GDS Holdings ( (GDS) ) has released its Q2 earnings. Here is a breakdown of the information GDS Holdings presented to its investors.
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GDS Holdings Limited is a prominent developer and operator of high-performance data centers in China, providing essential infrastructure for cloud service providers, internet companies, and financial institutions. In its second quarter of 2025, GDS Holdings reported a 12.4% year-over-year increase in net revenue, reaching RMB2,900.3 million, while also reducing its net loss to RMB70.6 million compared to the previous year’s RMB231.8 million. The company’s adjusted EBITDA rose by 11.2% year-over-year, indicating strong operational performance despite a slight decrease in adjusted EBITDA margin to 47.3%.
Key financial metrics highlighted include a gross profit increase of 21.8% year-over-year and a net revenue boost driven by the ramp-up of data centers. The company also achieved a significant milestone with the successful IPO of its C-REIT on the Shanghai Stock Exchange, enhancing its financing flexibility. Operationally, GDS saw an 8.1% increase in total area committed and pre-committed, with a utilization rate of 77.5% as of June 30, 2025.
The company raised net proceeds of US$676 million through new convertible senior notes and equity, positioning itself well for future growth opportunities in Tier 1 markets, particularly with the ongoing evolution of AI. GDS Holdings remains focused on creating sustainable, long-term value for its partners and shareholders, with a revised total capex guidance for 2025 reflecting the impact of the C-REIT transaction.
Looking ahead, GDS Holdings maintains its revenue and adjusted EBITDA guidance for 2025, projecting total revenues between RMB11,290 million and RMB11,590 million, and adjusted EBITDA between RMB5,190 million and RMB5,390 million. The company is poised to capture new business opportunities, leveraging its strategic positioning and robust financial performance.