VNET Group's stock tumbled 5.30% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The leading Chinese internet data center services provider reported a wider net loss and provided full-year revenue guidance that fell short of analyst expectations, overshadowing some positive aspects of its performance.

For Q1 2025, VNET Group reported revenue of RMB 2,250 million ($309.54 million), slightly surpassing the FactSet estimate of RMB 2,220 million. However, the company's net loss widened to RMB 237.6 million ($32.7 million), compared to a loss of RMB 187.0 million in the same period last year. The loss per American Depositary Share (ADS) came in at RMB 0.90 ($0.12), significantly missing the analyst estimate of RMB 0.12 loss per ADS.

Despite reporting a 26.4% year-over-year increase in adjusted EBITDA to RMB 682.4 million ($94.0 million) and an improved adjusted EBITDA margin of 30.4%, investors seemed more concerned with the company's outlook. VNET Group provided full-year 2025 revenue guidance of RMB 9,100-9,300 million, slightly below the FactSet consensus estimate of RMB 9,330 million. The company expects adjusted EBITDA growth of 11-14% for the year. The combination of wider losses and cautious guidance appears to have sparked the pre-market sell-off, as investors reassess the company's growth prospects and profitability in the competitive Chinese data center market.