SHENZHEN, China, Aug. 24, 2026 /PRNewswire/ -- X Financial $(XYF)$, a leading Chinese fintech platform, today announced its unaudited financial results for the second quarter ended June 30, 2026. This press release should be read in conjunction with the Company's Report on Form 6-K for the second quarter ended June 30, 2026, which has been furnished to the U.S. Securities and Exchange Commission and is available on the SEC's website at www.sec.gov and on the Company's investor relations website at http://ir.xiaoyinggroup.com.
Second Quarter 2026 Financial and Operational Highlights
-- 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). 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 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."
([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 Three Months Three Months Three Months
share and per Ended June Ended March Ended June
share data) 30, 2025 31, 2026 30, 2026 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$12.49 million under its
share repurchase programs. The Company now has approximately US$35.50
million remaining under its existing US$100 million 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.
-- 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 10, 2026 (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 the People's Republic of China continued to evolve during the second quarter of 2026, with authorities maintaining heightened oversight across the consumer credit business chain. The Company continues to monitor these developments closely; however, management has limited visibility into the ultimate scope and direction of implementation. If current and emerging regulatory requirements are implemented as currently understood, the Company's operating results may be materially and adversely affected, and historical levels of profitability should not be assumed to be indicative of future performance.
Conference Call
X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on August 24, 2026 (8:30 PM Beijing / Hong Kong Time on August 24, 2026).
Dial-in details for the earnings conference call are as follows:
United States: 1-888-346-8982 Hong Kong: 800-905945 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 31, 2026:
United States: 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 U.S. Securities and Exchange Commission on August 24, 2026.
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$1.00, the exchange rate in effect as of June 30, 2026, 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 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 As of December As of June 30, As of June 30,
data) 31, 2025 2026 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 and June
30, 2026,
respectively) 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