SHANGHAI, China, March 17, 2026 (GLOBE NEWSWIRE) -- GDS Holdings Limited ("GDS Holdings", "GDS" or the "Company") (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

   -- Net revenue increased by 8.6% year-over-year ("Y-o-Y") to RMB2,921.7 
      million (US$417.8 million) in the fourth quarter of 2025 (4Q2024: 
      RMB2,690.7 million). 
 
   -- Net loss1 was RMB462.8 million (US$66.2 million) in the fourth quarter of 
      2025 (4Q2024: RMB173.4 million). 
 
   -- Net loss margin was 15.8% in the fourth quarter of 2025 (4Q2024: 6.5%). 
 
   -- Adjusted EBITDA (non-GAAP) increased by 5.2% Y-o-Y to RMB1,365.6 million 
      (US$195.3 million) in the fourth quarter of 2025 (4Q2024: RMB1,297.7 
      million). See "Non-GAAP Disclosure" and "Reconciliations of GAAP and 
      non-GAAP results" elsewhere in this earnings release. 
 
   -- Adjusted EBITDA margin (non-GAAP) was 46.7% in the fourth quarter of 2025 
      (4Q2024: 48.2%). 

Full Year 2025 Financial Highlights

   -- Net revenue increased by 10.8% year-over-year ("Y-o-Y") to RMB11,432.3 
      million (US$1,634.8 million) in 2025 (2024: RMB10,322.1 million). 
 
   -- Net income was RMB959.4 million (US$137.2 million) in 2025 (2024: net 
      loss of RMB770.9 million). 
 
   -- Net income margin was 8.4% in 2025 (2024: net loss margin of 7.5%). 
 
   -- Adjusted EBITDA (non-GAAP) increased by 10.8% Y-o-Y to RMB5,403.5 million 
      (US$772.7 million) in 2025 (2024: RMB4,876.4 million). See "Non-GAAP 
      Disclosure" and "Reconciliations of GAAP and non-GAAP results" elsewhere 
      in this earnings release. 
 
   -- Adjusted EBITDA margin (non-GAAP) was 47.3% in 2025 (2024: 47.2%). 

Fourth Quarter and Full Year 2025 Operating Highlights

   -- Total area committed and pre-committed increased by 6.4% Y-o-Y to 670,106 
      sqm as of December 31, 2025 (December 31, 2024: 629,997 sqm). 
 
   -- Area utilized increased by 11.4% Y-o-Y to 504,843 sqm as of December 31, 
      2025 (December 31, 2024: 453,094 sqm). 
 
   -- Area in service increased by 8.9% Y-o-Y to 668,283 sqm as of December 31, 
      2025 (December 31, 2024: 613,583 sqm) 
 
   -- Utilization rate (area utilized divided by area in service) was 75.5% as 
      of December 31, 2025 (December 31,2024: 73.8%). 

"We concluded 2025 on a strong note, delivering solid financial and operational results that underscore our disciplined execution and strategic focus," said Mr. William Huang, Chairman and Chief Executive Officer of GDS. "During the year of 2025, we achieved the highest level of gross new bookings and gross move-in for the past five years. We strongly believe that demand will further accelerate during the AI era. Heading into 2026, we remain committed to disciplined and sustainable growth, viewing AI as a transformative catalyst for our long-term success."

"In 2025, our revenue increased by 10.8% and adjusted EBITDA grew by 10.8% year-over-year, yielding an adjusted EBITDA margin of 47.3%," added Mr. Dan Newman, Chief Financial Officer. "We completed the milestone ABS and C-REIT asset monetisation transactions in 2025 which provides us with flexibility in terms of recycling capital by accessing China equity. Recently, we raised US$685 million through sale of DayOne shares and a private placement of convertible preferred shares, further solidifying our financial position. We are well prepared in terms of funding capabilities for data center capacity expansion to address the compelling new opportunities in our core business."

Fourth Quarter 2025 Financial Results

Net revenue in the fourth quarter of 2025 was RMB2,921.7 million (US$417.8 million), an 8.6% increase over the same period last year of RMB2,690.7 million. The Y-o-Y increase was mainly due to continued ramp-up of our data centers.

Cost of revenue in the fourth quarter of 2025 was RMB2,309.3 million (US$330.2 million), a 9.3% increase over the same period last year of RMB2,112.5 million. The Y-o-Y increase was in line with the continued ramp-up of our data centers.

Gross profit was RMB612.4 million (US$87.6 million) in the fourth quarter of 2025, a 5.9% increase over the same period last year of RMB578.1 million.

Gross profit margin was 21.0% in the fourth quarter of 2025, compared with 21.5% in the same period last year. The Y-o-Y decrease was mainly due to a higher level of utility costs as a percentage of net revenue.

Adjusted Gross Profit ("Adjusted GP") (non-GAAP) is defined as gross profit excluding depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs and share-based compensation expenses allocated to cost of revenue. Adjusted GP was RMB1,477.9 million (US$211.3 million) in the fourth quarter of 2025, a 5.8% increase over the same period last year of RMB1,396.7 million. See "Non-GAAP Disclosure" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

Adjusted GP margin (non-GAAP) was 50.6% in the fourth quarter of 2025, compared with 51.9% in the same period last year. The Y-o-Y decrease was mainly due to a higher level of utility costs as a percentage of net revenue.

Selling and marketing expenses, excluding share-based compensation expenses of RMB12.1 million (US$1.7 million), were RMB30.3 million (US$4.3 million) in the fourth quarter of 2025, a 27.8% increase over the same period last year of RMB23.7 million (excluding share-based compensation of RMB6.9 million). The Y-o-Y increase was mainly due to higher sales-related personnel costs.

General and administrative expenses, excluding share-based compensation expenses of RMB46.8 million (US$6.7 million), depreciation and amortization expenses of RMB57.7 million (US$8.2 million) and operating lease cost relating to prepaid land use rights of RMB15.4 million (US$2.2 million), were RMB79.2 million (US$11.3 million) in the fourth quarter of 2025, a 27.0% decrease over the same period last year of RMB108.5 million (excluding share-based compensation expenses of RMB55.9 million, depreciation and amortization expenses of RMB79.0 million and operating lease cost relating to prepaid land use rights of RMB15.6 million). The Y-o-Y decrease was mainly due to a decrease in professional fees and cost savings at the corporate level.

Research and development costs were RMB7.7 million (US$1.1 million) in the fourth quarter of 2025, compared with RMB6.9 million in the same period last year.

Impairment losses of long-lived assets were RMB1,561.2 million (US$223.3 million) in the fourth quarter of 2025, compared with nil in the same period last year. The impairment loss arises when the estimated undiscounted future cash flows expected to result from the direct use of the asset group plus net proceeds expected from disposition of the asset group, if any, is less than the carrying value of the asset group. Due to lower sales price as well as fixed remaining lease term for data centers located in leased properties, based on the Company's assessment, the impairment loss was recorded in the fourth quarter of 2025, which was the excess of the carrying amount of the asset group over the fair value of the asset group.

Net interest expenses for the fourth quarter of 2025 were RMB412.9 million (US$59.0 million), a 10.0% decrease over the same period last year of RMB458.7 million. The Y-o-Y decrease was mainly due to lower interest rates.

Foreign currency exchange loss for the fourth quarter of 2025 was RMB0.3 million (US$0.04 million), compared with foreign currency exchange gain of RMB8.1 million in the same period last year.

Others, net for the fourth quarter of 2025 was RMB3.2 million (US$0.5 million), compared with RMB29.7 million in the same period last year.

Loss on deconsolidation of subsidiaries for the fourth quarter of 2025 was RMB62.2 million (US$8.9 million), mainly arising from adjustment of gain on deconsolidation of the data center project companies which were sold to the C-REIT, compared with nil in the same period last year.

Income tax expenses for the fourth quarter of 2025 were RMB23.3 million (US$3.3 million), compared with RMB34.1 million in the same period last year. The effective tax rate was negative 1.4% for the fourth quarter of 2025, compared with negative 24.5% in the same period last year, which was mainly due to the valuation allowance provided for the deferred tax assets arising from the impairment losses of long-lived assets.

Share of results of equity method investees for the fourth quarter of 2025 was an income of RMB1,230.7 million (US$176.0 million), mainly arising from the dilution gain of our investment in DayOne Data Centers Limited ("DayOne") following the completion of part of DayOne's Series C Convertible Preferred Share issue in the fourth quarter of 2025, compared with nil in the same period last year.

Net loss in the fourth quarter of 2025 was RMB462.8 million (US$66.2 million), compared with RMB173.4 million in the same period last year.

Basic and diluted loss per ordinary share in the fourth quarter of 2025 was RMB0.31 (US$0.04), compared with income of RMB2.81 in the same period last year.

Basic and diluted loss per American Depositary Share ("ADS") in the fourth quarter of 2025 was RMB2.47 (US$0.35), compared with income of RMB22.51 in the same period last year.

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March 17, 2026 07:00 ET (11:00 GMT)