X Financial (NYSE: XYF) Reports Q2 2025 Results: Revenue +66%, Record Loan Originations, Improved Asset Quality

Rhea-AI Summary

X Financial (NYSE: XYF) reported strong Q2 2025 results with total net revenue reaching $317.3 million, up 65.6% year-over-year. The company achieved record loan facilitation of RMB38.99 billion (~$5.43 billion), representing a 71.4% YoY increase.

Key highlights include net income growth of 27.1% YoY to $73.7 million, improved asset quality with decreased delinquency rates, and active borrowers rising 73.7% YoY to 2.85 million. The company declared a semi-annual dividend of $0.28 per ADS and has $68.2 million remaining in its share repurchase program through November 2026.

For Q3 2025, X Financial expects loan facilitation to range between RMB32.0-34.0 billion, reflecting a strategic focus on asset quality over volume growth.

Positive

• Total net revenue increased by 65.6% YoY to $317.3 million
• Record loan facilitation volume of RMB38.99 billion, up 71.4% YoY
• Active borrowers grew 73.7% YoY to 2.85 million
• Improved asset quality with decreased delinquency rates
• Declared semi-annual dividend of $0.28 per ADS
• Strong share repurchase activity with $47.7 million spent YTD

Negative

• Expected moderation in Q3 2025 loan facilitation volume
• Regulatory environment uncertainties noted in outlook
• Net income growth (27.1%) lagged behind revenue growth (65.6%)

Insights

Financial Analyst

X Financial delivered exceptional Q2 growth with 66% revenue increase and improved asset quality, while returning significant capital to shareholders.

X Financial has delivered impressive financial results for Q2 2025, with total net revenue surging 65.6% year-over-year to $317.3 million. The company achieved record loan facilitations of RMB38.99 billion ($5.43 billion), representing a substantial 71.4% increase from the previous year. This robust growth was fueled by strong borrower demand, with active borrowers increasing by 73.7% to 2.85 million.

Profitability metrics show solid improvement, with net income rising 27.1% to $73.7 million and non-GAAP adjusted net income jumping 58.3% to $82.8 million. These results translate to diluted earnings per ADS of $12.00, a 44.9% year-over-year increase. The significant gap between GAAP and non-GAAP growth rates suggests some one-time or non-operational items affecting the standard accounting figures.

Asset quality metrics reveal encouraging trends. The 31-60 day delinquency rate decreased to 1.16% from 1.29% a year ago, while the more serious 91-180 day delinquency rate dropped substantially to 2.91% from 4.38%. This improvement in credit quality amid rapid growth demonstrates effective risk management practices.

The company's shareholder return initiatives are substantial. X Financial declared a semi-annual dividend of $0.28 per ADS and has aggressively repurchased shares, buying back approximately 16.7 million Class A ordinary shares for $47.7 million year-to-date. With $68.2 million remaining in its new $100 million repurchase program, management is clearly confident in the company's financial position and future prospects.

Looking ahead, X Financial expects Q3 loan facilitation volumes between RMB32-34 billion, indicating a deliberate moderation from Q2's record levels. This strategic pivot toward prioritizing asset quality and profitability over pure volume growth reflects prudent management in a potentially challenging regulatory environment. With substantial profits, improved asset quality, and significant capital returns to shareholders, X Financial appears well-positioned despite potential regulatory headwinds in the Chinese fintech sector.

SHENZHEN, China, Aug. 18, 2025 /PRNewswire/ -- X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Q2 2025 Highlights

• Total net revenue reached $317.3 million (RMB2,273.1 million), up 65.6% year-over-year ("YoY"), driven by robust loan facilitation growth and healthy platform activity.
• Total loan amount facilitated and originated^[1] hit a record RMB38.99 billion (~$5.43 billion), up 71.4% YoY, as borrower demand remained strong. X Financial facilitated and originated approximately 3.72 million loans, with active borrowers rising 73.7% YoY to 2.85 million.
• Net income rose 27.1% YoY to $73.7 million (RMB528.0 million). Non-GAAP adjusted net income was $82.8 million (RMB593.2 million), up 58.3% YoY.
• The 31–60 days delinquency rate decreased to 1.16% (from 1.29% in the same period of 2024) and 91–180 days rate declined to 2.91% (from 4.38% in the same period of 2024).

"Q2 2025 continued our strong momentum, with nearly RMB39 billion in total loan amount facilitated and originated and revenue up 66%," said Kent Li, President of X Financial. "We added over 427,000 active borrowers this quarter, maintained healthy asset quality, and scaled our platform efficiently. These results underscore our disciplined execution and focus on long-term value creation."

(In thousands, except for share and per share data)	Three Months Ended June 30, 2024	Three Months Ended March 31, 2025	Three Months Ended June 30, 2025	QoQ	YoY
	RMB	RMB	RMB
Total net revenue	1,372,588	1,937,505	2,273,123	17.3 %	65.6 %
Net income	415,303	458,127	528,016	15.3 %	27.1 %
Non-GAAP adjusted net income	374,661	466,766	593,215	27.1 %	58.3 %
Net income per ADS—basic	8.46	10.92	12.60	15.4 %	48.9 %
Net income per ADS—diluted	8.28	10.56	12.00	13.6 %	44.9 %

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

Business Outlook & Share Repurchase Plans

• Business Outlook: Based on current trends, X Financial expects the total loan amount facilitated and originated in the third quarter of 2025 to be in the range of RMB32.0 billion to RMB34.0 billion. This represents a deliberate moderation from record Q2 levels, as management places greater emphasis on asset quality and profitability over pure volume growth. The Company remains attentive to challenges and uncertainties from the evolving regulatory environment, while maintaining confidence in resilient borrower demand and disciplined execution.
• Capital Return to Shareholders: From January 1, 2025 through August 15, 2025, X Financial repurchased an aggregate of approximately 16.7 million Class A ordinary shares, including approximately 2.3 million ADSs, for a total consideration of approximately US$47.7 million under its share repurchase programs. The Company's previous US$50 million repurchase authorization has been fully utilized. The Company now has approximately US$68.2 million remaining under its new 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.
• 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$0.28 per 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 September 26, 2025 (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 October 15, 2025. Dividends to the Company's ADS holders will be paid by the Depositary on or after October 15, 2025, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage.

"We remain committed to disciplined execution and long-term value creation," said Frank Fuya Zhang, Chief Financial Officer. "Our strong Q2 performance, with GAAP earnings of US$1.76 per ADS and non-GAAP earnings of US$1.98 per ADS, together with our solid balance sheet, position us to return capital while investing in sustainable growth."

Conference Call

X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on August 19, 2025 (8:30 PM Beijing / Hong Kong Time on August 19, 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 August 26, 2025:

United States:	1-877-344-7529
International:	1-412-317-0088
Passcode:	1404098

Additional Information

This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the second quarter of 2025, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on August 19, 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 RMB7.1636 to US$1.00, the exchange rate in effect as of June 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, 2024	As of June 30, 2025	As of June 30, 2025
	RMB	RMB	USD
ASSETS
Cash and cash equivalents	984,611	1,152,990	160,951
Restricted cash, net	676,793	788,224	110,032
Accounts receivable and contract assets, net	2,029,550	3,161,642	441,348
Loans receivable from Credit Loans and other loans, net	4,828,317	5,017,643	700,436
Deposits to institutional cooperators, net	1,958,297	2,141,552	298,949
Prepaid expenses and other current assets	34,079	126,514	17,661
Financial guarantee derivative	1,038	12,055	1,683
Deferred tax assets, net	197,713	259,651	36,246
Long-term investments	498,038	508,480	70,981
Property and equipment, net	15,833	18,532	2,587
Intangible assets, net	36,592	37,151	5,186
Financial investments	513,476	426,144	59,487
Other non-current assets	44,951	37,277	5,204
TOTAL ASSETS	11,819,288	13,687,855	1,910,751
LIABILITIES
Payable to investors and institutional funding partners at amortized cost	2,184,086	2,454,750	342,670
Contingent guarantee liabilities	187,641	322,645	45,040
Deferred guarantee income	164,725	323,073	45,099
Short-term borrowings	328,500	401,500	56,047
Accrued payroll and welfare	94,717	77,739	10,852
Other tax payable	279,993	345,598	48,244
Income tax payable	591,491	631,032	88,089
Accrued expenses and other current liabilities	941,506	1,334,032	186,223
Other non-current liabilities	27,516	19,924	2,781
Deferred tax liabilities	65,959	56,660	7,909
TOTAL LIABILITIES	4,866,134	5,966,953	832,954
Commitments and Contingencies
Equity:
Common shares (250,678,439 and 245,300,795 shares outstanding as of December 31, 2024 and June 30, 2025)	207	207	29
Treasury stock	(509,644)	(685,242)	(95,656)
Additional paid-in capital	3,207,028	3,244,966	452,980
Retained earnings	4,174,511	5,083,697	709,657
Other comprehensive income	81,052	77,274	10,787
TOTAL EQUITY	6,953,154	7,720,902	1,077,797
TOTAL LIABILITIES AND EQUITY	11,819,288	13,687,855	1,910,751

 

X Financial
Unaudited Condensed Consolidated Statements of Comprehensive Income
	Three Months Ended June 30,				Six Months Ended June 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	732,249	1,369,443	191,167		1,346,399	2,447,823	341,703
Post-origination service	154,669	271,407	37,887		307,411	537,448	75,025
Financing income	351,012	319,938	44,662		685,640	630,078	87,955
Guarantee income	45,564	102,570	14,318		78,490	185,498	25,895
Other revenue	89,094	209,765	29,282		162,622	409,781	57,203
Total net revenue	1,372,588	2,273,123	317,316		2,580,562	4,210,628	587,781
Operating costs and expenses:
Origination and servicing	415,071	513,974	71,748		841,618	987,699	137,877
Borrower acquisitions and marketing	323,636	756,264	105,570		572,010	1,465,271	204,544
General and administrative	39,073	49,539	6,915		77,547	101,284	14,139
Provision for accounts receivable and contract assets	9,016	33,360	4,657		17,671	42,408	5,920
Provision for loans receivable	95,865	46,394	6,476		157,405	108,590	15,159
Provision for contingent guarantee liabilities	21,376	207,383	28,950		69,269	271,130	37,848
Change in fair value of financial guarantee derivative	-	(9,574)	(1,336)		-	(14,991)	(2,093)
Provision for credit losses for deposits and other financial assets	5,498	727	101		5,448	1,276	178
Total operating costs and expenses	909,535	1,598,067	223,081		1,740,968	2,962,667	413,572
Income from operations	463,053	675,056	94,235		839,594	1,247,961	174,209
Interest income (expenses), net	(1,818)	3,984	556		(6,109)	1,265	177
Foreign exchange gain (loss)	(7,807)	2,101	293		(8,231)	(10,381)	(1,449)
Income (loss) from financial investments[1]	(3,829)	(15,378)	(2,147)		4,498	(19,056)	(2,660)
Other income (loss), net	(657)	221	31		3,388	2,156	301
Income before income taxes	448,942	665,984	92,968		833,140	1,221,945	170,578
Income tax expense	(89,568)	(110,795)	(15,466)		(154,593)	(227,323)	(31,733)
Gain from equity in affiliates, net of tax	824	9,830	1,372		2,869	7,647	1,067
Gain (loss) from financial investments at equity method, net of tax[1]	55,105	(37,003)	(5,165)		97,024	(16,126)	(2,251)
Net income	415,303	528,016	73,709		778,440	986,143	137,661
Less: net income attributable to non-controlling interests	-	-	-		-	-	-
Net income attributable to X Financial shareholders	415,303	528,016	73,709		778,440	986,143	137,661
Net income	415,303	528,016	73,709		778,440	986,143	137,661
Other comprehensive income, net of tax of nil:
Gain from equity in affiliates	-	184	26		30	184	26
Income (loss) from financial investments	2,294	-	-		4,519	(768)	(107)
Foreign currency translation adjustments	3,970	(2,995)	(418)		5,188	(3,194)	(446)
Comprehensive income	421,567	525,205	73,317		788,177	982,365	137,134
Less: comprehensive income attributable to non-controlling interests	-	-	-		-	-	-
Comprehensive income attributable to X Financial shareholders	421,567	525,205	73,317		788,177	982,365	137,134
Net income per share—basic	1.41	2.10	0.29		2.65	3.91	0.55
Net income per share—diluted	1.38	2.00	0.28		2.60	3.75	0.52
Net income per ADS—basic	8.46	12.60	1.76		15.90	23.46	3.27
Net income per ADS—diluted	8.28	12.00	1.68		15.60	22.50	3.14
Weighted average number of ordinary shares outstanding—basic	293,914,248	251,566,501	251,566,501		294,224,447	251,927,644	251,927,644
Weighted average number of ordinary shares outstanding—diluted	300,458,575	263,948,357	263,948,357		299,681,672	263,019,346	263,019,346

 

[1] The Company has revised the presentation of the gain (loss) from financial investments at equity method after income tax expense, which previously reported as "Income (loss) from financial investments" before income tax expense. Additionally,  "Impairment losses on long-term investments" accounted under the equity method have been reclassified  into the gain (loss) from equity in affiliates after income tax expense. This change in presentation does not affect the net income for any periods presented.

 

X Financial
Unaudited Reconciliations of GAAP and Non-GAAP Results
	Three Months Ended June 30,				Six Months Ended June 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	415,303	528,016	73,709		778,440	986,143	137,661
Less: Income (loss) from financial investments (net of tax of nil)	(3,829)	(15,378)	(2,147)		4,498	(19,056)	(2,660)
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)	55,105	(37,003)	(5,165)		97,024	(16,126)	(2,251)
Add: Share-based compensation expenses (net of tax of nil)	10,634	12,818	1,789		19,946	38,656	5,396
Non-GAAP adjusted net income	374,661	593,215	82,810		696,864	1,059,981	147,968
Non-GAAP adjusted net income per share—basic	1.27	2.36	0.33		2.37	4.21	0.59
Non-GAAP adjusted net income per share—diluted	1.25	2.25	0.31		2.33	4.03	0.56
Non-GAAP adjusted net income per ADS—basic	7.62	14.16	1.98		14.22	25.26	3.53
Non-GAAP adjusted net income per ADS—diluted	7.50	13.50	1.88		13.98	24.18	3.38
Weighted average number of ordinary shares outstanding—basic	293,914,248	251,566,501	251,566,501		294,224,447	251,927,644	251,927,644
Weighted average number of ordinary shares outstanding—diluted	300,458,575	263,948,357	263,948,357		299,681,672	263,019,346	263,019,346

 

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SOURCE X Financial

FAQ

What were X Financial's (XYF) Q2 2025 earnings results?

X Financial reported Q2 2025 net revenue of $317.3 million, up 65.6% YoY, and net income of $73.7 million, up 27.1% YoY. The company facilitated RMB38.99 billion in loans, a 71.4% YoY increase.

What is X Financial's (XYF) dividend payment for 2025?

X Financial declared a semi-annual dividend of $0.28 per ADS (approximately $0.0467 per ordinary share), payable on October 15, 2025, to shareholders of record as of September 26, 2025.

How much remains in X Financial's (XYF) share repurchase program?

X Financial has $68.2 million remaining in its new $100 million share repurchase program, which runs through November 30, 2026. The company has already spent $47.7 million on repurchases in 2025.

What is X Financial's (XYF) loan origination guidance for Q3 2025?

X Financial expects total loan facilitation for Q3 2025 to be between RMB32.0 billion to RMB34.0 billion, representing a deliberate moderation from Q2 levels to focus on asset quality.

How has X Financial's (XYF) asset quality improved in Q2 2025?

X Financial's asset quality improved with the 31-60 days delinquency rate decreasing to 1.16% from 1.29% YoY, and the 91-180 days rate declining to 2.91% from 4.38% YoY.