance for revenues and adjusted EBITDA, driven by robust wholesale IDC demand, rapid capacity scaling, and the Hyperscale 2.0 framework, capturing surging AI demand.

• Wholesale IDC capacity in service reached 889MW (+404MW YoY), utilization rate at 70.1%, with mature capacity utilization at 93.1%.

• Secured 135MW of new wholesale orders in Q4 2025, reinforcing strong order momentum and positioning for AI-driven growth.

• Retail IDC business benefited from AI-driven demand, maintaining stable utilization at 64.0% and MRR per cabinet at RMB9,420.

• Multiple retail orders secured across industries; non-IDC business (cloud and VPN) contributed to revenue mix.

Financial highlights

• Q4 2025 net revenues rose 19.6% YoY to RMB2.69B; full-year 2025 net revenues up 20.5% YoY to RMB9.95B, both exceeding guidance.

• Q4 adjusted EBITDA increased 11.6% YoY to RMB805.1M; full-year adjusted EBITDA up 22.6% YoY to RMB2.98B.

• 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 RMB345MM, reversing a prior loss; full-year net loss attributable was RMB251.8M, mainly due to tax and fair value losses.

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

Outlook and guidance

• 2026 revenue expected at RMB11.5B–11.8B (15.6%–18.6% YoY growth); adjusted EBITDA guidance: RMB3.55B–3.75B (19.2%–25.9% YoY growth).

• CapEx for 2026 projected at RMB10B–12B, mainly for 450–500MW planned delivery.

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