Xunlei announced its unaudited financial results for the third quarter ended September 30, 2025. The company reported total revenue of $126.4 million, representing a 57.7% year-over-year increase. Gross profit stood at $60.5 million, up 49.6% YoY, while gross margin declined to 47.9% from 50.5% in the same period last year.

The revenue growth was primarily driven by increased income from core businesses. The rise in gross profit was attributed to higher contributions from online advertising, overseas voice live-streaming, and membership services. However, the gross margin contraction resulted from lower profitability in cloud computing and a higher revenue share from the lower-margin overseas voice live-streaming segment.

Under GAAP, net income for the quarter reached $550.1 million, compared to $4.4 million in Q3 2024. Non-GAAP net income was $5.3 million, up from $4.9 million YoY. The significant GAAP net income growth was mainly due to fair value changes in Xunlei's long-term investment in Insta360 Innovation, which completed its IPO in June 2025.

Diluted GAAP earnings per ADS were approximately $8.60, versus $0.07 in the prior-year period. Non-GAAP diluted earnings per ADS came in at $0.09, compared to $0.08 a year ago.

Li Jinbo, Chairman and CEO of Xunlei, stated: "Our Q3 performance exceeded expectations with total revenue growing 57.7% YoY to $126.4 million, reflecting balanced growth across all major businesses. Additionally, our investment in Insta360 Innovation contributed significantly to this quarter's profitability, generating an unrealized gain of approximately $545.8 million. We expect this strategic advantage to support our expansion, R&D initiatives, and potential industry collaborations."