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VNET Group Financial Performance Overview

VNET Group, Inc., a prominent carrier- and cloud-neutral internet data center service provider in China, reported its unaudited financial results for the third quarter of 2025, showcasing a remarkable 21.7% rise in total net revenues.

Performance Highlights

Josh Sheng Chen, VNET’s Founder and interim Chief Executive Officer, emphasized the effectiveness of the company's growth strategy in capturing market opportunities. Throughout the quarter, VNET saw sustained growth within its wholesale idle data center (IDC) segment, attributing this success to rapid delivery capabilities and the fast-paced onboarding of clients. Notably, the company secured three new wholesale orders totaling 63MW and achieved an additional 2MW capacity in retail orders from numerous sectors. This positive trend continued into the fourth quarter with an impressive 32MW wholesale order from a customer in the internet sector.

Financial Results

For the third quarter, VNET's net revenues soared to RMB2.58 billion (approximately US$362.7 million), a significant increase from RMB2.12 billion in the same timeframe last year. The IDC business demonstrated a robust year-over-year growth of 30.4%, reaching RMB1.95 billion. Notably, wholesale revenues witnessed an explosive rise of 82.7%, amounting to RMB955.5 million.

The retail IDC sector also showed slight growth, reporting revenues of RMB999.1 million, up from RMB975.5 million in the previous year. Additionally, the non-IDC segment performed moderately well, with revenues inching up to RMB627.1 million.

In terms of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), VNET recorded an increase of 27.5% to RMB758.3 million, reflecting a promising adjusted EBITDA margin of 29.4%, up from 28.0% in the prior year.

Operational Metrics

As of September 30, 2025, VNET's wholesale IDC capacity in service expanded to 783MW, significantly up from 674MW in the previous quarter. The capacity utilized by customers also increased to 582MW, marking a 70MW sequential jump largely driven by the N-OR Campus 01 data centers.

The company showcased improvements in customer commitment, with a commitment rate for capacity now at 94.7%. The total capacity committed reached 741MW as of the end of the third quarter.

Looking Ahead

VNET’s Chief Financial Officer, Qiyu Wang, expressed optimism regarding the company's growth trajectory, reaffirming its commitment to operational efficiencies and core strengths. VNET plans to advance its dual-core strategy alongside its Hyperscale 2.0 framework to exploit AI-driven demand fully.

Furthermore, VNET raised its revenue guidance for the full year of 2025 to a range of RMB9.55 to RMB9.87 billion, indicating an upward trend of 16% to 19% compared to last year. Adjusted EBITDA guidance is also heightened, projecting a range of RMB2.91 to RMB2.94 billion, demonstrating a potential growth of 20% to 21% year-over-year.

This solid performance reaffirms VNET Group’s position as a leading provider in the cloud and data center space while adapting to changing market dynamics and client needs.

In conclusion, VNET’s strategic initiatives and robust financial health signal a bright outlook for the company as it navigates through the rapidly evolving technology landscape in the AI era.