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VNET Group shares slide after revenue growth amid expansion pressures

VNET said operating cash flow fell to RMB218.1 million in the quarter, even as revenue rose 14.2% year over year to RMB2.78 billion.

Sunday, August 23, 2026 · Written up by our desk · Results

VNET Group, Inc. (NASDAQ: VNET) reported second-quarter growth from its AI data-center buildout, but the company’s expanding footprint also intensified financial pressure, according to Yahoo Finance. The firm said revenue climbed 14.2% year over year to RMB2.78 billion, while company-defined adjusted EBITDA rose 25.4% to RMB918.3 million.

Despite the topline gains, VNET’s ADSs fell 16.9% on August 18 following the results, with investors appearing concerned about the costs associated with the expansion. Yahoo Finance noted that GAAP gross margin declined to 18.2%, and operating cash flow fell to RMB218.1 million from RMB366.6 million.

VNET highlighted wholesale IDC momentum, with wholesale revenue increasing 29.3% to RMB1.10 billion, its largest revenue segment. The company said wholesale capacity in service expanded 49.4% to 1,007 megawatts, while customer utilized capacity rose 45.5% to 744 megawatts, including a new 345-megawatt order from a leading cloud provider.

In balancing growth with funding needs, Yahoo Finance reported that VNET ended June with RMB7.21 billion of cash, restricted cash and short-term investments, against RMB4.18 billion of short-term debt and RMB19.24 billion of long-term debt. The company also said it obtained RMB3.77 billion of new debt financing, refinancing facilities, equity financing and other financing during the quarter.

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