Xunlei (XNET) Q2 2025 earnings summary

Executive summary

• Achieved 30.6% year-over-year revenue growth in Q2 2025, reaching $104 million, driven by strong performance across all core business segments.

• Net income surged to $727.4 million, mainly due to a $720 million unrealized pre-tax gain from Arashi Vision Inc.'s IPO.

• Completed the acquisition of HuPu, expanding into sports and lifestyle content and contributing to business expansion.

• Non-GAAP net income reached $8.3 million, up from $3.2 million year-over-year.

• All core businesses showed robust growth, with notable expansion in international markets and new user segments.

Financial highlights

• Total revenues were $104 million, up 30.6% year-over-year.

• Subscription revenue was $36.4 million, up 10.5% year-over-year, with 6.4 million subscribers and higher average revenue per subscriber.

• Live streaming and other services revenue reached $37.6 million, up 85.5% year-over-year, with HuPu contributing $3.2 million in June.

• Cloud computing revenue was $30 million, up 13.6% year-over-year.

• Gross profit was $51.2 million, up 25.9% year-over-year; gross margin was 49.2–49.3%, down from 51.1% last year.

• Operating income was $1.1 million; non-GAAP net income was $8.3 million, up from $3.2 million year-over-year.

• Net income was $727.4 million, mainly due to $720 million in gains from Arashi Vision Inc.'s IPO.

• Diluted earnings per ADS was $11.48; non-GAAP diluted earnings per ADS was $0.13.

• Cash equivalents and short-term investments totaled $275.6 million as of June 30, 2025.

Outlook and guidance

• Q3 2025 revenue guidance is $116–124 million, with a midpoint representing a 15.4% quarter-over-quarter increase.

• Management expects HuPu to make positive annual contributions to overall performance.

• Ongoing innovation and user acquisition are emphasized to sustain growth.