Xunlei Q2 Revenue Jumps 39% but Fair Value Loss Drives $218.5M GAAP Net Loss
XNET is trading near its 52-week low of $4.38 (13% above the low).
Summary
Xunlei reported 39% revenue growth in Q2 2026 but a $218.5 million GAAP net loss driven by a fair value decline in its Arashi Vision stake. Non-GAAP loss was only $2.1 million.
Key Events · Earnings and Guidance · XNET
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Revenue Up 39% to $102.7M
Total revenues rose 38.9% year-over-year, driven by subscription services (up 22.6%) and overseas audio live-streaming (up 54.8%).
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GAAP Net Loss of $218.5M
A $213.8 million fair value loss on the long-term investment in Arashi Vision Inc. swung results from a $726.4 million net income a year ago to a $218.5 million net loss.
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Non-GAAP Loss Narrows to $2.1M
Excluding share-based compensation and fair value changes, non-GAAP net loss from continuing operations was $2.1 million, versus non-GAAP net income of $7.2 million in Q2 2025.
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Gross Margin Compresses to 55.8%
Gross profit margin fell from 63.0% to 55.8% as lower-margin live-streaming revenue became a larger share of total revenue.
Analysis · XNET · Technology
Xunlei's Q2 results show strong top-line growth of 38.9% to $102.7 million, but a $213.8 million fair value loss on its Arashi Vision investment swung the company to a $218.5 million GAAP net loss. Non-GAAP net loss was a modest $2.1 million, indicating the core business is near breakeven. Gross margin compressed to 55.8% from 63.0% due to a higher mix of lower-margin live-streaming revenue. Cash declined to $276.9 million, partly due to share repurchases and loan repayments.
At the time of this filing, XNET was trading at $4.97 on NASDAQ in the Technology sector, with a market capitalization of approximately $312.4M. The 52-week trading range was $4.38 to $11.03. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.