Xunlei started with download accelerators and is now building an ecosystem of cloud services, voice streaming and home NAS storage. The company trades on NASDAQ and everyone who understands the exit from capital‑heavy data centers in favor of light subscriptions is watching – because this move could be either a genius turnaround or the final chord of an old era.

Fundamentals

On March 12 2026 Xunlei reported full year 2025 results. Annual revenue reached 462.4 million dollars, up 42.5 percent. The fourth quarter brought 143.3 million, which is 70 percent higher than a year ago. Non‑GAAP earnings per ADS stood at 0.08 dollar. The balance sheet holds 305.2 million dollars in cash and no meaningful debt.

On March 3 the company announced the sale of a 50 percent stake in its cloud subsidiary Shenzhen Onething. The deal closed on March 16: 20 percent went to Kingsoft Cloud and 30 percent to Onething‘s management. Xunlei’s stake dropped from 70 to 20 percent, and the subsidiary is no longer consolidated in its financial statements. This is a deliberate exit from a heavy capital‑intensive business.

On March 30 the company entered the network attached storage market with the Yujie brand and its first model, the NE200. The new direction aims to create a vertically integrated ecosystem of home storage devices.

The main legal risk. Since January 15 2026 Xunlei has been pursuing a court claim for 200 million yuan (about 27.6 million dollars) against former CEO Chen Lei, accusing him of diverting funds through a shell company. The case is at an advanced stage and its outcome will affect trust in corporate governance.

Positive highlights: overseas voice streaming grew twofold, and partnerships with smartphone manufacturers are expanding the reach of its video acceleration technology.

Risks: the GAAP profit of 1.05 billion dollars is an accounting artefact from one‑time investment gains. Gross margin fell from 51.7 to 43 percent. The next earnings report on May 14 will show whether the company can grow organically.

Technicals

On the daily chart price has settled above all exponential moving averages, and a golden cross has formed. The descending channel has been broken and successfully retested. The optimal entry zone is 6.30 – 6.40 dollars. Yesterday‘s close (April 27) was 6.39 – price right inside the zone.

Indicators confirm the buy signal: ADX shows a developing trend, DI+ is above DI-, and MACD gives a clear buy signal. Volume is close to average levels.

Targets: first 8.00, second 10.65 dollars.

The market values Xunlei as an undervalued asset stuck in legal disputes and structural restructuring. If the company confirms the sustainability of its overseas streaming business on the May 14 report, current levels will look like an entry point. The technical breakout is confirmed and the targets are above.