GDS Holdings Ltd Q2 2025 Earnings Call: Revenue and EBITDA Growth Amid Strategic Asset Monetization and C-REIT IPO Success

GDS Holdings Ltd reported a 12.4% YoY increase in revenue and an 11.2% increase in adjusted EBITDA for Q2 2025. The company successfully raised $676 million through convertible bonds and equity and completed its C-REIT IPO. Utilization rate climbed to 77.5% and DayOne added 246 megawatts of new commitments. However, AI demand was quiet due to chip supply uncertainty in China and MSR per square meter decreased by 1.7% compared to Q2 2024.

GDS Holdings Ltd reported a robust second quarter (Q2) 2025, with significant improvements in revenue and adjusted EBITDA. The company's revenue increased by 12.4% year-on-year (YoY) to $2.9 billion, while adjusted EBITDA grew by 11.2% to $632.64 million [1].

The company successfully raised $676 million through the issue of convertible bonds and equity in the international capital market, strengthening its financial position. Additionally, GDS Holdings completed its C-REIT IPO, which further bolstered its capital structure. The company's utilization rate climbed to 77.5%, indicating strong demand for its services [1].

Despite the positive financial performance, AI demand remained relatively quiet due to chip supply uncertainty in China. This uncertainty led to a decrease in the company's margin per square meter (MSR) by 1.7% compared to Q2 2024. However, GDS Holdings is well-positioned to capitalize on future AI-driven demand, as it holds 900 megawatts of power land for future development in and around Tier-one markets [1].

DayOne, a subsidiary of GDS Holdings, added 246 megawatts of new commitments in Q2 2025, contributing to the company's growth trajectory. The company's stock price rose by 4.08% in premarket trading following the earnings announcement, reflecting investor optimism about its future prospects [1].

GDS Holdings is maintaining its full-year 2025 revenue and adjusted EBITDA guidance, targeting high single-digit EBITDA growth year-on-year. The company is optimistic about future AI demand, particularly for inference, and is prepared for potential infrastructure developments [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-gds-holdings-beats-q2-2025-forecasts-stock-rises-93CH-4202408