Xunlei (XNET) AI Stock Analysis

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Xunlei

(NASDAQ:XNET)

Rating:58Neutral

Price Target:

$4.50

▲(0.67%Upside)

Xunlei's overall score is primarily impacted by its stable financial position and growth in some business segments, balanced against negative profitability indicators and technical analysis signals. The company's potential in cash flow management and upcoming revenue growth offers some optimism, but challenges in profitability and competitive pressures in cloud computing remain significant concerns.

Xunlei (XNET) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$278.80M

Dividend YieldN/A

Average Volume (3M)828.76K

Price to Earnings (P/E)311.0

Beta (1Y)1.10

Revenue Growth-3.82%

EPS Growth-120.82%

CountryUS

Employees1,216

SectorCommunication Services

Sector Strength83

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)-0.01

Shares Outstanding62,372,066

10 Day Avg. Volume496,940

30 Day Avg. Volume828,759

Financial Highlights & Ratios

PEG Ratio1.16

Price to Book (P/B)0.18

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap-0.27

Enterprise Value/Revenue-0.06

Enterprise Value/Gross Profit-0.45

Enterprise Value/Ebitda-2.36

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

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: -2.83%|

Next Earnings Date:Aug 19, 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

Positive

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

Positive

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

Neutral

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	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

Technical Analysis Sentiment

Neutral

Last Price4.47

Price Trends

50DMA

4.99

Negative

100DMA

4.56

Negative

200DMA

3.39

Positive

Market Momentum

MACD

-0.12

Negative

RSI

45.76

Neutral

STOCH

9.67

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNET, the sentiment is Neutral. The current price of 4.47 is above the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.99, and above the 200-day MA of 3.39, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 9.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TZOO	63 Neutral	$143.02M	12.89	494.69%	―	0.23%	17.13%
Sector *	62 Neutral	$41.14B	-1.94	-12.05%	4.72%	2.10%	-69.66%
WIMI	61 Neutral	$36.34M	7.29	8.21%	―	-8.74%	―
MCHX	61 Neutral	$89.12M	―	-16.55%	―	-2.67%	21.65%
XNET	58 Neutral	$278.80M	311.04	-1.00%	―	-3.82%	-120.82%
ADV	54 Neutral	$473.50M	―	-42.89%	―	-13.81%	-433.86%
VSME	31 Underperform	$53.03M	―	-157.27%	―	―	―

* Communication Services Sector Average

Performance Comparison

XNET

Xunlei

4.47

2.75

159.88%

MCHX

Marchex

2.03

0.44

27.67%

TZOO

Travelzoo

12.89

3.99

44.83%

WIMI

WiMi Hologram Cloud

3.70

-4.80

-56.47%

ADV

Advantage Solutions

1.46

-2.30

-61.17%

VSME

VS Media Holdings Limited Class A

1.07

-0.68

-38.86%

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.Date of analysis: Jul 17, 2025