VNET Group, Inc. (VNET) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy VNET?
Source: SeekingAlpha
Wholesale capacity in service 783 megawatts as of September 30, 2025, a 16.1% quarter-over-quarter increase (109 megawatts). This growth was driven by rapid delivery capabilities and customers' fast-moving pace.
Wholesale capacity utilized by customers 582 megawatts as of September 30, 2025, a 13.8% quarter-over-quarter increase (70 megawatts). This reflects continuous demand for high-quality, high-performance AIDC services.
Utilization rate 74.3% as of September 30, 2025, stable quarter-over-quarter, indicating consistent customer demand.
Retail MRR per cabinet RMB 8,948, increased for 6 consecutive quarters, driven by growing AI-driven demand.
Total net revenues RMB 2.58 billion for Q3 2025, a 21.7% year-over-year increase. Growth was mainly driven by the wholesale business.
Wholesale revenues RMB 956 million for Q3 2025, an 82.7% year-over-year increase. This was fueled by rapid growth in the wholesale IDC business, particularly at the N-OR Campus 01.
Adjusted EBITDA RMB 758 million for Q3 2025, a 27.5% year-over-year increase. This reflects operational efficiency gains and premium IDC services.
Adjusted cash gross profit RMB 1.05 billion for Q3 2025, a 22.1% year-over-year increase, supported by high-quality business growth.
Adjusted cash gross margins 40.7% for Q3 2025, slightly up from 40.6% in the same period last year, due to enhanced efficiency.
Adjusted EBITDA margin 29.4% for Q3 2025, up from 28% in the same period last year, reflecting improved operational efficiency.
Net operating cash inflow RMB 809.8 million for Q3 2025, contributing to RMB 1.37 billion for the first 9 months of 2025, indicating robust liquidity.
Total cash and cash equivalents RMB 5.33 billion as of September 30, 2025, reflecting a solid cash position.
Net debt to trailing 12 months adjusted EBITDA ratio 5.5 as of September 30, 2025, indicating healthy debt levels.
Total debt to trailing 12 months adjusted EBITDA ratio 6.7 as of September 30, 2025, reflecting prudent debt management.
Trailing 12 months adjusted EBITDA to interest coverage ratio 6.5 as of September 30, 2025, showcasing strong debt repayment capability.
CapEx RMB 6.24 billion for the first 9 months of 2025, primarily allocated to wholesale IDC business expansion.
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Analyst Views on VNET
Wall Street analysts forecast VNET stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 14.030
Low
12.50
Averages
13.80
High
15.10
Current: 14.030
Low
12.50
Averages
13.80
High
15.10
About VNET
VNET Group Inc is a holding company principally engaged in providing carrier-neutral and cloud-neutral data center service. The Company’s services include managed hosting services, cloud services and virtual private network (VPN) services. Managed hosting services consisting of managed retail services and managed wholesale services. Cloud services allow customers to run their applications over the Internet using the information technology (IT) infrastructure. VPN services extend customers’ private networks by setting up secure and dedicated connections through the public Internet. The Company mainly operates its businesses in the domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Complete Exit from Baidu: On February 13, 2026, Infini Capital Management Ltd reported fully exiting its Baidu position by selling 33,399 shares for an estimated $4.4 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: Following this liquidation, Baidu now represents 0% of Infini's reportable AUM, with the fund reallocating its investments primarily to VNET and CHA, highlighting a major portfolio restructuring.
- Financial Impact: The quarter-end value of Baidu decreased by $4.4 million, illustrating that Infini failed to capitalize on Baidu's 48.3% stock price increase over the past year, reflecting broader market challenges.
- Market Sentiment: Infini's decision to exit follows an 18% drop in advertising revenue and a $2.2 billion impairment charge in Q3 2025, suggesting growing frustration with Baidu's stock performance, leading to a gradual sell-off throughout 2025.
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- Complete Exit from Baidu: On February 13, 2026, Infini Capital Management Ltd reported fully exiting its Baidu position by selling 33,399 shares for approximately $4.4 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: This transaction reduced Baidu's representation in Infini's reportable AUM to 0%, with the fund reallocating its holdings primarily to VNET and CHA, which now constitute 97.7% and 2.3% of AUM respectively, reflecting a major portfolio shift.
- Financial Impact: The decision to liquidate comes amid a challenging financial backdrop, including an 18% year-over-year drop in advertising revenue and a $2.2 billion impairment charge, leading to a nearly $1.6 billion loss for Infini in the quarter, which likely influenced the exit strategy.
- Market Performance Insight: Despite Baidu's stock price rising 48.3% over the past year and outperforming the S&P 500 by 35.35 percentage points, Infini's continued divestment suggests a cautious outlook on the company's long-term growth potential, reflecting broader concerns about its market performance.
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- Internal Development: Founder and Executive Chairperson Josh Sheng Chen noted that Mr. Zhang, as a homegrown talent, possesses deep financial management expertise that will further strengthen the company's strategic execution, supporting sustainable growth and long-term value creation.
- Extensive Experience: Since joining VNET in 2019, Mr. Zhang has overseen accounting, taxation, and compliance functions, establishing financial systems across multiple business units that effectively support operational compliance and steady growth, showcasing his strong background in financial governance.
- Strategic Partnerships: In his role as Senior Vice President, Mr. Zhang will also lead domestic debt financing initiatives and establish strategic partnerships with Microsoft, further enhancing the company's market competitiveness and business expansion.
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- Executive Appointment: VNET Group has appointed Mr. Peter Zhihua Zhang as Senior Vice President of Operational Finance, responsible for the company's financial operations and authorized to review and approve financial statements, thereby enhancing financial transparency and compliance with SEC and Nasdaq requirements.
- Internal Talent Development: Founder and Executive Chairperson Josh Sheng Chen noted that Mr. Zhang, as a homegrown talent, embodies the company's culture of nurturing leaders, and his extensive financial management expertise will further strengthen strategic execution, supporting sustainable growth and long-term value creation.
- Rich Industry Experience: Since joining VNET in 2019, Mr. Zhang has overseen accounting, taxation, and compliance functions, establishing financial systems across multiple business units that effectively support operational compliance and steady growth, showcasing his deep expertise in financial governance.
- Strategic Partnerships: Mr. Zhang also leads domestic debt financing initiatives and strategic partnerships with Microsoft, further driving market expansion and technological innovation, enhancing VNET's competitiveness in the data center services market.
See More
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- Investor Mindset: The article highlights a common instinct among investors to focus on U.S. technology stocks, contrasting it with Kothari's perspective on global markets.
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- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
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Infini Capital Fully Exits Baidu Position
- Complete Exit from Baidu: On February 13, 2026, Infini Capital Management Ltd reported fully exiting its Baidu position by selling 33,399 shares for an estimated $4.4 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: Following this liquidation, Baidu now represents 0% of Infini's reportable AUM, with the fund reallocating its investments primarily to VNET and CHA, highlighting a major portfolio restructuring.
- Financial Impact: The quarter-end value of Baidu decreased by $4.4 million, illustrating that Infini failed to capitalize on Baidu's 48.3% stock price increase over the past year, reflecting broader market challenges.
- Market Sentiment: Infini's decision to exit follows an 18% drop in advertising revenue and a $2.2 billion impairment charge in Q3 2025, suggesting growing frustration with Baidu's stock performance, leading to a gradual sell-off throughout 2025.
See More
Infini Capital Fully Exits Baidu Position with $4.4 Million Sale
- Complete Exit from Baidu: On February 13, 2026, Infini Capital Management Ltd reported fully exiting its Baidu position by selling 33,399 shares for approximately $4.4 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: This transaction reduced Baidu's representation in Infini's reportable AUM to 0%, with the fund reallocating its holdings primarily to VNET and CHA, which now constitute 97.7% and 2.3% of AUM respectively, reflecting a major portfolio shift.
- Financial Impact: The decision to liquidate comes amid a challenging financial backdrop, including an 18% year-over-year drop in advertising revenue and a $2.2 billion impairment charge, leading to a nearly $1.6 billion loss for Infini in the quarter, which likely influenced the exit strategy.
- Market Performance Insight: Despite Baidu's stock price rising 48.3% over the past year and outperforming the S&P 500 by 35.35 percentage points, Infini's continued divestment suggests a cautious outlook on the company's long-term growth potential, reflecting broader concerns about its market performance.
See More
VNET Appoints New Senior Vice President of Operational Finance
- Executive Appointment: VNET Group has appointed Mr. Peter Zhihua Zhang as Senior Vice President of Operational Finance, responsible for the company's financial operations and authorized to review and approve financial statements, thereby enhancing financial transparency and compliance with SEC and Nasdaq requirements.
- Internal Development: Founder and Executive Chairperson Josh Sheng Chen noted that Mr. Zhang, as a homegrown talent, possesses deep financial management expertise that will further strengthen the company's strategic execution, supporting sustainable growth and long-term value creation.
- Extensive Experience: Since joining VNET in 2019, Mr. Zhang has overseen accounting, taxation, and compliance functions, establishing financial systems across multiple business units that effectively support operational compliance and steady growth, showcasing his strong background in financial governance.
- Strategic Partnerships: In his role as Senior Vice President, Mr. Zhang will also lead domestic debt financing initiatives and establish strategic partnerships with Microsoft, further enhancing the company's market competitiveness and business expansion.
See More
VNET Appoints New Senior Vice President of Operational Finance
- Executive Appointment: VNET Group has appointed Mr. Peter Zhihua Zhang as Senior Vice President of Operational Finance, responsible for the company's financial operations and authorized to review and approve financial statements, thereby enhancing financial transparency and compliance with SEC and Nasdaq requirements.
- Internal Talent Development: Founder and Executive Chairperson Josh Sheng Chen noted that Mr. Zhang, as a homegrown talent, embodies the company's culture of nurturing leaders, and his extensive financial management expertise will further strengthen strategic execution, supporting sustainable growth and long-term value creation.
- Rich Industry Experience: Since joining VNET in 2019, Mr. Zhang has overseen accounting, taxation, and compliance functions, establishing financial systems across multiple business units that effectively support operational compliance and steady growth, showcasing his deep expertise in financial governance.
- Strategic Partnerships: Mr. Zhang also leads domestic debt financing initiatives and strategic partnerships with Microsoft, further driving market expansion and technological innovation, enhancing VNET's competitiveness in the data center services market.
See More
The Appeal of Chinese Technology Shares and an Upcoming Surge in Chip IPOs
- Overseas Opportunities: Beeneet Kothari, founder of Tekne Capital Management, suggests that the best tech investment opportunities are currently found outside the U.S.
- Investor Mindset: The article highlights a common instinct among investors to focus on U.S. technology stocks, contrasting it with Kothari's perspective on global markets.
See More
Diodes Reports Strong Quarterly Earnings, Shares Surge
- Earnings Beat: Diodes reported an adjusted EPS of 34 cents, surpassing market expectations of 32 cents, indicating strong profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $391.578 million, exceeding the anticipated $385.560 million, suggesting sustained demand for its products that could drive future revenue growth.
- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
- Market Performance: U.S. stocks were slightly higher, with the Dow Jones gaining around 0.1% on Wednesday, indicating cautious optimism about the economic outlook that could provide a favorable environment for other companies.
See More
