VNET Reports Unaudited Fourth Quarter and Full Year 2025 Financial Results

BEIJING, March 16, 2026 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.

"We closed 2025 with strong full-year results, successfully achieving our 2025 delivery plan with a record 404MW delivered and exceeding guidance on both revenues and adjusted EBITDA," said Josh Sheng Chen, Founder, Executive Chairperson and Interim Chief Executive Officer of VNET. "Our wholesale IDC business maintained exceptional momentum, driven by strong customer demand and our proven ability to scale capacity rapidly and efficiently. Our order momentum remained robust, with a total of 135MW of new wholesale orders secured in the fourth quarter of 2025. As a leading player, we remain focused on reinforcing our core strengths and developing our scalable and high-performance data centers to capture the accelerating AI-driven demand. Moving forward, we will further advance our Hyperscale 2.0 framework to achieve sustainable, high-quality growth and create long-term value for all stakeholders."

Peter Zhihua Zhang, Senior Vice President, Operational Finance of VNET, commented, "In the fourth quarter of 2025, we continued to achieve high-quality growth amid strong AI-driven demand. Total net revenues increased 19.6% year-over-year to RMB2.69 billion, led by 47.1% year-over-year growth in wholesale revenues. Adjusted EBITDA increased 11.6% year-over-year to RMB805.1 million. For the full year, total net revenues increased 20.5% year-over-year to RMB9.95 billion, and adjusted EBITDA grew 22.6% to RMB2.98 billion, both exceeding our 2025 full year guidance. We remain committed to disciplined capital allocation, advancing capital recycling and other strategic initiatives to reinforce our financial foundation and support long-term sustainable growth. Looking ahead, we are confident in our strategic direction and well-positioned to leverage this strengthened foundation to deliver sustainable long-term value."

Fourth Quarter 2025 Financial Highlights

[1] IDC business refers to managed hosting services, which consists of wholesale IDC business and retail IDC business. Such categorization is based on the nature and scale of our data center projects.

[2] Non-IDC business consists of cloud services and VPN services.

Full Year 2025 Financial Highlights

Fourth Quarter 2025 Operational Highlights

Wholesale IDC Business

[3] Utilization rate is calculated by dividing capacity utilized by customers by capacity in service.

[4] Mature wholesale capacity refers to wholesale data centers with utilization rate at or above 80%.

[5] Ramp-up wholesale capacity refers to wholesale data centers with utilization rate below 80%.

[6] Total capacity committed represents capacity committed to customers under effective agreements.

[7] Commitment rate is calculated by dividing total capacity committed by total capacity in service.

[8] Total capacity pre-committed is capacity under construction pre-committed to customers under effective agreements.

[9] Pre-commitment rate is calculated by dividing total capacity pre-committed by total capacity under construction.

Retail IDC Business [10]

[10] For 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 December 31, 2024, September 30, 2025, and December 31, 2025, 3,766, 3,791 and 3,791 reserved cabinets, respectively, were excluded from retail IDC utilization rate calculations.

[11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months.

[12] 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.

Fourth Quarter 2025 Financial Results

TOTAL NET REVENUES: Total net revenues in the fourth quarter of 2025 were RMB2.69 billion (US$384.2 million), representing an increase of 19.6% from RMB2.25 billion in the same period of 2024. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.

Net revenues from IDC business increased by 23.7% to RMB2.02 billion (US$288.3 million) from RMB1.63 billion in the same period of 2024. The year-over-year increase was mainly driven by an increase in wholesale revenues.

Net revenues from non-IDC business increased by 8.8% to RMB670.8 million (US$95.9 million) from RMB616.5 million in the same period of 2024.

GROSS PROFIT: Gross profit in the fourth quarter of 2025 was RMB540.4 million (US$77.3 million), representing an increase of 7.0% from RMB504.9 million in the same period of 2024. Gross margin in the fourth quarter of 2025 was 20.1%, compared with 22.5% in the same period of 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization, and share-based compensation expenses from gross profit, increased by 23.1% to RMB1.14 billion (US$162.7 million) in the fourth quarter from RMB923.9 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) in the fourth quarter of 2025 was 42.3%, compared with 41.1% in the same period of 2024.

OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2025 were RMB387.4 million (US$55.4 million), compared with RMB267.9 million in the same period of 2024.

Sales and marketing expenses were RMB73.6 million (US$10.5 million) in the fourth quarter of 2025, compared with RMB73.1 million in the same period of 2024.

Research and development expenses were RMB78.7 million (US$11.2 million) in the fourth quarter of 2025, compared with RMB56.1 million in the same period of 2024.

General and administrative expenses were RMB218.9 million (US$31.3 million) in the fourth quarter of 2025, compared with RMB193.0 million in the same period of 2024.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were RMB380.2 million (US$54.4 million) in the fourth quarter of 2025, compared with RMB229.6 million in the same period of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the fourth quarter of 2025 were 14.1%, compared with 10.2% in the same period of 2024.

ADJUSTED EBITDA (non-GAAP), which exclude depreciation and amortization, and share-based compensation expenses from operating profit, was RMB805.1 million (US$115.1 million) in the fourth quarter of 2025, representing an increase of 11.6% from RMB721.3 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) in the fourth quarter of 2025 was 30.0%, compared with 32.1% in the same period of 2024.

NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the fourth quarter of 2025 was RMB304.7 million (US$43.6 million), compared with a net loss attributable to VNET Group, Inc. of RMB11.1 million in the same period of 2024. The year-on-year change is mainly attributable to (i) RMB469.8 million gain on deconsolidation of a subsidiary and (ii) RMB287.4 million in fair value gains on financial instruments, partially offset by RMB388.9 million in income tax expenses in the fourth quarter of 2025.

EARNINGS/LOSS PER SHARE: Basic earnings per share and diluted loss per share in the fourth quarter of 2025 were RMB0.17 (US$0.02) and RMB0.001 (US$0.00), respectively, which represents the equivalent of RMB1.02 (US$0.12) and RMB0.01 (US$0.00) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares. Diluted earnings/loss per share is calculated using adjusted net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

LIQUIDITY: As of December 31, 2025, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB6.58 billion (US$941.1 million).

Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB3.23 billion (US$462.1 million). Total long-term debt was RMB16.72 billion (US$2.39 billion), comprised of long-term borrowings of RMB11.58 billion (US$1.66 billion) and convertible notes of RMB5.14 billion (US$734.8 million).

Net cash generated from operating activities in the fourth quarter of 2025 was RMB546.4 million (US$78.1 million), compared with RMB572.2 million in the same period of 2024. During the fourth quarter of 2025, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.61 billion (US$230.8 million).

Full Year 2025 Financial Results

TOTAL NET REVENUES: Total net revenues in the full year of 2025 were RMB9.95 billion (US$1.42 billion), representing an increase of 20.5% from RMB8.26 billion in the full year of 2024.

Net revenues from IDC business increased by 28.5% to RMB7.43 billion (US$1.06 billion) from RMB5.78 billion in the full year of 2024.

Net revenues from non-IDC business increased by 1.8% to RMB2.52 billion (US$360.9 million) from RMB2.48 billion in the full year of 2024.

GROSS PROFIT: Gross profit in the full year of 2025 was RMB2.19 billion (US$313.5 million), representing an increase of 19.7% from RMB1.83 billion in the full year of 2024. Gross margin in the full year of 2025 was 22.0%, compared with 22.2% in the full year of 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization, and share-based compensation expenses from gross profit, was RMB4.22 billion (US$603.2 million) in the full year of 2025, compared with RMB3.34 billion in the full year of 2024. Adjusted cash gross margin (non-GAAP) in the full year of 2025 was 42.4%, compared with 40.4% in the full year of 2024.

OPERATING EXPENSES: Total operating expenses in the full year of 2025 were RMB1.41 billion (US$201.9 million), compared with RMB1.16 billion in the full year of 2024.

Sales and marketing expenses were RMB279.2 million (US$39.9 million) in the full year of 2025, compared with RMB263.8 million in the full year of 2024.

Research and development expenses were RMB261.1 million (US$37.3 million) in the full year of 2025, compared with RMB246.6 million in the full year of 2024.

General and administrative expenses were RMB796.9 million (US$114.0 million) in the full year of 2025, compared with RMB659.0 million in the full year of 2024.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were RMB1.39 billion (US$198.4 million) in the full year of 2025, compared with RMB1.02 billion in the full year of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the full year of 2025 were 13.9%, compared with 12.3% in the full year of 2024.

ADJUSTED EBITDA (non-GAAP) which exclude depreciation and amortization, and share-based compensation expenses from operating profit, was RMB2.98 billion (US$425.9 million) in the full year of 2025, representing an increase of 22.6% from RMB2.43 billion in the full year of 2024. Adjusted EBITDA margin (non-GAAP) was 29.9% in the full year of 2025, compared with 29.4% in the full year of 2024.

NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the full year of 2025 was RMB251.8 million (US$36.0 million), compared with a net income attributable to VNET Group, Inc. of RMB183.2 million in the full year of 2024. The net loss in the full year of 2025 was primarily attributable to (i) income tax expenses of RMB557.5 million and (ii) a fair value loss on financial instruments of RMB314.3 million, partially offset by gain of RMB469.8 million on the deconsolidation of a subsidiary, while the net income in the full year of 2024 included a gain on debt extinguishment of RMB246.2 million.

LOSS PER SHARE: Basic and diluted loss per share in the full year of 2025 were both RMB0.16 (US$0.02), which is equivalent to RMB0.96 (US$0.12) per ADS. Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

LIQUIDITY: Net cash generated from operating activities in the full year of 2025 was RMB1.92 billion (US$274.3 million), compared with RMB2.01 billion in the full year of 2024. During the full year of 2025, the Company obtained new debt financing, refinancing facilities and other financings of RMB7.62 billion (US$1.09 billion).

Business Outlook

For the full year of 2026, the Company expects its total net revenues to be in the range of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6%, and adjusted EBITDA (non-GAAP) to be in the range of RMB3,550 million to RMB3,750 million, representing year-over-year growth of 19.2% to 25.9%. In addition, the Company expects capital expenditure to be in the range of RMB10 billion to RMB12 billion for the full year of 2026.

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 U.S. Eastern Time on Monday, March 16, 2026, or 8:00 PM Beijing Time on Monday, March 16, 2026.

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/10053457-whqrjy.html

Chinese line (listen-only mode):

https://s1.c-conf.com/diamondpass/10053458-y6okj5.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 March 24, 2026, by dialing the following numbers:

US/Canada:

1 855 883 1031

Mainland China:

400 1209 216

Hong Kong, China:

800 930 639

International:

+61 7 3107 6325

Reply PIN (English line):

10053457

Reply PIN (Chinese line):

10053458

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

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 U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

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 to government entities and blue-chip enterprises to 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 as well as VNET's strategic and operational plans 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:

Xinyuan Liu

Tel: +86 10 8456 2121

Email: [email protected]

VNET GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))

As of

December 31, 2024

December 31, 2025

RMB

US$

Assets

Current assets:

Cash and cash equivalents

1,492,436

5,523,571

789,860

Restricted cash

545,795

656,010

93,808

Short-term Investments

379,198

54,225

Accounts and notes receivable, net

1,655,984

2,222,106

317,757

Amounts due from related parties

336,360

429,411

61,405

Prepaid expenses and other current assets

2,789,573

2,241,570

320,542

Total current assets

6,820,148

11,451,866

1,637,597

Non-current assets:

Restricted cash

42,842

22,104

3,161

Long-term investments, net

794,688

1,062,660

151,958

Property and equipment, net

17,216,635

22,775,579

3,256,864

Intangible assets,net

1,403,787

2,004,710

286,670

Land use rights, net

766,213

867,765

124,089

Operating lease right-of-use assets, net

4,618,212

4,871,341

696,592

Deferred tax assets, net

306,623

251,572

35,974

Derivative financial instrument

6,768

11,185

1,599

Other non-current assets

381,126

1,275,380

182,377

Total non-current assets

25,536,894

33,142,296

4,739,284

Total assets

32,357,042

44,594,162

6,376,881

Liabilities and Shareholders' Equity

Current liabilities:

Short-term bank borrowings

589,000

1,172,561

167,674

Current portion of long-term borrowings

1,420,190

2,059,154

294,455

Current portion of finance lease liabilities

208,299

357,995

51,193

Current portion of operating lease liabilities

899,818

962,275

137,603

Accounts and notes payable

709,260

741,878

106,087

Amounts due to related parties

355,679

415,889

59,471

Income taxes payable

69,569

154,343

22,071

Advances from customers

1,378,806

933,920

133,549

Deferred revenue

87,830

138,671

19,830

Current portion of deferred government grants

6,727

51,062

7,302

Accrued expenses and other payables

3,618,237

5,459,465

780,693

Total current liabilities

9,343,415

12,447,213

1,779,928

Non-current liabilities:

Long-term borrowings

7,767,390

11,579,664

1,655,870

Convertible notes

1,897,738

5,138,664

734,819

Non-current portion of finance lease liabilities

1,532,309

1,643,713

235,048

Non-current portion of operating lease liabilities

3,779,293

4,001,047

572,142

Unrecognized tax benefits

107,850

118,734

16,979

Deferred tax liabilities

734,404

840,387

120,174

Deferred government grants

273,824

260,268

37,218

Total non-current liabilities

16,092,808

23,582,477

3,372,250

Mezzanine equity:

Redeemable non-controlling interests

1,711,591

244,754

Total mezzanine equity

1,711,591

244,754

Shareholders' equity

Ordinary shares

112

Treasury stock

(161,892)

(179,087)

(25,609)

Additional paid-in capital

17,298,692

17,360,323

2,482,493

Statutory reserves

107,380

116,316

16,633

Accumulated other comprehensive (loss) income

(18,504)

46,375

6,632

Accumulated deficit

(10,859,888)

(11,125,595)

(1,590,939)

Total VNET Group, Inc. shareholders' equity

6,365,900

6,218,444

889,226

Noncontrolling interest

554,919

634,437

90,723

Total shareholders' equity

6,920,819

6,852,881

979,949

Total liabilities，mezzanine equity and shareholders' equity

32,357,042

44,594,162

6,376,881

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

Twelve months ended

December 31, 2024

September 30, 2025

December 31, 2025

December 31, 2024

December 31, 2025

RMB

US$

RMB

US$

Net revenues

2,246,389

2,581,747

2,687,089

384,249

8,259,069

9,949,261

1,422,725

Cost of revenues

(1,741,533)

(2,042,718)

(2,146,705)

(306,975)

(6,426,914)

(7,756,772)

(1,109,204)

Gross profit

504,856

539,029

540,384

77,274

1,832,155

2,192,489

313,521

Operating income (expenses)

Operating income

98,869

12,767

14,670

2,098

114,585

27,755

3,969

Sales and marketing expenses

(73,088)

(71,328)

(73,564)

(10,520)

(263,756)

(279,201)

(39,925)

Research and development expenses

(56,098)

(71,295)

(78,665)

(11,249)

(246,612)

(261,133)

(37,342)

General and administrative expenses

(192,954)

(185,765)

(218,853)

(31,296)

(659,030)

(796,861)

(113,950)

Allowance for doubtful debt

(44,590)

(17,664)

(30,965)

(4,428)

(107,899)

(102,749)

(14,693)

Total operating expenses

(267,861)

(333,285)

(387,377)

(55,395)

(1,162,712)

(1,412,189)

(201,941)

Operating profit

236,995

205,744

153,007

21,879

669,443

780,300

111,580

Interest income

6,162

8,724

5,014

717

27,958

37,358

5,342

Interest expense

(77,125)

(151,017)

(189,447)

(27,091)

(400,975)

(598,625)

(85,602)

Other income

1,855

7,355

41,176

5,888

52,728

55,576

7,949

Other expenses

(10,185)

(5,525)

(4,971)

(711)

(27,290)

(18,433)

(2,636)

Changes in the fair value of financial instruments

(71,575)

(337,216)

287,384

41,095

(74,112)

(314,332)

(44,949)

Gain on debt extinguishment

246,175

Gain on deconsolidation of a subsidiary

469,838

67,186

469,838

67,186

Foreign exchange (loss) gain

(1,327)

16,174

(29,436)

(4,209)

(19,242)

5,523

790

Income (loss) before income taxes and gain from equity method investments

84,800

(255,761)

732,565

104,754

474,685

417,205

59,660

Income tax expenses

(82,547)

(21,467)

(388,933)

(55,617)

(234,229)

(557,510)

(79,723)

Gain from equity method investments

1,197

1,919

1,710

245

7,967

6,884

984

Net income (loss)

3,450

(275,309)

345,342

49,382

248,423

(133,421)

(19,079)

Net income attributable to noncontrolling interests

(14,546)

(16,471)

(20,056)

(2,868)

(65,223)

(67,518)

(9,655)

Net income attributable to redeemable non-controlling interests

(15,263)

(20,613)

(2,948)

(50,903)

(7,279)

Net (loss) income attributable to the VNET Group, Inc.

(11,096)

(307,043)

304,673

43,566

183,200

(251,842)

(36,013)

Accretion to redemption amount of redeemable non-controlling interests

(23)

(4,839)

(692)

(4,929)

(705)

Net (loss) profit attributable to the Company's ordinary shareholders

(11,096)

(307,066)

299,834

42,874

183,200

(256,771)

(36,718)

Loss (earnings) per share

Basic

(0.01)

(0.19)

0.17

0.02

0.11

(0.16)

(0.02)

Diluted

(0.01)

(0.19)

(0.00)

0.02

(0.16)

(0.02)

Shares used in (loss) earnings per share computation

Basic*

1,608,291,868

1,613,726,084

1,616,275,922

1,593,594,519

1,612,272,787

Diluted*

1,608,291,868

1,613,726,084

1,762,607,179

1,742,346,367

1,625,720,609

Loss (earnings) per ADS (6 ordinary shares equal to 1 ADS)

Basic

(0.06)

(1.14)

1.02

0.12

0.66

(0.96)

(0.12)

Diluted

(0.06)

(1.14)

(0.01)

(0.00)

0.12

(0.96)

(0.12)

* Shares used in (loss) earnings 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

Twelve months ended

December 31, 2024

September 30, 2025

December 31, 2025

December 31, 2024

December 31, 2025

RMB

US$

RMB

US$

Gross profit

504,856

539,029

540,384

77,274

1,832,155

2,192,489

313,521

Plus: depreciation and amortization

414,364

511,334

596,766

85,336

1,500,348

2,024,390

289,484

Plus: share-based compensation expenses

4,652

384

507

4,886

1,196

171

Adjusted cash gross profit

923,872

1,050,747

1,137,657

162,683

3,337,389

4,218,075

603,176

Adjusted cash gross margin

41.1 %

40.7 %

42.3 %

40.4 %

42.4 %

Operating expenses

(267,861)

(333,285)

(387,377)

(55,395)

(1,162,712)

(1,412,189)

(201,941)

Plus: share-based compensation expenses

38,243

1,899

7,191

1,028

143,671

24,582

3,515

Adjusted operating expenses

(229,618)

(331,386)

(380,186)

(54,367)

(1,019,041)

(1,387,607)

(198,426)

Operating profit

236,995

205,744

153,007

21,879

669,443

780,300

111,580

Plus: depreciation and amortization

441,447

550,248

644,349

92,141

1,611,760

2,172,124

310,610

Plus: share-based compensation expenses

42,895

2,283

7,698

1,101

148,557

25,778

3,686

Adjusted EBITDA

721,337

758,275

805,054

115,121

2,429,760

2,978,202

425,876

Adjusted EBITDA margin

32.1 %

29.4 %

30.0 %

29.4 %

29.9 %

VNET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))

Three months ended

December 31, 2024

September 30, 2025

December 31, 2025

RMB

US$

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash generated from operating activities

572,236

809,817

546,424

78,136

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property and equipment

(1,492,972)

(2,184,378)

(1,809,905)

(258,813)

Purchases of intangible assets

(82,693)

(37,074)

(91,438)

(13,075)

Proceeds from (payments for) investments

22,087

(5,000)

1,380,795

197,451

Proceeds from disposal of a subsidiary, net

755,964

108,101

Proceeds from (payments for) other investing activities

177,418

(62,689)

(791,034)

(113,116)

Net cash used in investing activities

(1,376,160)

(2,289,141)

(555,618)

(79,452)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank borrowings

1,240,147

1,867,856

1,537,209

219,818

Repayments of bank borrowings

(366,664)

(231,432)

(486,814)

(69,613)

Payments for finance leases

(25,789)

(44,824)

(84,359)

(12,063)

Contribution from noncontrolling interest in subsidiaries

250,657

702,659

100,479

(Payments for) proceeds from other financing activities

(62,448)

299,027

461,622

66,011

Net cash generated from financing activities

785,246

2,141,285

2,130,316

304,632

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

17,784

(808)

(673)

(96)

Net (decrease) increase in cash, cash equivalents and restricted cash

(894)

661,152

2,120,450

303,220

Cash, cash equivalents and restricted cash at beginning of period

2,081,967

3,420,083

4,081,235

583,609

Cash, cash equivalents and restricted cash at end of period

2,081,073

4,081,235

6,201,685

886,829

SOURCE VNET Group, Inc.