Xunlei Ltd Adr (NASDAQ:XNET) shares surged 13.6% on Thursday following the company’s strong second-quarter results, with revenue climbing 30.6% year-over-year to $104 million, fueled by growth across all business segments.
The company reported adjusted earnings of $0.13 per ADS, surpassing analyst expectations of $0.03 per ADS. Revenue growth was broad-based, led by live-streaming and other services, which rose 85.5% YoY to $37.6 million. Subscription revenue increased 10.5% to $36.4 million, while cloud computing revenue grew 13.6% to $30 million.
Net income reached $727.4 million, up dramatically from $2.5 million in the same period last year, primarily reflecting a $720 million unrealized pre-tax gain on its investment in Arashi Vision (Insta360), which went public 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 projected Q3 2025 revenue between $116 million and $124 million, implying roughly 15.4% growth quarter-over-quarter at the midpoint.
The company’s gross profit margin came in at 49.3% for the quarter, slightly below 51.1% in the same period last year, mainly due to lower margins in its cloud computing segment.
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