VNET Reports Unaudited Fourth Quarter and Full Year 2025 Financial Results

Core Insights - VNET Group, Inc. reported strong financial results for the fourth quarter and full year of 2025, achieving a record delivery of 404MW and exceeding revenue and adjusted EBITDA guidance [2][4]. Financial Highlights - Total net revenues for Q4 2025 increased by 19.6% year-over-year to RMB2.69 billion (US$384.2 million) from RMB2.25 billion in Q4 2024 [3][9]. - For the full year 2025, total net revenues rose by 20.5% year-over-year to RMB9.95 billion (US$1.42 billion) from RMB8.26 billion in 2024 [4][22]. - Adjusted EBITDA for Q4 2025 increased by 11.6% year-over-year to RMB805.1 million (US$115.1 million) [17][29]. - Full year adjusted EBITDA grew by 22.6% to RMB2.98 billion (US$425.9 million) from RMB2.43 billion in 2024 [29][30]. IDC Business Performance - Net revenues from the IDC business in Q4 2025 increased by 23.7% to RMB2.02 billion (US$288.3 million) from RMB1.63 billion in Q4 2024 [10][23]. - For the full year 2025, IDC business revenues rose by 28.5% to RMB7.43 billion (US$1.06 billion) from RMB5.78 billion in 2024 [4][23]. Wholesale and Retail IDC Business - Wholesale revenues in Q4 2025 surged by 47.1% to RMB978.1 million (US$139.9 million) from RMB665.2 million in Q4 2024 [15][10]. - Retail revenues increased by 7.6% to RMB1.04 billion (US$148.5 million) in Q4 2025 compared to RMB964.8 million in Q4 2024 [15][6]. Operational Metrics - The utilization rate of wholesale capacity was 70.1% as of December 31, 2025, down from 74.3% as of September 30, 2025 [5][6]. - Capacity utilized by customers reached 623MW as of December 31, 2025, compared to 582MW as of September 30, 2025 [6][7]. Profitability Metrics - Gross profit for Q4 2025 was RMB540.4 million (US$77.3 million), a 7.0% increase from RMB504.9 million in Q4 2024 [11][24]. - The gross margin for Q4 2025 was 20.1%, down from 22.5% in Q4 2024 [11][24]. Future Outlook - For the full year 2026, the company expects total net revenues to be in the range of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6% [33][34]. - Adjusted EBITDA for 2026 is projected to be between RMB3.55 billion and RMB3.75 billion, indicating growth of 19.2% to 25.9% [33].