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Xunlei (XNET)
NASDAQ:XNET
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Xunlei
(NASDAQ:XNET)
Rating:55Neutral
Price Target:
$4.50
▲(0.45% Upside)
Xunlei (XNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$279.43M
Dividend YieldN/A
Average Volume (3M)406.87K
Price to Earnings (P/E)311.0
Beta (1Y)1.15
Revenue Growth-3.87%
EPS Growth-120.58%
CountryUS
Employees1,216
SectorTechnology
Sector Strength98
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.01
Shares Outstanding62,372,066
10 Day Avg. Volume334,269
30 Day Avg. Volume406,872
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.10
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.17
Enterprise Value/Ebitda-4.18
Forecast
1Y Price Target
$5.00Price Target Upside11.61% Upside
Rating ConsensusHold
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 streams. The primary source of income is its subscription services for users of its download acceleration products. This encompasses both individual consumers and businesses that leverage Xunlei's technology to improve data transfer speeds. Additionally, Xunlei earns revenue from its cloud computing services, which cater to enterprises seeking scalable and efficient cloud solutions. Another significant revenue stream is online advertising, where Xunlei monetizes its platform through advertising partnerships. Furthermore, the company's foray into blockchain technology provides additional opportunities for revenue, such as through the issuance of digital tokens and development of blockchain infrastructure services. Partnerships with other technology firms and continuous innovation in its product offerings also contribute to Xunlei's earnings.
Xunlei Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -2.61%|
Next Earnings Date:Aug 14, 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 demonstrates a stable financial position with strong equity and manageable debt levels. However, profitability remains a concern with fluctuating margins and inconsistent revenue growth. The company shows potential in cash flow management, but needs to address operational inefficiencies to enhance profitability and sustain growth.Income Statement
Xunlei has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, indicating consistent cost management. However, the net profit margin has fluctuated, with recent periods showing a decline in profitability. Revenue growth has been inconsistent, with a notable decline in the most recent year. The company struggles with negative EBIT margins, indicating operational challenges, though EBITDA margins show some improvement, suggesting better cash flow management.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a favorable equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, the return on equity has been volatile, reflecting inconsistent profitability. Overall, the company maintains a solid asset base with manageable liabilities.70
Positive
Cash Flow
Cash flow analysis reveals a positive trend in operating cash flow, indicating improved cash generation from operations. Free cash flow has shown growth, but the free cash flow to net income ratio highlights some inefficiencies in converting earnings to cash. The company has managed capital expenditures prudently, supporting free cash flow growth.60
Neutral
| 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 |
| EBITDA | 5.30M | 25.99M | 29.32M | 10.46M | 1.59M |
| Net Income | 1.22M | 14.22M | 21.46M | 1.19M | -14.14M |
Balance Sheet | |||||
| Total Assets | 473.90M | 468.69M | 463.32M | 440.72M | 415.61M |
| Cash, Cash Equivalents and Short-Term Investments | 287.54M | 271.88M | 262.32M | 239.01M | 255.07M |
| Total Debt | 29.63M | 22.95M | 32.36M | 20.19M | 21.91M |
| 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 | 22.63M | 21.23M | 36.13M | 6.19M | -27.52M |
| Operating Cash Flow | 30.98M | 25.72M | 51.11M | 19.48M | -13.91M |
| Investing Cash Flow | -21.91M | -23.90M | 11.76M | -32.62M | -20.76M |
| Financing Cash Flow | -925.00K | -13.52M | 6.64M | -223.00K | 2.68M |
Xunlei Technical Analysis
Negative
4.48
Price Trends
4.87
Negative
4.65
Negative
3.59
Positive
Market Momentum
-0.03
Positive
44.69
Neutral
42.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNET, the sentiment is Negative. The current price of 4.48 is below the 20-day moving average (MA) of 4.68, below the 50-day MA of 4.87, and above the 200-day MA of 3.59, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 42.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥233.81B | 14.23 | 7.64% | 2.58% | 9.24% | 4.42% | |
61 Neutral | $93.51M | ― | -16.55% | ― | -2.67% | 21.65% | |
59 Neutral | $35.55M | 7.13 | 8.21% | ― | -8.74% | ― | |
56 Neutral | $106.29M | 10.71 | 494.69% | ― | 3.47% | -0.61% | |
55 Neutral | $279.43M | 311.04 | -0.99% | ― | -3.87% | -120.58% | |
53 Neutral | $599.74M | ― | -36.12% | ― | -10.21% | -81.84% | |
31 Underperform | $65.18M | ― | -157.27% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
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4.48
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180.00%
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1.84
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VSME
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1.32
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.