VNET Group, a leading Chinese internet data center services provider, saw its stock plummet 10.92% during Wednesday's intraday trading following the release of its first-quarter 2025 financial results. The sharp decline came as the company reported a wider-than-expected loss and provided full-year revenue guidance that fell short of analyst expectations.

For Q1 2025, VNET Group reported a net loss of RMB 237.6 million ($32.7 million), significantly wider than the RMB 187.0 million loss in the same period last year. The company's loss per American Depositary Share (ADS) came in at RMB 0.90 ($0.12), substantially missing the analyst estimate of RMB 0.12 loss per ADS. This disappointing bottom-line performance appears to be the primary driver of the stock's decline.

Despite reporting revenue of RMB 2,250 million ($309.54 million), which slightly surpassed expectations, and a 26.4% year-over-year increase in adjusted EBITDA to RMB 682.4 million ($94.0 million), investors seemed more concerned with the company's outlook. VNET Group provided full-year 2025 revenue guidance of RMB 9,100-9,300 million, falling short of the analyst consensus estimate of RMB 9,330 million. The combination of wider losses and cautious guidance has led investors to reassess the company's growth prospects and profitability in the competitive Chinese data center market, resulting in the significant stock price drop.