Xunlei Ltd (NASDAQ: XNET)

Xunlei Limited is a leading technology company providing distributed cloud services in China. The company operates an internet platform that enables users to access, store, manage and consume digital media content on both PC and mobile devices. Its core product, Xunlei Accelerator, is a free tool that accelerates digital transmission over the internet and had approximately 50.5 million monthly unique visitors in December 2025. Xunlei Limited also offers Mobile Xunlei, a mobile application that recorded a monthly average daily active user base of about 4.4 million in 2025. Beyond acceleration, the company provides subscription services through its Green Channel premium tier, live‑streaming platforms such as Hiya and WeFun, cloud computing solutions including OneThing Cloud and StellarCloud, online advertising services, and online game services offered in cooperation with third‑party developers. This diversified portfolio allows Xunlei Limited to deliver an efficient, smart and safe internet environment to its users.

Xunlei Limited generates revenue primarily from subscription services for its Green Channel premium acceleration and cloud storage offerings, which charge monthly, quarterly or annual fees for increased bandwidth, faster speeds and larger storage capacity. Live‑streaming services contribute significantly, with overseas platforms Hiya and WeFun generating US$31.2 million and US$46.7 million respectively in 2025, representing 6.7% and 10.1% of total revenues that year. Cloud computing services, including OneThing Cloud and StellarCloud, provide edge computing, function computing and shared CDN solutions to enterprise customers and generate additional income. Online advertising revenue, bolstered by the acquisition of Hupu’s advertising business, reached notable growth, while fees from online game services shared with third‑party developers complete the revenue mix.

Xunlei Limited holds a strong position in China’s competitive internet services market, where it vies with other providers of cloud acceleration, content delivery network and digital entertainment solutions. The company’s competitive advantages arise from its massive user base, proprietary file indexing and distributed file locating technology, and strategic alliances such as the pre‑installation agreement with Xiaomi that places its mobile acceleration plug‑in on new smartphones sold in China. Additionally, Xunlei Limited’s ability to monetize through multiple channels—subscriptions, live‑streaming, cloud computing, advertising and games—reduces reliance on any single revenue stream and enhances resilience. These factors enable the company to maintain brand recognition, attract and retain users, and effectively compete against rivals that may focus on narrower service offerings.

Xunlei Limited serves a diverse customer base that spans individual consumers, enterprise clients and advertising partners. Individual users employ Xunlei Accelerator, Mobile Xunlei, subscription tiers and live‑streaming platforms to accelerate downloads, store content in the cloud and engage with broadcasters. Enterprise customers, including internet content providers, app stores and streaming websites, purchase cloud computing services such as OneThing Cloud and StellarCloud to obtain cost‑effective edge computing, function computing and shared CDN solutions. Advertisers place campaigns through Xunlei’s online advertising network, which includes the advertising services of its subsidiary Hupu, a leading sports internet platform in China. Specific partners cited in the filing are Xiaomi, which pre‑installs Xunlei’s mobile acceleration plug‑in on its devices, the advertising outsourcing partner Itui, and Hupu, whose advertising operations contribute to the company’s revenue after its acquisition in May 2025.