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
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 RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 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.
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 cause 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 As of December 31, As of March 31, As of March 31,
data) 2025 2026 2026
------------------ ------------------ --------------- -----------------
RMB RMB USD
ASSETS
Cash and cash
equivalents 987,631 1,021,230 148,047
Restricted cash,
net 1,145,962 1,348,104 195,434
Accounts
receivable and
contract assets,
net 3,145,976 2,498,233 362,168
Loans receivable
from Credit
Loans and other
loans, net 5,298,631 4,318,579 626,062
Deposits to
institutional
cooperators,
net 1,713,593 1,409,915 204,395
Prepaid expenses
and other
current assets 43,547 37,906 5,495
Deferred tax
assets, net 455,358 506,794 73,470
Long term
investments 515,524 522,389 75,731
Property and
equipment, net 23,900 26,426 3,831
Intangible
assets, net 39,183 38,839 5,630
Financial
investments 1,243,076 1,825,817 264,688
Other non-current
assets 53,364 52,244 7,574
TOTAL ASSETS 14,665,745 13,606,476 1,972,525
LIABILITIES
Payable to
investors and
institutional
funding partners
at amortized
cost 3,054,982 2,407,547 349,021
Contingent
guarantee
liabilities 748,307 590,611 85,621
Deferred
guarantee
income 467,629 388,880 56,376
Financial
guarantee
derivative 15,426 14,505 2,103
Short-term
borrowings 409,530 353,871 51,301
Accrued payroll
and welfare 76,058 30,703 4,451
Other tax payable 221,940 207,591 30,094
Income tax
payable 677,521 749,170 108,607
Accrued expenses
and other
current
liabilities 1,053,071 895,929 129,882
Dividend payable - 73,919 10,716
Other non-current
liabilities 34,807 32,854 4,763
Deferred tax
liabilities 69,673 92,339 13,386
TOTAL LIABILITIES 6,828,944 5,837,919 846,321
Commitments and
Contingencies
Equity:
Common shares
(234,517,901 and
231,097,037
shares
outstanding as
of December 31,
2025 and March
31, 2026,
respectively) 207 207 30
Treasury stock (967,773) (988,210) (143,260)
Additional
paid-in capital 3,256,349 3,257,252 472,202
Retained earnings 5,484,294 5,448,322 789,841
Other
comprehensive
income 63,724 50,986 7,391
TOTAL EQUITY 7,836,801 7,768,557 1,126,204
TOTAL LIABILITIES
AND EQUITY 14,665,745 13,606,476 1,972,525
================== =============== =================
X Financial
Unaudited Condensed Consolidated Statements of Comprehensive Income
Three Months Ended March 31,
-------------------------------------
(In thousands, except for share and per
share data) 2025 2026 2026
--------------------------------------- ----------- ----------- -----------
RMB RMB USD
Net revenues
Loan facilitation service 1,078,379 270,714 39,245
Post-origination service 266,041 196,206 28,444
Financing income 310,140 337,774 48,967
Guarantee income 82,929 258,294 37,445
Other revenue 200,016 113,151 16,403
Total net revenue 1,937,505 1,176,139 170,504
Operating costs and expenses:
Origination and servicing 473,725 485,364 70,363
Borrower acquisitions and marketing 709,007 219,760 31,859
General and administrative 51,744 47,121 6,831
Provision for accounts receivable and
contract assets 9,048 30,778 4,462
Provision for loans receivable 62,196 52,326 7,586
Provision for contingent guarantee
liabilities 63,748 200,009 28,995
Change in fair value of financial
guarantee derivative (5,417) 340 49
Provision for (reversal of) credit
losses for
deposits and other financial assets 549 (217) (31)
Total operating costs and expenses 1,364,600 1,035,481 150,114
Income from operations 572,905 140,658 20,390
Interest income 2,922 7,314 1,060
Interest expenses (5,641) (2,067) (300)
Foreign exchange (loss) gain (12,482) 3,023 438
Loss from financial investments (3,678) (1,878) (272)
Impairment losses on financial
investments - (6,715) (973)
Other income, net 1,935 (3,491) (506)
Income before income taxes 555,961 136,844 19,837
Income tax expense (116,528) (72,204) (10,467)
(Loss) gain from equity in affiliates,
net of tax (2,182) 5,107 740
Gain (loss) from financial investments
at equity method, net of tax 20,876 (31,800) (4,610)
Net income 458,127 37,947 5,500
Less: net income attributable to
non-controlling interests - - -
Net income attributable to X Financial
shareholders 458,127 37,947 5,500
Net income 458,127 37,947 5,500
Other comprehensive income, net of tax
of nil:
Gain from equity in affiliates - 42 6
Loss from financial investments (768) - -
Foreign currency translation
adjustments (198) (12,780) (1,853)
Comprehensive income 457,161 25,209 3,653
Less: comprehensive income attributable
to non-controlling interests - - -
Comprehensive income attributable to X
Financial shareholders 457,161 25,209 3,653
======================================= =========== =========== ===========
Net income per share--basic 1.82 0.16 0.02
Net income per share--diluted 1.76 0.16 0.02
Net income per ADS--basic 10.92 0.96 0.14
Net income per ADS--diluted 10.56 0.96 0.14
Weighted average number of ordinary
shares outstanding--basic 252,292,800 234,143,092 234,143,092
Weighted average number of ordinary
shares outstanding--diluted 260,864,033 236,519,179 236,519,179
X Financial
Unaudited Reconciliations of GAAP and
Non-GAAP Results
Three Months Ended March 31,
-------------------------------------
(In thousands, except for share and per
share data) 2025 2026 2026
--------------------------------------- ----------- ----------- -----------
RMB RMB USD
GAAP net income 458,127 37,947 5,500
Less: Income (loss) from financial
investments (net of tax of nil) (3,678) (1,878) (272)
Less: Impairment losses on financial
investments (net of tax of nil) - (6,715) (973)
Less: Impairment losses on long-term
investments (net of tax) - - -
Less: Gain (loss) from financial
investments at equity method (net of
tax of nil) 20,876 (31,800) (4,610)
Add: Share-based compensation expenses
(net of tax of nil) 25,837 2,840 412
Non-GAAP adjusted net income 466,766 81,180 11,767
Non-GAAP adjusted net income per
share--basic 1.85 0.35 0.05
Non-GAAP adjusted net income per
share--diluted 1.79 0.34 0.05
Non-GAAP adjusted net income per
ADS--basic 11.10 2.10 0.30
Non-GAAP adjusted net income per
ADS--diluted 10.74 2.04 0.30
Weighted average number of ordinary
shares outstanding--basic 252,292,800 234,143,092 234,143,092
Weighted average number of ordinary
shares outstanding--diluted 260,864,033 236,519,179 236,519,179
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SOURCE X Financial
(END) Dow Jones Newswires
May 27, 2026 16:50 ET (20:50 GMT)
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