Xunlei Announces Unaudited Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Xunlei (Nasdaq: XNET) reported unaudited Q4 and full‑year 2025 results on March 12, 2026. Q4 revenue was US$143.3M, up 70.0% year‑over‑year; FY 2025 revenue was US$462.4M, up 42.5% year‑over‑year. Live‑streaming and cloud computing showed triple‑digit Q4 growth; gross margin declined to 47.0% for the year. FY net income was US$1,047.6M driven by other income from a long‑term investment fair value gain. Cash and short‑term investments totaled US$305.2M as of December 31, 2025.
Positive
- Total revenues +42.5% in 2025 to US$462.4M
- Q4 revenues +70.0% YoY to US$143.3M
- Live‑streaming revenues +97.5% in 2025 to US$170.2M
- Q4 cloud computing revenues +102.7% YoY to US$46.1M
- FY net income US$1,047.6M driven by fair value gains
Negative
- Q4 net loss of US$228.9M versus US$9.9M loss prior year
- Gross margin down to 47.0% in 2025 from 51.7% in 2024
- Costs of revenues rose to 52.5% of revenue in 2025
- Non‑GAAP net income fell to US$18.5M in 2025 from US$23.9M
News Market Reaction – XNET
On the day this news was published, XNET gained 8.61%, reflecting a notable positive market reaction. Argus tracked a peak move of +8.5% during that session. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $30M to the company's valuation, bringing the market cap to $379M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
XNET was up 3.42% while momentum-flagged peers ALLT and BAND were down about 1.9–1.5%, pointing to a stock-specific reaction to earnings rather than a broad software move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 13 | Q3 2025 earnings | Positive | -2.3% | Strong Q3 growth and large Arashi-related gain but shares fell post-report. |
| Aug 14 | Q2 2025 earnings | Positive | +12.7% | Robust revenue growth and large unrealized Arashi gain drove strong net income. |
| Aug 07 | Q2 call scheduling | Neutral | -3.3% | Announcement of timing and access details for upcoming Q2 2025 results. |
| May 15 | Q1 2025 earnings | Neutral | +4.1% | Moderate revenue growth with a small net loss and mixed segment trends. |
| May 08 | Q1 call scheduling | Neutral | +4.4% | Set date and webcast details for release of Q1 2025 financial results. |
Earnings releases often produce mixed reactions: strong fundamental trends but at least one prior quarter (Q3 2025) saw a negative move despite positive metrics.
Across prior earnings in 2025, Xunlei showed accelerating revenues: from $88.8M in Q1 to $126.4M in Q3, with live-streaming and cloud driving growth. Several quarters featured large gains from the Arashi Vision investment, boosting GAAP net income well above operating trends. Shareholders have also seen ongoing repurchases and solid cash balances. Today’s Q4 and 2025 results extend this revenue trajectory but highlight margin pressure and reliance on investment gains.
Historical Comparison
Past earnings-related headlines for XNET produced an average move of 3.13%, with both strong rallies and occasional selloffs, underscoring that reactions depend heavily on mix of growth, margins, and Arashi-related gains.
Through 2025, earnings reports showed revenue rising from $88.8M in Q1 to $126.4M in Q3, led by live-streaming and cloud, while Arashi Vision gains periodically transformed GAAP profitability relative to more modest non-GAAP income.
Market Pulse Summary
The stock moved +8.6% in the session following this news. A strong positive reaction aligns with the headline revenue growth of 70.0% in Q4 2025 and a 42.5% increase for the full year. However, investors have historically differentiated between GAAP profits boosted by Arashi Vision gains and softer non-GAAP trends, including lower margins and a widened quarterly net loss. Sustainability would likely hinge on live-streaming and cloud growth offsetting margin compression and investment income volatility.
Key Terms
non-gaap financial
ads financial
gross profit margin financial
impairment of goodwill financial
bandwidth costs technical
AI-generated analysis. Not financial advice.
SHENZHEN, China, March 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 fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights:
- Total revenues were US
$143.3 million , representing an increase of70.0% year-over-year. - Subscription revenues were US
$42.1 million , representing an increase of22.4% year-over-year. - Live-streaming and other internet value-added services (“Live-streaming and other IVAS”) revenues were US
$55.1 million , representing an increase of102.8% year-over-year. - Cloud computing revenues were US
$46.1 million , representing an increase of102.7% year-over-year. - Gross profit was US
$61.7 million , representing an increase of41.5% year-over-year, and gross profit margin was43.0% in the fourth quarter, compared with51.7% in the same period of 2024. - Net loss was US
$228.9 million in the fourth quarter, compared with net loss of US$9.9 million in the same period of 2024. - Non-GAAP net income1 was US
$4.8 million in the fourth quarter, compared with non-GAAP net income of US$11.3 million in the same period of 2024. - Diluted loss per ADS was US
$3.64 in the fourth quarter, compared with diluted loss per ADS of US$0.16 in the same period of 2024. - Non-GAAP diluted earnings per ADS2 were US
$0.08 in the fourth quarter, compared with non-GAAP diluted earnings of US$0.18 in the same period of 2024.
Full Year 2025 Financial Highlights:
- Total revenues were US
$462.4 million , representing an increase of42.5% from 2024. - Subscription revenues were US
$154.8 million , representing an increase of15.8% from 2024. - Live-streaming and other IVAS revenues were US
$170.2 million , representing an increase of97.5% from 2024. - Cloud computing revenues were US
$137.4 million , representing an increase of31.4% from 2024. - Gross profit was US
$217.5 million , representing an increase of29.8% from 2024, and gross profit margin was47.0% , compared with51.7% in the previous year. - Net income was US
$1,047.6 million , compared with net income of US$0.7 million in the previous year. - Non-GAAP net income1 was US
$18.5 million , compared with non-GAAP net income of US$23.9 million in the same period of 2024. - Diluted earnings per ADS were US
$16.56 , compared with diluted earnings per ADS of US$0.02 in the previous year. - Non-GAAP diluted earnings per ADS2 were US
$0.30 , compared with non-GAAP diluted earnings per ADS of US$0.38 in the previous year.
“We finished 2025 with strong financial performance in the fourth quarter. Q4 revenue totaled
“Looking ahead, we believe 2026 will be a pivotal year for Xunlei—a strategic inflection point for our future development. With a more streamlined business portfolio, Xunlei will focus on delivering internet pan-entertainment products and services to individual consumers. Moving forward, we plan to leverage our technical expertise and strong balance sheet to pursue synergistic growth opportunities across our businesses, strengthen our overall competitiveness, and deliver long-term value to our shareholders,” Mr. Li concluded.
Fourth Quarter 2025 Financial Results
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from live-streaming and other IVAS were US
Revenues from cloud computing were US
Costs of Revenues
Costs of revenues were US
Bandwidth costs, as included in costs of revenues, were US
The remaining costs of revenues mainly consisted of the costs related to the revenue-sharing from our live-streaming business and payment handling charges.
Gross Profit and Gross Profit Margin
Gross profit for the fourth quarter of 2025 was US
Research and Development Expenses
Research and development expenses for the fourth quarter were US
Sales and Marketing Expenses
Sales and marketing expenses for the fourth quarter were US
General and Administrative Expenses
General and administrative expenses for the fourth quarter were US
Impairment of Goodwill
An impairment of goodwill of US
Operating Income/(Loss)
Operating income was US
Other (Losses)/Income, Net
Other losses, net was US
Net Loss and (Loss)/Earnings Per ADS
Net loss was US
Diluted loss per ADS in the fourth quarter of 2025 was US
Cash Balance
As of December 31, 2025, the Company had cash, cash equivalents, and short-term investments of US
Full Year 2025 Financial Results
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from live-streaming and other IVAS were US
Revenues from cloud computing were US
Costs of Revenues
Costs of revenues were US
Bandwidth costs, a major component of the costs of revenues, were US
The remaining costs of revenues mainly consisted of the costs related to the revenue-sharing costs for our live-streaming business and payment handling charges.
Gross Profit and Gross Profit Margin
Gross profit for the year was US
Research and Development Expenses
Research and development expenses for the year were US
Sales and Marketing Expenses
Sales and marketing expenses for the year were US
General and Administrative Expenses
General and administrative expenses for the year were US
Impairment of Goodwill
An impairment of goodwill of US
Operating Income/(Loss)
Operating income was US
Other Income, Net
Other income, net was US
Net Income and Earnings Per ADS
Net income was US
Diluted GAAP earnings per ADS were US
Cash Balance
As of December 31, 2025, the Company had cash, cash equivalents, and short-term investments of US
Share Repurchase Program
On June 4, 2024, Xunlei announced that its Board of Directors had authorized a new plan for the repurchase of up to US
Conference Call Information.
Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on March 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/BI2ab521e31d0e4199a07749b2c9df3e5e
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/utgxw7f7
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, shared cloud computing 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; 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 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 income, (2) non-GAAP net income, (3) non-GAAP basic and diluted earnings per share for common shares, and (4) non-GAAP basic and diluted earnings per ADS. 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, impairment of goodwill, 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.
The Company has not recast prior period non‑GAAP measures in 2024 to exclude fair value changes of long‑term investments, as such amounts in prior periods were immaterial and would not affect investors’ understanding of period‑to‑period comparisons.
| XUNLEI LIMITED | ||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||
| December 31, | December 31, | |
| 2025 | 2024 | |
| US$ | US$ | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 157,020 | 177,329 |
| Short-term investments | 148,155 | 110,209 |
| Accounts receivable, net | 68,413 | 32,662 |
| Inventories | 403 | 1,255 |
| Due from related parties | 12,832 | 31,519 |
| Prepayments and other current assets | 12,850 | 10,058 |
| Total current assets | 399,673 | 363,032 |
| Non-current assets: | ||
| Restricted cash | 806 | 218 |
| Long-term investments | 1,070,596 | 30,599 |
| Deferred tax assets | 10,083 | 10,528 |
| Property and equipment, net | 54,784 | 55,430 |
| Intangible assets, net | 32,722 | 8,310 |
| Goodwill | 39,164 | - |
| Due from a related party, non-current portion | 19,826 | - |
| Long-term prepayments and other assets | 2,326 | 5,334 |
| Operating lease assets | 1,943 | 450 |
| Total assets | 1,631,923 | 473,901 |
| Liabilities | ||
| Current liabilities: | ||
| Accounts payable | 41,965 | 22,964 |
| Due to related parties, current | 8 | 17 |
| Contract liabilities, current portion | 43,107 | 39,936 |
| Lease liabilities | 487 | 253 |
| Income tax payable | 4,340 | 9,386 |
| Accrued liabilities and other payables | 81,334 | 52,093 |
| Short-term bank borrowings and current portion of long-term bank borrowings | 37,209 | 2,087 |
| Total current liabilities | 208,450 | 126,736 |
| Non-current liabilities: | ||
| Contract liabilities, non-current portion | 1,624 | 458 |
| Lease liabilities, non-current portion | 1,251 | 161 |
| Deferred tax liabilities | 6,138 | 1,154 |
| Bank borrowings, non-current portion | 38,413 | 27,127 |
| Other long-term payables | 3,530 | 480 |
| Total liabilities | 259,406 | 156,116 |
| Equity | ||
| Common shares (US | 78 | 77 |
| Additional paid-in-capital | 480,133 | 477,244 |
| Accumulated other comprehensive loss | (17,413) | (21,694) |
| Statutory reserves | 9,687 | 8,718 |
| Treasury shares (67,650,744 shares and 60,724,939 shares as at December 31, 2024, and December 31, 2025, respectively) | 15 | 16 |
| Retained earnings/(accumulated deficits) | 900,991 | (146,305) |
| Total Xunlei Limited's shareholders' equity | 1,373,491 | 318,056 |
| Non-controlling interests | (974) | (271) |
| Total liabilities and shareholders' equity | 1,631,923 | 473,901 |
| 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 | Year ended | ||||||
| Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | |||
| 2025 | 2025 | 2024 | 2025 | 2024 | |||
| US$ | US$ | US$ | US$ | ||||
| Revenues, net of rebates and discounts | 143,276 | 126,394 | 84,302 | 462,410 | 324,405 | ||
| Business taxes and surcharges | (777) | (464) | (313) | (1,982) | (1,265) | ||
| Net revenues | 142,499 | 125,930 | 83,989 | 460,428 | 323,140 | ||
| Cost of revenues | (80,829) | (65,387) | (40,416) | (242,886) | (155,567) | ||
| Gross profit | 61,670 | 60,543 | 43,573 | 217,542 | 167,573 | ||
| Operating expenses | |||||||
| Research and development expenses | (21,873) | (21,002) | (18,716) | (80,040) | (71,572) | ||
| Sales and marketing expenses | (23,245) | (25,847) | (12,461) | (86,260) | (44,842) | ||
| General and administrative expenses | (12,386) | (10,901) | (12,102) | (44,874) | (45,827) | ||
| Credit loss expenses, net | 511 | (66) | (75) | 262 | (288) | ||
| Impairment of goodwill | - | - | (20,748) | - | (20,748) | ||
| Total operating expenses | (56,993) | (57,816) | (64,102) | (210,912) | (183,277) | ||
| Operating income/(loss) | 4,677 | 2,727 | (20,529) | 6,630 | (15,704) | ||
| Interest income | 511 | 640 | 1,173 | 3,262 | 4,892 | ||
| Interest expense | (576) | (574) | (139) | (1,698) | (728) | ||
| Other (losses)/income, net | (232,596) | 547,726 | 1,541 | 1,038,131 | 9,183 | ||
| (Loss)/income before income taxes | (227,984) | 550,519 | (17,954) | 1,046,325 | (2,357) | ||
| Income tax (expense)/benefit | (914) | (469) | 8,083 | 1,285 | 3,020 | ||
| Net (loss)/income | (228,898) | 550,050 | (9,871) | 1,047,610 | 663 | ||
| . | |||||||
| Less: net loss attributable to non-controlling interest | (121) | (202) | (97) | (655) | (552) | ||
| Net (loss)/income attributable to common shareholders | (228,777) | 550,252 | (9,774) | 1,048,265 | 1,215 | ||
| (Loss)/earnings per share for common shares | |||||||
| Basic | (0.7282) | 1.7569 | (0.0312) | 3.3659 | 0.0038 | ||
| Diluted | (0.7282) | 1.7205 | (0.0312) | 3.3125 | 0.0038 | ||
| (Loss)/earnings per ADS | |||||||
| Basic | (3.6410) | 8.7845 | (0.1560) | 16.8295 | 0.0190 | ||
| Diluted | (3.6410) | 8.6025 | (0.1560) | 16.5625 | 0.0190 | ||
| Weighted average number of common shares used in calculating continuing operations: | |||||||
| Basic | 314,173,741 | 313,202,000 | 313,664,089 | 311,440,748 | 318,758,374 | ||
| Diluted | 314,173,741 | 319,827,505 | 313,664,089 | 316,458,713 | 319,146,281 | ||
| Weighted average number of ADSs used in calculating continuing operations: | |||||||
| Basic | 62,834,748 | 62,640,400 | 62,732,818 | 62,288,150 | 63,751,675 | ||
| Diluted | 62,834,748 | 63,965,501 | 62,732,818 | 63,291,743 | 63,829,256 | ||
| XUNLEI LIMITED | ||||||||||||
| Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations) | ||||||||||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||||||||
| Three months ended | Year ended | |||||||||||
| Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | ||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||
| US$ | US$ | US$ | US$ | US$ | ||||||||
| GAAP operating income/(loss) | 4,677 | 2,727 | (20,529) | 6,630 | (15,704) | |||||||
| Share-based compensation expenses | 1,209 | 1,037 | 390 | 3,840 | 2,453 | |||||||
| Impairment of goodwill | - | 20,748 | 20,748 | |||||||||
| Non-GAAP operating income | 5,886 | 3,764 | 609 | 10,470 | 7,497 | |||||||
| GAAP net (loss)/income | (228,898) | 550,050 | (9,871) | 1,047,610 | 663 | |||||||
| Share-based compensation expenses | 1,209 | 1,037 | 390 | 3,840 | 2,453 | |||||||
| Impairment of goodwill | - | - | 20,748 | - | 20,748 | |||||||
| Fair value changes of long-term investments | 232,534 | (545,835) | - | (1,032,989) | - | |||||||
| Non-GAAP net income | 4,845 | 5,252 | 11,267 | 18,461 | 23,864 | |||||||
| GAAP (loss)/earnings per share for common shares: | ||||||||||||
| Basic | (0.7282) | 1.7569 | (0.0312) | 3.3659 | 0.0038 | |||||||
| Diluted | (0.7282) | 1.7205 | (0.0312) | 3.3125 | 0.0038 | |||||||
| GAAP (loss)/earnings per ADS: | ||||||||||||
| Basic | (3.6410) | 8.7845 | (0.1560) | 16.8295 | 0.0190 | |||||||
| Diluted | (3.6410) | 8.6025 | (0.1560) | 16.5625 | 0.0190 | |||||||
| Non-GAAP earnings per share for common shares: | ||||||||||||
| Basic | 0.0158 | 0.0174 | 0.0362 | 0.0614 | 0.0766 | |||||||
| Diluted | 0.0158 | 0.0171 | 0.0362 | 0.0604 | 0.0765 | |||||||
| Non-GAAP earnings per ADS: | ||||||||||||
| Basic | 0.0790 | 0.0870 | 0.1810 | 0.3070 | 0.3830 | |||||||
| Diluted | 0.0790 | 0.0855 | 0.1810 | 0.3020 | 0.3825 | |||||||
| Weighted average number of common shares used in calculating: | ||||||||||||
| Basic | 314,173,741 | 313,202,000 | 313,664,089 | 311,440,748 | 318,758,374 | |||||||
| Diluted | 314,173,741 | 319,827,505 | 313,664,089 | 316,458,713 | 319,146,281 | |||||||
| Weighted average number of ADSs used in calculating: | ||||||||||||
| Basic | 62,834,748 | 62,640,400 | 62,732,818 | 62,288,150 | 63,751,675 | |||||||
| Diluted | 62,834,748 | 63,965,501 | 62,732,818 | 63,291,743 | 63,829,256 | |||||||
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com
___________________________
1 Non-GAAP net 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 (Excluding discontinued operations)” set forth at the end of this press release.
2 Non-GAAP 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 (Excluding discontinued operations)” set forth at the end of this press release.
FAQ
What were XNET's Q4 2025 revenues and growth rate?
How did XNET perform for full‑year 2025 in revenue and profit?
What caused XNET's gross margin decline in 2025?
How did XNET's cloud computing and live‑streaming businesses perform in Q4 2025?
What is XNET's cash position as of December 31, 2025?
Did XNET repurchase shares under its buyback program in 2025?
