Total Net Revenues
Increased by 22.1% year-over-year to RMB 2.43 billion for the second quarter, driven by the rapid growth of the wholesale business.
Wholesale Revenues
Reached RMB 854 million for the quarter, representing impressive year-over-year growth of 112.5%, fueled by the rapid growth of the wholesale IDC business.
Adjusted EBITDA
Increased by 27.7% year-over-year to RMB 732 million with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year-over-year, due to enhanced operational efficiency.
Adjusted Cash Gross Profit
Rose by 34.9% year-over-year to RMB 1.06 billion, attributed to the growth in high-quality, high-margin business.
Adjusted Cash Gross Margins
Improved to 43.6% from 39.5% in the same period last year, reflecting continuous efforts to enhance overall efficiency.
Net Operating Cash Flow
Achieved RMB 366.6 million during the second quarter, bringing the net operating cash flow for the first half of the year to RMB 562.3 million, supported by robust liquidity.
Retail Revenues
Accounted for RMB 959 million for the second quarter, continuing to be the largest part of total net revenues.
Non-IDC Business Revenues
Reported at RMB 621 million for the second quarter, contributing to the overall revenue mix.
CapEx Spending
For the first half of 2025, CapEx was RMB 3.89 billion, primarily allocated to the expansion of the wholesale IDC business.
VNET
$8.75+Infinity%1D
Analyst Views on VNET
Wall Street analysts forecast VNET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VNET is 13.25 USD with a low forecast of 12.50 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast VNET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VNET is 13.25 USD with a low forecast of 12.50 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 8.910
Low
12.50
Averages
13.25
High
14.00
Current: 8.910
Low
12.50
Averages
13.25
High
14.00
BofA
Buy
maintain
2025-08-22
Reason
BofA
Price Target
2025-08-22
maintain
Buy
Reason
BofA raised the firm's price target on VNET Group to $12.60 from $11.80 and keeps a Buy rating on the shares. Following a Q2 beat, the firm raised its FY25 and FY26 adjusted EBITDA forecasts, making its estimates 2% and 4% higher than consensus, respectively.
Citigroup
Louis Tsang
Strong Buy
Maintains
$16 → $20
2025-03-14
Reason
Citigroup
Louis Tsang
Price Target
$16 → $20
2025-03-14
Maintains
Strong Buy
Reason
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.
