X Financial Reports Second Quarter 2026 Unaudited Financial Results

X Financial (NYSE: XYF ), a leading Chinese fintech platform, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Total net revenue in Q2 2026 was RMB993.6 million (US$146.4 million) , a decrease of 56.3% year-over-year and 15.5% 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, down 20.5% quarter-over-quarter and down 70.2% year-over-year .

Net income in Q2 2026 was RMB47.0 million (US$6.9 million) , a decrease of 91.1% year-over-year but an increase of 23.8% 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% (from 2.61% at the end of Q1 2026 and 1.16% a year ago); loans 91–180 days past due improved to 9.09% (from 9.95% at the end of Q1 2026, though up from 2.91% a year ago).

Mr. Kent Li, President of X Financial, commented: "In the second quarter of 2026, we facilitated and originated RMB11.6 billion in loans, a decline of 20.5% from the prior quarter and 70.2% year-over-year. Borrower activity continued to contract, with active borrowers declining to approximately 720,258, down 74.8% from a year ago, while the average loan amount increased to RMB12,712. The 31–60 day delinquency rate decreased to 1.73% from 2.61% in the prior quarter, and the 91–180 day rate eased to 9.09% from 9.95%. These sequential improvements are constructive, but both delinquency rates remained above prior-year levels and the 91–180 day rate remained elevated. We therefore continue to prioritize disciplined underwriting, collection effectiveness, and conservative capital deployment. While the business remains under pressure from lower origination volumes and a challenging credit environment, our focus remains on preserving balance sheet resilience and operating flexibility."

Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the second quarter of 2026, total net revenue was RMB993.6 million, a decrease of 56.3% from the same period last year and 15.5% sequentially. Net income was RMB47.0 million and non-GAAP adjusted net income was RMB165.8 million, both higher than the prior quarter but substantially below the prior-year period. Basic earnings per ADS were RMB1.26, and non-GAAP adjusted earnings per ADS were RMB4.44. Operating margin improved to 19.6% from 12.0% in the prior quarter, but remained below the 29.7% recorded in the same period of 2025. We will continue to manage capital conservatively, maintain cost discipline, and preserve liquidity as we navigate the evolving regulatory and operating environment."