X Financial (NYSE: XYF) Reports Q3 2025 Results: Revenue +23.9% YoY, Sequential Decline Amid Rising Credit Costs and Moderating Borrower Activity

Rhea-AI Summary

X Financial (NYSE: XYF) reported Q3 2025 results: total net revenue $275.5M (RMB1,961.0M), +23.9% YoY, -13.7% QoQ.

Total loan amount facilitated and originated RMB33.64B (~$4.73B), +18.7% YoY, -13.7% QoQ. GAAP net income was $59.2M (RMB421.2M), +12.1% YoY; Non-GAAP adjusted net income was $61.6M (RMB438.2M), +1.0% YoY. Operating margin declined to 18.5% as credit provisions and operating costs rose.

Delinquency pressures: 31–60 days at 1.85% and 91–180 days at 3.52%. Guidance: Q4 2025 loan originations expected RMB21.0–23.0B; full-year 2025 originations expected RMB128.8–130.8B. Share repurchases totaled ~$67.9M YTD with ~$48.0M remaining under the $100M program.

Positive

• Total net revenue +23.9% YoY
• GAAP net income +12.1% YoY
• Non-GAAP net income +1.0% YoY
• Share repurchases totaling $67.9M YTD; $48.0M remaining

Negative

• Total net revenue -13.7% QoQ
• Loan originations -13.7% QoQ
• Delinquencies increased to 31–60 days 1.85% and 91–180 days 3.52%
• Operating margin declined to 18.5% due to higher provisions

Insights

Credit and Financial Analyst

Mixed quarter: clear YoY growth but sequential softness and rising delinquencies tighten near‑term credit outlook.

X Financial reported total net revenue of $275.5 million (RMB1,961.0 million), up 23.9% year‑over‑year while down 13.7% sequentially; management attributes the QoQ decline to moderated borrower activity and deliberate restraint on loan growth. The company facilitated and originated RMB33.64 billion (~$4.73 billion), up 18.7% YoY but down 13.7% QoQ, showing an explicit tradeoff: prioritize asset quality over near‑term volume.

Credit metrics and profitability point to greater near‑term pressure. GAAP net income rose 12.1% YoY to $59.2 million, and Non‑GAAP adjusted net income rose 1.0% YoY to $61.6 million, yet both fell sequentially due to higher credit provisions and operating costs; the 31–60 day delinquency rate rose to 1.85% and 91–180 day to 3.52%, indicating softer repayment behavior. Operating margin declined to 18.5%, and management flagged continued emphasis on risk control, collections, and liquidity stability.

Watch for the company to deliver loan originations within the guided Q4 2025 range of RMB21.0–23.0 billion and full‑year originations of RMB128.8–130.8 billion as near‑term indicators of whether conservative underwriting stabilizes credit performance. Also monitor quarterly trends in delinquency buckets and provision levels; improvement in those metrics over the next one to two quarters would signal that the deliberate moderation is containing losses, while further deterioration would heighten pressure on margins and capital deployment plans, including the remaining $48.0 million under the repurchase program.

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 September 30, 2024	Three Months Ended June 30, 2025	Three Months Ended September 30, 2025	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, 2024	As of September 30, 2025	As of September 30, 2025
	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 December 31, 2024 and September 30, 2025)	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  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 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

 

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SOURCE X Financial

FAQ

What were X Financial (XYF) Q3 2025 total net revenue and YoY change?

Total net revenue was $275.5M (RMB1,961.0M), up 23.9% YoY.

How did X Financial (XYF) Q3 2025 net income perform versus Q3 2024?

GAAP net income was $59.2M (RMB421.2M), an increase of 12.1% YoY.

What delinquency trends did XYF report for Q3 2025?

31–60 days delinquency rose to 1.85% and 91–180 days to 3.52%.

What guidance did X Financial (XYF) give for Q4 2025 loan originations?

The company expects Q4 2025 loan originations of RMB21.0–23.0 billion.

How much has XYF repurchased under its 2025 buyback program year-to-date?

From Jan 1 to Nov 20, 2025, XYF repurchased approximately $67.9M of ADSs with $48.0M remaining.

Did X Financial (XYF) report any sequential declines in Q3 2025 results?

Yes. Revenue and loan originations each declined 13.7% QoQ, and net income fell sequentially.