Xunlei Announces Unaudited Financial Results for the Second Quarter Ended June 30, 2026
Rhea-AI Summary
Xunlei (Nasdaq: XNET) reported unaudited second-quarter 2026 results, excluding discontinued operations. Total revenues reached US$102.7 million, up 38.9% year-over-year, driven by subscription revenues of US$44.5 million (+22.6%) and live-streaming and other services revenues of US$58.2 million (+54.8%).
Gross profit increased 23.1% year-over-year to US$57.3 million, while gross margin declined to 55.8% from 63.0% a year earlier as live-streaming, a lower-margin business, grew in mix. Xunlei recorded an operating loss of US$4.8 million versus operating income of US$0.3 million in Q2 2025.
Due mainly to US$213.8 million of other net losses from fair value changes in its long-term investment in Arashi Vision, net loss from continuing operations was US$218.5 million, compared with net income of US$726.4 million a year earlier. Non-GAAP net loss from continuing operations was US$2.1 million. Cash, cash equivalents and short-term investments totaled US$276.9 million as of June 30, 2026, down from US$303.6 million as of March 31, 2026. Xunlei also highlighted a newly announced share repurchase program.
Positive
- Total revenues US$102.7 million, up 38.9% year-over-year
- Subscription revenues US$44.5 million, increasing 22.6% year-over-year
- Live-streaming and other services US$58.2 million, up 54.8% year-over-year
- Gross profit US$57.3 million, rising 23.1% year-over-year
- Non-GAAP net loss US$2.1 million, near break-even versus business scale
- Cash, cash equivalents and short-term investments US$276.9 million as of June 30, 2026
Negative
- Gross profit margin declined to 55.8% from 63.0% a year earlier
- Operating loss US$4.8 million versus operating income US$0.3 million in Q2 2025
- Net loss from continuing operations US$218.5 million versus net income US$726.4 million a year earlier
- Other net losses US$213.8 million mainly from fair value changes of Arashi Vision investment
- Cash, cash equivalents and short-term investments fell to US$276.9 million from US$303.6 million sequentially
- General and administrative expenses rose to US$12.7 million, partly due to provisions for ongoing litigations
News Explained
The completed second-quarter report adds a holder-relevant share-count change: shares outstanding rose from
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 28 | Q1 earnings | Positive | +7.2% | Revenue growth and non-GAAP income accompanied a large investment-related GAAP loss. |
| Mar 12 | Q4/FY earnings | Positive | +8.6% | Quarterly and annual revenue growth supported the reported financial results. |
| Nov 13 | Q3 earnings | Positive | -2.3% | Revenue growth and investment gains were followed by a negative 24-hour reaction. |
| Aug 14 | Q2 earnings | Positive | +12.7% | Revenue growth, investment gains, and revenue guidance accompanied the release. |
| Aug 07 | Earnings scheduling | Neutral | -3.3% | The scheduled earnings release and conference call preceded a negative reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed three positive and two negative 24-hour reactions, averaging 4.59%.
Key Terms
non-gaap financial
discontinued operations financial
fair value financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SHENZHEN, China, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise1)
- Total revenues were US
$102.7 million , representing an increase of38.9% year-over-year.
- Subscription revenues were US
$44.5 million , representing an increase of22.6% year-over-year.
- Live-streaming and other services revenues were US
$58.2 million , representing an increase of54.8% year-over-year.
- Gross profit was US
$57.3 million , representing an increase of23.1% year-over-year, and gross profit margin was55.8% in the second quarter, compared with63.0% in the same period of 2025.
- Net loss from continuing operations was US
$218.5 million in the second quarter, compared with net income of US$726.4 million in the same period of 2025.
- Non-GAAP net loss2 from continuing operations was US
$2.1 million in the second quarter, compared with non-GAAP net income of US$7.2 million in the same period of 2025.
- Diluted loss per ADS from continuing operations was US
$3.43 in the second quarter, compared with diluted earnings per ADS of US$11.47 in the same period of 2025.
- Non-GAAP diluted loss per ADS3 from continuing operations was US
$0.03 in the second quarter, compared with non-GAAP diluted earnings per ADS of US$0.12 in the same period of 2025.
“We are pleased to report continued top-line growth in the second quarter of 2026, building on the robust momentum established in Q1. This performance fully validates our strategic pivot to be more focused on a consumer-only (To-C) business model. In Q2, we recorded total revenue of US
"To further reinforce market confidence and deliver sustainable long-term value for our shareholders, we recently announced a new share repurchase program. We believe that this initiative demonstrates our unwavering confidence in the company’s strong fundamentals and potential for long-term growth, positioning us well for the future."
"Looking ahead, we remain committed to our user-centric development strategy. We will continue to innovate and enhance our product and service offerings, deepen our penetration into international markets, and drive sustainable growth in our core businesses. Through disciplined capital management, we are well-positioned to pursue balanced and sustainable corporate growth. We believe these strategic initiatives will help us deliver lasting value to our users and shareholders amid evolving market dynamics," Mr. Li concluded.
Second Quarter 2026 Financial Results (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise)
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from live-streaming and other services were US
Cost of Revenues
Cost of revenues was US
Gross Profit and Gross Profit Margin
Gross profit for the second quarter of 2026 was US
Research and Development Expenses
Research and development expenses for the second quarter of 2026 were US
Sales and Marketing Expenses
Sales and marketing expenses for the second quarter of 2026 were US
General and Administrative Expenses
General and administrative expenses for the second quarter of 2026 were US
Operating (Loss)/Income
Operating loss was US
Other (Losses)/Income, Net
Other losses, net was US
Net (Loss)/Income and (Loss)/Earnings Per ADS
Net loss from continuing operations was US
Diluted loss per ADS from continuing operations in the second quarter of 2026 was US
Cash Balance
As of June 30, 2026, the Company had cash, cash equivalents and short-term investments of US
Conference Call Information
Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on August 13, 2026 (8:00 p.m. Beijing/Hong Kong Time), to discuss the Company's quarterly results and recent business developments.
Participant Online Registration:
https://register-conf.media-server.com/register/BIa77b2d16be874a6eb0b92ce720fd7da8
Please register to join the conference using the link provided above and dial in 10 minutes before the call is scheduled to begin. Once registered, the participants will receive an email with personal PIN and dial-in information, and participants can choose to access either via Dial-In or Call Me. A kindly reminder that "Call Me" does not work for China number.
The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com. Following the earnings conference call, an archive of the call will be available at https://edge.media-server.com/mmc/p/qm7pbos8
About Xunlei
Founded in 2003, Xunlei Limited (Nasdaq: XNET) is a leading technology company providing distributed cloud services in China. Xunlei provides a wide range of products and services across cloud acceleration and digital entertainment to deliver an efficient, smart and safe internet experience.
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "future," "intends," "plans," "estimates" and similar statements. Among other things, the management's quotations in this press release, as well as the Company's strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company's ability to continue to innovate and provide attractive products and services to retain and grow its user base and advertisers; the Company's ability to keep up with technological developments and users' changing demands in the internet industry; the Company's ability to convert its users into subscribers of its premium services; the Company’s ability to integrate and grow its acquired business; the Company's ability to deal with existing and potential copyright infringement claims and other related claims; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company's ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Non-GAAP Financial Measures
To supplement Xunlei's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating (loss)/income, (2) non-GAAP net (loss)/income from continuing operations, (3) non-GAAP basic and diluted (loss)/earnings per share for common shares from continuing operations, and (4) non-GAAP basic and diluted (loss)/earnings per ADS attributable to continuing operations. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company's operating performance by excluding share-based compensation expenses, and fair value changes of long-term investments, which are not expected to result in future cash payments, may recur from period to period but are subject to significant market volatility, and which are not indicative of our core operating results and business outlook. These non-GAAP financial measures also facilitate management's internal comparisons to Xunlei's historical performance and assist the Company's financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a recurring expense in Xunlei's results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented, excluding discontinued operations.
| XUNLEI LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | |||
| June 30, | Dec 31, | ||
| 2026 | 2025 | ||
| US$ | US$ | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | 125,827 | 144,559 | |
| Short-term investments | 151,032 | 138,895 | |
| Accounts receivable, net | 23,860 | 26,136 | |
| Inventories | 521 | 384 | |
| Due from related parties | 14,233 | 11,152 | |
| Prepayments and other current assets | 18,196 | 11,397 | |
| Assets of discontinued operations | - | 71,354 | |
| Total current assets | 333,669 | 403,877 | |
| Non-current assets: | |||
| Restricted cash | 832 | 806 | |
| Long-term investments | 674,160 | 1,070,596 | |
| Deferred tax assets | 25,654 | 10,083 | |
| Property and equipment, net | 50,670 | 50,662 | |
| Intangible assets, net | 32,507 | 32,717 | |
| Goodwill | 40,417 | 39,164 | |
| Due from a related party, non-current portion | 19,841 | 19,826 | |
| Long-term prepayments and other assets | 2,184 | 2,315 | |
| Operating lease assets | 1,502 | 1,877 | |
| Total assets | 1,181,436 | 1,631,923 | |
| Liabilities | |||
| Current liabilities: | |||
| Accounts payable | 19,841 | 18,837 | |
| Lease liabilities | 466 | 487 | |
| Due to related parties, current | 227 | 8 | |
| Contract liabilities, current portion | 41,776 | 42,817 | |
| Accrued liabilities and other payables | 68,287 | 75,367 | |
| Income tax payable | 3,075 | 3,975 | |
| Short-term bank borrowings and current portion of long-term bank borrowings | 30,833 | 30,095 | |
| Liabilities of discontinued operations | - | 36,872 | |
| Total current liabilities | 164,505 | 208,458 | |
| Non-current liabilities: | |||
| Contract liabilities, non-current portion | 1,575 | 1,624 | |
| Lease liabilities, non-current portion | 824 | 1,243 | |
| Deferred tax liabilities | 5,573 | 6,138 | |
| Due to related parties, non-current portion | 135 | - | |
| Bank borrowings, non-current portion | 25,694 | 38,413 | |
| Other long-term payables | 807 | 3,530 | |
| Total liabilities | 199,113 | 259,406 | |
| Equity | |||
| Common shares (US | 79 | 78 | |
| Additional paid-in-capital | 475,918 | 480,133 | |
| Accumulated other comprehensive loss | (9,839) | (17,413) | |
| Statutory reserves | 9,687 | 9,687 | |
| Treasury shares (60,724,939 shares and 56,299,689 shares as at December 31, 2025 and June 30, 2026, respectively) | 14 | 15 | |
| Retained earnings | 507,929 | 900,991 | |
| Total Xunlei Limited's shareholders' equity | 983,788 | 1,373,491 | |
| Non-controlling interests | (1,465) | (974) | |
| Total liabilities and shareholders' equity | 1,181,436 | 1,631,923 | |
| XUNLEI LIMITED Unaudited Condensed Consolidated Statements of (Loss)/Income (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||
| Three months ended | ||||
| June30, | March31, | June30, | ||
| 2026 | 2026 | 2025 | ||
| US$ | US$ | US$ | ||
| Revenues, net of rebates and discounts | 102,717 | 98,594 | 73,924 | |
| Business taxes and surcharges | (608) | (489) | (321) | |
| Net revenues | 102,109 | 98,105 | 73,603 | |
| Cost of revenues | (44,796) | (40,408) | (27,047) | |
| Gross profit | 57,313 | 57,697 | 46,556 | |
| Operating expenses | ||||
| Research and development expenses | (21,397) | (20,160) | (16,591) | |
| Sales and marketing expenses | (27,927) | (22,437) | (20,695) | |
| General and administrative expenses | (12,700) | (10,885) | (8,549) | |
| Credit loss (expenses)/write-back, net | (60) | 81 | (431) | |
| Total operating expenses | (62,084) | (53,401) | (46,266) | |
| Operating(loss)/ income | (4,771) | 4,296 | 290 | |
| Interest income | 907 | 771 | 1,036 | |
| Interest expense | (413) | (529) | (328) | |
| Other (losses)/income, net | (213,759) | (195,078) | 721,538 | |
| (Loss)/income before income taxes from continuing operations | (218,036) | (190,540) | 722,536 | |
| Income tax (expenses)/benefits | (477) | (1,850) | 3,817 | |
| Net (loss)/income from continuing operations | (218,513) | (192,390) | 726,353 | |
| Discontinued operations | ||||
| Income from discontinued operations before income taxes | - | 2,512 | 1,055 | |
| Income tax benefits/(expenses) | - | 15,211 | (4) | |
| Income from discontinued operations | - | 17,723 | 1,051 | |
| Net (loss)/income | (218,513) | (174,667) | 727,404 | |
| Less: net loss attributable to non-controlling interest | (89) | (29) | (186) | |
| Net (loss)/income attributable to common shareholders | (218,424) | (174,638) | 727,590 | |
| (Loss)/earnings per share for common shares, basic | ||||
| Continuing operations | (0.6861) | (0.6110) | 2.3272 | |
| Discontinued operations | - | 0.0563 | 0.0034 | |
| Total (loss) /earnings per share for common shares, basic | (0.6861) | (0.5547) | 2.3306 | |
| (Loss)/earnings per share for common shares, diluted | ||||
| Continuing operations | (0.6861) | (0.6110) | 2.2931 | |
| Discontinued operations | - | 0.0563 | 0.0034 | |
| Total (loss)/earnings per share for common shares, diluted | (0.6861) | (0.5547) | 2.2965 | |
| (Loss)/earnings per ADS, basic | ||||
| Continuing operations | (3.4305) | (3.0550) | 11.6360 | |
| Discontinued operations | - | 0.2815 | 0.0170 | |
| Total (loss)/earnings per ADS, basic | (3.4305) | (2.7735) | 11.6530 | |
| (Loss)/earnings per ADS, diluted | ||||
| Continuing operations | (3.4305) | (3.0550) | 11.4655 | |
| Discontinued operations | - | 0.2815 | 0.0170 | |
| Total (loss)/earnings per ADS, diluted | (3.4305) | (2.7735) | 11.4825 | |
| Weighted average number of common shares used in calculating: | ||||
| Basic | 318,378,628 | 314,813,023 | 312,196,048 | |
| Diluted | 318,378,628 | 314,813,023 | 316,830,316 | |
| Weighted average number of ADSs used in calculating: | ||||
| Basic | 63,675,726 | 62,962,605 | 62,439,210 | |
| Diluted | 63,675,726 | 62,962,605 | 63,366,063 | |
| XUNLEI LIMITED Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations) 4 (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||
| Three months ended | ||||
| June30, | March31, | June30, | ||
| 2026 | 2026 | 2025 | ||
| US$ | US$ | US$ | ||
| GAAP operating (loss)/income | (4,771) | 4,296 | 290 | |
| Share-based compensation expenses | 1,169 | 1,125 | 536 | |
| Non-GAAP operating (loss)/income | (3,602) | 5,421 | 826 | |
| GAAP net (loss)/income from continuing operations | (218,513) | (192,390) | 726,353 | |
| Share-based compensation expenses | 1,169 | 1,125 | 536 | |
| Fair value changes of long-term investments | 215,234 | 195,414 | (719,688) | |
| Non-GAAP net (loss)/income from continuing operations | (2,110) | 4,149 | 7,201 | |
| GAAP (loss)/earnings per share for common shares attributable to continuing operations: | ||||
| Basic | (0.6861) | (0.6110) | 2.3272 | |
| Diluted | (0.6861) | (0.6110) | 2.2931 | |
| GAAP (loss)/earnings per ADS attributable to continuing operations: | ||||
| Basic | (3.4305) | (3.0550) | 11.6360 | |
| Diluted | (3.4305) | (3.0550) | 11.4655 | |
| Non-GAAP (loss)/earnings per share for common shares attributable to continuing operations: | ||||
| Basic | (0.0063) | 0.0133 | 0.0237 | |
| Diluted | (0.0063) | 0.0133 | 0.0233 | |
| Non-GAAP (loss)/earnings per ADS for common shares attributable to continuing operations: | ||||
| Basic | (0.0315) | 0.0665 | 0.1185 | |
| Diluted | (0.0315) | 0.0665 | 0.1165 | |
| Weighted average number of common shares used in calculating: | ||||
| Basic | 318,378,628 | 314,813,023 | 312,196,048 | |
| Diluted | 318,378,628 | 314,813,023 | 316,830,316 | |
| Weighted average number of ADSs used in calculating: | ||||
| Basic | 63,675,726 | 62,962,605 | 62,439,210 | |
| Diluted | 63,675,726 | 62,962,605 | 63,366,063 | |
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com
1 In March 2026, the Company completed the disposal of its
2 Non-GAAP net (loss)/income is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results” contained in this press release.
3 Non-GAAP (loss)/earnings per ADS is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results” contained in this press release.
4 Non-GAAP reconciliation excludes the operations classified as discontinued operations. The comparative figures have been recalculated to exclude discontinued operations.
