# X Financial Reports Second Quarter 2026 Unaudited Financial Results - Link: https://www.thailand-business-news.com/pr-news/x-financial-reports-second-quarter-2026-unaudited-financial-results - Published: 2026-08-24T16:50:00+07:00 - Author: PR Newswire 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](https://www.sec.gov/) and on the Company’s investor relations website at [http://ir.xiaoyinggroup.com](http://ir.xiaoyinggroup.com/). **Second Quarter 2026 Financial and Operational Highlights** ◦ **Total net revenue** in Q2 2026 was **RMB993.6 million (US$146.4 million)**, a **decrease of 56.3% year-over-year** and **15.5% quarter-over-quarter**. The year-over-year decline was mainly attributable to substantially lower loan facilitation volumes, which reduced loan facilitation service revenue and post-origination service revenue, partially offset by higher guarantee income. ◦ **Total loan amount facilitated and originated****^([1])** in Q2 2026 was **RMB11.63 billion, down 20.5% quarter-over-quarter** and **down 70.2% year-over-year**. ◦ **Net income** in Q2 2026 was **RMB47.0 million (US$6.9 million)**, a **decrease of 91.1% year-over-year but an increase of 23.8% quarter-over-quarter**, primarily reflecting the substantially lower operating contribution compared with the prior- year period, partially offset by lower operating costs and credit-related provisions. ◦ **Delinquency rates** for loans **31–60 days past due improved to 1.73%** (from 2.61% at the end of Q1 2026 and 1.16% a year ago); **loans 91–180 days past due improved to 9.09%** (from 9.95% at the end of Q1 2026, though up from 2.91% a year ago). Both delinquency rates improved sequentially but remained materially above prior-year levels, indicating that credit pressure remained elevated in the seasoned portfolio. **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** | **RMB** | **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** ◦ **Capital Return to Shareholders:** From **January 1, 2026** through** August 14**, X Financial repurchased an aggregate of approximately **2.63 million** ADSs, for a total consideration of approximately **US$12.49 million** under its share repurchase programs. The Company now has approximately **US$35.50 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. ◦ **Declaration of Semi-Annual Dividend**: Pursuant to the semi-annual dividend policy, the Board today approved the declaration and payment of a semi-annual dividend of US$0.28 per ADS (approximately US$0.0467 per ordinary share). The holders of the Company’s ordinary shares shown on the Company’s record at the close of trading on September 10, 2026 (U.S. Eastern Daylight Time) will be entitled to the semi-annual dividend. These shareholders, including the Bank of New York Mellon, the depositary of our ADS program (the "Depositary"), will receive the payments of dividends on or about September 28, 2026. Dividends to the Company’s ADS holders will be paid by the Depositary on or after September 28, 2026, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage. **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](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: **[ir@xiaoying.com](https://www.thailand-business-news.com/pr-news/ir@xiaoying.com)**   | **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** | | **As of June 30, 2026** | | | ** RMB ** | | **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 | | 207 | | 31 | |  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** | **2026** | | **2025** | **2026** | **2026** | | | ** RMB ** | ** RMB ** | ** USD ** | | ** RMB ** | ** 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 | 17 | | 184 | 155 | 23 | | 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 | 225,263,539 | | 251,927,644 | 229,678,786 | 229,678,786 | | Weighted average number of ordinary shares outstanding—diluted | 263,948,357 | 227,553,000 | 227,553,000 | | 263,019,346 | 231,984,748 | 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** | **2026** | | **2025** | **2026** | **2026** | | | **RMB** | **RMB** | **USD** | | **RMB** | **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 | 225,263,539 | | 251,927,644 | 229,678,786 | 229,678,786 | | Weighted average number of ordinary shares outstanding—diluted | 263,948,357 | 227,553,000 | 227,553,000 | | 263,019,346 | 231,984,748 | 231,984,748 |   --- | This article was produced by Cision PR Newswire, our trusted news partner. The views expressed and the content presented here are solely those of the author and may not fully reflect the opinions of Thailand Business News. | --- **Read the original article :** [X Financial Reports Second Quarter 2026 Unaudited Financial Results ](http://www.prnasia.com/story/archive/5031142_CN31142_0?rand=184833)