VNET Group Reports Strong Q3 2025 Results with Robust Growth in Hyperscale IDC Business

Deep News11-20

VNET Group (VNET.US), a leading innovator in digital infrastructure and the first China-based IDC company listed in the U.S., announced its unaudited financial results for Q3 2025 on November 20, 2025 (Beijing Time).

**Key Financial Highlights:** - Total revenue rose 21.7% YoY to RMB 2.58 billion. - Adjusted EBITDA grew 27.5% YoY to RMB 758 million. - Adjusted cash gross profit increased 22.1% YoY to RMB 1.05 billion. - Adjusted cash gross margin edged up to 40.7% from 40.6% a year earlier. - Adjusted EBITDA margin expanded to 29.4% from 28%.

**Management Commentary:** Founder and Chairman Sheng Chen highlighted the company’s strategic execution: "Our hyperscale IDC business maintained strong momentum, driven by efficient delivery and rapid customer ramp-up. We secured three new hyperscale orders totaling 63MW, alongside urban IDC orders of ~2MW. The growth accelerated further in Q4 with an additional 32MW hyperscale order from an internet client. As an AIDC leader, we are uniquely positioned to capture AI-driven demand and will advance our dual-engine strategy under the Hyperscale 2.0 framework."

CFO Qiyu Wang emphasized profitability: "Hyperscale IDC revenue surged 82.7% YoY, lifting total revenue by 21.7%. Adjusted EBITDA margin improved 1.3pp YoY. Following our June guidance raise, we further upgraded full-year 2025 revenue and EBITDA outlooks, reflecting operational efficiency gains."

**Business Segment Performance:** - **Hyperscale IDC:** Operational capacity reached 783MW (+109MW QoQ), with utilization at 74.3%. - **Urban IDC:** 52,288 operational cabinets; monthly revenue per cabinet (MRR) rose for six consecutive quarters to RMB 8,948, with a 64.8% utilization rate.

**Updated 2025 Guidance:** - Revenue forecast raised to RMB 9.55–9.867 billion (+16–19% YoY). - Adjusted EBITDA projected at RMB 2.91–2.945 billion (+24–26% YoY).

**Strategic Wins & Industry Recognition:** - Secured 63MW hyperscale orders in Q3, including a 40MW deal with an internet firm. - Partnered with Guangxi government on AI infrastructure and received AAA credit rating from Far East Ratings. - Issued China’s first green holding-type data center ABS (RMB 860 million), pioneering sustainable finance in the sector.

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