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
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their weekly gains on Friday as traders await the US Nonfarm Payrolls (NFP) report for the next directional catalyst.
Yen hits one-month high on BOJ September-hike bets; AUD/JPY cracks support as carry unwindsUSD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
USD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
Gold rebounds above $4,450 as Waller tempers Fed rate hike bets ahead US jobs dataGold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday.
Gold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday.
Gold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
US August Nonfarm Payrolls Preview: Will the Labor Market Quell Fed Rate Hike Expectations? US Stocks, Dollar, and Gold Face Key TestThe U.S. Bureau of Labor Statistics will release the August nonfarm payrolls report at 8:30 a.m. ET on September 4. Following hawkish signals delivered by Fed Chair Warsh at Jackson Hole
The U.S. Bureau of Labor Statistics will release the August nonfarm payrolls report at 8:30 a.m. ET on September 4. Following hawkish signals delivered by Fed Chair Warsh at Jackson Hole
