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X Financial

X Financial Reports Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results

SHENZHEN, China , March 25, 2026 /PRNewswire/ -- X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025. This press release should be read in conjunction with the Company's Report on Form 6-K for the fourth quarter and fiscal year ended December 31, 2025, which has been furnished to the U.S. Securities and Exchange Commission and is available on the SEC's website at www.sec.gov and on the Company's investor relations website at http://ir.xiaoyinggroup.com.

Fourth Quarter and Fiscal Year 2025 Financial Highlights

  • Total net revenue in Q4 2025 was RMB1,467.8 million (US$209.9 million), a decrease of 14.1% year-over-year and 25.1% quarter-over-quarter. For fiscal year 2025, total net revenue was RMB7,639.4 million (US$1,092.4 million), an increase of 30.1% from 2024.

  • Total loan amount facilitated and originated[1] in Q4 2025 was RMB22,768 million, down 29.5% year-over-year and 32.3% quarter-over-quarter. For fiscal year 2025, total loan amount facilitated and originated was RMB130,552 million, an increase of 24.5% from RMB104,889 million in fiscal year 2024.
  • Net income in Q4 2025 was RMB57.2 million (US$8.2 million), a decrease of 85.2% year-over-year, driven by higher credit-related provisions and lower loan facilitation revenue. For fiscal year 2025, net income was RMB1,464.6 million (US$209.4 million), compared with RMB1,539.9 million in 2024.

  • Delinquency rates for loans 31–60 days past due increased to 2.90% (from 1.17% a year ago); loans 91–180 days past due increased to 6.31% (from 2.48% a year ago), reflecting deteriorating asset quality and the Company's adoption of more conservative provisioning.

Mr. Kent Li, President of X Financial, commented: "In the fourth quarter of 2025, we facilitated and originated RMB22.8 billion in loans, a decline of 32.3% from the prior quarter and 29.5% year-over-year. Borrower activity moderated further, with active borrowers declining to approximately 1.69 million, down 20.2% from a year ago, reflecting the Company's deliberate focus on higher-quality origination and tighter credit standards across our core channels. Asset quality came under increased pressure, with the 31–60 day delinquency rate rising to 2.90% and the 91–180 day delinquency rate increasing to 6.31%. These trends reflected continued stress in certain borrower segments and a more conservative industry-wide risk posture. In response, we have strengthened our risk management framework, enhanced collection strategies, and adjusted capital deployment to preserve balance sheet resilience. While profitability was significantly impacted by higher provisions and narrower margins, we believe these actions position the Company for more stable performance over the medium term. Looking ahead, we remain focused on asset quality, disciplined growth, and maintaining strong liquidity to navigate ongoing market uncertainty."

Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the fourth quarter of 2025, total net revenue was RMB1.47 billion, a decrease of 14.1% from the same period last year and 25.1% sequentially. Net income was RMB57.2 million and non-GAAP adjusted net income was RMB61.3 million, both significantly lower than the prior quarter, primarily due to substantially higher provisions and lower loan facilitation revenue amid reduced origination volumes. Basic earnings per ADS were RMB1.44, and non-GAAP adjusted earnings per ADS were RMB1.56, both lower than the prior quarter, reflecting the impact of elevated credit costs during the period. Operating margin declined to 1.4%, compared with 18.5% in the prior quarter and 30.7% in the same period last year, mainly driven by higher provisioning and reduced contribution from higher-margin facilitation services. We will continue to manage capital conservatively, strengthen our balance sheet, and maintain cost discipline to support business resilience amid an evolving regulatory and operating landscape."

Fourth Quarter 2025 GAAP and Non-GAAP Financial Summary

(In thousands, except for share and per share data)

Three Months Ended
December 31, 2024

Three Months Ended
September 30, 2025

Three Months Ended
December 31, 2025

QoQ

YoY


 RMB

 RMB

 RMB



Total net revenue

1,708,722

1,960,954

1,467,843

(25.1 %)

(14.1 %)

Total operating costs and expenses

(1,183,510)

(1,599,021)

(1,447,660)

(9.5 %)

22.3 %

Income from operations

525,212

361,933

20,183

(94.4 %)

(96.2 %)

Net income

385,626

421,241

57,167

(86.4 %)

(85.2 %)

Non-GAAP adjusted net income

408,022

438,178

61,320

(86.0 %)

(85.0 %)







Net income per ADS—basic

8.22

10.56

1.44

(86.4 %)

(82.5 %)

Net income per ADS—diluted

8.04

10.08

1.44

(85.7 %)

(82.1 %)







Non-GAAP adjusted net income per ADS—basic

8.70

11.04

1.56

(85.9 %)

(82.1 %)

Non-GAAP adjusted net income per ADS—diluted

8.46

10.44

1.56

(85.1 %)

(81.6 %)

 

Business Outlook & Capital Return

  • Business Outlook: Given the limited visibility at the start of the year and evolving market conditions, X Financial expects the total loan amount facilitated and originated in the first quarter of 2026 to be in the range of RMB 14.5 billion to RMB 15.5 billion. This outlook reflects management's cautious approach amid ongoing macroeconomic and regulatory uncertainty, with continued emphasis on asset quality, disciplined risk management, and sustainable profitability. The forecast represents the Company's current preliminary view and remains subject to change as the year progresses.

  • Capital Return to Shareholders: As of March 15, 2026, under the Company's US$100 million share repurchase program, the Company had repurchased an aggregate of approximately 3.79 million ADSs, including approximately 3.37 million ADSs and 2.53 million Class A ordinary shares, for a total consideration of approximately US$53.85 million. The Company now has approximately US$46.15 millionremaining under the share repurchase program, which is effective through November 30, 2026. This program underscores the Company's confidence in its long-term growth outlook and its commitment to enhancing shareholder value. Repurchases under the program remain subject to market conditions and other factors and may be modified or suspended at management's discretion.
  • Declaration of Semi-Annual Dividend: Pursuant to the semi-annual dividend policy, the Board today approved the declaration and payment of a semi-annual dividend of US$0.28per ADS (approximately US$0.0467 per ordinary share). The holders of the Company's ordinary shares shown on the Company's record at the close of trading on April 30, 2026 (U.S. Eastern Daylight Time) will be entitled to the semi-annual dividend. These shareholders, including the Bank of New York Mellon, the depositary of our ADS program (the "Depositary"), will receive the payments of dividends on or about May 20, 2026. Dividends to the Company's ADS holders will be paid by the Depositary after May 20, 2026, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage.

Regulatory Update

The regulatory environment governing internet-based lending in the People's Republic of China continued to evolve during fiscal year 2025, with authorities increasingly refining and strengthening oversight across the entire consumer credit business chain.

The most significant development during the period was Notice 9, issued by the National Financial Regulatory Administration on April 1, 2025, which requires commercial banks to strictly control total borrowing costs. Although Notice 9 does not explicitly stipulate a cap of not exceeding 24% per annum, in practice, a 24% per annum cap on total borrowing cost for a single loan is generally implemented and enforced.

Importantly, 24% per annum may not represent the outer boundary of pricing pressure. During the period, regulatory authorities continued to tighten total borrowing cost caps applicable to microcredit companies and consumer finance companies, and such entities may face de facto requirements set at levels below 24%. The extent to which such requirements may fall below 24%, and the pace and manner of their implementation across different institution types and jurisdictions, remain highly uncertain. The Company currently has no reliable basis upon which to predict the ultimate scope, stringency, or trajectory of applicable borrowing cost limitations. The Company expects that, if current and emerging regulatory requirements are implemented as currently understood, its operating results will be adversely and materially affected relative to those achieved in prior fiscal years. The magnitude of such impact is subject to significant uncertainty; however, investors should not assume that the Company's historical levels of profitability are indicative of future performance, and the possibility of operating losses in future periods cannot be excluded.

Notice 9 also requires commercial bank head offices to implement whitelist management systems for loan facilitation platform operators, prohibiting cooperation with institutions not included on such lists. The implementation of whitelist requirements has introduced additional uncertainty with respect to the Company's funding relationships. By way of illustration only, current practices regarding whitelist administration vary across banking groups and their respective subsidiaries, and it is possible that future regulatory guidance could alter the level at which such determinations are made in ways that may affect the Company's authorized funding relationships. This example is indicative of the broader unpredictability of the regulatory environment, and numerous other aspects of implementation remain similarly subject to change without notice or predictability.

Separately, payment institution rating measures issued by the People's Bank of China in December 2025 extend regulatory oversight further across the lending chain, increasing overall compliance burdens and operational costs for industry participants.

The Company is closely monitoring these developments as they continue to evolve into 2026. Management currently has limited visibility into the ultimate scope, pace, and direction of implementation, and the potential impact of these regulatory changes on the Company's business, financial condition, and results of operations cannot be determined with any degree of certainty at this time.

Conference Call

X Financial's management team will host an earnings conference call at 8:30 AMU.S. Eastern Time on March 26, 2026 (8:30 PM Beijing / Hong Kong Time on March 26, 2026).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-346-8982

Hong Kong:

800-905945

Mainland China:

4001-201203

International:

1-412-902-4272

Passcode:

X Financial

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.  A replay of the conference call may be accessed by phone at the following numbers until April 2, 2026:

United States:

1-855-669-9658

International:

1-412-317-0088

Passcode:

7562117

 Additional Information

This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the fourth quarter and fiscal year ended December 31, 2025, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on March 25, 2026.

About X Financial

X Financial (NYSE: XYF) (the "Company") is a leading Chinese fintech platform. The Company is committed to connecting borrowers on its platform with its institutional funding partners. With its proprietary big data-driven technology, the Company has established strategic partnerships with financial institutions across multiple areas of its business operations, enabling it to facilitate and originate loans to prime borrowers under a risk assessment and control system.

For more information, please visit http://ir.xiaoyinggroup.com.

Use of Non-GAAP Financial Measures

In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of the non-GAAP financial measures facilitates investors' assessment of our operating performance and help investors to identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We also believe that the non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

We use in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method and impairment losses on long-term investments. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release.

Exchange Rate Information

This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.9931 to US$1.00, the exchange rate in effect as of December 31, 2025, as published in the Federal Reserve Board's H.10 statistical release. Percentages stated in this release are calculated based on the RMB amounts.

Disclaimer

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace's products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.

Use of Projections

This announcement also contains certain financial forecasts (or guidance) with respect to the Company's projected financial results. The Company's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections or guidance for the purpose of their inclusion in this announcement, and accordingly, they did not express an opinion or provide any other form assurance with respect thereto for the purpose of this announcement. This guidance should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company, or that actual results will not differ materially from those set forth in the prospective financial information. Inclusion of the prospective financial information in this announcement should not be regarded as a representation by any person that the results contained in the prospective financial information will actually be achieved. You should review this information together with the Company's historical information.

[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period.

 

X Financial

Unaudited Condensed Consolidated Balance Sheets







(In thousands, except for share and per share data)

As of December 31, 2024


As of December 31, 2025


As of December 31, 2025


 RMB 


RMB


USD

 ASSETS 






 Cash and cash equivalents 

984,611


987,631


141,229

 Restricted cash, net 

676,793


1,145,962


163,870

 Accounts receivable and contract assets, net 

2,029,550


3,145,976


449,869

 Loans receivable from Credit Loans and other loans, net 

4,828,317


5,298,631


757,694

 Deposits to institutional cooperators, net 

1,958,297


1,713,593


245,041

 Prepaid expenses and other current assets 

34,079


43,547


6,227

 Financial guarantee derivative 

1,038


-


-

 Deferred tax assets, net 

197,713


455,358


65,115

 Long term investments 

498,038


515,524


73,719

 Property and equipment, net 

15,833


23,900


3,418

 Intangible assets, net 

36,592


39,183


5,603

 Financial investments 

513,476


1,243,076


177,758

 Other non-current assets 

44,951


53,364


7,631

 TOTAL ASSETS 

11,819,288


14,665,745


2,097,174







 LIABILITIES 






 Payable to investors and institutional funding partners at amortized cost 

2,184,086


3,054,982


436,856

 Contingent guarantee liabilities 

187,641


748,307


107,006

 Deferred guarantee income 

164,725


467,629


66,870

 Financial guarantee derivative 

-


15,426


2,206

 Short-term borrowings 

328,500


409,530


58,562

 Accrued payroll and welfare 

94,717


76,058


10,876

 Other tax payable 

279,993


221,940


31,739

 Income tax payable 

591,491


677,521


96,884

 Accrued expenses and other current liabilities 

941,506


1,053,071


150,587

 Other non-current liabilities 

27,516


34,807


4,977

 Deferred tax liabilities 

65,959


69,673


9,963

 TOTAL LIABILITIES 

4,866,134


6,828,944


976,526







 Commitments and Contingencies 






 Equity: 






 Common shares (250,678,439 and 234,517,901 shares outstanding
as of December 31, 2024 and 2025, respectively) 

207


207


30

 Treasury stock   

(509,644)


(967,773)


(138,390)

 Additional paid-in capital 

3,207,028


3,256,349


465,652

 Retained earnings 

4,174,511


5,484,294


784,244

 Other comprehensive income 

81,052


63,724


9,112

 TOTAL EQUITY 

6,953,154


7,836,801


1,120,648







 TOTAL LIABILITIES AND EQUITY 

11,819,288


14,665,745


2,097,174

 

 

X Financial

 Unaudited Condensed Consolidated Statements of Comprehensive Income 










 Three Months Ended December 31, 


 Twelve Months Ended December 31, 

(In thousands, except for share and per share data)

2024

2025

2025


2024

2025

2025


 RMB 

 RMB 

 USD 


 RMB 

 RMB 

 USD 

Net revenues








Loan facilitation service

877,664

440,669

63,015


3,102,345

3,843,005

549,542

Post-origination service

266,018

249,251

35,642


759,539

1,074,454

153,645

Financing income

350,599

393,987

56,339


1,372,004

1,396,976

199,765

Guarantee income

69,649

263,245

37,644


201,716

636,572

91,030

Other revenue

144,792

120,691

17,259


436,178

688,418

98,442

Total net revenue

1,708,722

1,467,843

209,899


5,871,782

7,639,425

1,092,424









Operating costs and expenses:








Origination and servicing

438,975

505,378

72,268


1,738,139

2,020,546

288,934

Borrower acquisitions and marketing

503,704

212,165

30,339


1,582,472

2,202,375

314,935

General and administrative

48,886

46,158

6,601


175,934

199,559

28,537

Provision for accounts receivable and contract assets

13,262

139,609

19,964


35,732

242,719

34,708

Provision for loans receivable

64,289

132,624

18,965


221,658

340,209

48,649

Provision for contingent guarantee liabilities

116,103

398,052

56,921


241,738

1,001,273

143,180

Change in fair value of financial guarantee derivative

(1,038)

14,704

2,103


(1,038)

3,367

481

(Reversal of) provision for credit losses for deposits and other financial assets

(671)

(1,030)

(147)


3,378

(702)

(100)

Total operating costs and expenses

1,183,510

1,447,660

207,014


3,998,013

6,009,346

859,324









Income from operations

525,212

20,183

2,885


1,873,769

1,630,079

233,100

Interest income (expenses), net

4,338

4,446

636


(560)

10,659

1,524

Foreign exchange (loss) gain 

(6,183)

2,102

301


(9,533)

(8,539)

(1,221)

Income (loss) from financial investments

13,396

(513)

(73)


17,134

(14,456)

(2,067)

Other income, net

4,084

5,029

719


13,521

132,250

18,911









Income before income taxes

540,847

31,247

4,468


1,894,331

1,749,993

250,247









Income tax (expense) benefit

(150,778)

15,849

2,266


(405,702)

(291,650)

(41,705)

Gain from equity in affiliates, net of tax

4,587

4,740

678


10,159

25,716

3,677

(Loss) gain from financial investments at equity method, net of tax

(9,030)

5,331

762


41,118

(19,506)

(2,789)

Net income

385,626

57,167

8,174


1,539,906

1,464,553

209,430

Less: net income attributable to non-controlling interests

-

-

-


-

-

-

Net income attributable to X Financial shareholders

385,626

57,167

8,174


1,539,906

1,464,553

209,430









Net income 

385,626

57,167

8,174


1,539,906

1,464,553

209,430

Other comprehensive income, net of tax of nil:








Gain (loss) from equity in affiliates

105

(30)

(4)


(314)

148

21

(Loss) income from financial investments

(5,807)

3,966

567


293

3,198

457

Foreign currency translation adjustments

19,186

(9,336)

(1,335)


11,596

(20,674)

(2,956)

Comprehensive income

399,110

51,767

7,402


1,551,481

1,447,225

206,952

Less: comprehensive income attributable to non-controlling interests

-

-

-


-

-

-

Comprehensive income attributable to X Financial shareholders

399,110

51,767

7,402


1,551,481

1,447,225

206,952









Net income per share—basic

1.37

0.24

0.03


5.33

6.00

0.86

Net income per share—diluted 

1.34

0.24

0.03


5.25

5.87

0.84









Net income per ADS—basic

8.22

1.44

0.21


31.98

36.00

5.15

Net income per ADS—diluted 

8.04

1.44

0.21


31.50

35.22

5.04









Weighted average number of ordinary shares outstanding—basic

281,823,659

233,525,027

233,525,027


288,828,371

243,975,946

243,975,946

Weighted average number of ordinary shares outstanding—diluted

288,542,180

238,285,537

238,285,537


293,354,671

249,489,203

249,489,203

 

 

X Financial

Unaudited Reconciliations of GAAP and Non-GAAP Results










Three Months Ended December 31,


Twelve Months Ended December 31,

(In thousands, except for share and per share data)

2024

2025

2025


2024

2025

2025


RMB

RMB

USD


RMB

RMB

USD

GAAP net income

385,626

57,167

8,174


1,539,906

1,464,553

209,430

Less: Income (loss) from financial investments (net of tax of nil)

13,396

(513)

(73)


17,134

(14,456)

(2,067)

Less: Impairment losses on financial investments (net of tax of nil)

-

-

-


-

-

-

Less: Impairment losses on long-term investments (net of tax)

(16,680)

-

-


(16,680)

-

-

Less: (Loss) gain from financial investments at equity method (net of tax of nil)

(9,030)

5,331

762


41,118

(19,506)

(2,789)

Add: Share-based compensation expenses (net of tax of nil)

10,082

8,971

1,283


40,178

60,967

8,718

Non-GAAP adjusted net income

408,022

61,320

8,768


1,538,512

1,559,482

223,004









Non-GAAP adjusted net income per share—basic

1.45

0.26

0.04


5.33

6.39

0.91

Non-GAAP adjusted net income per share—diluted 

1.41

0.26

0.04


5.24

6.25

0.89









Non-GAAP adjusted net income per ADS—basic

8.70

1.56

0.22


31.98

38.34

5.48

Non-GAAP adjusted net income per ADS—diluted 

8.46

1.56

0.22


31.44

37.50

5.36









Weighted average number of ordinary shares outstanding—basic

281,823,659

233,525,027

233,525,027


288,828,371

243,975,946

243,975,946

Weighted average number of ordinary shares outstanding—diluted

288,542,180

238,285,537

238,285,537


293,354,671

249,489,203

249,489,203

 

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SOURCE X Financial