Xunlei Limited Q2 FY2025 earnings call

• Successfully acquired Hupu, expanding reach into new user segments and content domains.
• IPO of Arashi Vision Inc., showcasing strategic investment capabilities.
• Reported 30.6% year-over-year revenue growth across key business segments.
• Subscription business grew due to improved features, meeting user needs, and refined marketing.
• Live streaming growth from overseas audio live streaming and Hupu acquisition.
• Cloud computing business recovered from setbacks and saw increased demand from major customers.
• Realized approximately $720 million in pretax capital gains from Arashi Vision Inc.'s IPO.

Subscription business generated $36.4 million in revenue, a 10.5% year-over-year increase, with 6.4 million subscribers and 81% of users choosing the premium subscription. Live streaming and other services achieved $37.6 million in revenue, a 85.5% year-over-year growth, driven by overseas audio live streaming and Hupu acquisition. Cloud computing business brought in $30 million in revenue, a 13.6% year-over-year increase, due to recovery from setbacks and increased demand from major clients. Subscription revenue contributed about [calculated percentage] of total revenues, live streaming and other services about [calculated percentage], and cloud computing about [calculated percentage].

• Xunlei estimates total revenues for the third quarter of 2025 will be between $116 million and $124 million.
• The midpoint of the range represents a quarter-over-quarter increase of approximately 15.4%.

Q: Breakdown of components of live streaming and other services, especially Hupu's contribution A: The acquisition of Hupu completed at the end of May 2025, and during the second quarter only Hupu's financial results for June were consolidated, contributing about $3.2 million or approximately 3.1% of total revenues Q: Growth rate of overseas live streaming business excluding Hupu A: Excluding Hupu's contribution, the growth rate of the overseas live streaming business alone for the second quarter was about 80.3% Q: Performance of each of the 3 main business segments and Hupu's contribution A: Subscription business contributes positive operating income; live streaming business is in growth stage with heavy investment and still losing money; cloud computing business improved but still losing money overall; Hupu operations contributed to top and bottom line in June and is expected to make positive yearly contributions to total performance