Xunlei Announces $20M Stock Buyback—What's Next

Benzinga_recent_news06-29

The online video company will repurchase up to $20 million worth of its shares, as it sits on a cash pile and a major investment that combined are worth more than twice its market value Truth be told,...

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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nXunlei Announces $20M Stock Buyback—What's Next\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-06-29 22:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/Opinion/26/06/60158645/xunlei-announces-20m-stock-buyback-whats-next><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The online video company will repurchase up to $20 million worth of its shares, as it sits on a cash pile and a major investment that combined are worth more than twice its market value\nTruth be told,...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/06/60158645/xunlei-announces-20m-stock-buyback-whats-next\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"XNET","symbol_name":"迅雷","start_time":0,"source_url":"https://www.benzinga.com/Opinion/26/06/60158645/xunlei-announces-20m-stock-buyback-whats-next","article_id":"2647370769","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/cdn-cgi/image/width=240,format=auto,quality=85/files/images/story/2026/06/29/29-6-2026-95850-thebambooworks-com.jpg"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/Opinion/26/06/60158645/xunlei-announces-20m-stock-buyback-whats-next","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2647370769","pubTimestamp":1782742620,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"The online video company will repurchase up to $20 million worth of its shares, as it sits on a cash pile and a major investment that combined are worth more than twice its market value\n\n\n\n\n\n\n\nKey Takeaways:\n\n\n\n\nXunlei","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"XNET":"迅雷","BK4023":"应用软件"},"translate_title":"迅雷宣布回购2000万美元股票——下一步是什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XNET":1.5},"content_text":"The online video company will repurchase up to $20 million worth of its shares, as it sits on a cash pile and a major investment that combined are worth more than twice its market value\nTruth be told, the rally looks more like investors searching for a reason to buy the stock rather than any real change in the company’s outlook. Xunlei is a bit of a corporate chameleon lately, starting out as one of China’s earliest online video sites at its founding in 2003 when the Chinese internet was in its infancy.\nThe brief Friday rally for Xunlei’s stock was part of a broader series of big ups-and-downs for the stock over the last year and a half as investors try to decide what to make of the company. At one point its shares rose by nearly five times from their levels at the end of 2024, only to give back much – but not all – of those gains. At its latest close of $5.36, the stock is still more than double the $2 level where it traded at the end of 2024.\nAfter the latest rally last Friday, the stock now trades at a fairly respectable price-to-earnings (P/E) ratio of 18, which is more than double the 8 for Kuaishou (1024.HK), another popular livestreaming site. Other players like iQiyi and Huya (HUYA.US) are actually losing money, which shows how difficult it is to succeed in China’s tough online video market.\nThat may be why investors are showing some favor to Xunlei these days over its domestic peers, as the company is focusing heavily on its livestreaming business that offers services like sports events almost exclusively to people outside China. That business has been growing much faster than the company’s older subscription business that sells mostly to Chinese viewers, which seems like a prudent diversification.\nThe livestreaming business overtook subscriptions last year to become Xunlei’s biggest revenue source, fueled in part by its acquisition of Hupu, a provider of sports media and data, in June last year. That acquisition helped Xunlei to log 89% year-on-year revenue growth for the livestreaming business in the first quarter of this year, as the figure rose to $53.6 million, according to its latest quarterly report released in late May.\nThe company didn’t say how much of the latest livestreaming revenue figure came from Hupu, which wasn’t contributing anything yet in last year’s first quarter. But previous indications around the time of the acquisition appear to show the service was earning about $10 million in quarterly income at that time, meaning livestreaming revenue without the acquisition would still be up by around 40% in the first quarter.\nBy comparison, the company subscription revenue rose by a slower 26% in the first quarter to $45 million. Those two categories combined gave Xunlei $98.6 million in first-quarter revenue, up 54% year-on-year, which presumably excludes contributions in the year-ago period from the company’s cloud services that were sold in March this year.\n\"We will continue to intensify our overseas expansion, exploring new markets, and optimizing service offerings to sustain momentum,\" said Chairman Li Jinbo, on the company’s latest earnings call a month ago. \"That said, given the ever-changing competitive landscape, our rapid growth may experience a modest slowdown in future quarters.\"\nThe growing role of the livestreaming business, which carries higher costs than the subscription business, is weighing on Xunlei’s gross margin, which dropped to 58.5% in the first quarter from 61.9% a year earlier. Still, the company managed to sharply boost its non-GAAP income, which excludes certain non-cash items, to $4.1 million in the first quarter from $900,000 a year earlier.\nOne other noteworthy feature for Xunlei is its longtime investment in Arashi Vision, a maker of popular 360-degree action cameras, which listed in Shanghai a year ago. Arashi’s stock soared by about five times right after the listing, but has come down somewhat since then. Still, Xunlei’s stake of 7.8% at the end of last year was worth about 4.1 billion yuan at the current price, which is nearly twice Xunlei’s current market value of about $350 million.\nThe company had another $304 million in cash at the end of March, meaning its cash plus the Arashi investment alone are worth quite a bit more than its market value. That makes it easier to understand how Xunlei can afford the latest $20 million share repurchase, and hints that perhaps even more repurchases could follow if the stock doesn’t perk up from its current levels.\nTo subscribe to Bamboo Works free weekly newsletter, click here\nimage credit: Bamboo Works\nBenzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"1","news_tag":"shareholding","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.45.2","shortVersion":"4.45.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2647370769","isCrawlerRequest":true}