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.
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