VNET Q1 2026 Earnings Call Transcript

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Date

Tuesday, May 26, 2026 astatine 8 a.m. ET

Call participants

• Rotating President — Xiao Liu

• SVP of Operational Finance — Peter Zhang

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Full Conference Call Transcript

Ms. Sharon Liu, our rotating President; and Mr. Peter Zhang, our SVP of Operational Finance. The absorption squad volition articulation the Q&A league successful person. Additionally, this league is being recorded. A webcast of this league telephone volition besides beryllium disposable connected our speech astatine ir.vnet.com. Now let's get started with today's presentation. Ms. Liu, delight spell ahead.

Xiao Liu: Good morning, and bully evening, everyone. Thank you for joining our telephone today. I'll commencement with an overview of our large accomplishments during the archetypal 4th of 2026. We began this twelvemonth with beardown results, acknowledgment to beardown execution of our effectual dual halfway strategy and hyperscale 2.0 framework. On the operational side, our wholesale IDC concern delivered robust maturation driven by beardown lawsuit request and accelerated lawsuit movements arsenic of March 31, 2026. Our wholesale capableness successful work roseate by 18 megawatts to 907 megawatts, successful enactment with our program to ore our capableness enlargement deliveries successful the 2nd fractional of the year.

Meanwhile, driven by customers' accelerated movements, wholesale capableness utilized by customers grew by 64 megawatts to 687 megawatts, bringing the utilization complaint to 75.7%, up 5.6 percent points quarter-over-quarter. Our retail IDC concern continued to advancement smoothly supported by increasing AI-driven demand. Retail MRR per furniture accrued somewhat to RMB 9,448 sequentially and retail utilization complaint remained unchangeable astatine 64.1% during the archetypal quarter. On the fiscal side, our full nett revenues accrued by 19.8% year-over-year to RMB 2.69 cardinal for the archetypal quarter. Wholesale revenues stay the cardinal maturation driver, reaching RMB 1.06 billion, a important year-over-year summation of 58.1%.

Our adjusted EBITDA for the archetypal 4th besides accrued by 30.6% year-over-year to RMB 891.5 million, driven by the beardown maturation of our wholesale IDC business. In addition, our premium reliable services proceed to gain lawsuit spot and summation marketplace share, evidenced by aggregate high-quality bid wins, totaling 519 megawatts year-to-date 2026. I volition spell done the details connected the adjacent slide. Moving connected to our caller bid wins connected Slide 5, year-to-date 2026. Order momentum remained beardown with 3 wholesale orders. secured totaling 57 megawatts fueled by continued maturation successful AI-driven request for high-quality information halfway resources. We secured 2 orders, 110 megawatts and 400 megawatts from an Internet lawsuit astatine abstracted information centers successful the Greater Beijing area.