Xunlei Announces Unaudited Financial Results for the First Quarter Ended March 31, 2026
Rhea-AI Summary
Xunlei (Nasdaq:XNET) reported strong Q1 2026 revenue growth but a large GAAP loss.
Total revenues reached US$98.6 million, up 54.1% year-over-year, driven by subscription (US$45.0 million, +26.2%) and live-streaming and other services (US$53.6 million, +89.3%).
Gross profit was US$57.7 million (margin 58.5%). Operating income was US$4.3 million, but net loss from continuing operations widened to US$192.4 million due mainly to US$195.1 million of other losses from fair value changes in a long-term investment. Non-GAAP net income from continuing operations was US$4.1 million. Cash, cash equivalents and short-term investments rose to US$303.6 million.
AI-generated analysis. Not financial advice.
Positive
- Total revenues US$98.6 million, up 54.1% year-over-year
- Subscription revenues US$45.0 million, up 26.2% year-over-year
- Live-streaming and other services revenues US$53.6 million, up 89.3% year-over-year
- Operating income turned to US$4.3 million from a US$1.0 million loss
- Non-GAAP net income from continuing operations increased to US$4.1 million from US$0.9 million
- Cash, cash equivalents and short-term investments grew to US$303.6 million from US$283.5 million
Negative
- Net loss from continuing operations widened to US$192.4 million from US$0.2 million
- Other losses, net were US$195.1 million versus US$1.1 million of other income
- Gross profit margin declined to 58.5% from 61.9% year-over-year
- Costs of revenues rose to 41.0% of total revenues from 37.8%
News Market Reaction – XNET
On the day this news was published, XNET gained 7.23%, reflecting a notable positive market reaction. Argus tracked a peak move of +3.6% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $24M to the company's valuation, bringing the market cap to $352.01M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
XNET fell 3.66% with mixed peer action: some names like ALLT and GRRR up modestly, while ARQQ, BAND and RPAY declined. No clear, unified sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4/FY 2025 earnings | Positive | +8.6% | Strong Q4 and full‑year 2025 revenue growth with large investment gains. |
| Nov 13 | Q3 2025 earnings | Positive | -2.3% | Q3 2025 revenue up sharply with big Arashi Vision fair‑value gain. |
| Aug 14 | Q2 2025 earnings | Positive | +12.7% | Q2 2025 revenue up 30.6% YoY and large unrealized gains from Arashi IPO. |
| Aug 07 | Q2 2025 call notice | Neutral | -3.3% | Announcement of timing and access details for upcoming Q2 2025 results. |
| May 15 | Q1 2025 earnings | Positive | +4.1% | Q1 2025 revenue growth with expanding live‑streaming and higher subscribers. |
Earnings with strong top‑line growth have often seen positive reactions, but there are instances where solid results coincided with negative next‑day moves.
Over the past year, Xunlei’s earnings reports have highlighted rapid revenue growth, especially in live‑streaming and cloud, alongside volatile contributions from its Arashi Vision investment. Q2 and Q4 2025 results on Aug 14, 2025 and Mar 12, 2026 delivered strong year‑over‑year revenue gains and substantial non‑operating income, with price reactions of +12.72% and +8.61%. Earlier quarters, including Q1 2025 on May 15, 2025, also showed double‑digit revenue growth. Today’s Q1 2026 earnings continue this theme of robust top‑line expansion with complex GAAP profitability.
Historical Comparison
In the last five earnings‑tagged events, XNET moved an average of 3.97% the next day, with most strong growth reports drawing positive reactions but one notable negative divergence.
Earnings releases show a progression of accelerating revenue, especially from live‑streaming and cloud, accompanied by large, volatile fair‑value swings from the Arashi Vision stake impacting GAAP net income.
Market Pulse Summary
The stock moved +7.2% in the session following this news. A strong positive reaction aligns with Xunlei’s history of solid responses to high‑growth earnings, such as the +8.61% move on March 12, 2026 and +12.72% on August 14, 2025. However, GAAP results are heavily influenced by fair‑value swings in the Arashi Vision investment, which previously drove both large gains and losses. That dynamic, combined with the stock trading below its $7.01 200‑day MA, could make post‑earnings rallies vulnerable to reversals when non‑operating items turn.
Key Terms
non-gaap financial
ads financial
discontinued operations financial
short-term investments financial
AI-generated analysis. Not financial advice.
SHENZHEN, China, May 28, 2026 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise1)
- Total revenues were US
$98.6million , representing an increase of54.1% year-over-year. - Subscription revenues were US
$45.0 million , representing an increase of26.2% year-over-year. - Live-streaming and other services revenues were US
$53.6 million , representing an increase of89.3% year-over-year. - Gross profit was US
$57.7 million , representing an increase of45.8% year-over-year, and gross profit margin was58.5% in the first quarter, compared with61.9% in the same period of 2025. - Net loss from continuing operations was US
$192.4 million in the first quarter, compared with net loss of US$0.2 million in the same period of 2025. - Non-GAAP net income2 from continuing operations was US
$4.1 million in the first quarter, compared with non-GAAP net income of US$0.9 million in the same period of 2025. - Diluted loss per ADS from continuing operations was US
$3.06 in the first quarter, compared with diluted earnings per ADS of US$0.00 in the same period of 2025. - Non-GAAP diluted earnings per ADS3 from continuing operations were US
$0.07 in the first quarter, compared with non-GAAP diluted earnings per ADS of US$0.02 in the same period of 2025.
"In the first quarter, we witnessed meaningful growth, strategic evolution, and strong momentum across Xunlei. We refined our organizational structure to better serve both our teams and users, while concentrating our focus on a user-centered, direct-to-consumer business model", said Mr. Jinbo Li, Chairman and CEO of Xunlei.
"We are proud to report total revenue growth of
"With a healthy liquidity, we believe we are well-positioned to continue delivering meaningful value to users. At the same time, we will thoughtfully leverage our innovative technology and operational expertise to pursue new initiatives and emerging opportunities—always with an eye on building sustainable, long-term value for our shareholders," Mr. Li concluded.
First Quarter 2026 Financial Results (results presented herein exclude Shenzhen Onething, discontinued operations, unless specified otherwise)
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from live-streaming and other services were US
Costs of Revenues
Costs of revenues were US
The remaining costs of revenues mainly consisted of payment handling charges and bandwidth costs.
Gross Profit and Gross Profit Margin
Gross profit for the first quarter of 2026 was US
Research and Development Expenses
Research and development expenses for the first quarter of 2026 were US
Sales and Marketing Expenses
Sales and marketing expenses for the first quarter of 2026 were US
General and Administrative Expenses
General and administrative expenses for the first quarter of 2026 were US
Operating Income/(Loss)
Operating income was US
Other (Losses)/Income, Net
Other losses, net was US
Income/(Loss) from Discontinued Operations
Income from discontinued operations was US
Net Loss and (Loss)/Earnings Per ADS
Net loss from continuing operations was US
Diluted loss per ADS from continuing operations in the first quarter of 2026 was US
Cash Balance
As of March 31, 2026, the Company had cash, cash equivalents and short-term investments of US
Conference Call Information
Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on May 28, 2026 (8:00 p.m. Beijing/Hong Kong Time), to discuss the Company's quarterly results and recent business developments.
Participant Online Registration:
https://register-conf.media-server.com/register/BIe6e4f25f2a6e46a89978bb034282601f
Please register to join the conference using the link provided above and dial in 10 minutes before the call is scheduled to begin. Once registered, the participants will receive an email with personal PIN and dial-in information, and participants can choose to access either via Dial-In or Call Me. A kindly reminder that "Call Me" does not work for China number.
The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com. Following the earnings conference call, an archive of the call will be available at https://edge.media-server.com/mmc/p/g2ngg7tn
About Xunlei
Founded in 2003, Xunlei Limited (Nasdaq: XNET) is a leading technology company providing distributed cloud services in China. Xunlei provides a wide range of products and services across cloud acceleration and digital entertainment to deliver an efficient, smart and safe internet experience.
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "future," "intends," "plans," "estimates" and similar statements. Among other things, the management's quotations in this press release, as well as the Company's strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company's ability to continue to innovate and provide attractive products and services to retain and grow its user base; the Company's ability to keep up with technological developments and users' changing demands in the internet industry; the Company's ability to convert its users into subscribers of its premium services; the Company's ability to deal with existing and potential copyright infringement claims and other related claims; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company's ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Non-GAAP Financial Measures
To supplement Xunlei's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating income, (2) non-GAAP net income from continuing operations, (3) non-GAAP basic and diluted earnings per share for common shares from continuing operations, and (4) non-GAAP basic and diluted earnings per ADS attributable to continuing operations. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company's operating performance by excluding share-based compensation expenses, impairment of goodwill, and fair value changes of long-term investments, which are not expected to result in future cash payments, may recur from period to period but are subject to significant market volatility, and which are not indicative of our core operating results and business outlook. These non-GAAP financial measures also facilitate management's internal comparisons to Xunlei's historical performance and assist the Company's financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a recurring expense in Xunlei's results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented, excluding discontinued operations.
The Company has not recast prior period non-GAAP measures in the first quarter of 2025 to exclude fair value changes of long-term investments, as such amounts in prior period was immaterial and would not affect investors’ understanding of period-to-period comparisons.
| XUNLEI LIMITED | ||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||
| March 31, | Dec 31, | |||
| 2026 | 2025 | |||
| US$ | US$ | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 125,941 | 144,559 | ||
| Short-term investments | 177,647 | 138,895 | ||
| Accounts receivable, net | 25,856 | 26,136 | ||
| Inventories | 387 | 384 | ||
| Due from related parties | 13,241 | 11,152 | ||
| Prepayments and other current assets | 11,659 | 11,397 | ||
| Assets of discontinued operations | - | 71,354 | ||
| Total current assets | 354,731 | 403,877 | ||
| Non-current assets: | ||||
| Restricted cash | 819 | 806 | ||
| Long-term investments | 888,631 | 1,070,596 | ||
| Deferred tax assets | 24,456 | 10,083 | ||
| Property and equipment, net | 50,708 | 50,662 | ||
| Intangible assets, net | 32,331 | 32,717 | ||
| Goodwill | 39,783 | 39,164 | ||
| Due from a related party, non-current portion | 19,824 | 19,826 | ||
| Long-term prepayments and other assets | 2,075 | 2,315 | ||
| Operating lease assets | 1,637 | 1,877 | ||
| Total assets | 1,414,995 | 1,631,923 | ||
| Liabilities | ||||
| Current liabilities: | ||||
| Accounts payable | 19,594 | 18,837 | ||
| Due to related parties, current | 9 | 8 | ||
| Contract liabilities, current portion | 44,345 | 42,817 | ||
| Lease liabilities | 412 | 487 | ||
| Income tax payable | 4,362 | 3,975 | ||
| Accrued liabilities and other payables | 68,679 | 75,367 | ||
| Short-term bank borrowings and current portion of long-term bank borrowings | 30,571 | 30,095 | ||
| Liabilities of discontinued operations | - | 36,872 | ||
| Total current liabilities | 167,972 | 208,458 | ||
| Non-current liabilities: | ||||
| Contract liabilities, non-current portion | 1,956 | 1,624 | ||
| Lease liabilities, non-current portion | 1,113 | 1,243 | ||
| Deferred tax liabilities | 5,627 | 6,138 | ||
| Bank borrowings, non-current portion | 39,021 | 38,413 | ||
| Other long-term payables | 3,603 | 3,530 | ||
| Total liabilities | 219,292 | 259,406 | ||
| Equity | ||||
| Common shares (US | 79 | 78 | ||
| Additional paid-in-capital | 474,445 | 480,133 | ||
| Accumulated other comprehensive loss | (13,838) | (17,413) | ||
| Statutory reserves | 9,687 | 9,687 | ||
| Treasury shares (60,724,939 shares and 56,733,019 shares as at December 31, 2025 and March 31, 2026, respectively) | 14 | 15 | ||
| Retained earnings | 726,353 | 900,991 | ||
| Total Xunlei Limited's shareholders' equity | 1,196,740 | 1,373,491 | ||
| Non-controlling interests | (1,037) | (974) | ||
| Total liabilities and shareholders' equity | 1,414,995 | 1,631,923 | ||
| XUNLEI LIMITED | ||||||
| Unaudited Condensed Consolidated Statements of Loss | ||||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||
| Three months ended | ||||||
| Mar 31, | Dec 31, | Mar 31, | ||||
| 2026 | 2025 | 2025 | ||||
| US$ | US$ | US$ | ||||
| Revenues, net of rebates and discounts | 98,594 | 96,834 | 63,969 | |||
| Business taxes and surcharges | (489) | (650) | (242) | |||
| Net revenues | 98,105 | 96,184 | 63,727 | |||
| Cost of revenues | (40,408) | (41,190) | (24,149) | |||
| Gross profit | 57,697 | 54,994 | 39,578 | |||
| Operating expenses | ||||||
| Research and development expenses | (20,160) | (19,444) | (16,043) | |||
| Sales and marketing expenses | (22,437) | (21,985) | (14,499) | |||
| General and administrative expenses | (10,885) | (10,770) | (10,032) | |||
| Credit loss expenses, net | 81 | 617 | 30 | |||
| Total operating expenses | (53,401) | (51,582) | (40,544) | |||
| Operating income/(loss) | 4,296 | 3,413 | (966) | |||
| Interest income | 771 | 508 | 1,060 | |||
| Interest expense | (529) | (513) | (220) | |||
| Other (losses)/income, net | (195,078) | (232,708) | 1,116 | |||
| (Loss)/income before income taxes from continuing operations | (190,540) | (229,300) | 990 | |||
| Income tax expenses | (1,850) | (560) | (1,145) | |||
| Net loss from continuing operations | (192,390) | (229,860) | (155) | |||
| Discontinued operations | ||||||
| Income/(loss) from discontinued operations before income taxes | 2,512 | 1,317 | (791) | |||
| Income tax benefits/(expenses) | 15,211 | (355) | - | |||
| Income/(loss) from discontinued operations | 17,723 | 962 | (791) | |||
| Net loss | (174,667) | (228,898) | (946) | |||
| Less: net loss attributable to non-controlling interest | (29) | (121) | (146) | |||
| Net loss attributable to common shareholders | (174,638) | (228,777) | (800) | |||
| (Loss)/earnings per share for common shares, basic | ||||||
| Continuing operations | (0.6110) | (0.7313) | 0.0000 | |||
| Discontinued operations | 0.0563 | 0.0031 | (0.0026) | |||
| Total loss per share for common shares, basic | (0.5547) | (0.7282) | (0.0026) | |||
| (Loss)/earnings per share for common shares, diluted | ||||||
| Continuing operations | (0.6110) | (0.7313) | 0.0000 | |||
| Discontinued operations | 0.0563 | 0.0031 | (0.0026) | |||
| Total loss per share for common shares, diluted | (0.5547) | (0.7282) | (0.0026) | |||
| (Loss)/earnings per ADS, basic | ||||||
| Continuing operations | (3.0550) | (3.6563) | 0.0000 | |||
| Discontinued operations | 0.2815 | 0.0153 | (0.0129) | |||
| Total loss per ADS, basic | (2.7735) | (3.6410) | (0.0129) | |||
| (Loss)/earnings per ADS, diluted | ||||||
| Continuing operations | (3.0550) | (3.6563) | 0.0000 | |||
| Discontinued operations | 0.2815 | 0.0153 | (0.0129) | |||
| Total loss per ADS, diluted | (2.7735) | (3.6410) | (0.0129) | |||
| Weighted average number of common shares used in calculating: | ||||||
| Basic | 314,813,023 | 314,173,741 | 306,082,940 | |||
| Diluted | 314,813,023 | 314,173,741 | 306,082,940 | |||
| Weighted average number of ADSs used in calculating: | ||||||
| Basic | 62,962,605 | 62,834,748 | 61,216,588 | |||
| Diluted | 62,962,605 | 62,834,748 | 61,216,588 | |||
| XUNLEI LIMITED | ||||||
| Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations) 4 | ||||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||
| Three months ended | ||||||
| Mar 31, | Dec 31, | Mar 31, | ||||
| 2026 | 2025 | 2025 | ||||
| US$ | US$ | US$ | ||||
| GAAP operating income/(loss) | 4,296 | 3,412 | (966) | |||
| Share-based compensation expenses | 1,125 | 1,209 | 1,058 | |||
| Non-GAAP operating income | 5,421 | 4,621 | 92 | |||
| GAAP net loss from continuing operations | (192,390) | (229,860) | (155) | |||
| Share-based compensation expenses | 1,125 | 1,209 | 1,058 | |||
| Fair value changes of long-term investments | 195,414 | 232,534 | - | |||
| Non-GAAP net income from continuing operations | 4,149 | 3,883 | 903 | |||
| GAAP (loss)/earnings per share for common shares attributable to continuing operations: | ||||||
| Basic | (0.6110) | (0.7313) | 0.0000 | |||
| Diluted | (0.6110) | (0.7313) | 0.0000 | |||
| GAAP (loss)/earnings per ADS attributable to continuing operations: | ||||||
| Basic | (3.0550) | (3.6563) | 0.0000 | |||
| Diluted | (3.0550) | (3.6563) | 0.0000 | |||
| Non-GAAP earnings per share for common shares attributable to continuing operations: | ||||||
| Basic | 0.0133 | 0.0127 | 0.0034 | |||
| Diluted | 0.0133 | 0.0127 | 0.0034 | |||
| Non-GAAP earnings per ADS for common shares attributable to continuing operations: | ||||||
| Basic | 0.0665 | 0.0635 | 0.0170 | |||
| Diluted | 0.0665 | 0.0635 | 0.0170 | |||
| Weighted average number of common shares used in calculating: | ||||||
| Basic | 314,813,023 | 314,173,741 | 306,082,940 | |||
| Diluted | 314,813,023 | 314,173,741 | 306,082,940 | |||
| Weighted average number of ADSs used in calculating: | ||||||
| Basic | 62,962,605 | 62,834,748 | 61,216,588 | |||
| Diluted | 62,962,605 | 62,834,748 | 61,216,588 | |||
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com
______________________________
1 In March 2026, the Company completed the disposal of its
2 Non-GAAP net income is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results” contained in this press release.
3 Non-GAAP earnings per ADS is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results” contained in this press release.
4 Non-GAAP reconciliation excludes the operations classified as discontinued operations. The comparative figures have been recalculated to exclude discontinued operations.
