Xunlei Soars 10.1% on 30.6% Revenue Surge, Arashi Vision Gain

On August 15, 2025, Xunlei's stock surged by 10.1% in pre-market trading, reflecting a strong market response to the company's recent financial performance and strategic initiatives.

Xunlei reported a significant increase in its second-quarter revenue, growing by 30.6% year-over-year to $104 million. This growth was driven by robust performance across all business segments, particularly in live-streaming and other services, which saw an 85.5% year-over-year increase to $37.6 million. Subscription revenue also rose by 10.5% to $36.4 million, while cloud computing revenue grew by 13.6% to $30 million.

The company's net income for the quarter reached $727.4 million, a dramatic increase from $2.5 million in the same period last year. This surge was primarily due to a $720 million unrealized pre-tax gain on its investment in Arashi Vision (Insta360), which went public in June. The company's gross profit margin for the quarter was 49.3%, slightly below the 51.1% recorded in the same period last year, mainly due to lower margins in the cloud computing segment.

Xunlei's strong financial performance was further bolstered by strategic acquisitions and investments. The successful acquisition of Hupu and the initial public offering of one of its investee companies highlighted the company's aggressive growth strategy. Looking ahead, Xunlei projected Q3 2025 revenue between $116 million and $124 million, implying roughly 15.4% growth quarter-over-quarter at the midpoint.