Xunlei Ltd Adr (NASDAQ:XNET) shares surged 13.6% on Thursday after the Chinese distributed cloud services provider reported strong second quarter results, with revenue climbing 30.6% YoY to $104 million, driven by growth across all business segments.
The company posted adjusted earnings of $0.13 per ADS for the quarter, exceeding analyst expectations of $0.03 per ADS. Revenue growth was broad-based, with live-streaming and other services revenue leading the way, up 85.5% YoY to $37.6 million.
Subscription revenue increased 10.5% to $36.4 million, while cloud computing revenue rose 13.6% to $30 million.
Xunlei’s net income reached $727.4 million, compared to just $2.5 million in the same period last year, primarily due to a $720 million unrealized pre-tax gain on its investment in Arashi Vision (Insta360), which completed its IPO in June.
"The second quarter of 2025 marked a significant milestone for Xunlei," said Jinbo Li, Chairman and CEO. "The successful acquisition of Hupu, the initial public offering of one of our investee companies and a year-over-year revenue growth of 30.6% collectively underscored the company’s strong performance during the quarter."
Looking ahead, Xunlei provided guidance for Q3 2025 revenue between $116 million and $124 million, representing a quarter-over-quarter increase of approximately 15.4% at the midpoint.
The company’s gross profit margin was 49.3% in Q2, slightly down from 51.1% in the same period of 2024, mainly due to decreased margins in its cloud computing business.
Source :
https://www.investing.com/news/earnings/xunlei-shares-soar-as-q2-revenue-jumps-4191891
