Xunlei (XNET) AI Stock Analysis

• Market Cap: $450.22M
• Dividend Yield: N/A
• Average Volume (3M): 343.43K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 1.38
• Revenue Growth: 26.91%
• EPS Growth: 8746.89%
• Country: US
• Employees: 1,216
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): 8.61
• Shares Outstanding: 62,372,066
• 10 Day Avg. Volume: 270,914
• 30 Day Avg. Volume: 343,427
• PEG Ratio: -0.37
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 1.12
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 0.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $7.00 ▼(-0.14% Downside)

Xunlei's overall stock score is driven by strong earnings call performance and undervaluation, offset by technical analysis indicating bearish trends and financial performance concerns. The company's strategic investments and revenue growth are positive, but operational inefficiencies and cost challenges need addressing.

Positive Factors

Revenue Growth

Xunlei's significant revenue growth across major business segments indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Investments

The substantial gain from strategic investments enhances Xunlei's financial stability and provides leverage for future business expansion and R&D initiatives.

Cloud Computing Recovery

The recovery in cloud computing revenue highlights a rebound in client demand, strengthening Xunlei's position in a growing market and supporting sustainable growth.

Negative Factors

Decreased Gross Profit Margin

The decline in gross profit margin suggests challenges in cost management, which could pressure profitability if not addressed, impacting long-term financial health.

Increased Operating Expenses

Rising operating expenses, particularly in sales and marketing, may strain profitability and require strategic adjustments to optimize cost efficiency.

Inconsistent Profitability

Inconsistent profitability and fluctuating margins highlight operational inefficiencies that could hinder Xunlei's ability to sustain long-term growth and financial stability.

Xunlei Business Overview & Revenue Model

Company Description

Xunlei Limited (XNET) is a leading technology company headquartered in Shenzhen, China, primarily focused on providing cloud-based services and internet infrastructure solutions. The company operates in sectors such as cloud computing, digital content distribution, and blockchain technology. Xunlei's core products include its download accelerator software, Thunder, cloud storage services, and a blockchain-based platform that supports various applications, enhancing user experience and optimizing content delivery.

How the Company Makes Money

Xunlei generates revenue through a diverse array of streams. Primarily, the company earns money from its cloud services, where it provides cloud storage and computing solutions to both individual users and enterprises. This includes subscription fees for premium services and pay-per-use models for larger clients. Additionally, Xunlei monetizes its user base through advertising on its platforms and partnerships with digital content providers. The blockchain technology segment also contributes to revenue, as it allows for new applications and services that can be monetized. Strategic partnerships with other tech firms and content providers further enhance its revenue potential by creating integrated solutions that attract more users and clients.

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	401.92M	323.14M	363.72M	341.50M	238.78M	186.37M
Gross Profit	199.44M	167.57M	163.07M	141.44M	120.18M	93.73M
EBITDA	1.26B	5.30M	25.99M	29.32M	10.46M	1.59M
Net Income	1.27B	1.22M	14.22M	21.46M	1.19M	-13.84M
Balance Sheet
Total Assets	1.83B	473.90M	468.69M	463.32M	440.72M	415.61M
Cash, Cash Equivalents and Short-Term Investments	284.10M	287.54M	271.88M	262.32M	239.01M	255.07M
Total Debt	70.54M	29.63M	22.95M	32.36M	20.19M	21.91M
Total Liabilities	234.06M	156.12M	145.21M	154.90M	138.95M	125.23M
Stockholders Equity	1.60B	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: Negative
• Last Price: 7.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.01 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 8.42, and above the 200-day MA of 5.95, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 72.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XNET.

Xunlei Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	68 Neutral	$940.21M	11.45	12.96%	5.74%	-0.94%	47.48%
XNET	66 Neutral	$450.22M	0.36	131.32%	―	26.91%	8746.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WIMI	56 Neutral	$70.07M	3.14	15.20%	―	-27.98%	―
ADV	39 Underperform	$400.91M	-1.19	-29.47%	―	-7.12%	-7.75%
VSME	31 Underperform	$5.26M	-1.41	-194.72%	―	-11.51%	74.52%
YDKG	25 Underperform	$6.32M	―	-113.86%	―	2482.80%	-169.59%

Xunlei Corporate Events

Xunlei Reports Strong Q3 2025 Financial Results with Significant Revenue Growth

Xunlei Limited announced its unaudited financial results for the third quarter ended September 30, 2025, showcasing a significant year-over-year revenue increase of 57.7% to US$126.4 million. The growth was driven by strong performances across its subscription, live-streaming, and cloud computing services. The company’s net income soared to US$550.1 million, largely due to unrealized pre-tax gains from its investment in Arashi Vision Inc. This financial boost is expected to enhance Xunlei’s balance sheet, providing strategic leverage for future business expansion and collaborations. The company remains committed to operational discipline and strategic investments to ensure long-term growth and shareholder value.

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.