GDS Holdings Ltd

Latest Results (22.11.2025):

GDS Holdings Ltd — Third quarter of 2025: the company reported stronger year‑over‑year performance driven by continued data center ramp‑up and a strategic C‑REIT transaction. Net revenue rose 10.2% to RMB2,887.1 million, adjusted EBITDA increased 11.4% to RMB1,342.2 million, and the company swung to net income of RMB728.6 million (vs. a loss a year earlier), supported in part by a one‑time gain from deconsolidation related to the C‑REIT IPO.

Revenue and gross profit

Net revenue: RMB2,887.1 million (US$405.6 million), +10.2% YoY. Gross profit: RMB639.2 million (US$89.8 million), +14.6% YoY. Gross margin improved to 22.1% from 21.3%, reflecting lower operating costs as data centers ramp.

Profitability and EPS

Net income: RMB728.6 million (US$102.4 million) in 3Q2025 vs. net loss of RMB231.1 million in 3Q2024. Net income margin 25.2% (vs. -8.8%). Basic EPS: RMB0.46; diluted EPS: RMB0.40. Basic income per ADS: RMB3.70; diluted: RMB3.21.

Adjusted EBITDA

Adjusted EBITDA (non‑GAAP): RMB1,342.2 million (US$188.5 million), +11.4% YoY. Adjusted EBITDA margin: 46.5% (vs. 46.0% in 3Q2024), reflecting operational leverage as ramp continues.

Operational metrics

Total area committed and pre‑committed: 656,729 sqm (+4.8% YoY). Area utilized: 486,607 sqm (+10.9% YoY). Area in service: 653,762 sqm (+9.8% YoY). Utilization rate: 74.4% (vs. 73.6% a year earlier).

One‑time items and equity losses

Recorded a RMB1,369.3 million gain on deconsolidation of subsidiaries related to the sale of project companies into the C‑REIT — a major contributor to reported net income. Share of results of equity method investees showed a loss of RMB461.1 million (mainly from DayOne). Income tax expense was RMB181.9 million, largely linked to the C‑REIT transaction.

Liquidity and indebtedness

Cash balance: RMB13,443.7 million (US$1,888.4 million) as of Sept 30, 2025. Short‑term debt: RMB3,312.6 million; long‑term debt: RMB42,324.5 million. The company secured new/refinancing facilities of RMB5,053.8 million during the quarter. Net interest expense fell 19% YoY to RMB375.5 million.

C‑REIT IPO and strategic impact

Completed the China REIT (C‑REIT) IPO and listing on the Shanghai Stock Exchange (began trading Aug 8, 2025). The transaction monetized project companies, generated the deconsolidation gain noted above, and provided enhanced financial flexibility for future growth—positioning GDS to capture accelerating demand (including AI‑driven demand).