Q2 2026 Xunlei Ltd Earnings Call Transcript
Key Points
- Total revenues grew 38.9% year-over-year to $102.7 million, driven by strong performance in Subscription and Overseas Audio Live Streaming.
- Subscription revenue increased 22.6% year-over-year to $44.5 million, supported by AI-powered features and partnerships with smartphone makers.
- Overseas Audio Live Streaming revenue surged 54.8% year-over-year to $58.2 million, with expansion in Southeast Asia, the Middle East, Turkey, and Latin America.
- Hupu business contributed $9.1 million in Q2 revenue, benefiting from peak advertising season and major global sporting events.
- Announced a new $20 million share repurchase program, with $5.9 million already spent on buybacks as of August 12, demonstrating confidence in long-term growth.
- Gross margin declined to 55.8% from 63% in the prior-year period, due to a revenue mix shift toward lower-margin live streaming.
- Operating loss of $4.8 million was reported, reversing from an operating income of $0.3 million in Q2 2025, due to higher selling, marketing, and G&A expenses.
- Net loss from continuing operations was $218.5 million, driven by a $213.8 million net other loss from fair value volatility on the Arashi Vision investment.
- Non-GAAP net loss from continuing operations was $2.1 million, compared to non-GAAP net income of $7.2 million in the prior-year period.
- Cash and short-term investments decreased to $276.9 million from $303.6 million sequentially, due to operating cash outflows, loan repayments, and buyback disbursements.
Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the call over to your host, Investor Relations Manager, Ms. Luhan Tang.
Good morning and good evening, everyone, and thank you for joining Xunlei's Q2 2026 earnings conference call. With me today are Eric Zhou, CFO; and Li Li, Vice President of Finance.
Our IR website has our earnings press release to supplement our prepared remarks during the call. Today's agenda includes a prepared opening remark from Chairman and CEO, Mr. Jinbo Li, on Q2 operational highlights; followed by CFO Eric Zhou's presentation of financial results details of Q2 before we open up the floor to your questions in the Q&A session. Please note that this call is recorded and can be replayed on our investor relations website at ir.xunlei.com.
Before we get started, I'd
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