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 busines s 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$") except for number of shares and per share data)
Three months ended Nine months ended
September 30, September 30,
2024 June 30, 2025 September 30, 2025 2024 September 30, 2025
RMB RMB RMB US$ 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$"))
Three months ended Nine months ended
September June 30, September
30, 2024 2025 September 30, 2025 30, 2024 September 30, 2025
RMB RMB RMB US$ 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
=============== ============= =========== =========
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-third-quarter-2025-financial-results-302621456.html
SOURCE VNET Group, Inc.
(END) Dow Jones Newswires
November 20, 2025 03:30 ET (08:30 GMT)