Xunlei Limited (NASDAQ:XNET) is a leading Chinese technology company specializing in distributed cloud computing, digital content distribution, and blockchain-enabled services. Founded with a vision to accelerate the delivery of digital content and optimize internet infrastructure, Xunlei has become a pioneer in providing high-speed, reliable, and scalable solutions for both consumer and enterprise markets. Its innovative approach combines advanced cloud technologies with cutting-edge blockchain applications, positioning the company as a key player in China’s rapidly evolving digital economy.
Headquartered in Shenzhen, China, Xunlei operates a diverse ecosystem that includes cloud storage services, content acceleration networks, live-streaming platforms, and blockchain-powered solutions. The company’s commitment to technological innovation is reflected in its extensive patent portfolio and its strategic investments in emerging technologies. Over the years, Xunlei has successfully expanded its user base, attracting millions of subscribers who rely on its services for enhanced connectivity, data management, and secure digital transactions.
Xunlei’s growth strategy emphasizes both organic development and strategic acquisitions to strengthen its market position. By integrating complementary businesses and technologies, the company has expanded its offerings across cloud computing, live-streaming, digital advertising, and blockchain solutions. Notably, acquisitions such as Hupu have enhanced Xunlei’s live-streaming capabilities and diversified its revenue streams, allowing the company to capture a larger share of the global digital entertainment market.
The company has consistently demonstrated strong financial performance, driven by innovative product development, user engagement, and the expansion of its cloud and subscription services. With a clear focus on long-term growth, Xunlei continues to explore new business opportunities in high-demand sectors such as cloud computing for enterprises, overseas live-streaming services, and blockchain applications. This commitment to innovation and strategic growth positions Xunlei as a transformative force in the technology landscape.
Xunlei’s leadership team, led by Chairman and CEO Jinbo Li, has emphasized the importance of aligning technological advancements with market needs. By leveraging its expertise in cloud computing, content delivery, and blockchain integration, Xunlei is uniquely positioned to address the evolving demands of businesses and consumers alike. Its forward-looking approach combines operational excellence, financial discipline, and strategic market insight to create sustainable value for shareholders and stakeholders across the digital ecosystem.
With a robust operational framework, diversified revenue streams, and a proven track record of innovation, Xunlei continues to redefine the possibilities of distributed cloud services and digital content delivery. The company’s focus on technological excellence, market expansion, and strategic investments ensures that it remains at the forefront of China’s digital transformation, providing investors and users with unparalleled opportunities for growth and value creation.
Q2 2025 Financial Performance—Record Revenue Growth
Xunlei’s unaudited financial results for the second quarter ended June 30, 2025, highlight its strong growth trajectory. Total revenues reached US$104.0 million, representing a 30.6% year-over-year increase. Subscription revenues rose to US$36.4 million, up 10.5% from the prior year, driven by a growing subscriber base of 6.40 million users and higher average revenue per subscriber, which increased to RMB40.8 from RMB39.5. Revenue from live-streaming and other services surged 85.5% year-over-year to US$37.6 million, fueled by Xunlei’s overseas audio live-streaming business and the strategic acquisition of Hupu. Cloud computing revenues also saw a healthy increase of 13.6% year-over-year, reaching US$30.0 million, reflecting robust demand from enterprise clients for scalable, cost-effective cloud solutions.
CHECK THIS OUT: How Globalstar (GSAT)’s Strategic Apple Partnership is Changing the Satellite Game and Intel (INTC)’s Epic Comeback: Why Wall Street May Be Dead Wrong About This “Dying” Chip Giant.
Profitability Metrics and Strong Margins
Xunlei reported gross profit of US$51.2 million in Q2 2025, a 25.9% increase compared to the same period in 2024, with a gross margin of 49.3%. While slightly lower than the prior year’s 51.1%, the gross profit increase was driven by growth in subscription, advertising, and overseas live-streaming revenues. Non-GAAP net income also improved significantly to US$8.3 million, up from US$3.2 million in Q2 2024, demonstrating the company’s ability to convert operational growth into bottom-line profitability. Diluted earnings per ADS soared to US$11.48 from US$0.04 in Q2 2024, reflecting the substantial impact of unrealized gains from investments, notably a US$720 million pre-tax gain on its investment in Arashi Vision Inc., which completed its IPO in June 2025.
Operational Excellence and Strategic Acquisitions
Xunlei’s operational strategy centers on expanding core business segments while strategically acquiring complementary assets. The acquisition of Hupu significantly enhanced Xunlei’s live-streaming and advertising revenues and expanded its overseas footprint. CEO Jinbo Li emphasized that the company’s core businesses benefited from optimized product functionalities and refined marketing campaigns, driving broader user engagement. Additionally, Xunlei’s cloud computing division continued to scale efficiently, addressing operational challenges while delivering cost-effective services to enterprise clients. This combination of organic growth and strategic M&A positions Xunlei for sustainable long-term expansion.
Robust Balance Sheet and Cash Flow Position
As of June 30, 2025, Xunlei held US$275.6 million in cash, cash equivalents, and short-term investments, maintaining a stable liquidity position to support future investments, acquisitions, and technology innovation. The company has also initiated a share repurchase program, authorizing up to US$20 million of ADSs over 12 months, demonstrating management’s confidence in the company’s valuation and commitment to shareholder returns. These financial resources, combined with growing revenues and operational efficiency, provide a strong foundation for continued expansion and strategic investments.
Market Opportunity and Growth Catalysts
Xunlei operates at the convergence of three high-growth markets: cloud computing, live-streaming, and blockchain-based solutions. With China’s cloud market growing rapidly, the adoption of 5G infrastructure, and the increasing demand for high-speed digital content delivery, Xunlei is strategically positioned to capture significant market share. The company’s blockchain initiatives enhance security, transparency, and monetization capabilities, further differentiating it from traditional cloud and content providers. Coupled with increasing overseas expansion and monetization of live-streaming platforms, Xunlei is well-equipped to generate sustainable revenue growth and deliver long-term shareholder value.
Guidance for Q3 2025 and Forward Outlook
For the third quarter of 2025, Xunlei projects total revenues between US$116 million and US$124 million, representing a quarter-over-quarter growth of approximately 15.4% at the midpoint. This guidance underscores management’s confidence in ongoing operational momentum, subscriber growth, and successful monetization of cloud and live-streaming services. With diversified revenue streams, strategic acquisitions, and strong market positioning, Xunlei is poised to continue its trajectory as a leading technology company in China and a compelling investment opportunity for long-term growth.
Conclusion: A Compelling Bullish Case
Xunlei Limited presents a highly attractive investment profile, combining strong revenue growth, diversified operations, and strategic market positioning. Its innovative cloud, blockchain, and content delivery ecosystem, coupled with robust financial results and strategic acquisitions, positions the company to capitalize on expanding digital markets in China and abroad. With solid operational execution, substantial unrealized gains from investments, and continued growth in core business segments, Xunlei remains a compelling bullish case for investors seeking exposure to technology-driven growth in cloud computing, digital content, and blockchain-enabled solutions.
READ ALSO: POET Technologies (POET) Delivers 1.6T Optical Innovation—Is a Massive Revenue Surge Next? and BigBear.ai (BBAI) is Flying Under the Radar—But Not for Long. Here’s Why Bulls Are Piling In.
