VNET Group, Inc. Sponsored ADR ( (VNET) ) has released its Q2 earnings. Here is a breakdown of the information VNET Group, Inc. Sponsored ADR presented to its investors.
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VNET Group, Inc. is a prominent provider of carrier- and cloud-neutral internet data center services in China, offering hosting, cloud, and VPN services to enhance the internet infrastructure of its clients. The company operates across more than 30 cities in China, serving a diverse clientele of over 7,000 enterprises.
In the second quarter of 2025, VNET Group reported strong financial results with a notable increase in net revenues and adjusted EBITDA. The company’s total net revenues rose by 22.1% year-over-year to RMB2.43 billion, driven primarily by a significant growth in wholesale IDC business revenues, which surged by 112.5% year-over-year.
Key financial highlights include a 34.9% increase in adjusted cash gross profit, reaching RMB1.06 billion, and a 27.7% rise in adjusted EBITDA to RMB732.5 million. The wholesale IDC business saw substantial growth in capacity and utilization, with a 101MW increase in service capacity and a 74MW rise in utilized capacity quarter-over-quarter.
Despite the positive financial performance, VNET Group reported a net loss of RMB11.9 million for the quarter, attributed mainly to increased interest and income tax expenses. The company also announced a share repurchase program, authorizing the repurchase of up to US$50 million of its ADSs.
Looking ahead, VNET Group remains optimistic about its growth prospects, with expectations of continued revenue and EBITDA growth in 2025. The company aims to capitalize on AI-driven opportunities and further strengthen its leadership in the AIDC sector through its Hyperscale 2.0 framework, focusing on building greener and more intelligent data centers.