NASDAQ$VNET

VNET Group Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

VNET reported Q1 2025 results with strong revenue growth led by wholesale IDC, despite a wider net loss year-over-year.

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.

Headline financials

Total Revenue

$310M

No prior period
EPS (adj)

-$0.12

No prior period
Adjusted EBITDA

$94M

No prior period
Adjusted EBITDA Margin

30.4%

No prior period
Wholesale IDC Growth

86.5%

No prior period
Retail IDC Growth

4.8%

No prior period
Net Income

-$32.7M

No prior period
Operating Income

$201K

No prior period
Gross Profit

$77.9M

No prior period

Revenue & EPS history

VNET · Revenue · Quarterly

$310M

Q1 2025
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

VNET · $2.69B total across 3 segments · Q1 2026

  • Wholesale IDC
    $1.06B
  • Retail IDC
    $1.02B
  • Non-IDC
    $607M

Forward guidance

VNET reaffirmed full-year 2025 guidance, projecting revenue growth of 10%–13% and adjusted EBITDA growth of 11%–14%.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Foreign exchange risks remain material.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-2.1%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.8%

Avg return

30 days after

35%

17 / 49 earnings

Positive

+24.2%

Q2 2021

Best reaction

-22.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-9.5%-16.1%-14.3%
Q3 2025-1.0%+7.5%+5.2%
Q2 2025-8.0%-2.1%+20.7%
Q1 2025-10.8%-8.6%+15.6%
Q4 2024-7.6%-4.5%-53.5%
Q3 2024+17.0%-0.3%-3.8%
Q2 2024+13.5%+33.7%+73.1%
Q4 2023-4.9%+1.2%-3.1%
Q3 2023-22.8%-18.6%-14.8%
Q2 2023+6.6%+14.6%+6.0%
Q1 2023-8.0%-4.3%+4.3%
Q4 2022-2.9%+3.6%+0.3%
Q3 2022-3.6%-6.9%+8.4%
Q2 2022+8.1%+0.4%+7.5%
Q1 2022-14.1%+0.4%+14.3%
Q4 2021-19.9%-4.0%-18.0%
Q3 2021-20.7%-26.7%-45.3%
Q2 2021+24.2%+9.1%+10.7%
Q1 2021+5.4%+6.6%+8.5%
Q4 2020-14.9%-3.7%-13.4%
Q3 2020+20.8%+20.9%+30.5%
Q2 2020-4.2%-10.3%-12.2%
Q1 2020+0.9%-9.5%-11.8%
Q4 2019+0.1%-3.9%-13.2%
Q3 2019-6.4%-6.9%-10.0%
Q2 2019+13.9%+11.9%+23.5%
Q1 2019+12.8%+10.4%-16.2%
Q4 2018-1.2%+3.2%-6.6%
Q3 2018-8.4%-8.3%-18.8%
Q2 2018+0.2%+16.5%-1.0%
Q1 2018-1.8%+13.2%+26.7%
Q4 2017-0.7%-5.2%-20.2%
Q3 2017-3.2%-11.0%+26.0%
Q2 2017-4.0%+1.5%+33.8%
Q1 2017-4.8%-3.9%-0.4%
Q4 2016-19.9%-18.9%-23.0%
Q3 2016+1.4%-1.8%-8.0%
Q2 2016-15.7%-17.5%-23.6%
Q1 2016+5.3%+11.9%-14.6%
Q4 2015+1.6%
Q3 2015-0.7%
Q2 2015+4.0%
Q1 2015-9.6%
Q4 2014-0.3%
Q2 2014
Q4 2013-3.9%
Q4 2012+0.9%
Q4 2009-1.7%
Q4 2010-1.7%
Q4 2011-1.7%

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