GDS Holdings Q2 2025 Earnings: Strong Revenue and EBITDA Growth, Successful Capital Raising, and Strategic Milestones

GDS Holdings reported 12.4% revenue and 11.2% adjusted EBITDA growth YoY in Q2 2025. The company successfully raised $676 million through convertible bonds and equity, and achieved a major milestone with the C-REIT IPO. However, the call highlighted challenges such as uncertainties in AI demand due to chip supply issues and the potential impact of asset monetization on future growth.

GDS Holdings Ltd. (GDS) has reported robust financial performance for the second quarter of 2025, highlighting significant growth in revenue and adjusted EBITDA. The company's revenue grew by 12.4% year-on-year (YoY) to USD 1.2 billion, while adjusted EBITDA increased by 11.2% YoY to USD 580 million [1].

GDS successfully raised USD 676 million through convertible bonds and equity, bolstering its balance sheet. The company's utilization rate reached 77.5% in Q2 2025, with expectations to deliver 35% of its total current backlog in the second half of 2025. DayOne, a GDS equity investment, added 246 megawatts of new commitments, expanding its market presence in Finland [1].

However, the company faced challenges due to quiet AI demand in China, impacting new bookings. The adjusted EBITDA margin decreased slightly to 47.3% in Q2 2025 from 47.8% in Q2 2024. The net debt to LQA adjusted EBITDA ratio decreased from 6.6 times to 6.1 times by the end of Q2 2025 [1].

GDS achieved a major milestone with the successful initial public offering (IPO) of its C-REIT on the Shanghai Stock Exchange, raising net proceeds of approximately RMB2,073 million, which provided enhanced financing flexibility [2].

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].

GDS Holdings will hold a conference call on August 20, 2025, at 8:00 a.m. U.S. Eastern Time, to discuss these results in more detail [2].

References:
[1] https://www.ainvest.com/news/gds-holdings-q2-2025-earnings-call-revenue-ebitda-growth-strategic-asset-monetization-reit-ipo-success-2508/
[2] https://www.quiverquant.com/news/GDS+Holdings+Limited+Reports+Second+Quarter+2025+Financial+Results+with+12.4%25+Revenue+Growth+and+Reduced+Net+Loss