GDS Holdings Limited (NASDAQ:GDS), a leading developer and operator of high-performance data centers in China, recently unveiled its third-quarter earnings for 2025, demonstrating a strong financial performance. The company achieved an earnings per share (EPS) of $0.44, significantly surpassing the estimated EPS of -$0.06. This marks a substantial improvement from the previous year's loss of $0.16 per share, as highlighted by Zacks.
The company's revenue for the quarter was approximately $405.4 million, slightly below the estimated $415.2 million. However, it still represents a 10.2% year-over-year increase. Despite the slight miss on revenue estimates, GDS has consistently exceeded consensus revenue estimates in three of the last four quarters.
GDS Holdings' financial health is further demonstrated by its net income of $102.4 million, a significant turnaround from a net loss of RMB231.1 million in the same period last year. The net income margin for the third quarter of 2025 was 25.2%, a stark contrast to the net loss margin of 8.8% recorded in the third quarter of 2024. This improvement underscores the company's strong performance in the data center sector.
The company's adjusted EBITDA increased by 11.4% year-over-year to $188.5 million, up from RMB1,204.9 million in the third quarter of 2024. This growth highlights GDS Holdings' ability to generate cash flow and maintain operational efficiency. The company's financial metrics, such as a price-to-earnings (P/E) ratio of approximately 8.37 and a price-to-sales ratio of about 3.48, reflect the value investors place on its earnings and sales.
GDS Holdings' financial leverage is indicated by a debt-to-equity ratio of approximately 1.88, while its current ratio of about 2.00 suggests a strong ability to cover short-term liabilities with short-term assets. The company's enterprise value to sales ratio of around 6.56 and enterprise value to operating cash flow ratio of approximately 23 further demonstrate its valuation and cash flow coverage.
