Xunlei (NASDAQ:XNET) Posts Earnings Results

by · The Markets Daily

Xunlei (NASDAQ:XNET – Get Free Report) 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 firm had revenue of $142.50 million for 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 Trading Up 7.0%

Shares of Xunlei stock traded up $0.42 on Thursday, hitting $6.46. 333,500 shares of the company’s stock traded hands, compared to its average volume of 240,631. Xunlei has a one year low of $2.83 and a one year high of $11.03. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.02 and a quick ratio of 2.01. The company has a fifty day moving average of $6.48 and a two-hundred day moving average of $7.41. The company has a market capitalization of $405.62 million, a price-to-earnings ratio of 0.32 and a beta of 1.06.

Analysts Set New Price Targets

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

Get Our Latest Research Report on XNET

Hedge Funds Weigh In On Xunlei

Several institutional investors have recently added to or reduced their stakes in XNET. NewEdge Advisors LLC boosted its holdings in shares of Xunlei by 9,106.5% during the 1st quarter. NewEdge Advisors LLC now owns 18,413 shares of the software maker’s stock worth $83,000 after buying an additional 18,213 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Xunlei by 314.7% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 196,328 shares of the software maker’s stock valued at $795,000 after acquiring an additional 148,982 shares in the last quarter. XTX Topco Ltd lifted its position in shares of Xunlei by 244.1% during the 2nd quarter. XTX Topco Ltd now owns 75,032 shares of the software maker’s stock valued at $304,000 after acquiring an additional 53,226 shares during the period. Walleye Capital LLC bought a new position in Xunlei during the second quarter worth $51,000. Finally, Marshall Wace LLP acquired a new stake in Xunlei in the second quarter worth $219,000. 5.07% of the stock is owned by institutional investors and hedge funds.

Xunlei Company Profile

(Get Free Report)

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.

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