Overview of X Financial's Q3 2025 Performance
X Financial (NYSE: XYF), a prominent name in China's fintech landscape, has released its unaudited financial results for Q3 2025, showcasing significant year-over-year revenue growth even in a challenging borrowing environment.
Quarterly Highlights
In Q3 2025, X Financial achieved impressive financial milestones:
- Total net revenue reached $275.5 million (approximately RMB1,961.0 million), which is a notable increase of 23.9% compared to the previous year, despite a sequential decline of 13.7%.
- The loan amounts facilitated and originated amounted to RMB33.64 billion (around $4.73 billion), marking an 18.7% annual growth yet a 13.7% quarter-over-quarter decrease, emphasizing the firm's cautious approach to lending.
- Net income grew 12.1% year-over-year to $59.2 million (about RMB421.2 million), although there was a decline in both net income and adjusted net income sequentially due to rising credit-related provisions and operational costs.
- Delinquency rates have shown signs of upward pressure, with a 31-60 days delinquency rate climbing to 1.85% and a 91-180 days delinquency rate increasing to 3.52%, reflecting evolving borrower behaviors in a tighter credit market.
Comments from Leadership
"Q3 reflected our resilient operating capabilities amidst challenges," shared Kent Li, President of X Financial. He noted, "While our loan origination saw a decline, we are committed to controlling risks and ensuring collection efficiency. Our strategy focuses on maintaining high credit quality and liquidity stability in response to market fluctuations."
Frank Fuya Zheng, the Chief Financial Officer, added, "Although our total revenue has increased significantly compared to last year, we experienced sequential declines in net income and adjusted earnings due to increased credit costs."
Future Outlook and Share Repurchase Strategy
Looking ahead, X Financial foresees Q4 2025 loan originations to range between RMB21.0 billion and RMB23.0 billion. The projected full-year loan originations for 2025 stand at RMB128.8 billion to RMB130.8 billion, indicating a steady yet adjusted growth momentum.
In terms of capital return, from January 1, 2025, through the current reporting date, X Financial has repurchased approximately 4.26 million ADS, at an aggregate cost of around $67.9 million. Their ongoing share repurchase program underscores their belief in sustainable long-term growth and commitment to enhancing shareholder value.
Conference Call Details
X Financial's management is set to conduct an earnings conference call where they will delve into Q3 results and future plans. This call will be held at 8:30 AM U.S. Eastern Time and interested parties are encouraged to dial in early.
Frequently Asked Questions
What were the total net revenues for Q3 2025?
Total net revenue reached $275.5 million, marking a 23.9% increase year-over-year.
How did the delinquency rates change compared to last year?
The 31-60 days delinquency rate increased to 1.85% and 91-180 days delinquency rate rose to 3.52%, reflecting a tightening credit environment.
What are X Financial's expectations for Q4 2025?
The company anticipates loan originations to be in the range of RMB21.0 billion to RMB23.0 billion.
What is the strategy behind the share repurchase program?
X Financial's share repurchase program aims to bolster shareholder value as they believe in the long-term growth prospects of the company.
Who can attend the earnings conference call?
Anyone interested can join the earnings conference call scheduled for 8:30 AM U.S. Eastern Time.
