Xunlei (NASDAQ:XNET) Announces Earnings Results

Xunlei (NASDAQ:XNET) released its quarterly earnings results on Thursday. The software maker reported $0.02 EPS for the quarter, FiscalAI reports. Xunlei had a return on equity of 2.75% and a net margin of 315.06%.The business had revenue of $142.50 million during the quarter.

Here are the key takeaways from Xunlei’s conference call:

• Total revenue accelerated, with Q4 revenue of $143.3 million (up ~70% YoY) and full-year 2025 revenue of $462.4 million (up 42.5%), driven mainly by cloud computing and live streaming growth.
• Live streaming and IVAS delivered rapid expansion—Q4 revenue of $55.1 million (+102.8% YoY) and full-year IVAS revenue up ~97.5%—helped by overseas audio streaming expansion and the Hupu acquisition boosting advertising.
• The company sold a 50% stake in Onething (its cloud operating entity) to Kingsoft Cloud, retaining a minority stake and saying the deal will improve capital efficiency while allowing Xunlei to reallocate resources to subscriptions and overseas live streaming.
• Profitability shows mixed signals: operating income turned positive (Q4 and full-year), but gross margins compressed (Q4 margin 43% vs 51.7% prior year) as revenue mix shifted to lower‑margin cloud and overseas streaming, and Q4 GAAP net loss was $228.9 million largely due to a $232.6 million fair‑value decline in the Arashi Vision investment.
• Liquidity and capital actions: year‑end cash/short‑term investments were $305.2 million, buybacks were modest (~$6.5 million total), and management says proceeds from transactions will be used for R&D, market expansion and to evaluate shareholder‑return options in the future.

Xunlei Stock Up 8.6%

Shares of NASDAQ:XNET opened at $6.56 on Friday. The company has a fifty day moving average of $6.47 and a 200-day moving average of $7.40. Xunlei has a 52-week low of $2.83 and a 52-week high of $11.03. The company has a market capitalization of $411.90 million, a PE ratio of 0.33 and a beta of 1.06. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.01 and a current ratio of 2.02.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Xunlei in the 4th quarter worth about $31,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Xunlei during the 4th quarter valued at $38,000. Skandinaviska Enskilda Banken AB publ bought a new position in shares of Xunlei during the 3rd quarter valued at $112,000. Walleye Capital LLC bought a new stake in shares of Xunlei during the 2nd quarter worth about $51,000. Finally, Russell Investments Group Ltd. acquired a new position in shares of Xunlei during the 3rd quarter valued at about $153,000. Institutional investors own 5.07% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings cut shares of Xunlei from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, Xunlei currently has an average rating of “Hold”.

About Xunlei

Xunlei Limited (NASDAQ: XNET) is a China-based technology company specializing in content acceleration and cloud services. Its core offerings include the Xunlei download manager, which integrates peer-to-peer (P2P) and cloud-based acceleration technologies to enhance file delivery speeds for large downloads. The company has expanded its suite of products to encompass cloud storage solutions, media streaming applications and mobile browsing tools, all aimed at improving digital content distribution and user experience.

Founded in 2003 and headquartered in Shenzhen, Xunlei originally gained traction by addressing bandwidth constraints in China’s burgeoning internet market.