VNET Reports Unaudited Second Quarter 2026 Financial Results
Rhea-AI Summary
VNET (Nasdaq: VNET) reported second quarter 2026 net revenues of RMB2.78 billion, up 14.2% year-over-year, driven by 29.3% growth in wholesale IDC revenues to RMB1.10 billion and 9.1% growth in retail revenues to RMB1.05 billion. Non-IDC revenues rose 1.1% to RMB628.4 million.
GAAP gross profit declined 7.8% to RMB505.2 million, with gross margin down to 18.2%, mainly due to higher depreciation from rapid capacity expansion. However, adjusted EBITDA increased 25.4% to RMB918.3 million, lifting margin to 33.0%, and adjusted net income reached RMB7.4 million versus a prior-year adjusted net loss.
VNET’s wholesale capacity in service grew 49.4% year-over-year to 1,007MW, with total committed capacity at 970MW (96.3% commitment rate). The company reaffirmed full-year 2026 guidance of RMB11.5–11.8 billion in net revenues and RMB3.55–3.75 billion in adjusted EBITDA, and announced a strategic compute‑energy cooperation with CATL.
Positive
- Total net revenues up 14.2% YoY to RMB2.78 billion
- Wholesale IDC revenues up 29.3% YoY to RMB1.10 billion, 39.8% of sales
- Adjusted EBITDA up 25.4% YoY to RMB918.3 million; margin 33.0%
- Adjusted net income RMB7.4 million vs prior-year adjusted net loss RMB53.6 million
- Wholesale capacity in service up 49.4% YoY to 1,007MW; committed 970MW
- 2026 guidance reaffirmed: revenues RMB11.5–11.8 billion; adjusted EBITDA RMB3,550–3,750 million
Negative
- Net loss attributable to VNET widened to RMB135.6 million from RMB11.9 million
- Gross profit down 7.8% YoY to RMB505.2 million; margin fell to 18.2%
- Operating cash flow declined to RMB218.1 million from RMB366.6 million
- Wholesale utilization rate eased to 73.9% from 75.9% a year earlier
- Total debt high at RMB23.42 billion (RMB4.18 billion short-term, RMB19.24 billion long-term)
News Explained
At June 30, VNET reported RMB7.21 billion in liquid resources against RMB4.18 billion short-term and RMB19.24 billion long-term debt.
The VNET-CATL arrangement is now a signed strategic cooperation agreement, while its proposed three-layer compute-energy ecosystem remains planned rather than completed.
As of
During the quarter, the company obtained
Market Reaction – VNET
Following this news, VNET has declined 1.40%, reflecting a mild negative market reaction. The stock is currently trading at $7.81. Trading volume is exceptionally heavy at 224.4x the average, suggesting significant selling pressure.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 26 | Q1 earnings | Positive | +4.0% | Revenue and EBITDA growth continued, while full-year guidance was reaffirmed. |
| Mar 16 | Q4 earnings | Positive | -9.3% | Quarterly and annual revenue increased as wholesale capacity expanded. |
| Nov 20 | Q3 earnings | Positive | -1.2% | Wholesale growth and EBITDA expansion accompanied raised full-year guidance. |
| Aug 21 | Q2 earnings | Positive | -8.0% | Revenue and EBITDA grew as wholesale capacity and customer commitments increased. |
| May 28 | Q1 earnings | Positive | -10.8% | Revenue and EBITDA expanded despite a reported net loss and 2025 guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings history showed operating growth alongside mostly negative 24-hour price reactions.
Key Terms
non-GAAP financial
adjusted EBITDA financial
convertible notes financial
monthly recurring revenue financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial Highlights
- Total net revenues increased by
14.2% year-over-year toRMB2.78 billion (US ) in the second quarter of 2026 (2Q2025:$409.5 million RMB2.43 billion ). - Net revenues from the wholesale IDC business ("wholesale revenues") increased by
29.3% year-over-year toRMB1.10 billion (US ) in the second quarter of 2026 (2Q2025:$162.8 million RMB854.1 million ). - Adjusted cash gross profit (non-GAAP) increased by
9.4% year-over-year toRMB1.16 billion (US ) in the second quarter of 2026 (2Q2025:$171.2 million RMB1.06 billion ). - Adjusted cash gross margin (non-GAAP) was
41.8% in the second quarter of 2026 (2Q2025:43.6% ). - Adjusted EBITDA (non-GAAP) increased by
25.4% year-over-year toRMB918.3 million (US ) in the second quarter of 2026 (2Q2025:$135.3 million RMB732.5 million ). - Adjusted EBITDA margin (non-GAAP) was
33.0% in the second quarter of 2026 (2Q2025:30.1% ). - Adjusted net income (non-GAAP) was
RMB7.4 million (US ) in the second quarter of 2026 (2Q2025: adjusted net loss of$1.1 million RMB53.6 million ).
Second Quarter 2026 Operational Highlights
- Wholesale capacity in service increased by
49.4% year-over-year to 1,007MW as of June 30, 2026 (June 30, 2025: 674MW). - Wholesale capacity utilized by customers increased to
45.5% year-over-year to 744MW as of June 30, 2026 (June 30, 2025: 511MW). - Retail monthly recurring revenue (MRR) per retail cabinet increased by
9.9% year-over-year toRMB9,799 in the second quarter of 2026 (2Q2025:RMB8,915 ).
"We achieved robust growth across our key financial and operational metrics in the second quarter of 2026, as our execution capabilities and high-quality deliveries continued to attract new orders," said Josh Sheng Chen, Founder, Executive Chairperson of VNET. "We secured a 345MW wholesale order from a leading cloud service provider in the second quarter, bringing our total wholesale order wins to 862MW year-to-date. Meanwhile, we continued to expand our strategic resource reserves, securing approximately 1.4GW of land bank capacity during the second quarter, including 908MW in the Chinese mainland and 478MW overseas. This increased our total capacity to over 4GW, providing a clear, multi-year growth runway across both domestic and international markets.
"In addition, we deepened our collaboration with Contemporary Amperex Technology Co., Limited and signed a strategic cooperation agreement to jointly develop a three‑layer integrated compute-energy ecosystem comprising gigawatt‑scale compute-energy facilities, distributed compute-energy networks, and a zero‑carbon token ecosystem. By combining our complementary strengths and deepening cooperation across technology, infrastructure and supply chains, we will jointly advance innovation in integrated compute-energy systems. Together, we aim to contribute to the next generation of digital energy infrastructure in the intelligent era."
Peter Zhihua Zhang, Senior Vice President, Operational Finance of VNET, commented, "In the second quarter, our total net revenues increased by
Second Quarter 2026 Financial Results
TOTAL NET REVENUES: Total net revenues in the second quarter of 2026 were
Net revenues from IDC business increased by
- Wholesale revenues increased by
29.3% toRMB1.10 billion (US ) from$162.8 million RMB854.1 million in the same period of 2025. - Retail revenues increased by
9.1% toRMB1.05 billion (US ) from$154.1 million RMB958.7 million in the same period of 2025.
Net revenues from non-IDC business increased by
GROSS PROFIT: Gross profit in the second quarter of 2026 was
ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from gross profit, increased by
OPERATING EXPENSES: Total operating expenses in the second quarter of 2026 were
Sales and marketing expenses were
Research and development expenses were
General and administrative expenses were
ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were
ADJUSTED EBITDA (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from operating profit, was
NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the second quarter of 2026 was
ADJUSTED NET INCOME (LOSS) (non-GAAP) excludes changes in the fair value of financial instruments from net income (loss). Adjusted net income in the second quarter of 2026 was
LOSS PER SHARE: Basic and diluted loss per share in the second quarter of 2026 were both
LIQUIDITY: As of June 30, 2026, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was
Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was
Net cash generated from operating activities in the second quarter of 2026 was
Second Quarter 2026 Operational Results
Wholesale IDC Business
- Capacity in service was 1,007MW as of June 30, 2026, compared with 907MW as of March 31, 2026, and 674MW as of June 30, 2025. Capacity under construction was 585MW as of June 30, 2026.
- Capacity utilized by customers reached 744MW as of June 30, 2026, compared with 687MW as of March 31, 2026, and 511MW as of June 30, 2025. The sequential increase of 57MW was mainly contributed by the N-HB Campus 03 and N-OR Campus 01 data centers.
- Utilization rate[1] of wholesale capacity was
73.9% as of June 30, 2026, compared with75.7% as of March 31, 2026, and75.9% as of June 30, 2025.- Utilization rate of mature wholesale capacity[2] was
92.5% as of June 30, 2026, compared with93.8% as of March 31, 2026, and94.6% as of June 30, 2025. - Utilization rate of ramp-up wholesale capacity[3] was
36.6% as of June 30, 2026, compared with45.0% as of March 31, 2026, and20.8% as of June 30, 2025.
- Utilization rate of mature wholesale capacity[2] was
- Total capacity committed[4] was 970MW as of June 30, 2026, compared with 869MW as of March 31, 2026, and 674MW as of June 30, 2025.
- Commitment rate[5] for capacity in service was
96.3% as of June 30, 2026, compared with95.7% as of March 31, 2026, and100% as of June 30, 2025.
Retail IDC Business[6]
- Capacity in service was 50,081 cabinets as of June 30, 2026, compared with 50,170 cabinets as of March 31, 2026, and 52,131 cabinets as of June 30, 2025.
- Capacity utilized by customers was 32,314 cabinets as of June 30, 2026, compared with 32,165 cabinets as of March 31, 2026, and 33,292 cabinets as of June 30, 2025.
- Utilization rate of retail capacity was
64.5% as of June 30, 2026, compared with64.1% as of March 31, 2026, and63.9% as of June 30, 2025.- Utilization rate of mature retail capacity[7] was
68.7% as of June 30, 2026, compared with68.5% as of March 31, 2026, and68.6% as of June 30, 2025. - Utilization rate of ramp-up retail capacity[8] was
26.9% as of June 30, 2026, compared with24.2% as of March 31, 2026, and26.4% as of June 30, 2025.
- Utilization rate of mature retail capacity[7] was
- Monthly recurring revenue (MRR) per retail cabinet was
RMB9,799 in the second quarter of 2026, compared withRMB9,448 in the first quarter of 2026 andRMB8,915 in the second quarter of 2025.
[1] Utilization rate is calculated by dividing capacity utilized by customers by capacity in service. |
[2] Mature wholesale capacity refers to wholesale data centers with utilization rate at or above |
[3] Ramp-up wholesale capacity refers to wholesale data centers with utilization rate below |
[4] Total capacity committed represents capacity committed to customers under effective agreements. |
[5] Commitment rate is calculated by dividing total capacity committed by total capacity in service. |
[6] For the retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets include those with limited utilization, those scheduled for closure, or those planned for upgrades. As of June 30, 2025, March 31, 2026, and June 30, 2026, 3,791, 4,097 and 3,795 reserved cabinets, respectively, were excluded from retail IDC utilization rate calculations. |
[7] Mature retail capacity refers to retail data centers that came into service over 24 months ago. |
[8] Ramp-up retail capacity refers to retail data centers that entered service within the past 24 months, or mature retail data centers that underwent improvements within the past 24 months. |
Recent Developments
On August 18, 2026, we signed a strategic cooperation agreement with Contemporary Amperex Technology Co., Limited ("CATL"), under which both parties will establish a partnership to deepen compute-energy integration by synergistically combining VNET's leadership in large‑scale computing infrastructure development and operations with CATL's expertise in zero‑carbon new energy technologies. With the goal of shaping next generation digital energy infrastructure globally, and leveraging green DC and direct green power connection technologies, the parties plan to jointly develop a three‑layer integrated compute-energy ecosystem comprising gigawatt‑scale compute-energy facilities, distributed compute-energy networks, and a zero‑carbon token ecosystem.
Business Outlook
For the full year of 2026, the Company expects its total net revenues to be in the range of
The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM
For participants who wish to join the call, please access the links provided below to complete the online registration process.
English line:
https://s1.c-conf.com/diamondpass/10056504-wstpwx.html
Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10056507-c7sjs6e.html
Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com.
A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers:
US/Canada: | 1 855 883 1031 |
Mainland | 400 1209 216 |
800 930 639 | |
International: | +61 7 3107 6325 |
Replay PIN (English line): | 10056504 |
Replay PIN (Chinese line): | 10056507 |
Non-GAAP Disclosure
In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with
Exchange Rate
This announcement contains translations of certain RMB amounts into
Statement Regarding Unaudited Condensed Financial Information
The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies and government entities to blue-chip enterprises and small- to mid-sized enterprises.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement. VNET's strategic and operational plans as well as Business Outlook contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.
Investor Relations Contact:
VNET IR Team
Tel: +86 10 8456 2121
Email: ir@vnet.com
VNET GROUP, INC. | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||
As of | As of | ||||
December 31, 2025 | June 30, 2026 | ||||
RMB | RMB | US$ | |||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | 5,523,571 | 6,720,690 | 990,507 | ||
Restricted cash | 656,010 | 477,331 | 70,350 | ||
Short-term Investments | 379,198 | - | - | ||
Accounts and notes receivable, net | 2,222,106 | 2,640,321 | 389,135 | ||
Amounts due from related parties | 429,411 | 505,671 | 74,527 | ||
Prepaid expenses and other current assets | 2,241,570 | 2,418,052 | 356,377 | ||
Total current assets | 11,451,866 | 12,762,065 | 1,880,896 | ||
Non-current assets: | |||||
Restricted cash | 22,104 | 16,412 | 2,419 | ||
Long-term investments, net | 1,062,660 | 1,004,875 | 148,100 | ||
Property and equipment, net | 22,775,579 | 25,463,639 | 3,752,876 | ||
Intangible assets and other long-term assets | 2,872,475 | 3,167,199 | 466,788 | ||
Operating lease right-of-use assets, net | 4,871,341 | 5,159,484 | 760,414 | ||
Deferred tax assets, net | 251,572 | 251,327 | 37,041 | ||
Derivative financial instrument | 11,185 | - | - | ||
Other non-current assets | 1,275,380 | 1,687,339 | 248,683 | ||
Total non-current assets | 33,142,296 | 36,750,275 | 5,416,321 | ||
Total assets | 44,594,162 | 49,512,340 | 7,297,217 | ||
Liabilities and Shareholders' Equity | |||||
Current liabilities: | |||||
Short-term bank borrowings | 1,172,561 | 1,770,210 | 260,897 | ||
Current portion of long-term borrowings | 2,059,154 | 2,410,117 | 355,207 | ||
Current portion of finance lease liabilities | 357,995 | 325,662 | 47,997 | ||
Current portion of operating lease liabilities | 962,275 | 980,147 | 144,456 | ||
Accounts and notes payable | 741,878 | 749,950 | 110,529 | ||
Amounts due to related parties | 415,889 | 355,347 | 52,372 | ||
Income taxes payable | 154,343 | 229,691 | 33,852 | ||
Advances from customers | 933,920 | 1,028,660 | 151,606 | ||
Deferred revenue | 138,671 | 145,015 | 21,373 | ||
Current portion of deferred government grants | 51,062 | 53,878 | 7,941 | ||
Accrued expenses and other payables | 5,459,465 | 5,063,984 | 746,339 | ||
Total current liabilities | 12,447,213 | 13,112,661 | 1,932,569 | ||
Non-current liabilities: | |||||
Long-term borrowings | 11,579,664 | 14,402,669 | 2,122,691 | ||
Convertible notes | 5,138,664 | 4,836,250 | 712,775 | ||
Non-current portion of finance lease liabilities | 1,643,713 | 1,599,085 | 235,676 | ||
Non-current portion of operating lease liabilities | 4,001,047 | 4,304,054 | 634,339 | ||
Unrecognized tax benefits | 118,734 | 118,734 | 17,499 | ||
Deferred tax liabilities | 840,387 | 876,409 | 129,167 | ||
Deferred government grants | 260,268 | 242,116 | 35,683 | ||
Total non-current liabilities | 23,582,477 | 26,379,317 | 3,887,830 | ||
Mezzanine equity: | |||||
Redeemable non-controlling interests | 1,711,591 | 5,227,481 | 770,435 | ||
Total mezzanine equity | 1,711,591 | 5,227,481 | 770,435 | ||
Shareholders' equity | |||||
Ordinary shares | 112 | 118 | 17 | ||
Treasury stock | (179,087) | (179,087) | (26,394) | ||
Additional paid-in capital | 17,360,323 | 17,607,582 | 2,595,036 | ||
Statutory reserves | 116,316 | 116,316 | 17,143 | ||
Accumulated other comprehensive income | 46,375 | 30,293 | 4,465 | ||
Accumulated deficit | (11,125,595) | (13,499,741) | (1,989,616) | ||
Total VNET Group, Inc. shareholders' equity | 6,218,444 | 4,075,481 | 600,651 | ||
Noncontrolling interest | 634,437 | 717,400 | 105,732 | ||
Total shareholders' equity | 6,852,881 | 4,792,881 | 706,383 | ||
Total liabilities, mezzanine equity and shareholders' equity | 44,594,162 | 49,512,340 | 7,297,217 | ||
VNET GROUP, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, 2025 | March 31, 2026 | June 30, 2026 | June 30, 2025 | June 30, 2026 | |||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Net revenues | 2,434,205 | 2,691,136 | 2,778,738 | 409,535 | 4,680,425 | 5,469,874 | 806,160 | ||||||
Cost of revenues | (1,886,470) | (2,075,269) | (2,273,558) | (335,081) | (3,567,349) | (4,348,827) | (640,938) | ||||||
Gross profit | 547,735 | 615,867 | 505,180 | 74,454 | 1,113,076 | 1,121,047 | 165,222 | ||||||
Operating income (expenses) | |||||||||||||
Operating (loss) income | (1,143) | 83 | 39,885 | 5,878 | 318 | 39,968 | 5,891 | ||||||
Sales and marketing expenses | (69,963) | (53,682) | (58,751) | (8,659) | (134,309) | (112,433) | (16,571) | ||||||
Research and development expenses | (67,570) | (74,423) | (75,162) | (11,078) | (111,173) | (149,585) | (22,046) | ||||||
General and administrative expenses | (212,473) | (162,380) | (164,947) | (24,310) | (392,243) | (327,327) | (48,242) | ||||||
Allowance for doubtful debt | (23,568) | (78,536) | (16,955) | (2,499) | (54,120) | (95,491) | (14,074) | ||||||
Total operating expenses | (374,717) | (368,938) | (275,930) | (40,668) | (691,527) | (644,868) | (95,042) | ||||||
Operating profit | 173,018 | 246,929 | 229,250 | 33,786 | 421,549 | 476,179 | 70,180 | ||||||
Interest income | 16,869 | 10,390 | 16,617 | 2,449 | 23,620 | 27,007 | 3,980 | ||||||
Interest expense | (157,508) | (221,042) | (204,500) | (30,140) | (258,161) | (425,542) | (62,717) | ||||||
Other income | 5,234 | 1,376 | 6,324 | 932 | 7,045 | 7,700 | 1,135 | ||||||
Other expenses | (5,499) | (2,991) | (1,364) | (201) | (7,937) | (4,355) | (642) | ||||||
Changes in the fair value of financial instruments | 70,404 | (32,095) | (47,130) | (6,946) | (264,500) | (79,225) | (11,677) | ||||||
Foreign exchange gain | 9,258 | 36,083 | 38,104 | 5,616 | 18,785 | 74,187 | 10,934 | ||||||
Income (loss) before income taxes and gain (loss) from equity method investments | 111,776 | 38,650 | 37,301 | 5,496 | (59,599) | 75,951 | 11,193 | ||||||
Income tax expenses | (95,048) | (486,161) | (57,843) | (8,525) | (147,110) | (544,004) | (80,176) | ||||||
Gain (loss) from equity method investments | 41 | 2,611 | (19,205) | (2,830) | 3,255 | (16,594) | (2,446) | ||||||
Net income (loss) | 16,769 | (444,900) | (39,747) | (5,859) | (203,454) | (484,647) | (71,429) | ||||||
Net income attributable to noncontrolling interests | (13,656) | (19,752) | (12,561) | (1,851) | (30,991) | (32,313) | (4,762) | ||||||
Net income attributable to redeemable non-controlling interests | (15,027) | (67,189) | (83,289) | (12,275) | (15,027) | (150,478) | (22,178) | ||||||
Net loss attributable to the VNET Group, Inc. | (11,914) | (531,841) | (135,597) | (19,985) | (249,472) | (667,438) | (98,369) | ||||||
Accretion to redemption amount of redeemable non-controlling interests | (67) | (1,697,626) | (9,082) | (1,339) | (67) | (1,706,708) | (251,538) | ||||||
Net loss attributable to the Company's ordinary shareholders | (11,981) | (2,229,467) | (144,679) | (21,324) | (249,539) | (2,374,146) | (349,907) | ||||||
Loss per share | |||||||||||||
Basic | (0.01) | (1.36) | (0.09) | (0.01) | (0.16) | (1.42) | (0.21) | ||||||
Diluted | (0.01) | (1.36) | (0.09) | (0.01) | (0.16) | (1.42) | (0.21) | ||||||
Shares used in loss per share computation | |||||||||||||
Basic* | 1,610,484,726 | 1,644,810,699 | 1,702,004,096 | 1,702,004,096 | 1,609,646,939 | 1,673,565,395 | 1,673,565,395 | ||||||
Diluted* | 1,610,484,726 | 1,644,810,699 | 1,702,004,096 | 1,702,004,096 | 1,609,646,939 | 1,673,565,395 | 1,673,565,395 | ||||||
Loss per ADS (6 ordinary shares equal to 1 ADS) | |||||||||||||
Basic | (0.06) | (8.16) | (0.54) | (0.06) | (0.96) | (8.52) | (1.26) | ||||||
Diluted | (0.06) | (8.16) | (0.54) | (0.06) | (0.96) | (8.52) | (1.26) | ||||||
* Shares used in loss per share/ADS computation were computed under weighted average method. | |||||||||||||
VNET GROUP, INC. | |||||||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, 2025 | March 31, 2026 | June 30, 2026 | June 30, 2025 | June 30, 2026 | |||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||
Gross profit | 547,735 | 615,867 | 505,180 | 74,454 | 1,113,076 | 1,121,047 | 165,222 | ||||||
Plus: depreciation and amortization | 513,891 | 595,092 | 656,509 | 96,757 | 916,290 | 1,251,601 | 184,463 | ||||||
Plus: share-based compensation expenses | 196 | 297 | 201 | 30 | 305 | 498 | 73 | ||||||
Adjusted cash gross profit | 1,061,822 | 1,211,256 | 1,161,890 | 171,241 | 2,029,671 | 2,373,146 | 349,758 | ||||||
Adjusted cash gross margin | 43.6 % | 45.0 % | 41.8 % | 41.8 % | 43.4 % | 43.4 % | 43.4 % | ||||||
Operating expenses | (374,717) | (368,938) | (275,930) | (40,668) | (691,527) | (644,868) | (95,042) | ||||||
Plus: share-based compensation expenses | 9,163 | 6,757 | 4,883 | 720 | 15,492 | 11,640 | 1,716 | ||||||
Adjusted operating expenses | (365,554) | (362,181) | (271,047) | (39,948) | (676,035) | (633,228) | (93,326) | ||||||
Operating profit | 173,018 | 246,929 | 229,250 | 33,786 | 421,549 | 476,179 | 70,180 | ||||||
Plus: depreciation and amortization | 550,087 | 637,551 | 683,995 | 100,808 | 977,527 | 1,321,546 | 194,772 | ||||||
Plus: share-based compensation expenses | 9,359 | 7,054 | 5,084 | 750 | 15,797 | 12,138 | 1,789 | ||||||
Adjusted EBITDA | 732,464 | 891,534 | 918,329 | 135,344 | 1,414,873 | 1,809,863 | 266,741 | ||||||
Adjusted EBITDA margin | 30.1 % | 33.1 % | 33.0 % | 33.0 % | 30.2 % | 33.1 % | 33.1 % | ||||||
Net income (loss) | 16,769 | (444,900) | (39,747) | (5,859) | (203,454) | (484,647) | (71,429) | ||||||
Plus: Changes in the fair value of financial instruments | (70,404) | 32,095 | 47,130 | 6,946 | 264,500 | 79,225 | 11,677 | ||||||
Adjusted net (loss) income | (53,635) | (412,805) | 7,383 | 1,087 | 61,046 | (405,422) | (59,752) | ||||||
VNET GROUP, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||
Three months ended | |||||||
June 30, 2025 | March 31, 2026 | June 30, 2026 | |||||
RMB | RMB | RMB | US$ | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net cash generated from operating activities | 366,596 | 173,676 | 218,076 | 32,140 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of property and equipment | (1,870,296) | (1,752,448) | (1,513,291) | (223,031) | |||
Purchases of intangible assets | (24,388) | (42,073) | (25,466) | (3,753) | |||
(Payments for) proceeds from investments | (1,216,168) | (308,408) | 690,458 | 101,761 | |||
Payments for other investing activities | (171,213) | (115,851) | (123,642) | (18,223) | |||
Net cash used in investing activities | (3,282,065) | (2,218,780) | (971,941) | (143,246) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from bank borrowings | 1,004,537 | 6,560,103 | 2,176,142 | 320,724 | |||
Repayments of bank borrowings | (381,728) | (3,954,802) | (1,689,182) | (248,955) | |||
Payments for finance leases | (44,471) | (91,453) | (243,834) | (35,937) | |||
Proceeds from issuance of ordinary shares | - | 951,393 | - | - | |||
Contribution from noncontrolling interest in subsidiaries | (4,555) | 4,976,468 | - | - | |||
Proceeds from (payments for) other financing activities | 8,875 | (4,493,902) | (330,061) | (48,645) | |||
Net cash generated from (used in) financing activities | 582,658 | 3,947,807 | (86,935) | (12,813) | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (14,764) | (24,360) | (24,795) | (3,654) | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (2,347,575) | 1,878,343 | (865,595) | (127,573) | |||
Cash, cash equivalents and restricted cash at beginning of period | 5,767,658 | 6,201,685 | 8,080,028 | 1,190,849 | |||
Cash, cash equivalents and restricted cash at end of period | 3,420,083 | 8,080,028 | 7,214,433 | 1,063,276 | |||
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-second-quarter-2026-financial-results-302853949.html
SOURCE VNET Group, Inc.