Xunlei (XNET)
Published 2026-03-17 • by mispricedassets
Thesis Summary
Xunlei is a Chinese internet utility with strong growth in subscriptions, cloud compute, and live-streaming. The core business provides a profitable floor, while significant unrecognized value offers massive upside potential.
Quantitative Overlay
Detailed Deep Dive
Xunlei reported Q4 and full year this morning. Let me walk you through it because this is one of my biggest positions and I think has the highest upside in my PA — especially with the calls I’m holding, but probably even unlevered.
Q4 revenue: $143.3M. That’s +70% YoY and above the high end of guidance. Every segment accelerated — subs at $42.1M (+22%), live-streaming/IVAS at $55.1M (+103%), cloud compute doubling to $46.1M. Full year revenue lands around $462M, up ~43% after an 11% decline in FY24. The business re-accelerated hard.
Now here’s the thing — nobody cares about any of that. And that’s fine. Because the core business isn’t what makes this interesting. It’s what makes the floor interesting. You’ve got a Chinese internet utility growing 70% top line, operationally profitable on a non-GAAP basis, 6.5M+ subscribers with rising ARPU, beating its own guidance. That’s your downside protection. That’s the boring part. And the boring part is doing great.