Xunlei Announces Unaudited Financial Results for the Second Quarter Ended June 30, 2025

Core Insights - Xunlei Limited reported a significant milestone in Q2 2025, highlighted by a 30.6% year-over-year revenue growth, the acquisition of Hupu, and the IPO of an investee company [3][5]. Financial Performance - Total revenues reached US$104.0 million, marking a 30.6% increase year-over-year, primarily driven by growth in major business operations [5][8]. - Subscription revenues amounted to US$36.4 million, up 10.5% year-over-year, attributed to an increase in subscribers to 6.40 million from 5.71 million and a rise in average revenue per subscriber to RMB40.8 from RMB39.5 [6][8]. - Live-streaming and other services generated US$37.6 million, reflecting an 85.5% year-over-year increase, mainly due to growth in overseas audio live-streaming and advertising businesses following the Hupu acquisition [7][8]. - Cloud computing revenues were US$30.0 million, a 13.6% increase year-over-year, driven by higher demand from major customers [9][8]. - Gross profit was US$51.2 million, up 25.9% year-over-year, with a gross profit margin of 49.3%, slightly down from 51.1% in the same period of 2024 [8][13]. Income and Expenses - Net income surged to US$727.4 million from US$2.5 million in Q2 2024, primarily due to increased other income related to the investment in Arashi Vision [20][18]. - Non-GAAP net income was US$8.3 million, compared to US$3.2 million in the same period of 2024 [20][21]. - Research and development expenses were US$18.4 million, representing 17.7% of total revenues, while sales and marketing expenses rose to US$21.6 million, accounting for 20.8% of total revenues [14][15]. Cash and Shareholder Returns - As of June 30, 2025, the company had cash, cash equivalents, and short-term investments totaling US$275.6 million, a slight increase from US$274.6 million at the end of Q1 2025 [22]. - The company initiated a share repurchase program, with US$6.5 million spent on buybacks as of June 4, 2025, although no shares were repurchased in Q2 2025 [23]. Future Guidance - For Q3 2025, Xunlei estimates total revenues to be between US$116 million and US$124 million, indicating a quarter-over-quarter increase of approximately 15.4% [24].