Overview
- Net revenue increased 8.6% year over year to 2.92 billion yuan ($417.8 million), narrowly beating consensus.
- Adjusted gross profit rose 5.8% to 1.48 billion yuan and adjusted EBITDA grew 5.2% to 1.37 billion yuan, with both margins contracting due to higher utility costs.
- Earnings came in at 2.47 yuan (35 cents) per ADS, while the company reported a U.S. dollar loss that missed expectations for a 1-cent loss.
- Operating metrics improved, with total committed and pre-committed area at 670,106 square meters, area utilized at 504,843 square meters, and in-service utilization at 75.5%.
- For fiscal 2026 GDS guides revenue to 12.40–12.90 billion yuan and adjusted EBITDA to 5.75–6.00 billion yuan with about 9.0 billion yuan in capex, and its dollar revenue outlook trails consensus as liquidity is bolstered by ABS/C-REIT monetizations and a $685 million raise.