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

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

[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

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

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

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

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

2024

2025

RMB

USD

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

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

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

291,622,784

247,497,867

Weighted average number of ordinary shares outstanding—diluted

292,339,641

251,288,265

298,036,305

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

2024

2025

RMB

USD

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

291,622,784

247,497,867

Weighted average number of ordinary shares outstanding—diluted

292,339,641

251,288,265

298,036,305

259,033,100

SOURCE X Financial