SHENZHEN, China, May 27, 2026 /PRNewswire/ -- X Financial $(XYF)$, a leading Chinese fintech platform, today announced its unaudited financial results for the first quarter ended March 31, 2026. This press release should be read in conjunction with the Company's Report on Form 6-K for the first quarter ended March 31, 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.
First Quarter 2026 Financial and Operational Highlights
-- Total net revenue in Q1 2026 was RMB1.18 billion (US$170.5 million), a
decrease of 39.3% year-over-year and 19.9% quarter-over-quarter. The
year-over-year decline was primarily driven by significantly lower loan
facilitation volumes amid the Company's continued tightening of credit
standards and focus on higher-quality origination.
-- Total loan amount facilitated and originated[1] in Q1 2026 was RMB14.63
billion, down 35.8% quarter-over-quarter and down 58.4% year-over-year.
-- Net income in Q1 2026 was RMB37.9 million (US$5.5 million), a decrease of
91.7% year-over-year, primarily reflecting substantially higher
credit-related provisions and significantly lower loan facilitation
revenue amid reduced origination volumes.
-- Delinquency rates for loans 31--60 days past due improved to 2.61% (from
2.90% at Q4 2025 year-end and 1.25% a year ago); loans 91--180 days past
due increased to 9.95% (from 6.31% at Q4 2025 year-end and 2.73% a year
ago). The increase in the 91--180 day delinquency rate primarily reflects
the migration of previously delinquent balances further into that bucket
and the effect of a significantly reduced total outstanding loan balance,
both of which contribute to a higher reported rate, rather than a
deterioration in the quality of more recent originations.
Mr. Kent Li, President of X Financial, commented: "In the first quarter of 2026, we facilitated and originated RMB14.6 billion in loans, reflecting a substantial decline of 35.8% from the prior quarter and 58.4% year-over-year. Borrower activity continued to moderate, with active borrowers declining to approximately 956,520, down 60.6% from a year ago, reflecting the Company's deliberate focus on higher-quality origination and tighter credit standards. The 31--60 day delinquency rate eased to 2.61% from 2.90% in the prior quarter, reflecting improvement in more recent origination quality. The 91--180 day rate rose to 9.95%, driven by the migration of existing delinquent balances further into that bucket rather than fresh deterioration in new originations. In response, we have further strengthened our risk management framework, enhanced collection strategies, and adjusted capital deployment to preserve balance sheet resilience. While profitability was significantly impacted by higher provisions and narrower margins, we believe these actions appropriately position the Company for the challenging environment ahead."
Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the first quarter of 2026, total net revenue was RMB1.18 billion, a decrease of 39.3% from the same period last year and 19.9% sequentially. Net income was RMB37.9 million and non-GAAP adjusted net income was RMB81.2 million, both significantly lower than the prior year period, primarily due to substantially higher credit-related provisions and significantly lower loan facilitation revenue amid reduced origination volumes. Basic earnings per ADS were RMB0.96, and non-GAAP adjusted earnings per ADS were RMB2.10. Operating margin improved to 12.0% from 1.4% in the prior quarter, though remained significantly below the 29.6% recorded in the same period of 2025, reflecting the ongoing impact of elevated credit costs and reduced contribution from higher-margin facilitation services. We will continue to manage capital conservatively, strengthen our balance sheet, and maintain cost discipline to support business resilience amid an evolving regulatory and operating landscape."
([1]) Represents the total amount of loans that the Company facilitated and originated during the relevant period.
First Quarter 2026 GAAP and Non-GAAP Financial Summary
(In thousands, Three Months
except for Three Months Ended Three Months
share and per Ended March December 31, Ended March
share data) 31, 2025 2025 31, 2026 QoQ YoY
--------------- ------------ ------------ ------------- -------- --------
RMB RMB RMB
Total net
revenue 1,937,505 1,467,843 1,176,139 (19.9 %) (39.3 %)
Total operating
costs and
expenses (1,364,600) (1,447,660) (1,035,481) (28.5 %) (24.1 %)
Income from
operations 572,905 20,183 140,658 596.9 % (75.4 %)
Net income 458,127 57,167 37,947 (33.6 %) (91.7 %)
Non-GAAP
adjusted net
income 466,766 61,320 81,180 32.4 % (82.6 %)
Net income per
ADS--basic 10.92 1.44 0.96 (33.3 %) (91.2 %)
Net income per
ADS--diluted 10.56 1.44 0.96 (33.3 %) (90.9 %)
Non-GAAP
adjusted net
income per
ADS--basic 11.10 1.56 2.10 34.6 % (81.1 %)
Non-GAAP
adjusted net
income per
ADS--diluted 10.74 1.56 2.04 30.8 % (81.0 %)
Business Outlook & Capital Return
-- Business Outlook: Based on current trends, X Financial expects the total
loan amount facilitated and originated in the second quarter of 2026 to
be in the range of RMB 11.5 billion to RMB 12.5 billion. This guidance
reflects a measured pace of origination following a sequential decline in
the first quarter and management's continued focus on asset quality,
credit discipline, and profitability optimization rather than aggressive
volume expansion. The Company remains attentive to recent regulatory
developments and evolving credit conditions, and acknowledges that
potential regulatory changes, once implemented, could adversely affect
margins and profitability. The Company will continue to exercise prudent
risk control and disciplined execution to navigate the evolving
environment and support long-term business resilience.
-- Capital Return to Shareholders: From January 1, 2026 through May 15,
2026, X Financial repurchased an aggregate of approximately 1.8 million
ADSs, for a total consideration of approximately US$8.2 million under its
share repurchase programs. The Company now has approximately US$39.8
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.
Regulatory Update
The regulatory environment governing internet-based lending in the People's Republic of China continued to evolve during the first quarter of 2026, with authorities further strengthening 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 7:30 AM U.S. Eastern Time on May 28, 2026 (7:30 PM Beijing / Hong Kong Time on May 28, 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 June 04, 2026:
United States: 1-855-669-9658 International: 1-412-317-0088 Passcode: 1485675
Additional Information
This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the first quarter ended March 31, 2026, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on May 27, 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
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