Xunlei (XNET) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 10.5% year-over-year to $88.8 million, driven by subscription and overseas audio live streaming growth.

• Subscription revenue rose 7.7% year-over-year to $35.7 million, with subscribers up 5% to 6.04 million.

• Overseas audio live streaming revenue surged 66%–79.2% year-over-year, offsetting domestic declines.

• Cloud computing revenue declined 18% year-over-year to $24.7 million due to competition, pricing pressure, and regulatory changes.

• Net loss was $0.9 million, compared to net income of $3.6 million in Q1 2024.

Financial highlights

• Total revenues: $88.8 million, up 10.5% year-over-year.

• Gross profit: $44.1 million, up 2.9% year-over-year; gross margin fell to 49.7% from 53.3%.

• Operating loss: $1.9 million, versus $4 million operating income a year ago.

• Non-GAAP net income: $0.1 million, down from $4.5 million year-over-year.

• Diluted loss per ADS: $0.01; non-GAAP diluted earnings per ADS: $0.004.

Outlook and guidance

• Q2 2025 revenue guidance: $91–$96 million, midpoint implies 5.3% sequential growth.

• Management emphasizes strategic focus on international expansion, AI-driven applications, and revenue diversification.