Xunlei (NASDAQ:XNET) released its unaudited fourth-quarter and full-year 2025 financial results on Thursday, revealing a year of explosive top-line expansion and a substantial non-operating windfall.
The Shenzhen-based company reported full-year revenue of US$462.4 million, representing a 42.5% increase year-over-year.
The fourth quarter was particularly strong, with revenue hitting US$143.3 million, a 70% jump compared to the same period in 2024.
This growth was spearheaded by the company’s live-streaming and cloud computing divisions, both of which recorded triple-digit growth during the final three months of the year.
However, this aggressive expansion into lower-margin service segments resulted in a slight compression of profitability, with the annual gross margin declining to 47%.
The standout figure in the report was a full-year net income of US$1,047.6 million.
This surge was almost entirely driven by "other income" resulting from a massive fair value gain on a long-term investment, rather than core operational earnings.
This accounting adjustment significantly bolstered the company's bottom line, though management emphasized the underlying momentum in its diversified cloud-based services.
As of December 31, 2025, Xunlei maintained a healthy liquidity position with US$305.2 million in cash and short-term investments.