Loading...
•
Mar 31, 2025
GDS Q1 2025 Earnings Report
GDS reported strong Q1 2025 results with a return to profitability driven by a one-time gain and solid revenue growth.
Key Takeaways
GDS delivered a strong turnaround in Q1 2025, posting a net income of $105.3M driven by a large gain on deconsolidation of subsidiaries. Revenue grew 12% year-over-year, while adjusted EBITDA margin improved to 48.6%.
Revenue reached $375.3M, up 12% YoY due to continued data center ramp-ups.
Net income turned positive at $105.3M, largely from a $145.7M gain on deconsolidation.
Adjusted EBITDA grew 16.1% YoY to $182.4M with a 48.6% margin.
Area utilized rose 14.6% YoY to 462,423 sqm with a utilization rate of 75.7%.
Revenue by Geographic Location
Forward Guidance
GDS maintained its full-year 2025 guidance for revenue, Adjusted EBITDA, and capex despite ongoing macro and financing conditions.
Positive Outlook
- Revenue guidance reaffirmed at RMB11,290M–11,590M
- Adjusted EBITDA guidance maintained at RMB5,190M–5,390M
- Capex expected around RMB4,300M
- First installment of cash proceeds from ABS transaction received in April
- Strong demand for AI-driven hyperscale deployments in Tier 1 markets
Challenges Ahead
- Adjusted net income remains negative despite positive GAAP net income
- Heavy reliance on one-time gain for profitability
- Foreign exchange gains declined significantly YoY
- Tax expenses rose due to intra-group transactions
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...