Xunlei Limited Q3 FY2025 earnings call

Key Points

• Total revenues for Q3 2025 exceeded expectations, reaching $126.4 million, a year-over-year increase of 57.7%.
• Subscription business saw $40.7 million in revenue, with subscription revenue reaching a record high due to strategic initiatives and product integration.
• Live streaming and other services had a 127.1% year-over-year revenue growth, mainly from the expansion of overseas audio streaming operations and the acquisition of Hufu.
• Cloud computing business had $36.6 million in revenue, a 44.9% year-over-year increase, driven by recovery in client demand, particularly from large enterprise customers.

In Q3 2025, Xunlei Limited's subscription business generated $40.7 million in revenue, a 22.3% increase year-over-year, contributing a significant portion to the total revenue. Live streaming and other services achieved revenue of $49.1 million, a 127.1% year-over-year growth, driven by the expansion of overseas audio streaming operations. Cloud computing business generated $36.6 million in revenue, a 44.9% year-over-year increase, reflecting a recovery in client demand, especially from large enterprise customers.

Xunlei Limited estimates total revenues for Q4 2025 to be between $131 million and $139 million, with the midpoint representing a quarter-over-quarter increase of approximately 6.8%.

Q: Xunlei Limited has not paid any dividend historically. Given the recent investment in Arashi Vision Inc. and the upcoming expiration of the lockup period next year, does Xunlei Limited plan to consider dividend distribution in the future?

A: So far, we do not have any plans for the share disposals or the dividend distribution.

Q: Xunlei Limited has previously mentioned that it would embrace artificial intelligence. Are there any progress made so far?

A: We are actively exploring the opportunities in the artificial intelligence field. We look forward to sharing our progress with you in the future.