Revenue growth accelerated to 19.8% in 2026Q1, yet structural margin compression persists with operating margins remaining constrained at 9.2%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 10.34B | 9.68B | 8.26B | 7.41B | 7.19B | 6.19B | 4.83B | 3.79B | 3.4B | 3.39B | 3.64B | 3.63B | 2.88B | 1.97B | 1.52B | 1.02B | 525.2M | 313.63M |
| Revenue Growth % | 20.83% | 17.18% | 11.41% | 3.11% | 16.15% | 28.18% | 27.45% | 11.41% | 0.25% | -6.84% | 0.2% | 26.35% | 46.26% | 29.04% | 49.29% | 94.39% | 67.46% | - |
| Cost of Goods Sold | 8.11B | 7.55B | 6.43B | 6.12B | 5.88B | 4.75B | 3.75B | 2.85B | 2.46B | 2.63B | 2.93B | 2.78B | 2.07B | 1.45B | 1.1B | 744.37M | 396.86M | 229.3M |
| COGS % of Revenue | - | 77.96% | 77.82% | 82.56% | 81.85% | 76.77% | 77.72% | 75.21% | 72.22% | 77.65% | 80.45% | 76.51% | 71.84% | 73.72% | 72.07% | 72.91% | 75.56% | 73.11% |
| Gross Profit | 2.23B | 2.13B | 1.83B | 1.29B | 1.31B | 1.44B | 1.08B | 939.45M | 944.87M | 758.41M | 712.14M | 853.76M | 810.14M | 516.87M | 425.68M | 276.56M | 128.34M | 84.33M |
| Gross Margin % | 21.59% | 22.04% | 22.18% | 17.44% | 18.15% | 23.23% | 22.28% | 24.79% | 27.78% | 22.35% | 19.55% | 23.49% | 28.16% | 26.28% | 27.93% | 27.09% | 24.44% | 26.89% |
| Gross Profit Growth % | - | 16.41% | 41.75% | -0.96% | -9.25% | 33.64% | 14.54% | -0.57% | 24.59% | 6.5% | -16.59% | 5.38% | 56.74% | 21.42% | 53.92% | 115.48% | 52.19% | - |
| Operating Expenses | 1.48B | 1.4B | 1.16B | 3.26B | 1.24B | 1.42B | 959.41M | 757.22M | 707.39M | 2.13B | 1.55B | 1.14B | 924.84M | 475.1M | 107.57M | 261.65M | 361.15M | 57.2M |
| OpEx % of Revenue | - | 14.47% | 14.08% | 44.02% | 17.29% | 22.89% | 19.87% | 19.98% | 20.8% | 62.69% | 42.63% | 31.31% | 32.15% | 24.16% | 7.06% | 25.63% | 68.76% | 18.24% |
| Selling, General & Admin | 1.07B | 1.15B | 922.79M | 808.06M | 954.86M | 1.1B | 770.12M | 621.59M | 634.81M | 776.63M | 992.57M | 928.2M | 770.63M | 341.39M | 263.38M | 163.81M | 333.69M | 49.59M |
| SG&A % of Revenue | - | 11.85% | 11.17% | 10.9% | 13.28% | 17.73% | 15.95% | 16.41% | 18.67% | 22.89% | 27.26% | 25.54% | 26.79% | 17.36% | 17.28% | 16.05% | 63.54% | 15.81% |
| Research & Development | 290.87M | 254.02M | 246.61M | 322.22M | 306.84M | 188.49M | 112.89M | 88.79M | 92.11M | 149.14M | 149.34M | 142.84M | 121.68M | 77.83M | 63.93M | 34.66M | 19.92M | 7.61M |
| R&D % of Revenue | - | 2.62% | 2.99% | 4.35% | 4.27% | 3.05% | 2.34% | 2.34% | 2.71% | 4.4% | 4.1% | 3.93% | 4.23% | 3.96% | 4.19% | 3.39% | 3.79% | 2.43% |
| Other Operating Expenses | 3M | 0 | -6.69M | 2.13B | -24.6M | 130.47M | 76.39M | 46.84M | -19.53M | 1.2B | 410.42M | 66.95M | 32.54M | 55.88M | -219.74M | 63.19M | 7.54M | 0 |
| Operating Income | 748.34M | 732.04M | 669.44M | -1.97B | 62.22M | 21.31M | 116.6M | 182.23M | 237.48M | -1.37B | -840.2M | -284.23M | -114.7M | 41.77M | 80.94M | 14.9M | -232.81M | 27.14M |
| Operating Margin % | 7.23% | 7.56% | 8.11% | -26.59% | 0.87% | 0.34% | 2.41% | 4.81% | 6.98% | -40.34% | -23.07% | -7.82% | -3.99% | 2.12% | 5.31% | 1.46% | -44.33% | 8.65% |
| Operating Income Growth % | - | 9.35% | 133.97% | -3267.79% | 191.91% | -81.72% | -36.01% | -23.26% | 117.35% | -62.88% | -195.6% | -147.81% | -374.58% | -48.39% | 443.03% | 106.4% | -957.95% | - |
| EBITDA | 2.45B | 2.7B | 2.22B | -163.56M | 1.68B | 1.29B | 1.11B | 954.44M | 872.09M | -701.44M | -176.13M | 301.95M | 291.95M | 241.96M | 209.1M | 103.88M | -199.29M | 56.15M |
| EBITDA Margin % | 23.66% | 27.91% | 26.82% | -2.21% | 23.3% | 20.82% | 22.89% | 25.19% | 25.64% | -20.67% | -4.84% | 8.31% | 10.15% | 12.3% | 13.72% | 10.18% | -37.95% | 17.9% |
| EBITDA Growth % | -0.21% | 21.93% | 1454.51% | -109.76% | 29.96% | 16.58% | 15.84% | 9.44% | 224.33% | -298.26% | -158.33% | 3.42% | 20.66% | 15.71% | 101.29% | 152.13% | -454.96% | - |
| D&A (Non-Cash Add-back) | 1.69B | 1.97B | 1.55B | 1.81B | 1.61B | 1.27B | 988.98M | 772.21M | 634.61M | 667.1M | 664.07M | 586.18M | 406.65M | 200.19M | 128.16M | 88.98M | 33.51M | 29.01M |
| EBIT | 761.1M | 732.04M | 669.44M | -2.17B | 62.22M | 1B | -2.2B | 234.38M | 260.38M | -876.28M | -780.14M | -131.62M | -79.11M | 101.47M | 105.19M | 64.01M | -230.33M | 27.54M |
| Net Interest Income | -675.47M | -545.98M | -373.02M | -270.37M | -241.73M | -303.05M | -348.9M | -291.35M | -190.88M | -152.39M | -177.51M | -220.69M | -164.12M | -88.27M | 4.92M | 10.54M | -2.21M | 411K |
| Interest Income | 40.93M | 36.34M | 27.96M | 41.8M | 31.57M | 31.9M | 31.71M | 54.61M | 45.19M | 32.92M | 21.08M | 53.49M | 67.9M | 48.5M | 16.3M | 14.94M | 580K | 827K |
| Interest Expense | 716.4M | 582.32M | 400.98M | 312.17M | 273.31M | 334.95M | 380.61M | 345.95M | 236.07M | 185.31M | 198.59M | 274.18M | 232.02M | 136.78M | 11.38M | 4.4M | 2.79M | 416K |
| Other Income/Expense | -123.67M | -319.51M | -186.79M | -511.89M | -701.79M | 605.19M | -2.7B | -358.04M | 0 | 360.72M | -102.89M | -69.21M | -197.1M | -78.45M | 12.88M | 44.71M | -321K | -14K |
| Pretax Income | 624.67M | 412.53M | 482.65M | -2.48B | -639.57M | 626.51M | -2.58B | -175.81M | -162.32M | -1.01B | -943.08M | -353.44M | -311.8M | -36.68M | 93.81M | 59.62M | -233.13M | 27.12M |
| Pretax Margin % | 6.04% | 4.26% | 5.84% | -33.49% | -8.9% | 10.12% | -53.46% | -4.64% | -4.77% | -29.71% | -25.9% | -9.73% | -10.84% | -1.86% | 6.16% | 5.84% | -44.39% | 8.65% |
| Income Tax | 986.13M | 542.32M | 234.23M | 114.37M | 135.81M | 111.41M | 109.34M | 5.44M | 24.41M | -90.17M | -11.16M | 47.83M | 16.67M | 10.32M | 36.16M | 13.68M | 1.59M | -32.86M |
| Effective Tax Rate % | 157.86% | 131.46% | 48.53% | -4.61% | -21.23% | 17.78% | -4.23% | -3.09% | -15.04% | 8.95% | 1.18% | -13.53% | -5.35% | -28.15% | 38.54% | 22.94% | -0.68% | -121.16% |
| Net Income | -2.25B | -249.78M | 183.2M | -2.64B | -789.58M | 500.1M | -2.71B | -182.29M | -205.06M | -772.73M | -633.6M | -428.1M | -348.48M | -48.23M | 56.32M | 18.44M | -255.39M | -5.92M |
| Net Margin % | -21.78% | -2.58% | 2.22% | -35.67% | -10.98% | 8.08% | -56.11% | -4.81% | -6.03% | -22.78% | -17.4% | -11.78% | -12.11% | -2.45% | 3.7% | 1.81% | -48.63% | -1.89% |
| Net Income Growth % | -1892.62% | -236.34% | 106.93% | -234.84% | -257.89% | 118.46% | -1386.27% | 11.11% | 73.46% | -21.96% | -48% | -22.85% | -622.6% | -185.62% | 205.38% | 107.22% | -4214.73% | - |
| Net Income (Continuing) | -361.42M | -129.79M | 248.42M | -2.6B | -775.38M | 515.1M | -2.68B | -181.25M | -186.74M | -917.64M | -931.92M | -401.27M | -328.48M | -47M | 57.66M | 45.94M | -234.72M | 59.98M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.76B | 2.35B | 554.88M | 499.39M | 366.9M | 358.35M | 331.82M | 275.58M | 269.35M | 153.24M | 725.78M | 808.93M | 786.19M | 16.59M | 18.55M | 17.35M | 120.74M | 16.99M |
| EPS (Diluted) | -8.22 | -0.90 | 0.66 | -17.58 | -5.16 | 3.30 | -26.82 | -1.20 | -1.80 | -6.90 | -7.92 | -5.22 | -5.22 | -0.78 | 0.96 | 0.36 | -15.90 | -0.50 |
| EPS Growth % | -2318.7% | -236.36% | 103.75% | -240.7% | -256.36% | 112.3% | -2135% | 33.33% | 73.91% | 12.88% | -51.72% | 0% | -569.23% | -181.25% | 166.67% | 102.26% | -3080% | - |
| EPS (Basic) | - | -0.90 | 0.66 | -17.58 | -5.16 | 3.42 | -22.56 | -1.20 | -1.80 | -6.90 | -7.92 | -5.22 | -5.22 | -0.78 | 0.96 | 0.42 | -15.90 | -0.50 |
| Diluted Shares Outstanding | 274.14M | 268.71M | 290.39M | 150.19M | 147.8M | 151.93M | 119.48M | 111.47M | 112.45M | 112.14M | 102.86M | 82.01M | 66.89M | 60.73M | 59.42M | 52.8M | 16.06M | 11.92M |
| Basic Shares Outstanding | 274.14M | 268.71M | 265.6M | 150.19M | 147.8M | 144.23M | 119.42M | 111.47M | 112.45M | 112.09M | 102.86M | 82.01M | 66.73M | 60.73M | 58.67M | 43.27M | 16.06M | 11.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Debt Refinancing Risk
According to the latest quarterly data, VNET achieved a 19.8% year-over-year revenue expansion in 2026Q1, marking a significant acceleration from the 0.9% growth observed in 2023Q4 and suggesting that the company's dual-core strategy is successfully capturing increased demand within China's Tier-1 metropolitan data center markets.
The consistent climb in quarterly revenue from $1.9 billion to $2.7 billion over the last ten quarters indicates a successful scaling of capacity. However, investors should monitor whether this growth is driven by sustainable enterprise demand or if it relies on lower-margin wholesale contracts that may complicate long-term profitability.
As reported in financial statements, VNET's gross margin fluctuated between 15.3% and 25.2% over the past ten quarters, with the most recent 22.9% figure highlighting the ongoing difficulty in maintaining pricing power amidst rising utility costs and a shift toward lower-margin wholesale service deployments.
The volatility in gross margins suggests that the company struggles to pass through energy price spikes to its client base effectively. This structural limitation implies that future margin expansion may be capped unless the company can successfully pivot toward higher-value, interconnect-heavy retail service offerings.
Based on VNET's reported figures, operating income has failed to scale consistently with revenue, as evidenced by the 9.2% operating margin in 2026Q1, which remains well below the levels required to offset the company's heavy administrative and financing burdens in a capital-intensive industry.
The erratic nature of operating income, which swung from a massive loss in 2023Q4 to a $246.9 million profit in 2026Q1, indicates significant operational inefficiency. This suggests that the company's current cost structure is not yet optimized to leverage its growing revenue base into meaningful bottom-line performance.
Analysis of the income statement reveals that VNET's net income is highly inconsistent, with a reported loss of $2.2 billion in 2026Q1 following a $295.7 million profit in 2025Q4, a trend that appears heavily influenced by non-operating items and significant fluctuations in share-based compensation.
The extreme swings in net income suggest that headline EPS figures may not accurately reflect the underlying cash-generating capability of the business. Investors should be wary of these distortions, as they often mask the true impact of the company's high debt load and capital-intensive expansion strategy.
Data from recent filings indicates that VNET's reliance on complex financing instruments and a high debt-to-equity ratio of 3.14 creates a precarious situation, where any further deterioration in net margins could severely limit the company's ability to service its obligations or fund necessary infrastructure upgrades.
Short-sellers would likely focus on the company's inability to generate consistent positive net income despite strong top-line growth. This disconnect warrants further investigation into whether the current expansion model is fundamentally sustainable or if it is merely deferring a liquidity crisis through continuous debt issuance.
Quick answers to the most common questions about buying VNET stock.
For fiscal year 2025, VNET Group, Inc. (VNET) reported total revenue of $9.68B. This represents a 2985.8% increase compared to $313.6M in 2009.
VNET Group, Inc. (VNET) reported a net loss of $249.8M for the fiscal year ending 2025.
VNET Group, Inc. (VNET) reported an operating income of $732.0M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
VNET Group, Inc. (VNET) generated $2.13B in gross profit for the year, representing a gross profit margin of 22.0%. This demonstrates the company's core pricing power and production efficiency.