VNET Group reports mixed Q2 results; reaffirms FY25 outlook

* VNET Group press release [https://seekingalpha.com/pr/20207475-vnet-reports-unaudited-second-quarter-2025-financial-results] (NASDAQ:VNET [https://seekingalpha.com/symbol/VNET]): Q2 GAAP EPADS of -$0.10 misses by $0.11.
* Revenue of $339.8M (+23.8% Y/Y) beats by $19.88M.
* Adjusted EBITDA (non-GAAP) increased by 27.7% to RMB732.5 million (US$102.2 million) from RMB573.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) was 30.1%, compared with 28.8% in the same period of 2024.
* Adjusted cash gross margin (non-GAAP) was 43.6%, compared with 39.5% in the same period of 2024.
* Net cash generated from operating activities in the second quarter of 2025 was RMB366.6 million (US$51.2 million), compared with RMB405.2 million in the same period of 2024.
*
BUSINESS OUTLOOK

The Company expects total net revenues for 2025 to be between RMB9,150 million to RMB9,350 million, representing year-over-year growth of 11% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,760 million to RMB2,820 million, representing year-over-year growth of 14% to 16%. If the RMB87.7 million disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, year-over-year growth would be 18% to 20%. The above outlook remains unchanged from the estimates the Company provided on June 27, 2025.

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* VNET Group, Inc. (VNET) Q1 2025 Earnings Call Transcript [https://seekingalpha.com/article/4790462-vnet-group-inc-vnet-q1-2025-earnings-call-transcript]
* VNET Group, Inc. 2025 Q1 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4790418-vnet-group-inc-2025-q1-results-earnings-call-presentation]
* VNET Group Q2 2025 Earnings Preview [https://seekingalpha.com/news/4487453-vnet-group-q2-2025-earnings-preview]
* VNET raises full year 2025 revenue and adjusted EBITDA guidance; shares up over 5% [https://seekingalpha.com/news/4463253-vnet-raises-full-year-2025-revenue-and-adjusted-ebitda-guidance-shares-up-over-5]