X Financial (NYSE: XYF) Reports Q3 2025 Results: Revenue +23.9% YoY, Sequential Decline Amid Rising Credit Costs and Moderating Borrower Activity
SHENZHEN, China, Nov. 20, 2025 /PRNewswire/ -- X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the third quarter ended September 30, 2025.
Q3 2025 Highlights
- Total net revenue reached $275.5 million (RMB1,961.0 million), up 23.9% year-over-year, but down 13.7% quarter-over-quarter, reflecting moderating borrower activity and a more cautious lending environment.
- Total loan amount facilitated and originated[1] was RMB33.64 billion (~$4.73 billion), up 18.7% YoY, but down 13.7% QoQ, reflecting the Company's deliberate moderation of loan growth to prioritize asset quality and risk control.
- Net income increased 12.1% YoY to $59.2 million (RMB421.2 million), and Non-GAAP adjusted net income rose 1.0% YoY to $61.6 million (RMB438.2 million). Both measures declined sequentially, reflecting higher credit-related provisions and rising operating costs in the quarter.
- The 31–60 days delinquency rate increased to 1.85% (from 1.02% in the same period of 2024) and the 91–180 days delinquency rate rose to 3.52% (from 3.22% in the same period of 2024), reflecting softer repayment behavior and a more challenging credit environment.
|
[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period. |
"Q3 reflected a more challenging operating environment," said Kent Li, President of X Financial. "Loan origination declined from Q2 highs, borrower activity moderated, and delinquency rates increased across key categories. While profitability came under pressure from higher provisions and rising operating costs, we continue to prioritize risk control, collection efficiency, and disciplined execution. Our focus remains on maintaining credit quality, liquidity stability, and long-term competitiveness amid shifting market and regulatory conditions."
"In the third quarter, total revenue grew 23.9% year-over-year but declined sequentially," said Frank Fuya Zheng, Chief Financial Officer. "Net income and adjusted net income both softened compared to the second quarter, reflecting higher credit costs and a more cautious lending environment. Operating margin declined to 18.5% as risk-related expenses increased. While sequential earnings per ADS decreased, year-over-year EPS remained higher, supported by both a 12.1% increase in GAAP net income and continued share repurchases and cancellation."
|
(In thousands, except for share and per share data) |
Three Months Ended |
Three Months Ended |
Three Months Ended |
QoQ |
YoY |
|
|
RMB |
RMB |
RMB |
|
|
|
Total net revenue |
1,582,497 |
2,273,123 |
1,960,954 |
(13.7 %) |
23.9 % |
|
Net income |
375,840 |
528,016 |
421,241 |
(20.2 %) |
12.1 % |
|
Non-GAAP adjusted net income |
433,625 |
593,215 |
438,178 |
(26.1 %) |
1.0 % |
|
|
|
|
|
|
|
|
Net income per ADS—basic |
7.86 |
12.60 |
10.56 |
(16.2 %) |
34.4 % |
|
Net income per ADS—diluted |
7.74 |
12.00 |
10.08 |
(16.0 %) |
30.2 % |
Business Outlook & Share Repurchase Plans
- Business Outlook: Based on current trends, X Financial expects Q4 2025 loan originations to be in the range of RMB21.0–23.0 billion. The Company expects full-year 2025 loan originations of RMB128.8–130.8 billion, reflecting a measured pace of growth following a sequential decline in Q3 and an increased emphasis on asset quality and disciplined risk management.
- Capital Return to Shareholders: From January 1, 2025 through November 20, 2025, X Financial repurchased an aggregate of approximately 4.26 million ADSs, including approximately 3.80 million ADSs and 2.76 million Class A ordinary shares, for a total consideration of approximately US$67.9 million under its share repurchase programs. The Company now has approximately US$48.0 million remaining under its existing US$100 million 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.
Conference Call
X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on November 21, 2025 (9:30 PM Beijing / Hong Kong Time on November 21, 2025).
Dial-in details for the earnings conference call are as follows:
|
United States: |
1-888-346-8982 |
|
Hong Kong: |
852-301-84992 |
|
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 November 28, 2025 (9:30 PM Beijing / Hong Kong Time):
|
United States: |
1-855-669-9658 |
|
International: |
1-412-317-0088 |
|
Passcode: |
4942170 |
Additional Information
This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the third quarter of 2025, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on November 20, 2025.
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 RMB7.1190 to US$1.00, the exchange rate in effect as of September 30, 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 followings: 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 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.
For more information, please contact:
X Financial
Mr. Noah Kauffman (Chief Financial Strategy Officer)
E-mail: ir@xiaoying.com
|
X Financial |
|||
|
Unaudited Condensed Consolidated Balance Sheets |
|||
|
|
|||
|
(In thousands, except for share and per share data) |
As of December 31, |
As of September 30, |
As of September 30, |
|
|
RMB |
RMB |
USD |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
984,611 |
890,854 |
125,138 |
|
Restricted cash, net |
676,793 |
659,112 |
92,585 |
|
Accounts receivable and contract assets, net |
2,029,550 |
3,065,608 |
430,623 |
|
Loans receivable from Credit Loans and other loans, net |
4,828,317 |
5,620,402 |
789,493 |
|
Deposits to institutional cooperators, net |
1,958,297 |
2,093,353 |
294,052 |
|
Prepaid expenses and other current assets |
34,079 |
88,355 |
12,412 |
|
Financial guarantee derivative |
1,038 |
1,575 |
221 |
|
Deferred tax assets, net |
197,713 |
303,896 |
42,688 |
|
Long term investments |
498,038 |
509,245 |
71,533 |
|
Property and equipment, net |
15,833 |
20,824 |
2,925 |
|
Intangible assets, net |
36,592 |
37,815 |
5,312 |
|
Financial investments |
513,476 |
1,339,050 |
188,095 |
|
Other non-current assets |
44,951 |
58,543 |
8,223 |
|
TOTAL ASSETS |
11,819,288 |
14,688,632 |
2,063,300 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Payable to investors and institutional funding partners at amortized cost |
2,184,086 |
2,856,870 |
401,302 |
|
Contingent guarantee liabilities |
187,641 |
570,452 |
80,131 |
|
Deferred guarantee income |
164,725 |
470,335 |
66,068 |
|
Short-term borrowings |
328,500 |
566,377 |
79,559 |
|
Accrued payroll and welfare |
94,717 |
110,008 |
15,453 |
|
Other tax payable |
279,993 |
219,756 |
30,869 |
|
Income tax payable |
591,491 |
677,834 |
95,215 |
|
Accrued expenses and other current liabilities |
941,506 |
1,182,113 |
166,050 |
|
Other non-current liabilities |
27,516 |
37,424 |
5,257 |
|
Deferred tax liabilities |
65,959 |
68,719 |
9,653 |
|
TOTAL LIABILITIES |
4,866,134 |
6,759,888 |
949,557 |
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
Equity: |
|
|
|
|
Common shares (250,678,439 and 234,423,629 shares outstanding as of |
207 |
207 |
29 |
|
Treasury stock |
(509,644) |
(904,502) |
(127,055) |
|
Additional paid-in capital |
3,207,028 |
3,257,308 |
457,551 |
|
Retained earnings |
4,174,511 |
5,506,606 |
773,508 |
|
Other comprehensive income |
81,052 |
69,125 |
9,710 |
|
TOTAL EQUITY |
6,953,154 |
7,928,744 |
1,113,743 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
11,819,288 |
14,688,632 |
2,063,300 |
|
X Financial |
|||||||
|
Unaudited Condensed Consolidated Statements of Comprehensive Income |
|||||||
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
(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 |
878,282 |
954,513 |
134,080 |
|
2,224,681 |
3,402,336 |
477,923 |
|
Post-origination service |
186,109 |
287,755 |
40,421 |
|
493,520 |
825,203 |
115,916 |
|
Financing income |
335,765 |
372,911 |
52,382 |
|
1,021,405 |
1,002,989 |
140,889 |
|
Guarantee income |
53,576 |
187,829 |
26,384 |
|
132,067 |
373,327 |
52,441 |
|
Other revenue |
128,765 |
157,946 |
22,187 |
|
291,387 |
567,727 |
79,748 |
|
Total net revenue |
1,582,497 |
1,960,954 |
275,454 |
|
4,163,060 |
6,171,582 |
866,917 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Origination and servicing |
457,545 |
527,470 |
74,093 |
|
1,299,164 |
1,515,168 |
212,834 |
|
Borrower acquisitions and marketing |
506,758 |
524,939 |
73,738 |
|
1,078,768 |
1,990,210 |
279,563 |
|
General and administrative |
49,499 |
52,118 |
7,321 |
|
127,047 |
153,402 |
21,548 |
|
Provision for accounts receivable and contract assets |
4,799 |
60,702 |
8,527 |
|
22,470 |
103,110 |
14,484 |
|
(Reversal of) provision for loans receivable |
(35) |
98,995 |
13,906 |
|
157,370 |
207,585 |
29,159 |
|
Provision for contingent guarantee liabilities |
56,366 |
332,091 |
46,649 |
|
125,635 |
603,221 |
84,734 |
|
Change in fair value of financial guarantee derivative |
- |
3,654 |
513 |
|
- |
(11,337) |
(1,592) |
|
(Reversal of) provision for credit losses for deposits and other financial assets |
(1,399) |
(948) |
(133) |
|
4,049 |
328 |
46 |
|
Total operating costs and expenses |
1,073,533 |
1,599,021 |
224,614 |
|
2,814,503 |
4,561,687 |
640,776 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
508,964 |
361,933 |
50,840 |
|
1,348,557 |
1,609,895 |
226,141 |
|
Interest income (expenses), net |
1,211 |
4,947 |
695 |
|
(4,898) |
6,213 |
873 |
|
Foreign exchange gain (loss) |
4,881 |
(261) |
(37) |
|
(3,351) |
(10,643) |
(1,495) |
|
Income (loss) from financial investments[1] |
(760) |
5,113 |
718 |
|
3,738 |
(13,943) |
(1,959) |
|
Other income (loss), net |
6,048 |
125,066 |
17,568 |
|
9,437 |
127,222 |
17,871 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
520,344 |
496,798 |
69,784 |
|
1,353,483 |
1,718,744 |
241,431 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(100,331) |
(80,176) |
(11,262) |
|
(254,924) |
(307,499) |
(43,194) |
|
Gain from equity in affiliates, net of tax |
2,702 |
13,329 |
1,872 |
|
5,572 |
20,976 |
2,946 |
|
Gain (loss) from financial investments at equity method, net of tax[1] |
(46,875) |
(8,710) |
(1,223) |
|
50,149 |
(24,837) |
(3,489) |
|
Net income |
375,840 |
421,241 |
59,171 |
|
1,154,280 |
1,407,384 |
197,694 |
|
Less: net income attributable to non-controlling interests |
- |
- |
- |
|
- |
- |
- |
|
Net income attributable to X Financial shareholders |
375,840 |
421,241 |
59,171 |
|
1,154,280 |
1,407,384 |
197,694 |
|
|
|
|
|
|
|
|
|
|
Net income |
375,840 |
421,241 |
59,171 |
|
1,154,280 |
1,407,384 |
197,694 |
|
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
|
|
|
Gain (loss) from equity in affiliates |
(449) |
(6) |
(1) |
|
(418) |
178 |
25 |
|
Income (loss) from financial investments |
1,580 |
- |
- |
|
6,100 |
(768) |
(108) |
|
Foreign currency translation adjustments |
(12,778) |
(8,144) |
(1,144) |
|
(7,590) |
(11,337) |
(1,592) |
|
Comprehensive income |
364,193 |
413,091 |
58,026 |
|
1,152,372 |
1,395,457 |
196,019 |
|
Less: comprehensive income attributable to non-controlling interests |
- |
- |
- |
|
- |
- |
- |
|
Comprehensive income attributable to X Financial shareholders |
364,193 |
413,091 |
58,026 |
|
1,152,372 |
1,395,457 |
196,019 |
|
|
|
|
|
|
|
|
|
|
Net income per share—basic |
1.31 |
1.76 |
0.25 |
|
3.96 |
5.69 |
0.80 |
|
Net income per share—diluted |
1.29 |
1.68 |
0.24 |
|
3.87 |
5.43 |
0.76 |
|
|
|
|
|
|
|
|
|
|
Net income per ADS—basic |
7.86 |
10.56 |
1.48 |
|
23.76 |
34.14 |
4.80 |
|
Net income per ADS—diluted |
7.74 |
10.08 |
1.42 |
|
23.22 |
32.58 |
4.58 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding—basic |
285,857,203 |
238,782,763 |
238,782,763 |
|
291,622,784 |
247,497,867 |
247,497,867 |
|
Weighted average number of ordinary shares outstanding—diluted |
292,339,641 |
251,288,265 |
251,288,265 |
|
298,036,305 |
259,033,100 |
259,033,100 |
|
|
|||||||
|
[1] The Company has revised the presentation of the gain (loss) from financial investments at equity method after income tax expense, which previously |
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|
X Financial |
|||||||
|
Unaudited Reconciliations of GAAP and Non-GAAP Results |
|||||||
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
(In thousands, except for share and per share data) |
2024 |
2025 |
2025 |
|
2024 |
2025 |
2025 |
|
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
GAAP net income |
375,840 |
421,241 |
59,171 |
|
1,154,280 |
1,407,384 |
197,694 |
|
Less: Income (loss) from financial investments (net of tax of nil) |
(760) |
5,113 |
718 |
|
3,738 |
(13,943) |
(1,959) |
|
Less: Impairment losses on financial investments (net of tax of nil) |
- |
- |
- |
|
- |
- |
- |
|
Less: Impairment losses on long-term investments (net of tax) |
- |
- |
- |
|
- |
- |
- |
|
Less: Gain (loss) from financial investments at equity method (net of tax of nil) |
(46,875) |
(8,710) |
(1,223) |
|
50,149 |
(24,837) |
(3,489) |
|
Add: Share-based compensation expenses (net of tax of nil) |
10,150 |
13,340 |
1,874 |
|
30,096 |
51,996 |
7,304 |
|
Non-GAAP adjusted net income |
433,625 |
438,178 |
61,550 |
|
1,130,489 |
1,498,160 |
210,446 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income per share—basic |
1.52 |
1.84 |
0.26 |
|
3.88 |
6.05 |
0.85 |
|
Non-GAAP adjusted net income per share—diluted |
1.48 |
1.74 |
0.24 |
|
3.79 |
5.78 |
0.81 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income per ADS—basic |
9.12 |
11.04 |
1.55 |
|
23.28 |
36.30 |
5.10 |
|
Non-GAAP adjusted net income per ADS—diluted |
8.88 |
10.44 |
1.47 |
|
22.74 |
34.68 |
4.87 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding—basic |
285,857,203 |
238,782,763 |
238,782,763 |
|
291,622,784 |
247,497,867 |
247,497,867 |
|
Weighted average number of ordinary shares outstanding—diluted |
292,339,641 |
251,288,265 |
251,288,265 |
|
298,036,305 |
259,033,100 |
259,033,100 |
SOURCE X Financial
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