Xunlei Revenue Up 12.9%, but Third-Quarter Net Loss Reached $235.8 Million

what happened

According to TradingView, Xunlei Limited's third-quarter revenue grew 12.9% from a year earlier to $101.3 million. However, the loss from continuing operations reached $235.8 million, compared with net income of $550.4 million a year earlier.

The swing was mainly driven by fair-value losses on a long-term investment and an operating loss. Gross margin fell to 55.7% from 62.0%, which the company linked to a larger share of live-streaming revenue, a lower-margin business. Adjusted net loss was $16.4 million, against income of $5.6 million.

The board approved a new share repurchase program of up to $20 million over 12 months. The company will decide on timing and volume, and purchases will be funded from cash on hand.

why it matters

Revenue keeps growing, but operating performance is weakening and investment-related results are volatile. Investors will watch whether operating losses and margin pressure ease in coming reports, and how the buyback is carried out.

market impact

Xunlei shares: losses and margin compression weigh on the stock, while the $20 million buyback may support demand

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