Xunlei (XNET) AI Stock Analysis

• Market Cap: $526.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 0.7
• Beta (1Y): 1.11
• Revenue Growth: 11.31%
• EPS Growth: 5084.80%
• Country: US
• Employees: 1,216
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): 11.52
• Shares Outstanding: 62,372,066
• 10 Day Avg. Volume: 1,035,478
• 30 Day Avg. Volume: 1,607,155
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.10
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: -3.09
• 1Y Price Target: $9.00
• Price Target Upside: -2.07% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $9.00 ▼(-2.07% Downside)

Xunlei's stock is rated positively due to its undervaluation and strong technical momentum. Despite financial performance concerns, particularly in profitability and operational efficiency, the stock's low P/E ratio and bullish technical indicators suggest potential for growth. The earnings call provided a mixed outlook, with strong revenue growth but increased costs and segment losses.

Xunlei Business Overview & Revenue Model

Company Description

Xunlei Limited (XNET) is a leading technology company based in China, primarily known for its innovative cloud-based services and peer-to-peer file-sharing technology. Founded in 2003, Xunlei operates in the digital content delivery and online services sectors, offering a range of products including download acceleration software, cloud storage solutions, and blockchain-related services. The company aims to enhance the efficiency of internet services while providing value-added services to both individual users and businesses.

How the Company Makes Money

Xunlei generates revenue through multiple streams, primarily by offering paid subscription services for its cloud storage and file-sharing solutions. The company also monetizes its user base through advertising on its platforms, where businesses can promote their products and services. Additionally, Xunlei has ventured into blockchain technology, creating revenue opportunities through cryptocurrency-related services and partnerships with other technology firms. Significant partnerships with internet service providers and content companies further bolster its revenue model by allowing Xunlei to provide integrated services and expand its market reach.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.61M	323.14M	363.72M	341.50M	238.78M	186.37M
Gross Profit	168.84M	167.57M	163.07M	141.44M	120.18M	93.73M
EBITDA	-16.42M	5.30M	25.99M	29.32M	10.46M	1.59M
Net Income	-3.22M	1.22M	14.22M	21.46M	1.19M	-14.14M
Balance Sheet
Total Assets	485.86M	473.90M	468.69M	463.32M	440.72M	415.61M
Cash, Cash Equivalents and Short-Term Investments	274.57M	287.54M	271.88M	262.32M	239.01M	255.07M
Total Debt	28.37M	29.63M	22.95M	32.36M	20.19M	21.91M
Total Liabilities	168.63M	156.12M	145.21M	154.90M	138.95M	125.23M
Stockholders Equity	317.64M	318.06M	324.86M	309.89M	303.65M	292.15M
Cash Flow
Free Cash Flow	0.00	22.63M	21.23M	36.13M	6.19M	-27.52M
Operating Cash Flow	0.00	30.98M	25.72M	51.11M	19.48M	-13.91M
Investing Cash Flow	0.00	-21.91M	-23.90M	11.76M	-32.62M	-20.76M
Financing Cash Flow	0.00	-925.00K	-13.52M	6.64M	-223.00K	2.68M

Xunlei Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.19 is above the 20-day moving average (MA) of 7.80, above the 50-day MA of 6.50, and above the 200-day MA of 4.51, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 98.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XNET.

Xunlei Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XNET	77 Outperform	$526.74M	0.74	105.35%	―	11.31%	5084.80%
WIMI	60 Neutral	$94.67M	4.24	7.17%	―	-27.98%	―
TZOO	58 Neutral	$109.92M	11.17	-2935.93%	―	3.47%	-0.61%
ADV	48 Neutral	$508.48M	-1.51	-44.47%	―	-10.21%	-81.84%
MCHX	44 Neutral	$80.41M	-17.01	-15.16%	―	-2.64%	6.48%
VSME	31 Underperform	$123.91M	-13.59	-569.80%	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Xunlei Corporate Events

Xunlei Extends Loan Maturity to Chizz (HK) Limited

On September 12, 2025, Xunlei Limited announced a further extension of the maturity date for a $20 million loan to Chizz (HK) Limited, a company controlled by its largest shareholder, Itui International Inc. Initially approved in September 2021, the loan’s maturity was first extended in 2023, with the interest rate increased to 5.1%. This recent extension maintains the same interest rate for an additional two years, reflecting Xunlei’s ongoing financial relationship with its key stakeholder.

Xunlei Reports Strong Q2 2025 Financial Results with Significant Revenue Growth

On August 14, 2025, Xunlei Limited announced its unaudited financial results for the second quarter ended June 30, 2025. The company reported a 30.6% year-over-year increase in total revenues, reaching $104.0 million. Key contributors to this growth included a significant rise in live-streaming and other services revenues, which increased by 85.5% year-over-year, and a 13.6% increase in cloud computing revenues. Xunlei’s net income surged to $727.4 million, primarily driven by unrealized pre-tax gains from its investment in Arashi Vision Inc. following its IPO. The company’s strategic acquisition of Hupu and the introduction of new product functionalities contributed to its strong performance, positioning Xunlei for continued growth and value creation for shareholders.