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Highlights

  • Wholesale IDC revenues rose 112.5% year-on-year to RMB854.1 mn (AUD119.2 mn).
  • Total net revenues increased 22.1% to RMB2.43 bn (AUD339.8 mn).
  • Adjusted EBITDA climbed 27.7% to RMB732.5 mn (AUD102.2 mn), 30.1% margin.

VNET Group, Inc. (Nasdaq: VNET) reported unaudited results for the quarter ended June 30, 2025, with the wholesale internet data center (IDC) segment driving much of the year-on-year growth. The company said wholesale capacity in service rose by 101MW quarter-over-quarter to 674MW, while utilized wholesale capacity increased by 74MW to 511MW. Retail orders contributed roughly 4MW of combined capacity in the quarter, and the firm noted a 20MW wholesale award from its Hebei JV project.

On the top line, total net revenues advanced 22.1% to RMB2.43 bn (AUD339.8 mn) from RMB1.99 bn in Q2 2024. IDC business revenues increased by 32.6% to RMB1.81 bn (AUD253.1 mn). Within that, wholesale revenues more than doubled, rising 112.5% to RMB854.1 mn (AUD119.2 mn), while retail IDC revenues remained relatively flat at RMB958.7 mn (AUD133.8 mn). Revenues from non-IDC activities held steady at RMB621.4 mn (AUD86.7 mn).

Profitability on an adjusted basis showed expansion. Adjusted cash gross profit (non-GAAP) increased 34.9% to RMB1.06 bn (AUD148.2 mn), with an adjusted cash gross margin of 43.6% versus 39.5% a year earlier. Adjusted EBITDA (non-GAAP) rose 27.7% to RMB732.5 mn (AUD102.2 mn), producing an adjusted EBITDA margin of 30.1% compared with 28.8% in Q2 2024.

Management attributed the results to continued wholesale move-ins and increased utilization of new capacity. For market participants, the key operational metrics—capacity in service, utilized capacity, and new wholesale contract wins—remain central to assessing near-term revenue sustainability. Wholesale demand trends and the cadence of customer move-ins will be determinative for how quickly recently brought-online capacity converts into recurring revenue.

Risks and execution items to monitor include capital expenditure requirements for further capacity expansion, the timing and performance of the Hebei JV project, energy and real-estate cost dynamics across Chinese markets, and competitive pricing pressures in wholesale tenders. Additionally, regional regulatory developments and power availability can influence the pace of deployment and utilization.