GDS Holdings Ltd

Latest Results (03.10.2025):

GDS Holdings Ltd reported strong financial performance in the second quarter of 2025, demonstrating significant growth in revenue and improved profitability. The company successfully ramped up its data center operations, achieving higher utilization rates and expanding its committed areas. Strategic financing initiatives, including the successful IPO of its C-REIT, have strengthened GDS's financial position, positioning it well for future growth opportunities driven by advancements in artificial intelligence.

Revenue Growth

Net revenue increased by 12.4% year-over-year to RMB2,900.3 million (US$404.9 million) in Q2 2025, up from RMB2,579.6 million in Q2 2024, driven by the continued expansion of data center operations.

Improved Profitability

GDS reported a net loss of RMB70.6 million (US$9.9 million) in Q2 2025, significantly lower than RMB231.8 million in the same quarter last year. The net loss margin improved to 2.4% from 9.0%, reflecting better cost management and operational efficiencies.

Adjusted EBITDA Growth

Adjusted EBITDA increased by 11.2% year-over-year to RMB1,371.8 million (US$191.5 million) in Q2 2025, maintaining a strong margin of 47.3%. This growth underscores the company's ability to enhance earnings while scaling its operations.

Operational Expansion

Total area committed and pre-committed rose by 8.1% year-over-year to 663,959 sqm, with area utilized increasing by 14.1% to 479,186 sqm. The utilization rate improved to 77.5%, up from 72.4%, highlighting effective capacity management.

Strategic Financing

GDS raised net proceeds of US$676 million through new convertible senior notes and equity issuance. The successful IPO of its C-REIT on the Shanghai Stock Exchange marks a key strategic milestone, providing enhanced financing flexibility for future growth initiatives.