VNET Reports Unaudited Third Quarter 2025 Financial Results

BEIJING, Nov. 20, 2025 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2025.

"We delivered another strong quarter, demonstrating our strategy's effectiveness in capturing opportunities," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. "Our wholesale IDC business sustained its robust growth trajectory in the third quarter, driven by our rapid delivery capabilities and customers' fast move-in pace. Order momentum remained solid, underscored by three new wholesale orders totaling 63MW and a combined capacity of approximately 2MW in retail orders from customers in various industries. This upward trend accelerated as we entered the fourth quarter, bolstered by a 32MW wholesale order from another customer in the internet sector. As a pioneer in AIDC development, we are uniquely positioned to capitalize on the accelerating AI-driven demand. We will continue to execute our effective dual-core strategy and advance our Hyperscale 2.0 framework, seizing opportunities to further unleash our growth potential in the AI era."

Qiyu Wang, Chief Financial Officer of VNET, commented, "This quarter's robust growth and enhanced profitability are yet another testament to our high-quality growth strategy. Our total net revenues rose 21.7% year over year to RMB2.58 billion, driven by significant wholesale revenue growth of 82.7% year over year. Adjusted EBITDA also increased by 27.5% year over year to RMB758.3 million, with an adjusted EBITDA margin of 29.4%, up 1.3 percentage points year over year. Building on the raised guidance we announced in June, we are pleased to further increase our full-year revenue and adjusted EBITDA guidance this quarter, thanks to fast move-ins among wholesale IDC customers and our ongoing operational efficiency gains. Looking ahead, we will continue to consolidate our core strengths and capture growth opportunities, delivering sustainable, long-term value for all stakeholders."

Third Quarter 2025 Financial Highlights

  • Total net revenues increased by 21.7% to RMB2.58 billion (US$362.7 million) from RMB2.12 billion in the same period of 2024.
    • Net revenues from the IDC business[1] increased by 30.4% to RMB1.95 billion (US$274.6 million) from RMB1.50 billion in the same period of 2024.
      • Net revenues from the wholesale IDC business ("wholesale revenues") increased by 82.7% to RMB955.5 million (US$134.2 million) from RMB523.0 million in the same period of 2024.
      • Net revenues from the retail IDC business ("retail revenues") increased slightly to RMB999.1 million (US$140.3 million) compared with RMB975.5 million in the same period of 2024.
    • Net revenues from the non-IDC business[2] increased slightly to RMB627.1 million (US$88.1 million) from RMB622.3 million in the same period of 2024.
  • Adjusted cash gross profit (non-GAAP) increased by 22.1% to RMB1.05 billion (US$147.6 million) from RMB860.7 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) was 40.7%, compared with 40.6% in the same period of 2024.
  • Adjusted EBITDA (non-GAAP) increased by 27.5% to RMB758.3 million (US$106.5 million) from RMB594.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) was 29.4%, compared with 28.0% in the same period of 2024.

Third Quarter 2025 Operational Highlights

Wholesale IDC Business

  • Capacity in service was 783MW as of September 30, 2025, compared with 674MW as of June 30, 2025, and 358MW as of September 30, 2024. Capacity under construction was 306MW as of September 30, 2025.
  • Capacity utilized by customers reached 582MW as of September 30, 2025, compared with 511MW as of June 30, 2025, and 279MW as of September 30, 2024. The sequential increase during the third quarter of 2025 was 70MW, which was mainly contributed by the N-OR Campus 01 data centers.
  • Utilization rate[3] of wholesale capacity was 74.3% as of September 30, 2025, compared with 75.9% as of June 30, 2025, and 78.0% as of September 30, 2024.
    • Utilization rate of mature wholesale capacity[4] was 94.7% as of September 30, 2025, compared with 94.6% as of June 30, 2025, and 95.6% as of September 30, 2024.
    • Utilization rate of ramp-up wholesale capacity[5] was 37.6% as of September 30, 2025, compared with 20.8% as of June 30, 2025, and 46.4% as of September 30, 2024.
  • Total capacity committed[6] was 741MW as of September 30, 2025, compared with 674MW as of June 30, 2025, and 352MW as of September 30, 2024.
  • Commitment rate[7] for capacity in service was 94.7% as of September 30, 2025, compared with 100% as of June 30, 2025, and 98.2% as of September 30, 2024.
  • Total capacity pre-committed[8] was 141MW and pre-commitment rate[9] for capacity under construction was 46% as of September 30, 2025.

Retail IDC Business[10]

  • Capacity in service was 52,288 cabinets as of September 30, 2025, compared with 52,131 cabinets as of June 30, 2025, and 52,250 cabinets as of September 30, 2024.
  • Capacity utilized by customers reached 33,907 cabinets as of September 30, 2025, compared with 33,292 cabinets as of June 30, 2025, and 32,950 cabinets as of September 30, 2024.
  • Utilization rate of retail capacity was 64.8% as of September 30, 2025, compared with 63.9% as of June 30, 2025, and 63.1% as of September 30, 2024.
    • Utilization rate of mature retail capacity[11] was 69.2% as of September 30, 2025, compared with 68.6% as of June 30, 2025, and 69.5% as of September 30, 2024.
    • Utilization rate of ramp-up retail capacity[12] was 30.6% as of September 30, 2025, compared with 26.4% as of June 30, 2025, and 16.8% as of September 30, 2024.
  • Monthly recurring revenue (MRR) per retail cabinet was RMB8,948 in the third quarter of 2025, compared with RMB8,915 in the second quarter of 2025 and RMB8,788 in the third quarter of 2024.

 

[1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types.

[2] Non-IDC business consists of cloud services and VPN services.

[3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service.

[4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%.

[5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%.

[6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect.

[7] Commitment rate is calculated by total capacity committed divided by total capacity in service.

[8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect.

[9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction.

[10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of September 30, 2024, June 30, 2025, and September 30, 2025, 4,150, 3,791 and 3,791 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity.

[11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months.

[12] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months.

 

Third Quarter 2025 Financial Results

TOTAL NET REVENUES: Total net revenues in the third quarter of 2025 were RMB2.58 billion (US$362.7 million), representing an increase of 21.7% from RMB2.12 billion in the same period of 2024. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.

 Net revenues from IDC business increased by 30.4% to RMB1.95 billion (US$274.6 million) from RMB1.50 billion in the same period of 2024. The year-over-year increase was mainly driven by an increase in wholesale revenues.

  • Wholesale revenues increased by 82.7% to RMB955.5 million (US$134.2 million) from RMB523.0 million in the same period of 2024.
  • Retail revenues increased by 2.4% to RMB999.1 million (US$140.3 million) from RMB975.5 million in the same period of 2024.

 Net revenues from non-IDC business increased slightly by 0.8% to RMB627.1 million (US$88.1 million) from RMB622.3 million in the same period of 2024.

GROSS PROFIT: Gross profit in the third quarter of 2025 was RMB539.0 million (US$75.7 million), representing an increase of 9.6% from RMB491.7 million in the same period of 2024. Gross margin in the third quarter of 2025 was 20.9%, compared with 23.2% in the same period of 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB1.05 billion (US$147.6 million) in the third quarter of 2025, compared with RMB860.7 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) in the third quarter of 2025 was 40.7%, compared with 40.6% in the same period of 2024.

OPERATING EXPENSES: Total operating expenses in the third quarter of 2025 were RMB333.3 million (US$46.8 million), compared with RMB300.3 million in the same period of 2024.

 Sales and marketing expenses were RMB71.3 million (US$10.0 million) in the third quarter of 2025, compared with RMB60.7 million in the same period of 2024.

 Research and development expenses were RMB71.3 million (US$10.0 million) in the third quarter of 2025, compared with RMB53.1 million in the same period of 2024.

 General and administrative expenses were RMB185.8 million (US$26.1 million) in the third quarter of 2025, compared with RMB132.5 million in the same period of 2024.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB331.4 million (US$46.5 million) in the third quarter of 2025, compared with RMB293.6 million in the same period of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the third quarter of 2025 were 12.8%, compared with 13.8% in the same period of 2024.

ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the third quarter of 2025 was RMB758.3 million (US$106.5 million), representing an increase of 27.5% from RMB594.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) in the third quarter of 2025 was 29.4%, compared with 28.0% in the same period of 2024.

NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the third quarter of 2025 was RMB307.0 million (US$43.1 million), compared with a net income attributable to VNET Group, Inc. of RMB317.6 million in the same period of 2024. The year-on-year change is mainly attributable to RMB337.2 million in fair value changes of financial instruments in the third quarter of 2025, and a RMB246.2 million gain on debt extinguishment in the same period of 2024.

LOSS PER SHARE: Basic and diluted loss per share in the third quarter of 2025 were both RMB0.19 (US$0.03), which represents the equivalent of RMB1.14 (US$0.16) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares.

LIQUIDITY: As of September 30, 2025, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB5.33 billion (US$748.3 million).

Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB3.00 billion (US$422.1 million). Total long-term debt was RMB16.48 billion (US$2.31 billion), comprised of long-term borrowings of RMB10.99 billion (US$1.54 billion) and convertible notes of RMB5.49 billion (US$771.2 million).

Net cash generated from operating activities in the third quarter of 2025 was RMB809.8 million (US$113.8 million), compared with RMB760.4 million in the same period of 2024. During the third quarter of 2025, the Company obtained new debt financing, refinancing facilities and other financings of RMB2.41 billion (US$338.4 million).

Business Outlook

The Company increased its full year 2025 guidance for total net revenues and adjusted EBITDA. Specifically, the Company now expects total net revenues for 2025 to be between RMB9,550 million to RMB9,867 million, representing year-over-year growth of 16% to 19%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,910 million to RMB2,945 million, representing year-over-year growth of 20% to 21%. If the RMB87.7 million disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, year-over-year growth would be 24% to 26%. Please note our updated guidance factors in the impact of the private REIT transactions issued early this November.

The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change.

Conference Call

The Company's management will host an earnings conference call at 7:00 AM U.S. Eastern Time on Thursday, November 20, 2025, or 8:00 PM Beijing Time on Thursday, November 20, 2025.

For participants who wish to join the call, please access the links provided below to complete the online registration process.

English line:
https://s1.c-conf.com/diamondpass/10051108-p4c7lo.html

Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10051109-lspout.html 

Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com.

A replay of the conference call will be accessible through November 27, 2025, by dialing the following numbers:

US/Canada:    

1 855 883 1031

Mainland China:     

400 1209 216

Hong Kong, China:  

800 930 639

International: 

+61 7 3107 6325

Reply PIN (English line):  

10051108

Reply PIN (Chinese line):  

10051109

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com

 


 

  VNET GROUP, INC.   

  CONSOLIDATED BALANCE SHEETS   

  (Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))   


 

  As of   


 

  As of    

 December 31, 2024  


 

 September 30, 2025  


 

  RMB   


 

  RMB   


 

  US$   

  Assets   


 
 
 
 
 

  Current assets:   


 
 
 
 
 

 Cash and cash equivalents 

1,492,436


 

3,503,014


 

492,065

 Restricted cash 

545,795


 

536,746


 

75,396

 Short-term Investments 

-


 

1,245,995


 

175,024

 Accounts and notes receivable, net 

1,655,984


 

2,197,982


 

308,749

 Amounts due from related parties 

336,360


 

376,791


 

52,928

 Prepaid expenses and other current assets 

2,789,573


 

3,102,152


 

435,758

  Total current assets   

6,820,148


 

10,962,680


 

1,539,920


 
 
 
 
 
 

  Non-current assets:   


 
 
 
 
 

 Restricted cash 

42,842


 

41,475


 

5,826

 Derivative financial instrument 

6,768


 

16,418


 

2,306

 Long-term investments, net 

794,688


 

791,352


 

111,161

 Property and equipment, net 

17,216,635


 

22,263,071


 

3,127,275

 Intangible assets,net 

1,403,787


 

1,934,143


 

271,687

 Land use rights, net 

766,213


 

910,107


 

127,842

 Operating lease right-of-use assets, net 

4,618,212


 

5,014,020


 

704,315

 Deferred tax assets, net 

306,623


 

382,588


 

53,742

 Other non-current assets 

381,126


 

1,038,957


 

145,941

  Total non-current assets   

25,536,894


 

32,392,131


 

4,550,095

  Total assets   

32,357,042


 

43,354,811


 

6,090,015


 
 
 
 
 
 

  Liabilities and Shareholders' Equity   


 
 
 
 
 

  Current liabilities:   


 
 
 
 
 

 Short-term bank borrowings 

589,000


 

1,039,997


 

146,088

 Current portion of long-term borrowings 

1,420,190


 

1,964,645


 

275,972

 Current portion of finance lease liabilities  

208,299


 

326,384


 

45,847

 Current portion of operating lease liabilities  

899,818


 

970,109


 

136,270

 Accounts and notes payable 

709,260


 

750,806


 

105,465

 Amounts due to related parties 

355,679


 

614,469


 

86,314

 Income taxes payable 

69,569


 

45,103


 

6,336

 Advances from customers 

1,378,806


 

1,678,642


 

235,797

 Deferred revenue 

87,830


 

91,324


 

12,828

 Current portion of deferred government 

grants 

6,727


 

55,246


 

7,760

 Accrued expenses and other payables 

3,618,237


 

4,635,493


 

651,144

  Total current liabilities   

9,343,415


 

12,172,218


 

1,709,821


 
 
 
 
 
 

  Non-current liabilities:   


 
 
 
 
 

 Long-term borrowings 

7,767,390


 

10,986,557


 

1,543,273

 Convertible notes 

1,897,738


 

5,489,924


 

771,165

 Non-current portion of finance lease 

liabilities  

1,532,309


 

1,761,178


 

247,391

 Non-current portion of operating lease 

liabilities 

3,779,293


 

4,122,983


 

579,152

 Unrecognized tax benefits 

107,850


 

107,850


 

15,150

 Deferred tax liabilities 

734,404


 

903,643


 

126,934

 Deferred government grants 

273,824


 

220,640


 

30,993

  Total non-current liabilities   

16,092,808


 

23,592,775


 

3,314,058


 
 
 
 
 
 

  Mezzanine equity:   


 
 
 
 
 

 Redeemable non-controlling interests 

-


 

1,248,101


 

175,320

  Total mezzanine equity   

-


 

1,248,101


 

175,320


 
 
 
 
 
 

  Shareholders' equity   


 
 
 
 
 

 Ordinary shares  

112


 

112


 

16

 Treasury stock 

(161,892)


 

(179,087)


 

(25,156)

 Additional paid-in capital 

17,298,692


 

17,240,286


 

2,421,729

 Statutory reserves 

107,380


 

122,443


 

17,199

 Accumulated other comprehensive loss 

(18,504)


 

(6,885)


 

(967)

 Accumulated deficit 

(10,859,888)


 

(11,431,556)


 

(1,605,781)

  Total VNET Group, Inc. shareholders'   

 equity   

6,365,900


 

5,745,313


 

807,040

 Noncontrolling interest 

554,919


 

596,404


 

83,776

  Total shareholders' equity   

6,920,819


 

6,341,717


 

890,816

    Total liabilities, mezzanine equity      and shareholders'  equity     

32,357,042


 

43,354,811


 

6,090,015

 

 


 

  VNET GROUP, INC.   

  CONSOLIDATED STATEMENTS OF OPERATIONS   

  (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data)   


 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

  Three months ended    


 

  Nine months ended    


 

 September 30, 2024  


 

 June 30, 2025  


 

 September 30, 2025  


 

 September 30, 2024  


 

 September 30, 2025  


 

  RMB   


 

  RMB   


 

  RMB   


 

  US$   


 

  RMB   


 

  RMB   


 

  US$   

 Net revenues 

2,120,794


 

2,434,205


 

2,581,747


 

362,656


 

6,012,680


 

7,262,172


 

1,020,111

 Cost of revenues 

(1,629,111)


 

(1,886,470)


 

(2,042,718)


 

(286,939)


 

(4,685,381)


 

(5,610,067)


 

(788,041)

  Gross profit   

491,683


 

547,735


 

539,029


 

75,717


 

1,327,299


 

1,652,105


 

232,070


 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Operating income (expenses)   


 
 
 
 
 
 
 
 
 
 
 
 
 

 Operating income (loss) 

11,767


 

(1,143)


 

12,767


 

1,793


 

15,716


 

13,085


 

1,838

 Sales and marketing expenses 

(60,700)


 

(69,963)


 

(71,328)


 

(10,019)


 

(190,668)


 

(205,637)


 

(28,886)

 Research and development expenses 

(53,127)


 

(67,570)


 

(71,295)


 

(10,015)


 

(190,514)


 

(182,468)


 

(25,631)

 General and administrative expenses 

(132,482)


 

(212,473)


 

(185,765)


 

(26,094)


 

(466,076)


 

(578,008)


 

(81,192)

 Allowance for doubtful debt 

(65,731)


 

(23,568)


 

(17,664)


 

(2,481)


 

(63,309)


 

(71,784)


 

(10,083)

  Total operating expenses   

(300,273)


 

(374,717)


 

(333,285)


 

(46,816)


 

(894,851)


 

(1,024,812)


 

(143,954)


 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Operating profit   

191,410


 

173,018


 

205,744


 

28,901


 

432,448


 

627,293


 

88,116

 Interest income 

4,218


 

16,869


 

8,724


 

1,225


 

21,796


 

32,344


 

4,543

 Interest expense 

(93,996)


 

(157,508)


 

(151,017)


 

(21,213)


 

(323,850)


 

(409,178)


 

(57,477)

 Other income 

15,584


 

5,234


 

7,355


 

1,033


 

50,873


 

14,400


 

2,023

 Other expenses 

(8,783)


 

(5,499)


 

(5,525)


 

(776)


 

(17,105)


 

(13,462)


 

(1,891)

 Changes in the fair value of financial instruments 

(7,107)


 

70,404


 

(337,216)


 

(47,368)


 

(2,537)


 

(601,716)


 

(84,523)

 Gain on debt extinguishment 

246,175


 

-


 

-


 

-


 

246,175


 

-


 

-

 Foreign exchange gain (loss) 

14,833


 

9,258


 

16,174


 

2,272


 

(17,915)


 

34,959


 

4,911

  Income (loss) before income taxes and gain from equity  

 method investments   

362,334


 

111,776


 

(255,761)


 

(35,926)


 

389,885


 

(315,360)


 

(44,298)

 Income tax expenses 

(31,149)


 

(95,048)


 

(21,467)


 

(3,015)


 

(151,682)


 

(168,577)


 

(23,680)

 Gain from equity method investments 

965


 

41


 

1,919


 

270


 

6,770


 

5,174


 

727

  Net income (loss)   

332,150


 

16,769


 

(275,309)


 

(38,671)


 

244,973


 

(478,763)


 

(67,251)

 Net income attributable to noncontrolling interest 

(14,524)


 

(13,656)


 

(16,471)


 

(2,314)


 

(50,677)


 

(47,462)


 

(6,667)

 Net income attributable to redeemable non-controlling 

interests 

-


 

(15,027)


 

(15,263)


 

(2,144)


 

-


 

(30,290)


 

(4,255)

  Net income (loss) attributable to the VNET   

 Group, Inc.   

317,626


 

(11,914)


 

(307,043)


 

(43,129)


 

194,296


 

(556,515)


 

(78,173)

 Accretion to redemption amount of redeemable non-

controlling interests 

-


 

(67)


 

(23)


 

(3)


 

-


 

(90)


 

(13)

  Net profit (loss) attributable to the Company's  

 ordinary shareholders   

317,626


 

(11,981)


 

(307,066)


 

(43,132)


 

194,296


 

(556,605)


 

(78,186)


 
 
 
 
 
 
 
 
 
 
 
 
 
 

 Earnings (loss) per share 


 
 
 
 
 
 
 
 
 
 
 
 
 

 Basic 

0.20


 

(0.01)


 

(0.19)


 

(0.03)


 

0.12


 

(0.35)


 

(0.05)

 Diluted 

0.05


 

(0.01)


 

(0.19)


 

(0.03)


 

(0.02)


 

(0.35)


 

(0.05)

 Shares used in earnings (loss) per share computation 


 
 
 
 
 
 
 
 
 
 
 
 
 

 Basic* 

1,602,860,426


 

1,610,484,726


 

1,613,726,084


 

1,613,726,084


 

1,588,659,647


 

1,611,021,595


 

1,611,021,595

 Diluted* 

1,740,565,086


 

1,610,484,726


 

1,613,726,084


 

1,613,726,084


 

1,725,023,283


 

1,611,021,595


 

1,611,021,595


 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS)


 
 
 
 
 
 
 
 
 
 
 
 

Basic

1.20


 

(0.06)


 

(1.14)


 

(0.16)


 

0.72


 

(2.10)


 

(0.30)

Diluted

0.30


 

(0.06)


 

(1.14)


 

(0.16)


 

(0.12)


 

(2.10)


 

(0.30)


 
 
 
 
 
 
 
 
 
 
 
 
 
 

 * Shares used in earnings (loss) per share/ADS computation were computed under weighted average method. 


 
 
 
 
 
 
 
 

 

 


 

  VNET GROUP, INC.   

  RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS    

  (Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))   


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

  Three months ended    


 

  Nine months ended   


 

 

 September 30, 2024  


 

 June 30, 2025  


 

 September 30, 2025  


 

 September 30, 2024  


 

 September 30, 2025  


 
 

 

  RMB   


 

  RMB   


 

  RMB   


 

  US$   


 

  RMB   


 

  RMB   


 

  US$   


 
 
 

 Gross profit 

491,683


 

547,735


 

539,029


 

75,717


 

1,327,299


 

1,652,105


 

232,070


 
 
 

 Plus: depreciation and amortization 

368,764


 

513,891


 

511,334


 

71,827


 

1,085,984


 

1,427,624


 

200,537


 
 
 

 Plus: share-based compensation 

expenses 

234


 

196


 

384


 

54


 

234


 

689


 

97


 
 
 

  Adjusted cash gross profit   

860,681


 

1,061,822


 

1,050,747


 

147,598


 

2,413,517


 

3,080,418


 

432,704


 
 
 

    Adjusted cash gross margin     

 40.6 %  


 

 43.6 %  


 

 40.7 %  


 

 40.7 %  


 

 40.1 %  


 

 42.4 %  


 

 42.4 %  


 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 Operating expenses 

(300,273)


 

(374,717)


 

(333,285)


 

(46,816)


 

(894,851)


 

(1,024,812)


 

(143,954)


 
 
 

 Plus: share-based compensation 

expenses 

6,709


 

9,163


 

1,899


 

267


 

105,428


 

17,391


 

2,443


 
 
 

  Adjusted operating expenses   

(293,564)


 

(365,554)


 

(331,386)


 

(46,549)


 

(789,423)


 

(1,007,421)


 

(141,511)


 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 Operating profit 

191,410


 

173,018


 

205,744


 

28,901


 

432,448


 

627,293


 

88,116


 
 
 

 Plus: depreciation and amortization 

396,428


 

550,087


 

550,248


 

77,293


 

1,170,313


 

1,527,775


 

214,605


 
 
 

 Plus: share-based compensation 

expenses 

6,943


 

9,359


 

2,283


 

321


 

105,662


 

18,080


 

2,540


 
 
 

  Adjusted EBITDA   

594,781


 

732,464


 

758,275


 

106,515


 

1,708,423


 

2,173,148


 

305,261


 
 
 

    Adjusted EBITDA margin     

 28.0 %  


 

 30.1 %  


 

 29.4 %  


 

 29.4 %  


 

 28.4 %  


 

 29.9 %  


 

 29.9 %  


 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

  VNET GROUP, INC.   

  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS   

  (Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))   


 
 
 
 
 
 
 
 

 

  Three months ended    


 

 September 30, 2024  


 

 June 30, 2025  


 

 September 30, 2025  


 

  RMB   


 

  RMB   


 

  RMB   


 

  US$   

  CASH FLOWS FROM OPERATING ACTIVITIES   


 
 
 
 
 
 
 

  Net cash generated from operating activities   

760,366


 

366,596


 

809,817


 

113,753


 
 
 
 
 
 
 
 

  CASH FLOWS FROM INVESTING ACTIVITIES   


 
 
 
 
 
 
 

 Purchases of property and equipment 

(1,426,892)


 

(1,870,296)


 

(2,184,378)


 

(306,838)

 Purchases of intangible assets 

(33,806)


 

(24,388)


 

(37,074)


 

(5,208)

 Proceeds from (payments for) investments 

92,426


 

(1,216,168)


 

(5,000)


 

(702)

 Proceeds from (payments for) other investing activities 

31,762


 

(171,213)


 

(62,689)


 

(8,806)

  Net cash used in investing activities   

(1,336,510)


 

(3,282,065)


 

(2,289,141)


 

(321,554)


 
 
 
 
 
 
 
 

  CASH FLOWS FROM FINANCING ACTIVITIES   


 
 
 
 
 
 
 

 Proceeds from bank borrowings 

745,534


 

1,004,537


 

1,867,856


 

262,376

 Repayments of bank borrowings 

(129,893)


 

(381,728)


 

(231,432)


 

(32,509)

 Payments for finance leases  

(27,669)


 

(44,471)


 

(44,824)


 

(6,296)

 Contribution from noncontrolling interest in a subsidiary 

-


 

(4,555)


 

250,657


 

35,210

 (Payments for) proceeds from other financing activities 

(59,645)


 

8,875


 

299,027


 

42,004

  Net cash generated from financing activities   

528,327


 

582,658


 

2,141,285


 

300,785


 
 
 
 
 
 
 
 

  Effect of foreign exchange rate changes on 
cash, cash equivalents and restricted cash    

(6,049)


 

(14,764)


 

(808)


 

(113)

  Net (decrease) increase in cash, cash 
equivalents and restricted cash   

(53,866)


 

(2,347,575)


 

661,152


 

92,871

  Cash, cash equivalents and restricted cash at 
beginning of period   

2,135,833


 

5,767,658


 

3,420,083


 

480,416

  Cash, cash equivalents and restricted cash at 
end of period   

2,081,967


 

3,420,083


 

4,081,235


 

573,287

 

 

Cision View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-third-quarter-2025-financial-results-302621456.html

SOURCE VNET Group, Inc.