X Financial (NYSE: XYF) Reports Q2 2025 Results: Revenue +66%, Record Loan Originations, Improved Asset Quality

X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the second quarter ended June 30, 2025.

Q2 2025 Highlights

— Total net revenue reached $317.3 million(RMB2,273.1 million), up 65.6% year-over-year (“YoY”), driven by robust loan facilitation growth and healthy platform activity.

— Total loan amount facilitated and originated[1] hit a record RMB38.99 billion (~$5.43 billion), up 71.4% YoY, as borrower demand remained strong. X Financial facilitated and originated approximately 3.72 million loans, with active borrowers rising 73.7% YoY to 2.85 million.

— Net income rose 27.1% YoY to $73.7 million (RMB528.0 million). Non-GAAP adjusted net income was $82.8 million (RMB593.2 million), up 58.3% YoY.

— The 31-60 days delinquency rate decreased to 1.16% (from 1.29% in the same period of 2024) and 91-180 days rate declined to 2.91% (from 4.38% in the same period of 2024).

“Q2 2025 continued our strong momentum, with nearly RMB39 billion in total loan amount facilitated and originated and revenue up 66%,” said Kent Li, President of X Financial. “We added over 427,000 active borrowers this quarter, maintained healthy asset quality, and scaled our platform efficiently. These results underscore our disciplined execution and focus on long-term value creation.”

(In thousands, except for share and per share data) Three Months Ended Three Months Ended Three Months Ended QoQ YoY June 30, 2024 March 31, 2025 June 30, 2025 RMB RMB RMBTotal net revenue 1,372,588 1,937,505 2,273,123 17.3% 65.6%Net income 415,303 458,127 528,016 15.3% 27.1%Non-GAAP adjusted net income 374,661 466,766 593,215 27.1% 58.3%Net income per ADS-basic 8.46 10.92 12.60 15.4% 48.9%Net income per ADS-diluted 8.28 10.56 12.00 13.6% 44.9%[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period.

Business Outlook & Share Repurchase Plans

— Business Outlook: Based on current trends, X Financial expects the total loan amount facilitated and originated in the third quarter of 2025 to be in the range of RMB32.0 billion to RMB34.0 billion. This represents a deliberate moderation from record Q2 levels, as management places greater emphasis on asset quality and profitability over pure volume growth. The Company remains attentive to challenges and uncertainties from the evolving regulatory environment, while maintaining confidence in resilient borrower demand and disciplined execution.

— Capital Return to Shareholders: From January 1, 2025 through August 15, 2025, X Financial repurchased an aggregate of approximately 16.7 million Class A ordinary shares, including approximately 2.3 million ADSs, for a total consideration of approximately US$47.7 million under its share repurchase programs. The Company's previous US$50 million repurchase authorization has been fully utilized. The Company now has approximately US$68.2 million remaining under its new US$100 million share repurchase program, which is effective through November 30, 2026. This program underscores the Company's confidence in its long-term growth outlook and its commitment to enhancing shareholder value. 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 26, 2025 (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 October 15, 2025. Dividends to the Company's ADS holders will be paid by the Depositary on or after October 15, 2025, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage.

“We remain committed to disciplined execution and long-term value creation,” said Frank Fuya Zhang, Chief Financial Officer. “Our strong Q2 performance, with GAAP earnings of US$1.76 per ADS and non-GAAP earnings of US$1.98 per ADS, together with our solid balance sheet, position us to return capital while investing in sustainable growth.”

Conference Call

X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on August 19, 2025 (8:30 PM Beijing / Hong Kong Time on August 19, 2025).

Dial-in details for the earnings conference call are as follows:

United States: 1-888-346-8982Hong Kong: 852-301-84992Mainland China: 4001-201203International: 1-412-902-4272Passcode: 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 26, 2025:

United States: 1-877-344-7529International: 1-412-317-0088Passcode: 1404098

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 of 2025, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on August 19, 2025.

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 RMB7.1636 to US$1.00, the exchange rate in effect as of June 30, 2025, 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 followings: 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 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 FinancialUnaudited Condensed Consolidated Balance Sheets(In thousands, except for share and per share data) As of December 31,2024 As of June 30, 2025 As of June 30, 2025 RMB RMB USDASSETSCash and cash equivalents 984,611 1,152,990 160,951Restricted cash, net 676,793 788,224 110,032Accounts receivable and contract assets, net 2,029,550 3,161,642 441,348Loans receivable from Credit Loans and other loans, net 4,828,317 5,017,643 700,436Deposits to institutional cooperators, net 1,958,297 2,141,552 298,949Prepaid expenses and other current assets 34,079 126,514 17,661Financial guarantee derivative 1,038 12,055 1,683Deferred tax assets, net 197,713 259,651 36,246Long-term investments 498,038 508,480 70,981Property and equipment, net 15,833 18,532 2,587Intangible assets, net 36,592 37,151 5,186Financial investments 513,476 426,144 59,487Other non-current assets 44,951 37,277 5,204TOTAL ASSETS 11,819,288 13,687,855 1,910,751LIABILITIESPayable to investors and institutional funding partners at amortized cost 2,184,086 2,454,750 342,670Contingent guarantee liabilities 187,641 322,645 45,040Deferred guarantee income 164,725 323,073 45,099Short-term borrowings 328,500 401,500 56,047Accrued payroll and welfare 94,717 77,739 10,852Other tax payable 279,993 345,598 48,244Income tax payable 591,491 631,032 88,089Accrued expenses and other current liabilities 941,506 1,334,032 186,223Other non-current liabilities 27,516 19,924 2,781Deferred tax liabilities 65,959 56,660 7,909TOTAL LIABILITIES 4,866,134 5,966,953 832,954Commitments and ContingenciesEquity:Common shares (250,678,439 and 245,300,795 shares outstanding as of 207 207 29December 31, 2024 and June 30, 2025)Treasury stock (509,644) (685,242) (95,656)Additional paid-in capital 3,207,028 3,244,966 452,980Retained earnings 4,174,511 5,083,697 709,657Other comprehensive income 81,052 77,274 10,787TOTAL EQUITY 6,953,154 7,720,902 1,077,797TOTAL LIABILITIES AND EQUITY 11,819,288 13,687,855 1,910,751X FinancialUnaudited 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) 2024 2025 2025 2024 2025 2025 RMB RMB USD RMB RMB USDNet revenuesLoan facilitation service 732,249 1,369,443 191,167 1,346,399 2,447,823 341,703Post-origination service 154,669 271,407 37,887 307,411 537,448 75,025Financing income 351,012 319,938 44,662 685,640 630,078 87,955Guarantee income 45,564 102,570 14,318 78,490 185,498 25,895Other revenue 89,094 209,765 29,282 162,622 409,781 57,203Total net revenue 1,372,588 2,273,123 317,316 2,580,562 4,210,628 587,781Operating costs and expenses:Origination and servicing 415,071 513,974 71,748 841,618 987,699 137,877Borrower acquisitions and marketing 323,636 756,264 105,570 572,010 1,465,271 204,544General and administrative 39,073 49,539 6,915 77,547 101,284 14,139Provision for accounts receivable and contract assets 9,016 33,360 4,657 17,671 42,408 5,920Provision for loans receivable 95,865 46,394 6,476 157,405 108,590 15,159Provision for contingent guarantee liabilities 21,376 207,383 28,950 69,269 271,130 37,848Change in fair value of financial guarantee derivative – (9,574) (1,336) – (14,991) (2,093)Provision for credit losses for depositsandotherfinancialassets 5,498 727 101 5,448 1,276 178Total operating costs and expenses 909,535 1,598,067 223,081 1,740,968 2,962,667 413,572Income from operations 463,053 675,056 94,235 839,594 1,247,961 174,209Interest income (expenses), net (1,818) 3,984 556 (6,109) 1,265 177Foreign exchange gain (loss) (7,807) 2,101 293 (8,231) (10,381) (1,449)Income (loss) from financial investments[1] (3,829) (15,378) (2,147) 4,498 (19,056) (2,660)Other income (loss), net (657) 221 31 3,388 2,156 301Income before income taxes 448,942 665,984 92,968 833,140 1,221,945 170,578Income tax expense (89,568) (110,795) (15,466) (154,593) (227,323) (31,733)Gain from equity in affiliates, net of tax 824 9,830 1,372 2,869 7,647 1,067Gain (loss) from financial investments at equity method, net of tax[1] 55,105 (37,003) (5,165) 97,024 (16,126) (2,251)Net income 415,303 528,016 73,709 778,440 986,143 137,661Less: net income attributable to non-controlling interests – – – – – -Net income attributable to X Financial shareholders 415,303 528,016 73,709 778,440 986,143 137,661Net income 415,303 528,016 73,709 778,440 986,143 137,661Other comprehensive income, net of tax of nil:Gain from equity in affiliates – 184 26 30 184 26Income (loss) from financial investments 2,294 – – 4,519 (768) (107)Foreign currency translation adjustments 3,970 (2,995) (418) 5,188 (3,194) (446)Comprehensive income 421,567 525,205 73,317 788,177 982,365 137,134Less: comprehensive income attributable to non-controlling interests – – – – – -Comprehensive income attributable to X Financial shareholders 421,567 525,205 73,317 788,177 982,365 137,134Net income per share-basic 1.41 2.10 0.29 2.65 3.91 0.55Net income per share-diluted 1.38 2.00 0.28 2.60 3.75 0.52Net income per ADS-basic 8.46 12.60 1.76 15.90 23.46 3.27Net income per ADS-diluted 8.28 12.00 1.68 15.60 22.50 3.14Weighted average number of ordinary shares outstanding-basic 293,914,248 251,566,501 251,566,501 294,224,447 251,927,644 251,927,644Weighted average number of ordinary shares outstanding-diluted 300,458,575 263,948,357 263,948,357 299,681,672 263,019,346 263,019,346[1]The Company has revised the presentation of the gain (loss) from financial investments at equity method after income tax expense, which previously reported as “Income (loss) from financial investments” before income tax expense. Additionally, “Impairment losses on long-term investments” accounted under the equity method have been reclassified into the gain (loss) from equity in affiliates after income tax expense. This change in presentation does not affect the net income for any periods presented.X FinancialUnaudited 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) 2024 2025 2025 2024 2025 2025 RMB RMB USD RMB RMB USDGAAP net income 415,303 528,016 73,709 778,440 986,143 137,661Less: Income (loss) from financial investments (net of tax of nil) (3,829) (15,378) (2,147) 4,498 (19,056) (2,660)Less: Impairment losses on financial investments (net of tax of nil) – – – – – -Less: Impairment losses on long-term investments (net of tax) – – – – – -Less: Gain (loss) from financial investments at equity method (net of tax of nil) 55,105 (37,003) (5,165) 97,024 (16,126) (2,251)Add: Share-based compensation expenses (net of tax of nil) 10,634 12,818 1,789 19,946 38,656 5,396Non-GAAP adjusted net income 374,661 593,215 82,810 696,864 1,059,981 147,968Non-GAAP adjusted net income per share-basic 1.27 2.36 0.33 2.37 4.21 0.59Non-GAAP adjusted net income per share-diluted 1.25 2.25 0.31 2.33 4.03 0.56Non-GAAP adjusted net income per ADS-basic 7.62 14.16 1.98 14.22 25.26 3.53Non-GAAP adjusted net income per ADS-diluted 7.50 13.50 1.88 13.98 24.18 3.38Weighted average number of ordinary shares outstanding-basic 293,914,248 251,566,501 251,566,501 294,224,447 251,927,644 251,927,644Weighted average number of ordinary shares outstanding-diluted 300,458,575 263,948,357 263,948,357 299,681,672 263,019,346 263,019,346

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