Xunlei (XNET) Q2 2026 Earnings Call: Revenue Up 38.9%
Source Tradingkey
Key Takeaways
- Q2 2026 revenue increased 38.9% year over year to $102.7 million, driven by subscription services, overseas audio live streaming and stronger Hupu advertising revenue.
- Subscription revenue rose 22.6% to $44.5 million. Live streaming and other services revenue increased 54.8% to $58.2 million.
- Gross profit grew 23.1% to $57.3 million, but gross margin fell to 55.8% from 63.0% as lower-margin live streaming became a larger part of the revenue mix.
- Xunlei recorded a $218.5 million net loss from continuing operations, mainly due to a $213.8 million net other loss related to fair-value volatility in its Arashi Vision Inc. investment.
- Non-GAAP net loss from continuing operations was $2.1 million, compared with non-GAAP net income of $7.2 million in Q2 2025.
- Under its $20 million share repurchase program, Xunlei had repurchased approximately 1.07 million ADSs for about $5.9 million as of August 12, 2026.
Key Financial Data
| Metric | Q2 2026 | Q2 2025 | Change / Commentary |
|---|---|---|---|
| Total revenue | $102.7 million | — | Up 38.9% year over year |
| Subscription revenue | $44.5 million | — | Up 22.6% year over year |
| Live streaming and other services revenue | $58.2 million | — | Up 54.8% year over year |
| Cost of revenue | $44.8 million | $27.0 million | 43.6% of revenue versus 36.6% |
| Gross profit | $57.3 million | — | Up 23.1% year over year |
| Gross margin | 55.8% | 63.0% | Lower due to the revenue mix shift toward live streaming |
| R&D expenses | $21.4 million | $16.6 million | 20.8% of revenue versus 22.4% |
| Sales and marketing expenses | $27.9 million | $20.7 million | 27.2% of revenue versus 28.0% |
| G&A expenses | $12.7 million | $8.5 million | 12.4% of revenue versus 11.6% |
| Operating income/(loss) | $(4.8) million | $0.3 million | Higher sales, marketing and administrative expenses weighed on results |
| Net other result | $(213.8) million | $721.5 million income | Primarily reflects Arashi Vision fair-value volatility |
| Net income/(loss) from continuing operations | $(218.5) million | $726.4 million | GAAP result affected by the investment revaluation |
| Non-GAAP net income/(loss) from continuing operations | $(2.1) million | $7.2 million | Shifted to a loss |
| Diluted earnings/(loss) per ADS from continuing operations | $(3.43) | $11.47 | — |
| Non-GAAP diluted earnings/(loss) per ADS | $(0.03) | $0.12 | — |
| Cash, cash equivalents and short-term investments | $276.9 million | $303.6 million as of March 31, 2026 | Lower due to operating cash outflows, loan repayments, buybacks and Hupu-related deferred payments |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Strong profits, falling shares: bank earnings day one meets a memory-chip rout — with CPI and ASML aheadGoldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
Goldman Sachs blew past estimates (EPS $17.01 vs $13.09 expected, profit +33%) while JPMorgan missed ($5.75 vs $5.93) and Wells Fargo fell 3% — yet the S&P 500 finished flat at 7,805.45, pinned below its record close as a memory-chip rout (SOX −2.67%, Micron under $1,000) kept the pressure on. Tonight brings the week's decider: US September CPI at 8:30 ET, then Bank of America, Morgan Stanley, BlackRock and ASML before the open. Here are the levels, both cases, and the watch list.
US September CPI recap: inflation hits 3.7% as core runs hot — is an October Fed hike back on the table?September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
September CPI landed hot: headline 3.7% y/y, core 2.6% y/y and 0.3% m/m. October hike odds jumped from ~22% to ~37% — yet the dollar faded to 101.74, gold closed higher and the S&P 500 fell 1.11%. Here is the full repricing, the levels and what to watch next.
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 16, 2026. Read on for the details.
As of the European session on October 16, gold prices (XAUUSD) extended their rebound, with the latest price trading near $4,185, up about 0.4% on the day. Gold prices had previously drop
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 19, 2026. Read on for the details.
