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Sep 30, 2025
VNET Q3 2025 Earnings Report
VNET reported a solid quarter driven by strong wholesale IDC growth, despite posting a net loss.
Key Takeaways
VNET saw significant revenue growth in Q3 2025, particularly in its wholesale IDC business. However, a large non-operating loss related to financial instruments resulted in a net loss for the quarter.
Revenue rose to $362,656,000, driven by 82.7% growth in wholesale IDC.
Adjusted EBITDA reached $106,515,000 with a margin of 29.4%.
The company posted a net loss of $43,129,000 due to changes in fair value of financial instruments.
Retail IDC and non-IDC revenues remained relatively stable compared to last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
VNET raised its full-year revenue and adjusted EBITDA guidance, reflecting continued momentum in wholesale IDC and improved operational efficiency.
Positive Outlook
- Raised full-year revenue guidance to between RMB 9.55B and RMB 9.87B.
- Raised full-year adjusted EBITDA guidance to between RMB 2.91B and RMB 2.945B.
- Continued strength in wholesale IDC customer move-ins.
- Improved operational efficiency and margin expansion.
- Positioned to capitalize on AI-driven demand with Hyperscale 2.0.
Challenges Ahead
- Posted a significant net loss in Q3 due to non-operating fair value changes.
- Gross margin declined to 20.9% from 23.2% YoY.
- Retail IDC and non-IDC growth were modest.
- High debt levels with over $2.7B in total debt.
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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