VNET Group’s Wholesale Pivot Boosts Revenue and Adjusted EBITDA

Overview

• VNET reported first-quarter net revenue of RMB 2.69 billion, roughly 20% year-over-year growth, and adjusted EBITDA of RMB 891.5 million, about a 30% increase that beat consensus while the company posted an ADR loss of RMB 8.16.
• Wholesale data-center revenue rose 58.1% to RMB 1.06 billion and became VNET’s largest revenue stream for the first time.
• Operational strength included 519 MW of new orders year-to-date (517 MW wholesale), 907 MW of wholesale capacity in service, overall wholesale utilization of 75.7% and mature wholesale utilization of 93.8%.
• Management reaffirmed full-year 2026 guidance of RMB 11.5–11.8 billion in revenue and RMB 3.55–3.75 billion in adjusted EBITDA while keeping capex guidance at RMB 10–12 billion and a 450–500 MW delivery target for the year.
• The company’s shift to large wholesale AI customers should improve long-term unit economics but requires heavy upfront spending and construction, which explains why GAAP and ADR losses persist during the current build phase and why investors should watch utilization, pre-commitment rates, and delivered MW.