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Mar 31, 2025
VNET Q1 2025 Earnings Report
VNET reported Q1 2025 results with strong revenue growth led by wholesale IDC, despite a wider net loss year-over-year.
Key Takeaways
VNET delivered solid revenue growth in Q1 2025 driven by wholesale IDC momentum, improving margins and utilization rates, although net losses increased due to changes in the fair value of financial instruments.
Revenue grew to $309,537,000, driven by an 86.5% increase in wholesale IDC revenue.
Adjusted EBITDA rose 26.4% year-over-year to $94,038,000.
Net loss widened to $32,736,000 compared to $27,979,000 last year.
Wholesale IDC utilization and capacity commitments hit record highs in the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
VNET reaffirmed full-year 2025 guidance, projecting revenue growth of 10%–13% and adjusted EBITDA growth of 11%–14%.
Positive Outlook
- Projected 2025 revenue between RMB9.1B and RMB9.3B.
- Adjusted EBITDA forecast between RMB2.7B and RMB2.76B.
- Year-over-year EBITDA growth projected up to 18% when adjusted for one-time gains.
- Strong wholesale IDC pre-commitments (307MW).
- Stable margin improvements expected to continue.
Challenges Ahead
- Q1 net loss widened due to financial instrument fair value changes.
- Cash flow from operations declined year-over-year.
- Continued debt pressure from refinancing and new convertible notes.
- Non-IDC segment saw slight revenue decline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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