Xunlei Reports Q3 2026 Revenue Growth Amid Increased Operating Losses and Investment Adjustments
Xunlei Limited (XNET) reported third-quarter 2026 total revenue of $101.3 million, a 12.9% increase year-over-year. This growth was fueled by the subscription segment ($44.1 million) and live-streaming services ($57.2 million), particularly through expansion in overseas audio markets. However, the company's gross margin compressed to 55.7% from 62% last year due to a shift toward lower-margin live-streaming revenue. The bottom line was significantly impacted by a $217.9 million non-cash fair value adjustment related to its investment in Arashi Vision, resulting in a net loss from continuing operations of $235.8 million. Additionally, increased sales and marketing expenses for user acquisition and higher R&D costs contributed to an operating loss of $14.8 million, compared to an operating income in the prior-year period.
Tickers: $XNET
Topics: live-streaming revenue net loss operating loss revenue growth subscription revenue