Xunlei (NASDAQ:XNET) Announces Earnings Results

Xunlei (NASDAQ:XNET) posted its earnings results on Thursday. The software maker reported $0.02 EPS for the quarter, FiscalAI reports. Xunlei had a return on equity of 1.55% and a net margin of 227.29%.The firm 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 Performance

NASDAQ XNET opened at $7.00 on Friday. The company has a market capitalization of $439.53 million, a price-to-earnings ratio of 0.43 and a beta of 1.06. The company has a quick ratio of 2.01, a current ratio of 2.02 and a debt-to-equity ratio of 0.03. Xunlei has a twelve month low of $2.83 and a twelve month high of $11.03. The stock has a fifty day simple moving average of $6.46 and a 200 day simple moving average of $7.40.

Institutional Investors Weigh In On Xunlei

Institutional investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd bought a new position in shares of Xunlei during the fourth quarter worth about $38,000. Susquehanna Fundamental Investments LLC acquired a new position in shares of Xunlei in the fourth quarter worth approximately $224,000. Schonfeld Strategic Advisors LLC boosted its holdings in Xunlei by 4.6% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 52,889 shares of the software maker’s stock valued at $375,000 after acquiring an additional 2,313 shares during the last quarter. Stonehill Capital Management LLC boosted its holdings in Xunlei by 307.2% in the fourth quarter. Stonehill Capital Management LLC now owns 976,385 shares of the software maker’s stock valued at $6,923,000 after acquiring an additional 736,583 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its position in Xunlei by 3.7% during the 4th quarter. Public Employees Retirement System of Ohio now owns 57,331 shares of the software maker’s stock valued at $406,000 after purchasing an additional 2,047 shares during the period. Institutional investors own 5.07% of the company’s stock.

Analyst Upgrades and Downgrades

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