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Xunlei Ltd (XNET)
:XNET
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Xunlei
(NASDAQ:XNET)
Rating:63Neutral
Price Target:―
Xunlei (XNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$374.86M
Dividend YieldN/A
Average Volume (3M)561.60K
Price to Earnings (P/E)311.0
Beta (1Y)1.18
Revenue Growth-11.16%
EPS Growth-92.61%
CountryUS
Employees1,216
SectorCommunication Services
Sector Strength83
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.01
Shares Outstanding62,372,066
10 Day Avg. Volume948,157
30 Day Avg. Volume561,600
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.17
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.25
Enterprise Value/Revenue-0.07
Enterprise Value/Gross Profit-0.56
Enterprise Value/Ebitda-1.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Xunlei Business Overview & Revenue Model
Company DescriptionXunlei Limited, together with its subsidiaries, operates an Internet platform for digital media content in the People's Republic of China. The company's platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. It offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and cloud acceleration subscription services that offer users premium services through various products, such as Green Channel. The company also provides Mobile Xunlei, a mobile application that allows users to search, download, and consume digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; live video streaming and online advertising services; and cloud computing and other internet value-added services. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is based in Shenzhen, the People's Republic of China.
How the Company Makes MoneyXunlei generates revenue through several key channels. The primary source of income is its subscription-based cloud acceleration services, where users pay for enhanced download speeds and internet performance. Another significant revenue stream is its cloud computing services, where Xunlei offers shared computing power and storage solutions, catering to both individual and enterprise clients. Furthermore, the company capitalizes on its blockchain technology by developing and deploying blockchain-based applications. Xunlei also earns from digital advertising and online game operations, leveraging its substantial user base and internet traffic. Strategic partnerships with technology firms and content providers further contribute to its earnings by expanding its service offerings and market reach.
Xunlei Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 27.61%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call reveals a mixed performance with significant growth in subscription and overseas audio live streaming businesses, offset by challenges in the cloud computing segment and decreased profitability.Q1-2025 Updates
Positive Updates
Year-over-Year Revenue Growth
Xunlei reported a year-over-year revenue growth of 10.5% in Q1 2025, reaching $88.8 million.
Subscription Business Performance
Subscription revenue increased by 7.7% year-over-year to $35.7 million, with the number of subscribers growing by 5% to 6.04 million.
Overseas Audio Live Streaming Growth
Revenue from live streaming and other services grew by 66% year-over-year, with overseas audio live streaming revenue increasing by 79.2%.
AI-Driven Applications Development
Xunlei is actively developing AI-driven applications, including an AI-powered auto-editing tool and effective AI companion, leveraging large language models.
Negative Updates
Cloud Computing Revenue Decline
Revenue from the cloud computing business declined by 18% year-over-year to $24.7 million, due to intensified competition and pricing pressures.
Decreased Profitability
The company reported a net loss of $0.9 million compared to a net income of $3.6 million in the same period of 2024, with operating loss at $1.9 million.
Increased Expenses
Sales and marketing expenses rose to $15.5 million, representing 17.5% of total revenues, up from 12.5% in the same period of 2024.
Company Guidance
During Xunlei's First Quarter 2025 Earnings Conference Call, the company reported a 10.5% year-over-year revenue increase to $88.8 million, driven largely by growth in subscription and overseas audio live streaming services. Subscription revenue rose by 7.7% year-over-year, reaching $35.7 million, with subscriber numbers increasing by 5% to 6.04 million. The company also experienced a substantial 66% year-over-year rise in live streaming and other services revenue, including a 79.2% increase in overseas audio live streaming revenue. Conversely, cloud computing business revenue declined by 18% year-over-year to $24.7 million due to intensified competition and pricing pressures. The company projected Q2 2025 revenues to range between $91 million and $96 million, reflecting a quarter-over-quarter increase of approximately 5.3% at the midpoint. Despite these positive indicators, the company reported an operating loss of $1.9 million and a net loss of $0.9 million for the quarter, attributed to a decreased gross profit margin and increased marketing expenses.Xunlei Financial Statement Overview
Summary
Xunlei shows a stable balance sheet with low leverage and strong equity, scoring 75. However, the income statement and cash flow reveal operational challenges, with declining revenue and inadequate cash generation, scoring 65 and 40, respectively. Overall, the financial performance is hindered by the lack of profitability and cash flow efficiency.Income Statement
Xunlei's income statement reveals a fluctuating revenue trend with moderate growth. The Gross Profit Margin is approximately 51.8% for 2024, which indicates a strong ability to cover the cost of goods sold. However, the company struggles with profitability, as evidenced by negative EBIT and low Net Profit Margin of 0.4% for 2024. Revenue decreased by 11.1% from 2023 to 2024, highlighting potential challenges in sustaining growth.65
Positive
Balance Sheet
The balance sheet shows a strong equity position, with an Equity Ratio of 67.1% in 2024, indicating financial stability. The Debt-to-Equity Ratio is low at 0.09, suggesting minimal leverage and low financial risk. Additionally, the company maintains a healthy cash reserve, with cash and equivalents exceeding total debt. However, Return on Equity is only 0.4%, reflecting limited returns for shareholders.75
Positive
Cash Flow
Xunlei's cash flow statement highlights concerns. Operating Cash Flow to Net Income Ratio is 0 for 2024, indicating inefficiencies in converting revenue into cash. Free Cash Flow has been zero in 2024, signaling potential liquidity issues. The absence of cash flow growth and reliance on past cash reserves may pose risks to future operations if profitability does not improve.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 323.14M | 363.72M | 341.50M | 238.78M | 186.37M | Gross Profit |
| 167.57M | 163.07M | 141.44M | 120.18M | 93.73M | EBIT |
| -15.70M | -1.61M | 10.06M | -7.10M | -13.70M | EBITDA |
| 5.30M | 25.99M | 29.32M | 10.46M | 1.59M | Net Income Common Stockholders |
| 1.22M | 14.22M | 21.46M | 1.19M | -14.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 287.54M | 271.88M | 262.32M | 239.01M | 255.07M | Total Assets |
| 473.90M | 468.69M | 463.32M | 440.72M | 415.61M | Total Debt |
| 29.63M | 22.95M | 32.36M | 20.19M | 21.91M | Net Debt |
| -147.70M | -147.85M | -146.34M | -103.17M | -115.34M | Total Liabilities |
| 156.12M | 145.21M | 154.90M | 138.95M | 125.23M | Stockholders Equity |
| 318.06M | 324.86M | 309.89M | 303.65M | 292.15M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 21.23M | 36.13M | 6.19M | -27.52M | Operating Cash Flow |
| 0.00 | 25.72M | 51.11M | 19.48M | -13.91M | Investing Cash Flow |
| 0.00 | -23.90M | 11.76M | -32.62M | -20.76M | Financing Cash Flow |
| 0.00 | -13.52M | 6.64M | -223.00K | 2.68M |
Xunlei Technical Analysis
Positive
5.87
Price Trends
4.55
Positive
3.97
Positive
2.94
Positive
Market Momentum
0.43
Positive
59.10
Neutral
32.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNET, the sentiment is Positive. The current price of 5.87 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 4.55, and above the 200-day MA of 2.94, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XNET.
Xunlei Risk Analysis
Xunlei disclosed 78 risk factors in its most recent earnings report. Xunlei reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xunlei Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $374.86M | 311.04 | -1.00% | ― | -11.16% | -92.61% | |
61 Neutral | $14.35B | 5.84 | -4.31% | 3.69% | 2.75% | -35.67% | |
59 Neutral | $147.68M | 13.37 | 494.69% | ― | 0.23% | 17.13% | |
57 Neutral | $73.75M | ― | -16.55% | ― | -2.67% | 21.65% | |
51 Neutral | $28.19M | 5.26 | 8.21% | ― | -8.74% | ― | |
48 Neutral | $405.39M | ― | -42.89% | ― | -13.81% | -433.86% | |
31 Underperform | $8.50M | ― | -157.27% | ― | ― | ― |
* Communication Services Sector Average
Performance Comparison
XNET
Xunlei
5.87
3.95
205.73%
MCHX
Marchex
1.90
0.25
15.15%
TZOO
Travelzoo
13.37
5.21
63.85%
WIMI
WiMi Hologram Cloud
2.67
-6.03
-69.31%
ADV
Advantage Solutions
1.22
-1.76
-59.06%
VSME
VS Media Holdings Limited Class A
0.92
-1.02
-52.58%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.