Xunlei Ltd ( (XNET) ) has released its Q1 earnings. Here is a breakdown of the information Xunlei Ltd presented to its investors.
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Xunlei Limited, a prominent technology company in China, specializes in distributed cloud services, offering products across cloud acceleration, shared cloud computing, and digital entertainment to enhance internet experiences. In its latest earnings report for the first quarter of 2025, Xunlei announced a 10.5% year-over-year increase in total revenues, reaching $88.8 million. The company saw significant growth in its live-streaming services, with revenues rising by 66%, while subscription revenues also increased by 7.7%. However, cloud computing revenues declined by 18%, reflecting challenges in the competitive and regulatory landscape.
Key financial metrics highlighted a gross profit of $44.1 million, up 2.9% from the previous year, though the gross profit margin decreased to 49.7% from 53.3%. Xunlei reported a net loss of $0.9 million, a shift from a net income of $3.6 million in the same quarter of 2024. The company’s non-GAAP net income was $0.1 million, down from $4.5 million in the prior year. Increased sales and marketing expenses contributed to an operating loss of $1.9 million, compared to an operating income of $4.0 million in the previous year.
Despite the challenges, Xunlei’s management remains optimistic about future growth, emphasizing strategic acquisitions and the exploration of new revenue streams. The acquisition of Hupu and a focus on AI-driven applications are expected to support sustainable growth. The company also maintains a robust cash position with $274.6 million in cash, cash equivalents, and short-term investments.
Looking ahead, Xunlei projects second-quarter revenues to range between $91 million and $96 million, indicating a potential quarter-over-quarter increase. The company is committed to leveraging its technological capabilities to deliver value to users and shareholders, while navigating the evolving market dynamics.