Revenue growth accelerated to 70.4% in 2025Q4, yet gross margins compressed to 43.3% from a 53.6% peak in 2024Q1, indicating persistent challenges in scaling core profitability.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 461.65M | 323.14M | 363.72M | 341.5M | 238.78M | 186.37M | 180.66M | 230.6M | 200.58M | 156.16M | 129.63M | 179.53M | 174.59M | 140.52M | 81.9M | 39.99M | 27.05M |
| Revenue Growth % | 42.86% | -11.16% | 6.51% | 43.02% | 28.12% | 3.16% | -21.66% | 14.97% | 28.45% | 20.46% | -27.79% | 2.83% | 24.25% | 71.57% | 104.8% | 47.83% | - |
| Cost of Goods Sold | 243.53M | 155.57M | 200.65M | 200.05M | 118.6M | 92.64M | 99.91M | 115.67M | 117.88M | 80.32M | 60.03M | 98.46M | 93.26M | 84.01M | 48.07M | 14.31M | 6.58M |
| COGS % of Revenue | 52.75% | 48.14% | 55.17% | 58.58% | 49.67% | 49.71% | 55.3% | 50.16% | 58.77% | 51.43% | 46.31% | 54.84% | 53.42% | 59.79% | 58.69% | 35.78% | 24.32% |
| Gross Profit | 218.12M | 167.57M | 163.07M | 141.44M | 120.18M | 93.73M | 80.75M | 114.94M | 82.71M | 75.84M | 69.6M | 81.07M | 81.33M | 56.51M | 33.83M | 25.68M | 20.47M |
| Gross Margin % | 47.25% | 51.86% | 44.83% | 41.42% | 50.33% | 50.29% | 44.7% | 49.84% | 41.23% | 48.57% | 53.69% | 45.16% | 46.58% | 40.21% | 41.31% | 64.22% | 75.68% |
| Gross Profit Growth % | 30.16% | 2.76% | 15.29% | 17.69% | 28.21% | 16.08% | -29.74% | 38.97% | 9.05% | 8.97% | -14.15% | -0.32% | 43.93% | 67.02% | 31.74% | 25.44% | - |
| Operating Expenses | 211.47M | 183.28M | 164.69M | 131.38M | 124.5M | 112.53M | 137.17M | 152.92M | 123.35M | 109.31M | 82.07M | 94.39M | 77.12M | 57.43M | 41.06M | 18.58M | 16.1M |
| OpEx % of Revenue | 45.81% | 56.72% | 45.28% | 38.47% | 52.14% | 60.38% | 75.93% | 66.31% | 61.5% | 70% | 63.31% | 52.58% | 44.17% | 40.87% | 50.13% | 46.47% | 59.53% |
| Selling, General & Admin | 131.22M | 90.67M | 90.38M | 64.54M | 61.44M | 51.97M | 70.75M | 76.16M | 56.41M | 44.95M | 43.82M | 59.21M | 49.68M | 38.69M | 29.57M | 12.8M | 11.81M |
| SG&A % of Revenue | 28.42% | 28.06% | 24.85% | 18.9% | 25.73% | 27.89% | 39.16% | 33.02% | 28.12% | 28.78% | 33.8% | 32.98% | 28.46% | 27.54% | 36.1% | 32% | 43.67% |
| Research & Development | 0 | 71.57M | 74.2M | 67.68M | 61.86M | 55.46M | 68.57M | 76.76M | 66.95M | 64.36M | 38.25M | 35.17M | 28.83M | 20.36M | 12.14M | 5.79M | 4.29M |
| R&D % of Revenue | - | 22.15% | 20.4% | 19.82% | 25.91% | 29.76% | 37.95% | 33.29% | 33.38% | 41.21% | 29.51% | 19.59% | 16.51% | 14.49% | 14.82% | 14.47% | 15.85% |
| Other Operating Expenses | 80.25M | 21.04M | 100K | -844K | 1.21M | 5.09M | -2.15M | 0 | 0 | 0 | 0 | 0 | 160K | 2K | 11K | 0 | 0 |
| Operating Income | 6.65M | -15.7M | -1.61M | 10.06M | -4.32M | -18.79M | -56.42M | -44.33M | -54.2M | -33.47M | -12.46M | -11.76M | 3.84M | 2.13M | -3.13M | 7.1M | 4.37M |
| Operating Margin % | 1.44% | -4.86% | -0.44% | 2.95% | -1.81% | -10.08% | -31.23% | -19.22% | -27.02% | -21.43% | -9.62% | -6.55% | 2.2% | 1.51% | -3.83% | 17.75% | 16.16% |
| Operating Income Growth % | 142.33% | -874.19% | -116.02% | 332.82% | 77% | 66.69% | -27.28% | 18.21% | -61.95% | -168.49% | -5.98% | -406.38% | 80.66% | 167.83% | -144.14% | 62.41% | - |
| EBITDA | 16.21M | -8.78M | 4.47M | 13.87M | 5.06M | -4.62M | -43.76M | -37.5M | -44.15M | -25.08M | 5.33M | 33.48M | 47.27M | 56.7M | 28.92M | 13.74M | 7.17M |
| EBITDA Margin % | 3.51% | -2.72% | 1.23% | 4.06% | 2.12% | -2.48% | -24.22% | -16.26% | -22.01% | -16.06% | 4.11% | 18.65% | 27.07% | 40.35% | 35.31% | 34.35% | 26.5% |
| EBITDA Growth % | 284.68% | -296.46% | -67.8% | 174.22% | 209.62% | 89.45% | -16.69% | 15.06% | -76.05% | -570.53% | -84.08% | -29.17% | -16.64% | 96.03% | 110.58% | 91.63% | - |
| D&A (Non-Cash Add-back) | 9.56M | 6.93M | 6.08M | 3.81M | 9.38M | 14.18M | 12.66M | 6.83M | 10.05M | 8.39M | 17.8M | 45.24M | 43.43M | 54.57M | 32.06M | 6.64M | 2.8M |
| EBIT | 1.05B | -1.63M | 19.91M | 25.51M | 1.08M | -12.59M | -48.66M | -40.34M | -46.23M | -33.04M | -22.07M | 28.89M | 19.01M | 4.02M | -1.46M | 7.1M | 4.37M |
| Net Interest Income | 1.57M | 4.16M | 4.49M | 1.8M | 628K | 1.06M | 1.82M | 944K | 1.73M | 1.92M | 5.59M | 6.57M | 1.19M | -23K | -69K | 106.66K | 114.32K |
| Interest Income | 3.27M | 4.89M | 6.01M | 1.9M | 723K | 1.47M | 1.9M | 1.18M | 1.97M | 2.16M | 5.83M | 6.73M | 1.19M | 1.38M | 270K | 106.66K | 114.32K |
| Interest Expense | 1.7M | 728K | 1.51M | 93K | 95K | 406K | 75K | 239K | 239K | 239K | 239K | 163K | 0 | 1.4M | 339K | 0 | 0 |
| Other Income/Expense | 1.04B | 13.35M | 20.01M | 15.35M | 5.31M | 5.8M | 7.68M | 3.45M | 7.73M | 8.23M | 9.21M | 20.28M | 5.89M | 5.16M | 6.08M | 284.38K | 1.08M |
| Pretax Income | 1.05B | -2.36M | 18.4M | 25.41M | 983K | -12.99M | -48.74M | -40.88M | -46.47M | -25.24M | -3.26M | 8.52M | 9.73M | 2.62M | -1.79M | 7.38M | 5.45M |
| Pretax Margin % | 227.25% | -0.73% | 5.06% | 7.44% | 0.41% | -6.97% | -26.98% | -17.73% | -23.17% | -16.16% | -2.51% | 4.74% | 5.57% | 1.87% | -2.19% | 18.46% | 20.13% |
| Income Tax | -1.29M | -3.02M | 4.13M | 4.07M | -125K | 1.15M | 4.68M | -89K | -2.25M | -1.26M | -886K | -1.46M | -647K | 2.24M | -1.78M | -1.09M | 0 |
| Effective Tax Rate % | -0.12% | 128.13% | 22.45% | 16.01% | -12.72% | -8.84% | -9.59% | 0.22% | 4.85% | 5.01% | 27.21% | -17.13% | -6.65% | 85.43% | 99.39% | -14.75% | 0% |
| Net Income | 1.05B | 1.22M | 14.22M | 21.46M | 1.19M | -13.84M | -53.17M | -39.28M | -37.82M | -24.11M | -13.17M | 10.92M | 10.66M | 503K | -10K | 8.47M | 5.45M |
| Net Margin % | 227.67% | 0.38% | 3.91% | 6.29% | 0.5% | -7.43% | -29.43% | -17.03% | -18.86% | -15.44% | -10.16% | 6.08% | 6.11% | 0.36% | -0.01% | 21.17% | 20.13% |
| Net Income Growth % | 86405.13% | -91.46% | -33.72% | 1702.1% | 108.61% | 73.97% | -35.37% | -3.85% | -56.87% | -83.12% | -220.53% | 2.46% | 2019.68% | 5130% | -100.12% | 55.43% | - |
| Net Income (Continuing) | 1.05B | 663K | 14.27M | 21.35M | 1.11M | -14.14M | -53.41M | -40.79M | -44.22M | -23.78M | -2.36M | 28.27M | 22.95M | 382K | -11K | 8.47M | 5.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.3M | 6.41M | 0 | -12.1M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -974K | -271K | -1.39M | -1.47M | -1.88M | -1.78M | -1.33M | -1.12M | -2.16M | -1.99M | -2.07M | -870K | 84K | 360K | 0 | 458.46K | 0 |
| EPS (Diluted) | 83.05 | 0.10 | 0.22 | 0.32 | 0.02 | -0.21 | -0.80 | -0.59 | -0.57 | -0.36 | -0.20 | -2.70 | 0.08 | -0.03 | -0.00 | 0.33 | 0.21 |
| EPS Growth % | 87321.05% | -56.82% | -31.25% | 1728.57% | 108.33% | 73.75% | -35.59% | -3.51% | -58.33% | -80% | 92.59% | -3526.4% | 335.22% | - | -100.33% | 57.14% | - |
| EPS (Basic) | 84.35 | 0.10 | 0.22 | 0.32 | 0.02 | -0.21 | -0.80 | -0.59 | -0.57 | -0.36 | -0.20 | -2.70 | 0.24 | -0.03 | -0.00 | 0.33 | 0.21 |
| Diluted Shares Outstanding | 12.66M | 12.77M | 65.37M | 67.25M | 67.19M | 67.49M | 67.57M | 66.99M | 66.35M | 66.83M | 67.2M | 38.94M | 9.36M | 9.36M | 9.36M | 9.36M | 9.36M |
| Basic Shares Outstanding | 12.46M | 12.79M | 65.28M | 67.21M | 66.94M | 67.49M | 67.57M | 66.99M | 66.35M | 66.83M | 67.19M | 38.65M | 9.36M | 9.36M | 9.36M | 9.36M | 9.36M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and Margin Volatility
According to recent financial disclosures, XNET achieved a 70.4% year-over-year revenue increase in 2025Q4, marking a significant acceleration from the 9.3% growth observed in 2024Q4, though the sustainability of this top-line expansion remains questionable given the company's historical reliance on volatile digital media and cloud service segments.
The sharp uptick in revenue suggests successful market penetration or aggressive monetization of the existing user base, yet investors should monitor whether this growth is organic or driven by low-margin service expansion. The lack of consistent growth durability in prior quarters warrants caution regarding the long-term scalability of these revenue streams.
As reported in quarterly filings, XNET's gross margin contracted to 43.3% in 2025Q4 from a peak of 53.6% in 2024Q1, indicating that the company is struggling to maintain pricing power as it scales its cloud and internet value-added services within a competitive Chinese market.
This margin erosion suggests that the cost of bandwidth and revenue-sharing obligations may be rising faster than the company's ability to pass costs to end-users. Without a shift toward higher-margin software-as-a-service offerings, the current cost structure appears to place a structural ceiling on potential profitability.
Based on the provided income statement data, XNET's operating margin of 3.3% in 2025Q4 demonstrates a failure to achieve meaningful operating leverage, as the company continues to spend heavily on SG&A and R&D relative to its gross profit generation despite significant top-line growth.
The persistent gap between revenue expansion and operating income suggests that the company's cost base is highly variable and tied directly to revenue-generating activities. Investors should interpret this as a sign that the business model has not yet reached the necessary scale to decouple overhead from top-line performance.
Financial statements reveal a massive divergence between operating income and net income, exemplified by the 2025Q3 net income of $550.3 million against an operating income of only $2.7 million, which suggests that headline earnings are heavily influenced by non-recurring, non-operating gains rather than core business performance.
The extreme volatility in net income, including the $229.8 million loss in 2025Q4, indicates that investors should disregard headline EPS and focus exclusively on operating metrics. This pattern of non-operating noise may mask the underlying health of the business and complicates the assessment of true shareholder value.
While revenue growth appears robust, the company's reliance on a narrow, potentially regulatory-sensitive user base and the lack of consistent operating profitability suggest that the current valuation may be vulnerable to a significant re-rating if growth stalls or regulatory headwinds intensify in the Chinese market.
Short-term revenue spikes may be masking a long-term decline in the core utility of the P2P network, which remains the company's primary moat. The absence of a clear path to sustainable operating margins suggests that the business model may be more of a value trap than a growth engine.
Quick answers to the most common questions about buying XNET stock.
For fiscal year 2025, Xunlei Limited (XNET) reported total revenue of $461.6M. This represents a 1606.5% increase compared to $27.1M in 2009.
Xunlei Limited (XNET) is profitable, generating $1.05B in net income for the fiscal year ending 2025 with a net profit margin of 227.7%.
Xunlei Limited (XNET) reported an operating income of $6.6M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Xunlei Limited (XNET) generated $218.1M in gross profit for the year, representing a gross profit margin of 47.2%. This demonstrates the company's core pricing power and production efficiency.