--- title: "X Financial Reports Second Quarter 2026 Unaudited Financial Results | XYF Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/296767614.md" description: "X Financial reported Q2 2026 unaudited results: Net revenue fell 56.3% YoY to RMB993.6 million, while net income dropped 91.1% YoY to RMB47.0 million, though it rose 23.8% sequentially. Loan facilitation volume decreased 70.2% YoY. Delinquency rates improved sequentially but remained elevated compared to prior-year levels. The company declared a semi-annual dividend of US$0.28 per ADS and highlighted ongoing share repurchases." datetime: "2026-08-24T01:50:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296767614.md) - [en](https://longbridge.com/en/news/296767614.md) - [zh-HK](https://longbridge.com/zh-HK/news/296767614.md) generator: "portal-rs" --- # X Financial Reports Second Quarter 2026 Unaudited Financial Results | XYF Stock News , /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** - **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. **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** **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 SOURCE X Financial ### Related Stocks - [XYF.US](https://longbridge.com/en/quote/XYF.US.md) ## Related News & Research - [XYF: Revenue and net income plunged year-over-year as loan volumes and borrower activity contracted sharply](https://longbridge.com/en/news/296769558.md) - [X Financial (NYSE:XYF) Posts Quarterly Earnings Results, Beats Expectations By $0.35 EPS](https://longbridge.com/en/news/296778384.md) - [X Financial Q2 FY26 net income drops 91.1% YoY to RMB 47 million; revenue falls 56.3% to RMB 993.6 million](https://longbridge.com/en/news/296766616.md) - [XYF: FY2025 delivered strong growth and returns, but 2Q2026 net income dropped sharply on margin pressure](https://longbridge.com/en/news/296768741.md) - [X Financial Q2 2026 Earnings Call: Complete Transcript](https://longbridge.com/en/news/296871466.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**