X Financial Reports Second Quarter 2026 Unaudited Financial Results

SHENZHEN, China, Aug. 24, 2026 /PRNewswire/ -- X Financial (NYSE: 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

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 share and per share data)

Three Months Ended

June 30, 2025

Three Months Ended

March 31, 2026

Three Months Ended

June 30, 2026

QoQ

YoY

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

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: [email protected]

X Financial

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)

As of December 31,

2025

As of June 30, 2026

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

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

2025

2026

RMB

USD

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

184

155

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

251,927,644

229,678,786

Weighted average number of ordinary shares outstanding—diluted

263,948,357

227,553,000

263,019,346

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

2025

2026

RMB

USD

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

251,927,644

229,678,786

Weighted average number of ordinary shares outstanding—diluted

263,948,357

227,553,000

263,019,346

231,984,748

SOURCE X Financial