XNETXunlei Limited
Is the business good?
The checks split: earnings fully cash-backed (6.2×) and elite returns on assets, but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 76% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is XNET?
Xunlei Limited earns 0.46% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 8.5 points below what the capital costs: growth destroys value
- Operating margin
- 1.4%
Operating margin · Software - Infrastructure median 7.5% · fiscal year to FY2025
- Cash conversion
- 6.20×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.84%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −10% |
| FY2021 | −1.8% |
| FY2022 | 2.9% |
| FY2023 | −0.44% |
| FY2024 | −4.9% |
| FY2025 | 1.4% |
Details›
- Gross marginfiscal year to FY2025
- 47%
- Operating marginfiscal year to FY2025
- 1.4%
- Net marginfiscal year to FY2025
- 228%
- Free cash flow margin
- 5.9%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $460M
- Free cash flow, trailing twelve months
- $27M
- Net income, trailing twelve months
- $1.05B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.46%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from XNET and who it buys from, as the companies report it.
- Customer A15%
Share of revenue · FY2025 20-F
- Top 10 customers30%
Combined share of revenue · FY2025 20-F
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; XNET’s own figures are from its FY2025 20-F. Smaller customers and suppliers go unreported.
Software, Infrastructure
Ranks #32 of 78 by RyuScore