X Financial Reports Second Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
X Financial (NYSE: XYF) reported Q2 2026 total net revenue of RMB993.6 million (US$146.4 million), down 56.3% year-over-year and 15.5% quarter-over-quarter. Total loan amount facilitated and originated was RMB11.63 billion, a decline of 20.5% quarter-over-quarter and 70.2% year-over-year.
Net income was RMB47.0 million, down 91.1% year-over-year but up 23.8% sequentially, while non-GAAP adjusted net income reached RMB165.8 million, up 104.3% quarter-over-quarter. Operating margin improved to 19.6% from 12.0% in Q1 2026, but remained below 29.7% a year earlier.
Delinquency rates improved sequentially, with 31–60 day past-due loans at 1.73% and 91–180 day at 9.09%, both still materially above prior-year levels. From January 1 to August 14, 2026, the company repurchased about 2.63 million ADSs for US$12.49 million and has approximately US$35.50 million remaining under its US$100 million buyback program, effective through November 30, 2026.
The Board declared a semi-annual dividend of US$0.28 per ADS, payable around September 28, 2026, to shareholders of record on September 10, 2026. Management noted continued regulatory uncertainty in China’s internet lending sector, which may materially and adversely affect future operating results.
Positive
- Operating margin improved to 19.6% in Q2 2026 from 12.0% in Q1 2026
- Non-GAAP adjusted net income rose to RMB165.8 million, up 104.3% quarter-over-quarter
- Net income increased 23.8% quarter-over-quarter to RMB47.0 million
- Share repurchases of approximately 2.63 million ADSs for US$12.49 million year-to-date 2026
- Semi-annual dividend of US$0.28 per ADS declared for payment around September 28, 2026
- Delinquency rates 31–60 and 91–180 days past due improved sequentially in Q2 2026
Negative
- Total net revenue declined 56.3% year-over-year and 15.5% quarter-over-quarter to RMB993.6 million
- Loan volume facilitated and originated fell 70.2% year-over-year and 20.5% quarter-over-quarter to RMB11.63 billion
- Net income dropped 91.1% year-over-year to RMB47.0 million in Q2 2026
- Delinquency rate 91–180 days at 9.09%, up from 2.91% a year ago despite sequential improvement
- Operating margin of 19.6% remained below the 29.7% level in Q2 2025
- Regulatory environment in China’s internet lending sector may materially and adversely affect future results
News Explained
The newly disclosed balance-sheet snapshot shows total assets of
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 27 | Q1 earnings report | Negative | -2.9% | Revenue and net income declined amid sharply lower loan facilitation volumes. |
| Mar 25 | Q4 earnings report | Negative | -26.2% | Net income declined as credit provisions increased and loan facilitation weakened. |
| Nov 20 | Q3 earnings report | Negative | -15.7% | Credit provisions increased while borrower activity and operating margin moderated. |
| Aug 18 | Q2 earnings report | Positive | -4.2% | Revenue, originations, net income, and asset quality improved year-over-year. |
| May 19 | Q1 earnings report | Positive | +5.6% | Loan facilitation, revenue, net income, and borrower activity increased year-over-year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -8.67% move, with negative reactions following most recent earnings releases.
Key Terms
non-gaap financial
delinquency rate financial
form 6-k regulatory
ads financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial and Operational Highlights
- Total net revenue in Q2 2026 was
RMB993.6 million (US ), a decrease of$146.4 million 56.3% year-over-year and15.5% quarter-over-quarter. The year-over-year decline was mainly attributable to substantially lower loan facilitation volumes, which reduced loan facilitation service revenue and post-origination service revenue, partially offset by higher guarantee income. - Total loan amount facilitated and originated[1] in Q2 2026 was
RMB11.63 billion , down20.5% quarter-over-quarter and down70.2% year-over-year. - Net income in Q2 2026 was
RMB47.0 million (US ), a decrease of$6.9 million 91.1% year-over-year but an increase of23.8% quarter-over-quarter, primarily reflecting the substantially lower operating contribution compared with the prior-year period, partially offset by lower operating costs and credit-related provisions. - Delinquency rates for loans 31–60 days past due improved to
1.73% (from2.61% at the end of Q1 2026 and1.16% a year ago); loans 91–180 days past due improved to9.09% (from9.95% at the end of Q1 2026, though up from2.91% a year ago). Both delinquency rates improved sequentially but remained materially above prior-year levels, indicating that credit pressure remained elevated in the seasoned portfolio.
Mr. Kent Li, President of X Financial, commented: "In the second quarter of 2026, we facilitated and originated
Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the second quarter of 2026, total net revenue was
[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period. |
Second Quarter 2026 GAAP and Non-GAAP Financial Summary
(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 | 2,273,123 | 1,176,139 | 993,581 | (15.5 %) | (56.3 %) |
Total operating costs and expenses | (1,598,067) | (1,035,481) | (798,633) | (22.9 %) | (50.0 %) |
Income from operations | 675,056 | 140,658 | 194,948 | 38.6 % | (71.1 %) |
Net income | 528,016 | 37,947 | 46,983 | 23.8 % | (91.1 %) |
Non-GAAP adjusted net income | 593,215 | 81,180 | 165,837 | 104.3 % | (72.0 %) |
Net income per ADS—basic | 12.60 | 0.96 | 1.26 | 31.3 % | (90.0 %) |
Net income per ADS—diluted | 12.00 | 0.96 | 1.26 | 31.3 % | (89.5 %) |
Non-GAAP adjusted net income per ADS—basic | 14.16 | 2.10 | 4.44 | 111.4 % | (68.6 %) |
Non-GAAP adjusted net income per ADS—diluted | 13.50 | 2.04 | 4.38 | 114.7 % | (67.6 %) |
Capital Return
- Capital Return to Shareholders: From January 1, 2026 through August 14, X Financial repurchased an aggregate of approximately 2.63 million ADSs, for a total consideration of approximately
US under its share repurchase programs. The Company now has approximately$12.49 million US remaining under its existing$35.50 million US share repurchase program, which is effective through November 30, 2026. This program reflects the Company's commitment to returning capital to shareholders and enhancing long-term shareholder value, subject to ongoing assessment of market and regulatory conditions. Repurchases under the program remain subject to market conditions and other factors and may be modified or suspended at management's discretion.$100 million - 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 per ADS (approximately$0.28 US per ordinary share). The holders of the Company's ordinary shares shown on the Company's record at the close of trading on September 10, 2026 ($0.0467 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 September 28, 2026. Dividends to the Company's ADS holders will be paid by the Depositary on or after September 28, 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
Conference Call
X Financial's management team will host an earnings conference call at 8:30 AM
Dial-in details for the earnings conference call are as follows:
1-888-346-8982 | |
800-905945 | |
Mainland | 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 31, 2026:
1-855-669-9658 | |
International: | 1-412-317-0088 |
Passcode: | 2955666 |
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 ended June 30, 2026, please refer to the Form 6-K filed with the
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 RMB6.7851 to US
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.
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 June 30, 2026 | As of June 30, 2026 | ||
RMB | RMB | USD | |||
ASSETS | |||||
Cash and cash equivalents | 987,631 | 1,131,736 | 166,797 | ||
Restricted cash, net | 1,145,962 | 827,667 | 121,983 | ||
Accounts receivable and contract assets, net | 3,145,976 | 1,377,377 | 203,000 | ||
Loans receivable from Credit Loans and other loans, net | 5,298,631 | 4,137,175 | 609,746 | ||
Deposits to institutional cooperators, net | 1,713,593 | 882,907 | 130,124 | ||
Prepaid expenses and other current assets | 43,547 | 36,215 | 5,337 | ||
Deferred tax assets, net | 455,358 | 486,393 | 71,685 | ||
Long term investments | 515,524 | 373,233 | 55,008 | ||
Property and equipment, net | 23,900 | 24,505 | 3,612 | ||
Intangible assets, net | 39,183 | 38,229 | 5,634 | ||
Financial investments | 1,243,076 | 2,738,006 | 403,532 | ||
Other non-current assets | 53,364 | 48,814 | 7,194 | ||
TOTAL ASSETS | 14,665,745 | 12,102,257 | 1,783,652 | ||
LIABILITIES | |||||
Payable to investors and institutional funding partners at amortized cost | 3,054,982 | 1,583,818 | 233,426 | ||
Contingent guarantee liabilities | 748,307 | 409,806 | 60,398 | ||
Deferred guarantee income | 467,629 | 392,787 | 57,890 | ||
Financial guarantee derivative | 15,426 | 12,194 | 1,797 | ||
Short-term borrowings | 409,530 | 396,208 | 58,394 | ||
Accrued payroll and welfare | 76,058 | 43,545 | 6,418 | ||
Other tax payable | 221,940 | 108,620 | 16,007 | ||
Income tax payable | 677,521 | 659,051 | 97,132 | ||
Accrued expenses and other current liabilities | 1,053,071 | 688,895 | 101,531 | ||
Other non-current liabilities | 34,807 | 28,904 | 4,260 | ||
Deferred tax liabilities | 69,673 | 22,986 | 3,388 | ||
TOTAL LIABILITIES | 6,828,944 | 4,346,814 | 640,641 | ||
Commitments and Contingencies | |||||
Equity: | |||||
Common shares (234,517,901 and 221,600,267 shares outstanding as of December 31, 2025 | 207 | 207 | 31 | ||
Treasury stock | (967,773) | (1,040,284) | (153,319) | ||
Additional paid-in capital | 3,256,349 | 3,259,861 | 480,444 | ||
Retained earnings | 5,484,294 | 5,496,426 | 810,073 | ||
Other comprehensive income | 63,724 | 39,233 | 5,782 | ||
TOTAL EQUITY | 7,836,801 | 7,755,443 | 1,143,011 | ||
TOTAL LIABILITIES AND EQUITY | 14,665,745 | 12,102,257 | 1,783,652 |
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) | 2025 | 2026 | 2026 | 2025 | 2026 | 2026 | |
RMB | RMB | USD | RMB | RMB | USD | ||
Net revenues | |||||||
Loan facilitation service | 1,369,443 | 198,599 | 29,270 | 2,447,823 | 469,313 | 69,168 | |
Post-origination service | 271,407 | 159,575 | 23,518 | 537,448 | 355,781 | 52,436 | |
Financing income | 319,938 | 277,655 | 40,921 | 630,078 | 615,429 | 90,703 | |
Guarantee income | 102,570 | 224,926 | 33,150 | 185,498 | 483,220 | 71,218 | |
Other revenue | 209,765 | 132,826 | 19,577 | 409,781 | 245,977 | 36,252 | |
Total net revenue | 2,273,123 | 993,581 | 146,436 | 4,210,628 | 2,169,720 | 319,777 | |
Operating costs and expenses: | |||||||
Origination and servicing | 513,974 | 420,983 | 62,045 | 987,699 | 906,347 | 133,579 | |
Borrower acquisitions and marketing | 756,264 | 149,506 | 22,034 | 1,465,271 | 369,266 | 54,423 | |
General and administrative | 49,539 | 46,264 | 6,818 | 101,284 | 93,385 | 13,763 | |
Provision for accounts receivable and contract assets | 33,360 | 20,124 | 2,966 | 42,408 | 50,902 | 7,502 | |
Provision for loans receivable | 46,394 | 10,071 | 1,484 | 108,590 | 62,397 | 9,196 | |
Provision for contingent guarantee liabilities | 207,383 | 57,553 | 8,482 | 271,130 | 257,562 | 37,960 | |
Change in fair value of financial guarantee derivative | (9,574) | (1,196) | (176) | (14,991) | (856) | (126) | |
Provision for credit losses for deposits and other financial assets | 727 | 95,328 | 14,050 | 1,276 | 95,111 | 14,018 | |
Total operating costs and expenses | 1,598,067 | 798,633 | 117,703 | 2,962,667 | 1,834,114 | 270,315 | |
Income from operations | 675,056 | 194,948 | 28,733 | 1,247,961 | 335,606 | 49,462 | |
Interest income | 8,927 | 16,491 | 2,430 | 11,848 | 23,805 | 3,508 | |
Interest expenses | (4,943) | (1,558) | (230) | (10,583) | (3,625) | (534) | |
Foreign exchange gain (loss) | 2,101 | 3,161 | 466 | (10,381) | 6,184 | 911 | |
(Loss) income from financial investments | (15,378) | 6,921 | 1,020 | (19,056) | 5,043 | 743 | |
Impairment losses on financial investments | - | (1,539) | (227) | - | (8,254) | (1,216) | |
Other income (loss), net | 221 | 1,550 | 228 | 2,156 | (1,941) | (286) | |
Income before income taxes | 665,984 | 219,974 | 32,420 | 1,221,945 | 356,818 | 52,588 | |
Income tax expense | (110,795) | (54,549) | (8,040) | (227,323) | (126,755) | (18,681) | |
Gain (loss) from equity in affiliates, net of tax | 9,830 | (111,981) | (16,504) | 7,647 | (106,873) | (15,751) | |
Loss from financial investments at equity method, net of tax | (37,003) | (6,461) | (952) | (16,126) | (38,261) | (5,639) | |
Net income | 528,016 | 46,983 | 6,924 | 986,143 | 84,929 | 12,517 | |
Less: net income attributable to non-controlling interests | - | - | - | - | - | - | |
Net income attributable to X Financial shareholders | 528,016 | 46,983 | 6,924 | 986,143 | 84,929 | 12,517 | |
Net income | 528,016 | 46,983 | 6,924 | 986,143 | 84,929 | 12,517 | |
Other comprehensive income, net of tax of nil: | |||||||
Gain from equity in affiliates | 184 | 113 | 17 | 184 | 155 | 23 | |
Loss from financial investments | - | - | - | (768) | - | - | |
Foreign currency translation adjustments | (2,995) | (11,866) | (1,749) | (3,194) | (24,646) | (3,632) | |
Comprehensive income | 525,205 | 35,230 | 5,192 | 982,365 | 60,438 | 8,908 | |
Less: comprehensive income attributable to non-controlling interests | - | - | - | - | - | - | |
Comprehensive income attributable to X Financial shareholders | 525,205 | 35,230 | 5,192 | 982,365 | 60,438 | 8,908 | |
Net income per share—basic | 2.10 | 0.21 | 0.03 | 3.91 | 0.37 | 0.05 | |
Net income per share—diluted | 2.00 | 0.21 | 0.03 | 3.75 | 0.37 | 0.05 | |
Net income per ADS—basic | 12.60 | 1.26 | 0.19 | 23.46 | 2.22 | 0.33 | |
Net income per ADS—diluted | 12.00 | 1.26 | 0.19 | 22.50 | 2.22 | 0.33 | |
Weighted average number of ordinary shares outstanding—basic | 251,566,501 | 225,263,539 | 225,263,539 | 251,927,644 | 229,678,786 | 229,678,786 | |
Weighted average number of ordinary shares outstanding—diluted | 263,948,357 | 227,553,000 | 227,553,000 | 263,019,346 | 231,984,748 | 231,984,748 | |
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) | 2025 | 2026 | 2026 | 2025 | 2026 | 2026 | |
RMB | RMB | USD | RMB | RMB | USD | ||
GAAP net income | 528,016 | 46,983 | 6,924 | 986,143 | 84,929 | 12,517 | |
Less: (Loss) income from financial investments (net of tax of nil) | (15,378) | 6,921 | 1,020 | (19,056) | 5,043 | 743 | |
Less: Impairment losses on financial investments (net of tax of nil) | - | (1,539) | (227) | - | (8,254) | (1,216) | |
Less: Impairment losses on long-term investments (net of tax) | - | (114,925) | (16,938) | - | (114,925) | (16,938) | |
Less: Loss from financial investments at equity method (net of tax of nil) | (37,003) | (6,461) | (952) | (16,126) | (38,261) | (5,639) | |
Add: Share-based compensation expenses (net of tax of nil) | 12,818 | 2,850 | 420 | 38,656 | 5,690 | 839 | |
Non-GAAP adjusted net income | 593,215 | 165,837 | 24,441 | 1,059,981 | 247,016 | 36,406 | |
Non-GAAP adjusted net income per share—basic | 2.36 | 0.74 | 0.11 | 4.21 | 1.08 | 0.16 | |
Non-GAAP adjusted net income per share—diluted | 2.25 | 0.73 | 0.11 | 4.03 | 1.06 | 0.16 | |
Non-GAAP adjusted net income per ADS—basic | 14.16 | 4.44 | 0.65 | 25.26 | 6.48 | 0.96 | |
Non-GAAP adjusted net income per ADS—diluted | 13.50 | 4.38 | 0.65 | 24.18 | 6.36 | 0.94 | |
Weighted average number of ordinary shares outstanding—basic | 251,566,501 | 225,263,539 | 225,263,539 | 251,927,644 | 229,678,786 | 229,678,786 | |
Weighted average number of ordinary shares outstanding—diluted | 263,948,357 | 227,553,000 | 227,553,000 | 263,019,346 | 231,984,748 | 231,984,748 | |
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SOURCE X Financial