#China #Shenzhen #X Financial #Fintech #Loan Originations

X Financial Reports Record Q2 2025 Results

On August 18, 2025, X Financial (NYSE: XYF), a prominent fintech platform based in China, released its financial results for the second quarter of 2025, highlighting exceptional performance driven by robust loan facilitation and strong borrower demand.

Key Highlights

1. Revenue Growth: X Financial achieved total net revenue of approximately $317.3 million (RMB 2,273.1 million), signifying a remarkable 66% increase compared to the same period last year. This upturn is a product of significant growth in loan facilitation and sustained platform engagement.
2. Record Loan Originations: The company reported unprecedented loan origination figures, having facilitated and originated loans totaling RMB 38.99 billion (around $5.43 billion), which represents a 71.4% year-over-year increase in loan amounts. A total of approximately 3.72 million loans were originated, with active borrowers on the platform rising 73.7% year-over-year to 2.85 million.
3. Improved Asset Quality: X Financial's net income for Q2 reached $73.7 million (RMB 528 million), up 27.1% year-on-year. The non-GAAP adjusted net income was reported at $82.8 million (RMB 593.2 million), marking a striking 58.3% growth over last year's figures.
4. Delinquency Rates: The company noted improvements in asset quality, with the 31-60 days delinquency rate dropping to 1.16%, down from 1.29% in 2024, and the 91-180 days delinquency rate declining from 4.38% to 2.91% in the same timeframe.

Strategic Comments

Kent Li, President of X Financial, emphasized the strong momentum the company is experiencing, stating, "Q2 2025 continued our strong momentum, with nearly RMB 39 billion in total loan amounts facilitated and originated and revenue up 66%. We added over 427,000 active borrowers this quarter, maintained healthy asset quality, and scaled our platform efficiently. These results underscore our disciplined execution and focus on long-term value creation."

Future Outlook

Looking ahead, X Financial anticipates that the total loan amounts facilitated and originated in the upcoming third quarter of 2025 will range from RMB 32 billion to RMB 34 billion. This reflects a strategic moderation from the record levels seen in Q2, as the company is prioritizing asset quality alongside profitability over sheer growth metrics.

The emerging regulatory environment in China presents challenges and uncertainties, but X Financial remains confident in the resilience of borrower demand. The company is committed to maintaining disciplined execution as it navigates these changes.

Shareholder Returns and Capital Management

Between January 1, 2025, and August 15, 2025, X Financial repurchased approximately 16.7 million Class A ordinary shares for around $47.7 million under its share repurchase program. The previous repurchase authorization of $50 million has been fully utilized, and the company now has about $68.2 million remaining under a new $100 million program, effective through November 30, 2026.

Furthermore, the Board has approved a semi-annual dividend of $0.28 per ADS, to be paid to eligible shareholders on or around October 15, 2025. The strategic buybacks and dividends signify X Financial's confidence in its long-term growth potential and its dedication to enhancing shareholder value.

Earnings Call Announcement

In conjunction with this robust financial disclosure, X Financial is set to host an earnings conference call on August 19, 2025, at 8:30 AM ET. Interested parties are encouraged to join and engage with management as they discuss financial results and the corporate outlook in more detail.

For more information on X Financial and its innovative fintech services aimed at connecting borrowers with institutional funding partners while emphasizing risk assessment and control, please visit X Financial's website.