VNET Group Inc (VNET) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic …

Release Date: November 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • VNET Group Inc (NASDAQ:VNET) reported a 21.7% year-over-year increase in total net revenues, reaching RMB2.58 billion for the third quarter.

  • The wholesale IDC business was a key growth driver, with revenues increasing by 82.7% year-over-year to RMB955.5 million.

  • Adjusted EBITDA for the third quarter increased by 27.5% year-over-year to RMB758.3 million.

  • The company secured three wholesale orders totaling 63 megawatts in the third quarter, indicating strong customer demand.

  • VNET Group Inc (NASDAQ:VNET) increased its full-year revenue and adjusted EBITDA guidance due to faster-than-anticipated customer move-ins and operational efficiency gains.

Negative Points

  • The retail IDC business showed slower growth, with revenues increasing by only 2.4% year-over-year.

  • The company’s net debt to trailing 12 months adjusted EBITDA ratio was relatively high at 5.5.

  • CapEx spending for the first nine months was RMB6.24 billion, indicating significant capital expenditure requirements.

  • The adjusted cash gross margin showed only a slight improvement, increasing from 40.6% to 40.7% year-over-year.

  • There is a potential risk of increased competition in the domestic chip market, which could impact future business development.

Q & A Highlights

Q: What is VNET’s outlook for 2026, considering the expansion in domestic chip capacities? A: Mr. Juma, Rotating President, explained that VNET is engaging with customers to understand their development paths, which will help in resource planning. The market is expected to be stable with moderate growth. VNET is closely monitoring the domestic chip sector, anticipating intense competition among players, which could drive business development.

Q: Can you provide details on the timeline and financial impact of the new private REITs? A: Mr. Kong, CFO, stated that the new private REITs, valued at nearly RMB10 billion, are under review. If successful, they will complete VNET’s financial capital cycle. The financial statements of these projects will be consolidated into the group-level financials, ensuring no adverse impact on revenue or EBITDA.

Q: How does VNET view customer preferences for wholesale campuses in different regions? A: Mr. Juma noted that customer preferences are influenced by business type, proximity to headquarters, and ease of scaling existing capacity. VNET has observed varying demand across regions, with significant interest in the greater Beijing and Yangtze River Delta areas.

Q: What is the pricing trend for VNET’s wholesale business? A: Mr. Kong mentioned that pricing for Q3 was stable. Faster-than-expected customer move-ins have improved project IRRs. VNET avoids low-price bidding in tight supply-demand areas, maintaining stable contracted prices.

Q: What are the main drivers behind the growth in retail IDC business MRR, and how sustainable is this trend? A: Mr. Juma highlighted that the growth is driven by customers adding smart computing to storage and generic computing. VNET is repurposing cabinets to meet demand and offering value-added services like networking. The trend is expected to continue as customer needs evolve.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.