Xunlei Q2 rev. $104mln, up 30.6% YoY, net income $727.4mln.

• Xunlei's Q2 2025 total revenues up 30.6% YoY to $104.0 million. • Subscription revenues up 10.5% YoY to $36.4 million. • Live-streaming and other services revenues up 85.5% YoY to $37.6 million. • Cloud computing revenues up 13.6% YoY to $30.0 million. • Gross profit up 25.9% YoY to $51.2 million. • Gross profit margin at 49.3%. • Net income at $727.4 million.

Chinese distributed cloud services provider Xunlei (NASDAQ:XNET) reported robust financial results for the second quarter of 2025, with total revenues surging by 30.6% year-over-year (YoY) to $104.0 million [1]. The company's core segments—subscription, live-streaming, and cloud computing—all demonstrated significant growth, contributing to the overall revenue increase.

Subscription revenues climbed 10.5% YoY to $36.4 million, driven by a rise in the number of subscribers and an increase in average revenue per subscriber. Live-streaming and other services revenues jumped 85.5% YoY to $37.6 million, primarily due to the expansion of overseas audio live-streaming businesses and the acquisition of Hupu, a sports community platform. Cloud computing revenues grew 13.6% YoY to $30.0 million, reflecting increased demand from major customers.

Gross profit rose 25.9% YoY to $51.2 million, while gross profit margin decreased to 49.3% from 51.1% in the same period last year. The decline in gross margin can be attributed to a decrease in the gross profit margin of the cloud computing business. Sales and marketing expenses nearly doubled to $21.6 million, representing 20.8% of revenue, indicating significant spending on user acquisition.

The standout element in Xunlei's Q2 2025 results was the extraordinary $727.4 million net income, compared to just $2.5 million in Q2 2024. This dramatic increase was primarily driven by $720 million in unrealized pre-tax gains from the company's investment in Arashi Vision (Insta360), which completed its IPO in June. The windfall significantly strengthened Xunlei's financial position, with cash and short-term investments now at $275.6 million.

For Q3 2025, Xunlei projects revenues between $116-124 million, representing a 15.4% quarter-over-quarter (QoQ) increase at the midpoint. The successful acquisition of Hupu should continue to diversify revenue streams and bolster advertising income.

References:
[1] https://www.stocktitan.net/news/XNET/xunlei-announces-unaudited-financial-results-for-the-second-quarter-7e57dvq009xd.html