Xunlei Reports 42.5% Annual Revenue Growth and $228.9M Q4 Net Loss
Xunlei’s Q4 2025 net loss widened to $228.9 million from $9.9 million a year ago due to a fair-value writedown, while non-GAAP net income dropped to $4.8 million from $11.3 million. Annual revenue rose 42.5% to $462.4 million, driven by a 102.7% spike in cloud computing sales to $46.1 million.
1. Q4 Financial Results
Xunlei’s cost of revenues rose to $80.8 million, or 56.4% of total revenues, up from 47.9% a year earlier, driving gross profit margin down to 43% from 51.7%. The company reported a net loss of $228.9 million, sharply higher than $9.9 million in Q4 2024, while non-GAAP net income fell to $4.8 million from $11.3 million.
2. Segment Performance
Cloud computing revenue in Q4 reached $46.1 million, up 102.7% year-over-year, contributing to full-year cloud revenue of $137.4 million, a 31.4% increase. Subscription services generated $154.8 million and live streaming plus other IVAS brought in $170.2 million, fueling total revenue of $462.4 million for 2025, up 42.5%.
3. Operating Income Turnaround
Xunlei achieved operating income of $4.7 million in Q4, reversing last year’s operating loss, supported by the absence of a goodwill impairment charge. The company’s strong cash position and improved cost controls underpin its operating leverage going forward.
4. Capital Allocation and Partnerships
Xunlei sold its cloud business stake to Kingsoft Cloud to maximize returns and leverage infrastructure strengths. CEO Jinbo Li said proceeds will fund R&D in cloud acceleration, overseas audio live streaming, product upgrades, market expansion and optimize capital structure. Proceeds from the Arashi Vision stake will support emerging technology R&D and potential shareholder rewards.