GDS Holdings Ltd (GDS) experienced a pre-market plunge of 5.38% on Tuesday, following the release of its fourth-quarter and full-year 2025 financial results.

The data center operator reported a net loss of RMB462.8 million (US$66.2 million) for the quarter, significantly wider than the RMB173.4 million loss recorded in the same period last year. The company swung to a loss of 0.31 renminbi per diluted share from a net income of 2.81 renminbi per share a year earlier, missing analyst expectations. A key driver of the increased loss was a substantial impairment charge of RMB1,561.2 million on long-lived assets, which the company attributed to lower expected sales prices and fixed remaining lease terms for certain data centers.

While quarterly revenue showed an 8.6% year-over-year increase to RMB2.92 billion, the bottom-line miss and the significant one-time impairment expense appear to have driven negative investor sentiment in the pre-market session.