Xunlei reported second-quarter 2026 total revenues of $102.7 million, up 38.9% year over year, but swung to a net loss from continuing operations of $218.5 million, compared with net income of $726.4 million a year earlier. Subscription revenues rose 22.6% to $44.5 million, while live-streaming and other revenues jumped 54.8% to $58.2 million, driven by overseas audio live-streaming expansion and higher advertising revenue. Gross margin fell to 55.8% from 63% due to a structural shift toward lower-margin live-streaming services, and the company posted an operating loss of $4.8 million. The net loss was primarily caused by a $213.8 million other loss from fair value volatility on its 7.8% stake in Arashi Vision Inc., which is marked to market following that company's June 2025 IPO. Xunlei also announced a $20 million share repurchase program that began July 1, with $5.9 million spent to buy back about 1.07 million ADSs as of August 12.
Xunlei Ltd AdrXunlei's net loss is driven by fair value volatility on its 7.8% stake in Arashi Vision, indicating a decline in the stake's value.
