Xunlei shares surge 11.28% premarket as Q3 results exceed guidance, driven by $545.8M investment gain in Arashi Vision.

Xunlei (XNET) surged 11.28% in premarket trading following the release of strong third-quarter financial results and bullish fourth-quarter guidance. The company reported total revenues of $126.4 million, a 57.7% year-over-year increase, driven by growth in subscription, live-streaming, and cloud computing segments. Notably, net income soared to $550.1 million, fueled by a $545.8 million unrealized gain from its investment in Arashi Vision Inc. CEO Jinbo Li highlighted exceeding revenue guidance and strategic leverage from the investment. Additionally, Xunlei provided Q4 revenue guidance of $131–139 million, signaling continued growth. The premarket rally reflects investor optimism over the company’s diversified revenue streams, robust financial performance, and strategic investments.