X Financial (NYSE: XYF) Reports Q3 2025 Results: Revenue +23.9% YoY, Sequential Decline Amid Rising Credit Costs and Moderating Borrower Activity

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

Q3 2025 Highlights

— Total net revenue reached $275.5 million (RMB1,961.0 million), up 23.9% year-over-year, but down 13.7% quarter-over-quarter, reflecting moderating borrower activity and a more cautious lending environment.

— Total loan amount facilitated and originated[1]was RMB33.64 billion (~$4.73 billion), up 18.7% YoY, but down 13.7% QoQ, reflecting the Company's deliberate moderation of loan growth to prioritize asset quality and risk control.

— Net income increased 12.1% YoY to $59.2 million(RMB421.2 million), and Non-GAAP adjusted net income rose 1.0% YoY to $61.6 million (RMB438.2 million). Both measures declined sequentially, reflecting higher credit-related provisions and rising operating costs in the quarter.

— The 31-60 days delinquency rate increased to 1.85% (from 1.02% in the same period of 2024) and the 91-180 days delinquency rate rose to 3.52% (from 3.22% in the same period of 2024), reflecting softer repayment behavior and a more challenging credit environment.

[1] Represents the total amount of loans that the Company facilitated and originated during the relevant period.

“Q3 reflected a more challenging operating environment,” saidKent Li, President of X Financial. “Loan origination declined from Q2 highs, borrower activity moderated, and delinquency rates increased across key categories. While profitability came under pressure from higher provisions and rising operating costs, we continue to prioritize risk control, collection efficiency, and disciplined execution. Our focus remains on maintaining credit quality, liquidity stability, and long-term competitiveness amid shifting market and regulatory conditions.”

“In the third quarter, total revenue grew 23.9% year-over-year but declined sequentially,” said Frank Fuya Zheng, Chief Financial Officer. “Net income and adjusted net income both softened compared to the second quarter, reflecting higher credit costs and a more cautious lending environment. Operating margin declined to 18.5% as risk-related expenses increased. While sequential earnings per ADS decreased, year-over-year EPS remained higher, supported by both a 12.1% increase in GAAP net income and continued share repurchases and cancellation.”

(In thousands, except for share and per share data) Three Months Ended Three Months Ended Three Months Ended QoQ YoY September 30, 2024 June 30, 2025 September 30, 2025 RMB RMB RMBTotal net revenue 1,582,497 2,273,123 1,960,954 (13.7%) 23.9%Net income 375,840 528,016 421,241 (20.2%) 12.1%Non-GAAP adjusted net income 433,625 593,215 438,178 (26.1%) 1.0%Net income per ADS-basic 7.86 12.60 10.56 (16.2%) 34.4%Net income per ADS-diluted 7.74 12.00 10.08 (16.0%) 30.2%

Business Outlook & Share Repurchase Plans

— Business Outlook:Based on current trends, X Financial expects Q4 2025 loan originations to be in the range of RMB21.0-23.0 billion. The Company expects full-year 2025 loan originations of RMB128.8-130.8 billion, reflecting a measured pace of growth following a sequential decline in Q3 and an increased emphasis on asset quality and disciplined risk management.

— Capital Return to Shareholders: From January 1, 2025 through November 20, 2025, X Financial repurchased an aggregate of approximately 4.26 million ADSs, including approximately 3.80 million ADSs and 2.76 million Class A ordinary shares, for a total consideration of approximately US$67.9 million under its share repurchase programs. The Company now has approximately US$48.0 million remaining under its existing 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.

Conference Call

X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on November 21, 2025 (9:30 PM Beijing / Hong Kong Time on November 21, 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 November 28, 2025 (9:30 PM Beijing / Hong Kong Time):

United States: 1-855-669-9658International: 1-412-317-0088Passcode: 4942170

Additional Information

This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the third quarter of 2025, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on November 20, 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 RMB7.1190 to US$1.00, the exchange rate in effect as of September 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, As of September 30, As of September 30, 2024 2025 2025 RMB RMB USDASSETSCash and cash equivalents 984,611 890,854 125,138Restricted cash, net 676,793 659,112 92,585Accounts receivable and contract assets, net 2,029,550 3,065,608 430,623Loans receivable from Credit Loans and other loans, net 4,828,317 5,620,402 789,493Deposits to institutional cooperators, net 1,958,297 2,093,353 294,052Prepaid expenses and other current assets 34,079 88,355 12,412Financial guarantee derivative 1,038 1,575 221Deferred tax assets, net 197,713 303,896 42,688Long term investments 498,038 509,245 71,533Property and equipment, net 15,833 20,824 2,925Intangible assets, net 36,592 37,815 5,312Financial investments 513,476 1,339,050 188,095Other non-current assets 44,951 58,543 8,223TOTAL ASSETS 11,819,288 14,688,632 2,063,300LIABILITIESPayable to investors and institutional funding partners at amortized cost 2,184,086 2,856,870 401,302Contingent guarantee liabilities 187,641 570,452 80,131Deferred guarantee income 164,725 470,335 66,068Short-term borrowings 328,500 566,377 79,559Accrued payroll and welfare 94,717 110,008 15,453Other tax payable 279,993 219,756 30,869Income tax payable 591,491 677,834 95,215Accrued expenses and other current liabilities 941,506 1,182,113 166,050Other non-current liabilities 27,516 37,424 5,257Deferred tax liabilities 65,959 68,719 9,653TOTAL LIABILITIES 4,866,134 6,759,888 949,557Commitments and ContingenciesEquity:Common shares (250,678,439 and 234,423,629 shares outstanding as of 207 207 29December 31, 2024 and September 30, 2025)Treasury stock (509,644) (904,502) (127,055)Additional paid-in capital 3,207,028 3,257,308 457,551Retained earnings 4,174,511 5,506,606 773,508Other comprehensive income 81,052 69,125 9,710TOTAL EQUITY 6,953,154 7,928,744 1,113,743TOTAL LIABILITIES AND EQUITY 11,819,288 14,688,632 2,063,300X FinancialUnaudited Condensed Consolidated Statements of Comprehensive Income Three Months Ended September 30, Nine Months Ended September 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 878,282 954,513 134,080 2,224,681 3,402,336 477,923Post-origination service 186,109 287,755 40,421 493,520 825,203 115,916Financing income 335,765 372,911 52,382 1,021,405 1,002,989 140,889Guarantee income 53,576 187,829 26,384 132,067 373,327 52,441Other revenue 128,765 157,946 22,187 291,387 567,727 79,748Total net revenue 1,582,497 1,960,954 275,454 4,163,060 6,171,582 866,917Operating costs and expenses:Origination and servicing 457,545 527,470 74,093 1,299,164 1,515,168 212,834Borrower acquisitions and marketing 506,758 524,939 73,738 1,078,768 1,990,210 279,563General and administrative 49,499 52,118 7,321 127,047 153,402 21,548Provision for accounts receivable and contract assets 4,799 60,702 8,527 22,470 103,110 14,484(Reversal of) provision for loans receivable (35) 98,995 13,906 157,370 207,585 29,159Provision for contingent guarantee liabilities 56,366 332,091 46,649 125,635 603,221 84,734Change in fair value of financial guarantee derivative – 3,654 513 – (11,337) (1,592)(Reversal of) provision for credit losses for depositsandotherfinancialassets (1,399) (948) (133) 4,049 328 46Total operating costs and expenses 1,073,533 1,599,021 224,614 2,814,503 4,561,687 640,776Income from operations 508,964 361,933 50,840 1,348,557 1,609,895 226,141Interest income (expenses), net 1,211 4,947 695 (4,898) 6,213 873Foreign exchange gain (loss) 4,881 (261) (37) (3,351) (10,643) (1,495)Income (loss) from financial investments[1] (760) 5,113 718 3,738 (13,943) (1,959)Other income (loss), net 6,048 125,066 17,568 9,437 127,222 17,871Income before income taxes 520,344 496,798 69,784 1,353,483 1,718,744 241,431Income tax expense (100,331) (80,176) (11,262) (254,924) (307,499) (43,194)Gain from equity in affiliates, net of tax 2,702 13,329 1,872 5,572 20,976 2,946Gain (loss) from financial investments at equity method, net of tax[1] (46,875) (8,710) (1,223) 50,149 (24,837) (3,489)Net income 375,840 421,241 59,171 1,154,280 1,407,384 197,694Less: net income attributable to non-controlling interests – – – – – -Net income attributable to X Financial shareholders 375,840 421,241 59,171 1,154,280 1,407,384 197,694Net income 375,840 421,241 59,171 1,154,280 1,407,384 197,694Other comprehensive income, net of tax of nil:Gain (loss) from equity in affiliates (449) (6) (1) (418) 178 25Income (loss) from financial investments 1,580 – – 6,100 (768) (108)Foreign currency translation adjustments (12,778) (8,144) (1,144) (7,590) (11,337) (1,592)Comprehensive income 364,193 413,091 58,026 1,152,372 1,395,457 196,019Less: comprehensive income attributable to non-controlling interests – – – – – -Comprehensive income attributable to X Financial shareholders 364,193 413,091 58,026 1,152,372 1,395,457 196,019Net income per share-basic 1.31 1.76 0.25 3.96 5.69 0.80Net income per share-diluted 1.29 1.68 0.24 3.87 5.43 0.76Net income per ADS-basic 7.86 10.56 1.48 23.76 34.14 4.80Net income per ADS-diluted 7.74 10.08 1.42 23.22 32.58 4.58Weighted average number of ordinary shares outstanding-basic 285,857,203 238,782,763 238,782,763 291,622,784 247,497,867 247,497,867Weighted average number of ordinary shares outstanding-diluted 292,339,641 251,288,265 251,288,265 298,036,305 259,033,100 259,033,100[1] The Company has revised the presentation of the gain (loss) from financial investments at equity method after income tax expense, which previouslyreported as “Income (loss) from financial investments” before income tax expense. Additionally, “Impairment losses on long-term investments” accountedunder the equity method have been reclassified into the gain (loss) from equity in affiliates after income tax expense. This change in presentation does notaffect the net income for any periods presented.X FinancialUnaudited Reconciliations of GAAP and Non-GAAP Results Three Months Ended September 30, Nine Months Ended September 30,(In thousands, except for share and per share data) 2024 2025 2025 2024 2025 2025 RMB RMB USD RMB RMB USDGAAP net income 375,840 421,241 59,171 1,154,280 1,407,384 197,694Less: Income (loss) from financial investments (net of tax of nil) (760) 5,113 718 3,738 (13,943) (1,959)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) (46,875) (8,710) (1,223) 50,149 (24,837) (3,489)Add: Share-based compensation expenses (net of tax of nil) 10,150 13,340 1,874 30,096 51,996 7,304Non-GAAP adjusted net income 433,625 438,178 61,550 1,130,489 1,498,160 210,446Non-GAAP adjusted net income per share-basic 1.52 1.84 0.26 3.88 6.05 0.85Non-GAAP adjusted net income per share-diluted 1.48 1.74 0.24 3.79 5.78 0.81Non-GAAP adjusted net income per ADS-basic 9.12 11.04 1.55 23.28 36.30 5.10Non-GAAP adjusted net income per ADS-diluted 8.88 10.44 1.47 22.74 34.68 4.87Weighted average number of ordinary shares outstanding-basic 285,857,203 238,782,763 238,782,763 291,622,784 247,497,867 247,497,867Weighted average number of ordinary shares outstanding-diluted 292,339,641 251,288,265 251,288,265 298,036,305 259,033,100 259,033,100

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