Xunlei (XNET) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 12.9% YoY to $101.3M; growth moderated amid competition and strategic adjustments in core consumer businesses.

• Subscription and live-streaming services grew, while higher operating costs, lower gross margin, and investment fair-value losses weighed on results.

Financial highlights

• Gross profit increased 1.6% YoY to $56.5M; gross margin was 55.7%, down from 62.0%, as lower-margin live-streaming revenue made up a larger share.

• Operating loss was $14.8M versus operating income of $3.3M in Q3 2025; operating expenses rose to $71.2M from $52.3M.

• Continuing-operations net loss was $235.8M versus net income of $550.4M; non-GAAP net loss was $16.4M versus non-GAAP net income of $5.6M.

• Other losses, net were $219.2M versus other income of $547.5M, mainly from fair-value changes in the Arashi Vision investment.

Segment performance

• Subscription revenue rose 8.5% YoY to $44.1M, mainly on increased demand for subscription services.

• Live-streaming and other services revenue increased 16.6% YoY to $57.2M, driven mainly by overseas audio live streaming and Hupu advertising.

• Overseas audio live-streaming revenue-sharing expenses grew faster than segment revenue amid stronger competition and rising user acquisition costs.

• Hupu advertising benefited from World Cup-related traffic and engagement; additional offerings are being explored to reduce event-driven volatility.