#China #Shenzhen #X Financial #Fintech #financial results

X Financial Q3 2025 Results Overview

X Financial (NYSE: XYF), a prominent fintech company based in China, has recently unveiled its unaudited financial results for the third quarter of 2025. The company's performance reflects a mix of growth and challenges facing the fintech landscape in China.

Financial Highlights

In the third quarter, X Financial reported total net revenue of $275.5 million (approximately RMB 1,961 million), marking a notable 23.9% increase year-on-year. However, this figure represents a 13.7% decline compared to the previous quarter. This sequential drop can be attributed to a decrease in borrower activity and a cautious lending environment, primarily influenced by rising credit costs.

Furthermore, the total loan amount facilitated and originated stood at RMB 33.64 billion (around $4.73 billion), reflecting an 18.7% increase year-over-year but also a 13.7% decline quarter-over-quarter. This cautious approach highlights X Financial's commitment to prioritizing asset quality over aggressive loan growth.

Profitability and Income Metrics

Net income for this period reached $59.2 million (RMB 421.2 million), representing a 12.1% year-on-year increase. Additionally, non-GAAP adjusted net income rose 1.0% year-over-year to $61.6 million (RMB 438.2 million). Despite these annual increases, both net income measures saw sequential declines, driven by heightened credit-related provisions and operating costs.

Delinquency Rates

Another significant concern for X Financial is the increase in delinquency rates, indicating a potential risk in its loan portfolio. The 31–60 day delinquency rate rose from 1.02% in Q3 2024 to 1.85%, while the 91–180 day delinquency rate increased from 3.22% to 3.52%.

Management Commentary

Kent Li, President of X Financial, stated, "Q3 reflected a more challenging operating environment. 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."

Frank Fuya Zheng, the Chief Financial Officer, added, "While total revenue grew 23.9% year-over-year, it declined sequentially. The net income and adjusted net income both softened compared to the second quarter, reflecting higher credit costs and a cautious lending environment. Operating margin declined to 18.5% as risk-related expenses increased."

Business Outlook

Looking ahead, X Financial anticipates Q4 2025 loan originations to fall between RMB 21.0 billion to RMB 23.0 billion. For the full year, they foresee loan originations between RMB 128.8 billion and RMB 130.8 billion, emphasizing a controlled growth strategy with an increased focus on asset quality and disciplined risk management.

Shareholder Returns

As part of its commitment to shareholder value, X Financial engaged in share repurchase activities. From January 1, 2025, to November 20, 2025, the company repurchased approximately 4.26 million ADSs, spending about $67.9 million under its current share buyback program. This initiative underscores their confidence in long-term growth prospects.

Conclusion

In conclusion, X Financial's Q3 2025 results illustrate a dual narrative of growth and caution within a more challenging operating environment. As the company prioritizes risk management alongside growth, stakeholders are keenly observing how these strategic moves will shape its future trajectory in the competitive Chinese fintech landscape. The company's management indicates a firm commitment to enhance shareholder value, all while navigating through the complexities of the current financial landscape.