STOCK TITAN

Xunlei Announces Unaudited Financial Results for the Third Quarter Ended September 30, 2026

Revenue growth was accompanied by lower gross margin and an operating loss, while a new buyback permits further capital returns.

Sentiment and the balance of points

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Xunlei (Nasdaq: XNET) reported third-quarter 2026 revenue of US$101.3 million, with growth accompanied by a loss from continuing operations. Revenue rose 12.9% year over year, with subscription revenue up 8.5% to US$44.1 million and live-streaming and other services up 16.6% to US$57.2 million. Gross profit increased 1.6% to US$56.5 million, but gross margin fell to 55.7% from 62.0%.

The continuing-operations net loss was US$235.8 million, versus US$550.4 million income a year earlier. Other losses, primarily linked to fair-value changes in its Arashi Vision investment, and higher operating expenses drove the reversal. Cash, cash equivalents and short-term investments fell to US$265.1 million from US$276.9 million at June 30. The board authorized a new up to US$20 million, 12-month buyback after the previous program reached its authorized share limit. Results exclude discontinued Shenzhen Onething operations.

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1 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

  • Moderate pointQ3 revenue rose 12.9% year over year to US$101.3 million.
  • Moderate point. Forward-looking: it has not happened yet and may not happen.New buyback authorization permits up to US$20 million in ADS or common-share repurchases over 12 months. 9% of market cap
  • Moderate pointApproximately 2.7 million ADSs repurchased for about US$13.8 million during Q3. 6.2% of market cap
  • Minor pointSubscription revenue increased 8.5% year over year to US$44.1 million.
  • Minor pointLive-streaming and other services revenue increased 16.6% year over year to US$57.2 million.
3 minor points
  • Minor pointGross profit rose 1.6% year over year to US$56.5 million.
  • Minor pointInterest income increased to US$884,000 from US$639,000 in Q3 2025.
  • Minor pointInterest expense decreased to US$395,000 from US$574,000 in Q3 2025.

Negative

  • Major pointContinuing-operations net loss reached US$235.8 million, versus US$550.4 million income in Q3 2025.
  • Moderate pointGross margin declined to 55.7% from 62.0% in Q3 2025.
  • Minor pointOther losses were US$219.2 million, versus US$547.5 million income a year earlier, primarily reflecting investment fair-value changes.
  • Minor pointOperating loss reached US$14.8 million, versus US$3.3 million operating income in Q3 2025.
  • Minor pointDiluted continuing-operations loss per ADS was US$3.74, versus US$8.61 earnings in Q3 2025.
10 minor points
  • Minor pointNon-GAAP continuing-operations net loss was US$16.4 million, versus US$5.6 million income in Q3 2025.
  • Minor pointNon-GAAP diluted continuing-operations loss per ADS was US$0.26, versus US$0.09 earnings in Q3 2025.
  • Minor pointCost of revenues rose to US$44.4 million from US$33.7 million in Q3 2025.
  • Minor pointResearch and development expenses rose to US$25.6 million from US$18.3 million in Q3 2025.
  • Minor pointSales and marketing expenses rose to US$33.3 million from US$24.5 million in Q3 2025.
  • Minor pointGeneral and administrative expenses rose to US$12.4 million from US$9.4 million in Q3 2025.
  • Minor pointCash, cash equivalents and short-term investments fell to US$265.1 million from US$276.9 million at June 30, 2026.
  • Minor pointQ3 revenue declined sequentially to US$101.304 million from US$102.717 million in Q2 2026.
  • Minor pointIncome tax expense increased to US$2.274 million from US$468,000 in Q3 2025.
  • Minor pointNear-term momentum is softer, Xunlei said, citing intensifying competition and evolving market conditions.

News Explained

Xunlei reports that it bought back approximately 2.7 million ADSs for about US$13.8 million during the third quarter, quantifying completed repurchases rather than only the new program’s authorization.

Key Figures

Total revenue: US$101.3 million; up 12.9% year-over-year Gross profit: US$56.5 million; up 1.6% year-over-year Gross profit margin: 55.7% vs. 62.0% +5 more
Total revenue
US$101.3 million; up 12.9% year-over-year
Third quarter 2026
Gross profit
US$56.5 million; up 1.6% year-over-year
Third quarter 2026
Gross profit margin
55.7% vs. 62.0%
Third quarter 2026 vs. same period in 2025
Net result from continuing operations
US$235.8 million loss vs. US$550.4 million income
Third quarter 2026 vs. same period in 2025
Non-GAAP net result from continuing operations
US$16.4 million loss vs. US$5.6 million income
Third quarter 2026 vs. same period in 2025
Other losses, net
US$219.2 million loss vs. US$547.5 million income
Third quarter 2026 vs. same period in 2025
New share repurchase authorization
Up to US$20 million over the next 12 months
Approved November 12, 2026
Cash, cash equivalents and short-term investments
US$265.1 million vs. US$276.9 million
September 30, 2026 vs. June 30, 2026

Previous Earnings Reports

2 past events · Latest: Aug 13
Same Type 2 events
  1. Aug 13

    2Q earnings

    24h Move
    +3.6%

    Investment fair-value losses contributed to a continuing-operations net loss despite revenue growth.

  2. Nov 13

    3Q earnings

    24h Move
    -2.3%

    Revenue growth accompanied GAAP net income largely driven by an investment fair-value gain.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, fair value, ads, discontinued operations
4 terms
non-gaap financial
"Non-GAAP net loss from continuing operations was US$16.4 million"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
View in glossary
fair value financial
"primarily attributable to the fair value changes of our long-term investment"
Fair value is an estimate of what an asset or company is really worth today, derived from expected future earnings, comparable market prices and other relevant facts—like agreeing a price for a used car after checking mileage, condition and similar listings. Investors use fair value to decide whether a stock looks overpriced or undervalued, which helps guide buy, hold or sell decisions and sets expectations for potential returns and risk.
View in glossary
ads financial
"Diluted loss per ADS from continuing operations was US$3.74"
Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.
discontinued operations financial
"results presented herein exclude Shenzhen Onething, discontinued operations"
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHENZHEN, China, Nov. 12, 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 third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise1)

  • Total revenues were US$101.3 million, representing an increase of 12.9% year-over-year.
  • Subscription revenues were US$44.1 million, representing an increase of 8.5% year-over-year.
  • Live-streaming and other services revenues were US$57.2 million, representing an increase of 16.6% year-over-year.
  • Gross profit was US$56.5 million, representing an increase of 1.6% year-over-year, and gross profit margin was 55.7% in the third quarter, compared with 62.0% in the same period of 2025.
  • Net loss from continuing operations was US$235.8 million in the third quarter, compared with net income of US$550.4 million in the same period of 2025.
  • Non-GAAP net loss2 from continuing operations was US$16.4 million in the third quarter, compared with non-GAAP net income of US$5.6 million in the same period of 2025.
  • Diluted loss per ADS from continuing operations was US$3.74 in the third quarter, compared with diluted earnings per ADS of US$8.61 in the same period of 2025.
  • Non-GAAP diluted loss per ADS3 from continuing operations was US$0.26 in the third quarter, compared with non-GAAP diluted earnings per ADS of US$0.09 in the same period of 2025.

“We delivered continued top-line growth in the third quarter of 2026, building on our ToC strategic foundation established earlier this year. Total revenues increased by 12.9% year over year, mainly driven by an 8.5% increase in subscription revenue and a 16.6% increase in live-streaming and other services. However, both sequential and year-over-year growth rates moderated during the quarter amid intensifying competition and evolving market conditions. While we see softer near-term momentum, our core businesses remain resilient,” said Mr. Jinbo Li, Chairman and CEO of Xunlei Limited.

“We launched our share repurchase program in July 2026, and bought back approximately 2.7 million ADSs for about $13.8 million during the third quarter. As we have reached the maximum number of shares authorized under that program, our board of directors approved a new share repurchase program today, enabling us to continue our share buybacks. The pace with which we execute share buybacks underscores management’s conviction that our share price does not fully reflect the intrinsic value of our business. It stands as a tangible demonstration of our confidence in Xunlei’s fundamentals and long-term prospects.”

“Looking ahead, we will stay focused on our user-centric roadmap. We will refine product features, sharpen our localized overseas operations, and balance growth investments with operational discipline to steadily strengthen our profitability profile and unlock operating leverage. We will remain selective about new spending, prioritizing initiatives that can deliver sustainable monetization. Through this balanced approach, we aim to navigate the competitive landscape and continue creating lasting value for our users and shareholders,” Mr. Li concluded.

Third Quarter 2026 Financial Results (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise)

Total Revenues

Total revenues were US$101.3 million, representing an increase of 12.9% year-over-year. The increase in total revenues was mainly attributable to the increased revenues generated from our subscription business and overseas audio live-streaming business.

Revenues from subscription were US$44.1 million, representing an increase of 8.5% year-over-year. The increase in subscription revenues was mainly driven by the increase in demand for our subscription services.

Revenues from live-streaming and other services were US$57.2 million, representing an increase of 16.6% year-over-year. The increase in live-streaming and other services revenues was mainly due to the increase in revenues from our overseas audio live-streaming business.

Cost of Revenues

Cost of revenues was US$44.4 million, representing 43.8% of our total revenues, compared with US$33.7 million, or 37.6% of the total revenues, in the same period of 2025. The increase in cost of revenues was mainly attributable to the increase in revenue-sharing expenses in our overseas audio live-streaming operations, outpaced the growth in revenue from live-streaming and other services.

Gross Profit and Gross Profit Margin

Gross profit for the third quarter of 2026 was US$56.5 million, representing an increase of 1.6% year-over-year. Gross profit margin was 55.7% in the third quarter of 2026, compared with 62.0% in the same period of 2025. The decrease in gross profit margin was mainly attributable to the increased proportion of live-streaming revenues to total revenues, which has a lower gross profit margin.

Research and Development Expenses

Research and development expenses for the third quarter of 2026 were US$25.6 million, representing 25.3% of our total revenues, compared with US$18.3 million, or 20.4% of our total revenues, in the same period of 2025. The increase was primarily due to more labor costs incurred during the quarter.

Sales and Marketing Expenses

Sales and marketing expenses for the third quarter of 2026 were US$33.3 million, representing 32.9% of our total revenues, compared with US$24.5 million, or 27.3% of our total revenues, in the same period of 2025. The increase was primarily due to more marketing expenses incurred during the quarter for our subscription and overseas audio live-streaming businesses as part of our ongoing efforts to acquire users.

General and Administrative Expenses

General and administrative expenses for the third quarter of 2026 were US$12.4 million, representing 12.3% of our total revenues, compared with US$9.4 million, or 10.5% of our total revenues, in the same period of 2025. The increase in general and administrative expenses was primarily due to the increased employee-related cost as compared with the same period of 2025.

Operating (Loss)/Income

Operating loss was US$14.8 million, compared with an operating income of US$3.3 million in the same period of 2025. The shift from operating income to operating loss was primarily attributable to the increase in operating expenses discussed above.

Other (Losses)/Income, Net

Other losses, net was US$219.2 million, compared with other income, net of US$547.5 million in the same period of 2025. The change from other income, net to other losses, net was primarily attributable to the fair value changes of our long-term investment in Arashi Vision Inc., which has been measured at fair value based on the quoted market price since its initial public offering in June 2025.

Net (Loss)/Income and (Loss)/Earnings Per ADS

Net loss from continuing operations was US$235.8 million compared with net income of US$550.4 million in the same period of 2025. The net loss was primarily due to the transition from other income, net to other losses, net and the shift from operating income to an operating loss, as discussed above. Non-GAAP net loss from continuing operations was US$16.4 million in the third quarter of 2026, compared with non-GAAP net income of US$5.6 million in the same period of 2025.

Diluted loss per ADS from continuing operations in the third quarter of 2026 was US$3.74, compared with diluted earnings per ADS from continuing operations of US$8.61 in the third quarter of 2025. Non-GAAP diluted loss per ADS from continuing operations was US$0.26 in the third quarter, compared with non-GAAP diluted earnings per ADS from continuing operations of US$0.09 in the same period of 2025.

Cash Balance

As of September 30, 2026, the Company had cash, cash equivalents and short-term investments of US$265.1 million, compared with US$276.9 million as of June 30, 2026. The decrease in cash, cash equivalents and short-term investments was mainly due to the net cash outflows from operating activities and payments for share repurchase.

Share Repurchase Programs

On June 26, 2026, Xunlei announced that its board of directors (the “Board”) authorized a plan for the repurchase of up to US$20 million of its ADSs or common shares over a 12-month period. As of September 30, 2026, the Company had spent US$13.8 million on share buybacks under this share repurchase program. Having repurchased the maximum number of shares authorized under this share repurchase program, the Company will not make any further repurchases under it.

To enable continued share buybacks, on November 12, 2026, the Board approved a new share repurchase program, under which the Company may repurchase up to US$20 million in value of its ADSs or common shares over the next 12 months (the “New 2026 Share Repurchase Program”). The Board will review the New 2026 Share Repurchase Program periodically and, if necessary, adjust its size and terms as necessary.

According to the terms of the New 2026 Share Repurchase Program, share repurchases may be conducted through various legally permissible means, including open market purchases at prevailing prices and algorithmic trading, privately negotiated transactions, block trades, or other methods depending on market conditions and in compliance with applicable rules and regulations. Both ADSs and common shares are eligible for repurchase. The repurchase plan will be funded from the Company’s cash balance.

Conference Call Information

Xunlei's management will host a conference call at 7:00 a.m. U.S. Eastern Time on November 12, 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/BIc2330d7a779c458bb50fe65ca3a3d5f6

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/okinc6yv

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 for common shares 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)

 Sep 30,Dec 31,
 2026
2025
 US$US$
Assets  
Current assets:  
Cash and cash equivalents101,659 144,559 
Short-term investments163,448 138,895 
Accounts receivable, net26,519 26,136 
Inventories505 384 
Due from related parties34,086 11,152 
Prepayments and other current assets15,685 11,397 
Assets of discontinued operations- 71,354 
Total current assets341,902 403,877 
   
Non-current assets:  
Restricted cash841 806 
Long-term investments454,604 1,070,596 
Deferred tax assets24,902 10,083 
Property and equipment, net50,408 50,662 
Intangible assets, net31,819 32,717 
Goodwill40,872 39,164 
Due from a related party, non-current portion19 19,826 
Long-term prepayments and other assets2,198 2,315 
Operating lease assets2,574 1,877 
Total assets950,139 1,631,923 
   
Liabilities  
Current liabilities:  
Accounts payable18,753 18,837 
Lease liabilities460 487 
Due to related parties, current436 8 
Contract liabilities, current portion42,688 42,817 
Accrued liabilities and other payables75,806 75,367 
Income tax payable4,825 3,975 
Short-term bank borrowings and current portion of long-term bank borrowings33,939 30,095 
Liabilities of discontinued operations- 36,872 
Total current liabilities176,907 208,458 
   
Non-current liabilities:  
Contract liabilities, non-current portion1,169 1,624 
Lease liabilities, non-current portion1,819 1,243 
Deferred tax liabilities5,798 6,138 
Due to related parties, non-current portion134 - 
Bank borrowings, non-current portion25,983 38,413 
Other long-term payables816 3,530 
Total liabilities212,626 259,406 
   
Equity  
Common shares (US$0.00025 par value, 1,000,000,000 shares authorized, 375,001,940 shares issued and 314,277,001 shares outstanding as at December 31, 2025; 375,001,940 issued and 306,768,876 shares outstanding as at September 30, 2026)77 78 
Additional paid-in-capital463,481 480,133 
Accumulated other comprehensive loss(6,415)(17,413)
Statutory reserves9,692 9,687 
Treasury shares (60,724,939 shares and 68,233,064 shares as at December 31, 2025 and September 30, 2026, respectively)17 15 
Retained earnings272,148 900,991 
Total Xunlei Limited's shareholders' equity739,000 1,373,491 
Non-controlling interests(1,487)(974)
Total liabilities and shareholders' equity950,139 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
  
 Sep 30,June 30,Sep 30,
 202620262025
 US$US$US$
Revenues, net of rebates and discounts101,304 102,717 89,719 
Business taxes and surcharges(480)(608)(388)
Net revenues100,824 102,109 89,331 
Cost of revenues(44,365)(44,796)(33,739)
Gross profit56,459 57,313 55,592 
    
Operating expenses   
Research and development expenses(25,636)(21,397)(18,316)
Sales and marketing expenses(33,311)(27,927)(24,537)
General and administrative expenses(12,446)(12,700)(9,392)
Credit loss write-back/(expenses), net146 (60)(33)
Total operating expenses(71,247)(62,084)(52,278)
    
Operating (loss)/income(14,788)(4,771)3,314 
Interest income884 907 639 
Interest expense(395)(413)(574)
Other (losses)/income, net(219,199)(213,759)547,451 
(Loss)/income before income taxes from continuing operations(233,498)(218,036)550,830 
Income tax expenses(2,274)(477)(468)
Net (loss)/income from continuing operations(235,772)(218,513)550,362 
    
Discontinued operations   
Loss from discontinued operations before income taxes- - (311)
Income tax expenses- - (1)
Net loss from discontinued operations- - (312)
    
Net (loss)/income(235,772)(218,513)550,050 
Less: net income/(loss) attributable to non-controlling interest4 (89)(202)
Net (loss)/income attributable to common shareholders(235,776)(218,424)550,252 
    
(Loss)/earnings per share for common shares, basic   
Continuing operations(0.7480)(0.6861)1.7579 
Discontinued operations- - (0.0010)
Total (loss)/earnings per share for common shares, basic(0.7480)(0.6861)1.7569 
    
(Loss)/earnings per share for common shares, diluted   
Continuing operations(0.7480)(0.6861)1.7214 
Discontinued operations- - (0.0009)
Total (loss)/earnings per share for common shares, diluted(0.7480)(0.6861)1.7205 
    
(Loss)/earnings per ADS, basic   
Continuing operations(3.7400)(3.4305)8.7895 
Discontinued operations- - (0.0050)
Total (loss)/earnings per ADS, basic(3.7400)(3.4305)8.7845 
    
(Loss)/earnings per ADS, diluted   
Continuing operations(3.7400)(3.4305)8.6070 
Discontinued operations- - (0.0045)
Total (loss)/earnings per ADS, diluted(3.7400)(3.4305)8.6025 
    
Weighted average number of common shares used in calculating:   
Basic315,208,746 318,378,628 313,202,000 
Diluted315,208,746 318,378,628 319,827,505 
    
Weighted average number of ADSs used in calculating:   
Basic63,041,749 63,675,726 62,640,400 
Diluted63,041,749 63,675,726 63,965,501 
    


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
  
 Sep 30,June 30,Sep 30,
 2026
2026
2025
 US$US$US$
    
GAAP operating (loss)/income(14,788)(4,771)3,314 
Share-based compensation expenses1,411 1,169 1,037 
Non-GAAP operating (loss)/income(13,377)(3,602)4,351 
    
GAAP net (loss)/income from continuing operations(235,772)(218,513)550,362 
Share-based compensation expenses1,411 1,169 1,037 
Fair value changes of long-term investments217,924 215,234 (545,835)
Non-GAAP net (loss)/income from continuing operations(16,437)(2,110)5,564 
    
GAAP (loss)/earnings per share for common shares attributable to continuing operations:   
Basic(0.7480)(0.6861)1.7579 
Diluted(0.7480)(0.6861)1.7214 
    
    
GAAP (loss)/earnings per ADS attributable to continuing operations:   
Basic(3.7400)(3.4305)8.7895 
Diluted(3.7400)(3.4305)8.6070 
    
    
Non-GAAP (loss)/earnings per share for common shares attributable to continuing operations:   
Basic(0.0522)(0.0063)0.0184 
Diluted(0.0522)(0.0063)0.0180 
    
    
Non-GAAP (loss)/earnings per ADS for common shares attributable to continuing operations:   
Basic(0.2610)(0.0315)0.0920 
Diluted(0.2610)(0.0315)0.0900 
    
    
Weighted average number of common shares used in calculating:   
Basic315,208,746 318,378,628 313,202,000 
Diluted315,208,746 318,378,628 319,827,505 
    
Weighted average number of ADSs used in calculating:   
Basic63,041,749 63,675,726 62,640,400 
Diluted63,041,749 63,675,726 63,965,501 
       

CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com

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1 In March 2026, the Company completed the disposal of its 50% stake in Shenzhen Onething Technologies Co., Ltd., or Shenzhen Onething, the operating entity of cloud computing business. The disposal qualified as discontinued operations. According to applicable accounting standards, assets and liabilities related to Shenzhen Onething were reclassified as current assets/liabilities of discontinued operations as of December 31, 2025, while results of operations related to Shenzhen Onething, including comparatives, are reported as loss from discontinued operations. Figures presented in this release are related to continuing operations only, excluding results from Shenzhen Onething as discontinued operations, unless indicated otherwise.
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.


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Xunlei's Q3 2026 revenue and earnings?

Xunlei reported US$101.3 million revenue, up 12.9% year over year, and a continuing-operations net loss of US$235.8 million. Diluted loss per ADS from continuing operations was US$3.74, compared with diluted earnings of US$8.61 a year earlier.

How large is Xunlei's new share repurchase program?

The board approved repurchases of up to US$20 million of ADSs or common shares over the next 12 months on November 12, 2026. The new program follows the previous program reaching its maximum authorized number of shares.

How will Xunlei fund its new share buybacks?

Xunlei will fund the new repurchase program from its cash balance. Both ADSs and common shares are eligible, and purchases may use open-market transactions, privately negotiated transactions, block trades or other permitted methods.

Why did Xunlei's gross margin decline in Q3 2026?

Xunlei attributed the gross-margin decline primarily to a larger share of revenue from lower-margin live-streaming. Revenue-sharing expenses in overseas audio live-streaming also increased faster than live-streaming and other services revenue.

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