VNET Group's Q2 Revenue Surges 22.1%

VNET Group, Inc. (NASDAQ:VNET) surged 12.94% to $8.29 on Friday after reporting a 22.1% increase in net revenues to 2.43 billion yuan in Q2, beating analyst expectations. However, the company swung to a net loss of $11.98 million from a $63.67 million attributable net profit in the same period last year. For FY2025, VNET Group maintained its revenue target of 9.15 billion yuan to 9.35 billion yuan, representing a year-on-year growth of 11 to 13%.

VNET Group Inc. (NASDAQ: VNET) reported a 22.1% increase in net revenues to RMB2.43 billion in the second quarter of 2025, beating analyst expectations. The company's strong performance was primarily driven by a 112.5% year-over-year (YoY) surge in wholesale IDC business revenues to RMB854 million. However, VNET swung to a net loss of $11.98 million from a $63.67 million attributable net profit in the same period last year.

Despite the net loss, VNET maintained robust liquidity, with total cash and cash equivalents reaching RMB4.66 billion as of June 30, 2025. The company also secured a 20-megawatt wholesale order from a leading cloud services provider, indicating strong demand for its services.

Looking ahead, VNET has raised its full-year 2025 revenue guidance to between RMB9.15 billion and RMB9.35 billion, representing an 11%-13% YoY growth. The adjusted EBITDA guidance for the year is between RMB2.76 billion and RMB2.82 billion, a 14%-16% growth from the previous year.

VNET's strong fundamentals and innovative technologies position it well to lead in the evolving landscape of AI-driven data center services in China. The company recently unveiled its Hyperscale 2.0 framework, outlining its vision for the future of AI Data Centers (AIDCs) and plans to grow its data center asset capacity under management to 10 gigawatts by 2036.

VNET's Q2 2025 results highlight its execution prowess: wholesale capacity in service rose 17.5% quarter-over-quarter (QoQ) to 674 megawatts, with a 75.9% utilization rate, reflecting strong demand and contract retention. The company's financials demonstrate margin resilience, with a 22.1% year-over-year revenue increase and a 27.7% rise in adjusted EBITDA, with margins reaching 30.1%.

VNET's strong balance sheet, margin resilience, and alignment with macro trends (AI adoption, green energy) mitigate concerns about high capital expenditures and regulatory shifts in China's data center sector. The company's ability to secure large-scale orders, such as the 20MW Hebei project, and its geographic diversification further strengthen its competitive moat.

References:
[1] https://www.ainvest.com/news/vnet-group-q2-2025-earnings-call-highlights-robust-revenue-growth-strategic-expansion-2508-95/
[2] https://www.marketscreener.com/news/vnet-group-q2-earnings-snapshot-ce7c51d3dc89f721
[3] https://www.ainvest.com/news/vnet-group-ai-driven-data-center-expansion-catalyst-sustained-growth-2025-2026-2508/