X Financial (XYF) Q2 2025 Earnings Call Transcript
Loan Originations RMB 38.99 billion, a 10.9% sequential increase and a strong 71.4% growth year-over-year. This growth was supported by robust borrower demand and advancements in risk management.
Total Revenue RMB 2.27 billion, up 17.3% sequentially and 65.6% year-over-year. The increase was driven by disciplined execution and expansion of the platform and capabilities.
31-60 Day Delinquency Rate 1.16%, down from 1.29% a year ago, reflecting nearly a 10% improvement year-over-year. This improvement was due to disciplined borrower screening and rigorous underwriting practices.
91-180 Day Delinquency Rate 2.91%, down from 4.38% in Q2 2024, a 33% reduction year-over-year. This was attributed to better borrower behavior and proactive engagement initiatives.
Total Outstanding Loan Balance RMB 64.91 billion, representing an increase of 55.3% from Q2 2024.
Total Number of Loans Facilitated Approximately 3.72 million, reflecting a growth of 70.8% year-over-year, with an average loan size of RMB 10,476.
Active Borrower Base Approximately 2.85 million, a notable 73.7% increase year-over-year.
Income from Operations RMB 675.1 million, rising by 45.8% year-over-year, driven by operating leverage and disciplined expense management.
Non-GAAP Adjusted Net Income RMB 593.2 million (USD 82.8 million), up 58.3% year-over-year, reflecting strong core profitability driven by prudent expense control and high-quality loan growth.
Non-GAAP Adjusted Net Income per ADS RMB 14.6 (USD 1.98), representing an 85.8% increase year-over-year, underscoring operational leverage and enhanced profitability per share.
Return on Equity (ROE) 27.9%, improved both sequentially and year-over-year, reflecting core earnings growth and capital efficiency.
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X Financial and Zhihu Shares Drop 4.4% and 4%, Impacting ETF Performance
- ETF Underperformance: The ActivePassive International Equity ETF fell approximately 3.2% in Tuesday afternoon trading, indicating signs of overall market weakness that could impact investor confidence.
- Individual Stock Performance: Shares of X Financial dropped about 4.4%, while Zhihu shares fell around 4%, with the poor performance of these stocks directly dragging down the ETF, reflecting market concerns about these companies.
- Market Reaction: The overall decline in the ETF may prompt investors to reassess their portfolios, particularly in the international equity space, potentially leading to capital outflows.
- Industry Impact: This downward trend may trigger a broader examination of related sectors, especially in the current economic climate, where investor confidence in tech and financial stocks may be adversely affected.
Three Financial Stocks Poised for Significant Growth This Month
Oversold Stocks Opportunity: The financial sector has several oversold stocks, identified by a Relative Strength Index (RSI) below 30, indicating potential buying opportunities for undervalued companies.
Noah Holdings Performance: Noah Holdings reported strong quarterly sales with a significant year-over-year profit increase, yet its stock fell 10% recently, closing at $9.64 with an RSI of 26.1.
Ready Capital Challenges: Ready Capital's third-quarter results were disappointing, leading to a 12% stock decline, closing at $2.22, and an RSI of 26.1, as the company focuses on restoring financial health.
X Financial's Decline: X Financial experienced a 41% drop in stock price over the past month, closing at $6.63 with an RSI of 25.2, despite reporting a year-over-year revenue increase but facing operational challenges.
Daily Upgrade Report for Validea Martin Zweig Strategy - December 2, 2025
Validea's Growth Investor Model: The model, based on Martin Zweig's strategy, identifies growth stocks with accelerating earnings, reasonable valuations, and low debt, highlighting several stocks with improved ratings.
PJT Partners Inc.: This mid-cap growth stock in the Investment Services industry saw its rating increase from 46% to 85%, indicating strong interest based on its fundamentals and valuation.
Insteel Industries Inc.: A small-cap value stock in the construction supplies sector, Insteel's rating also rose from 46% to 85%, reflecting positive underlying fundamentals and valuation metrics.
Valley National Bancorp and Other Stocks: Valley National Bancorp, along with X Financial and Glacier Bancorp, all received ratings of 85%, showcasing their strong fundamentals and potential for growth according to Zweig's investment strategy.
X Financial (NYSE: XYF) Announces Q3 2025 Results: Revenue Increases 23.9% Year-Over-Year, Sequential Drop Due to Higher Credit Costs and Decreased Borrower Activity
Financial Performance: X Financial reported a total net revenue of $275.5 million for Q3 2025, marking a 23.9% increase year-over-year but a 13.7% decline quarter-over-quarter, attributed to reduced borrower activity and a cautious lending environment.
Loan Origination and Delinquency Rates: The company facilitated loans amounting to approximately $4.73 billion, up 18.7% year-over-year but down 13.7% quarter-over-quarter, with delinquency rates increasing, indicating a challenging credit environment.
Profitability and Costs: Net income rose 12.1% year-over-year to $59.2 million, although both net income and adjusted net income decreased sequentially due to higher credit-related provisions and operating costs.
Outlook and Share Repurchase: X Financial anticipates Q4 2025 loan originations between RMB21.0–23.0 billion, with ongoing share repurchase programs reflecting confidence in long-term growth, having repurchased approximately 4.26 million ADSs for about $67.9 million.
X Financial Reports Non-GAAP EPADS of $1.42 and Revenue of $275.45 Million
Q3 Financial Performance: X Financial reported a non-GAAP EPADS of $1.42 and revenue of $275.45 million, reflecting a year-over-year increase of 22.2%.
Future Outlook: Analysts suggest that the most likely path forward for X Financial remains positive despite current geopolitical challenges.
Investment Insights: X Financial is highlighted as a promising tech-finance investment opportunity amid a turbulent market environment.
Dividend Information: The company has a dividend scorecard available, providing insights into its dividend performance and strategy.
X Financial Scheduled to Host Annual General Meeting on December 18, 2025
Annual General Meeting Announcement: X Financial will hold its 2025 annual general meeting on December 18, 2025, in Shenzhen, China, serving as an open forum for shareholders to discuss company affairs, with no proposals for approval.
Record Date for Shareholders: The record date for determining shareholders entitled to attend the meeting is set for December 4, 2025, allowing holders of Class A and Class B ordinary shares to participate in person.
Annual Report Availability: The company has filed its annual report for the fiscal year ended December 31, 2024, with the SEC, which can be accessed online, and hard copies are available upon request.
Company Overview: X Financial is a leading online personal finance company in China, utilizing big data technology to connect borrowers with institutional funding partners and facilitate loans under a risk assessment system.
X Financial and Zhihu Shares Drop 4.4% and 4%, Impacting ETF Performance
- ETF Underperformance: The ActivePassive International Equity ETF fell approximately 3.2% in Tuesday afternoon trading, indicating signs of overall market weakness that could impact investor confidence.
- Individual Stock Performance: Shares of X Financial dropped about 4.4%, while Zhihu shares fell around 4%, with the poor performance of these stocks directly dragging down the ETF, reflecting market concerns about these companies.
- Market Reaction: The overall decline in the ETF may prompt investors to reassess their portfolios, particularly in the international equity space, potentially leading to capital outflows.
- Industry Impact: This downward trend may trigger a broader examination of related sectors, especially in the current economic climate, where investor confidence in tech and financial stocks may be adversely affected.
Three Financial Stocks Poised for Significant Growth This Month
Oversold Stocks Opportunity: The financial sector has several oversold stocks, identified by a Relative Strength Index (RSI) below 30, indicating potential buying opportunities for undervalued companies.
Noah Holdings Performance: Noah Holdings reported strong quarterly sales with a significant year-over-year profit increase, yet its stock fell 10% recently, closing at $9.64 with an RSI of 26.1.
Ready Capital Challenges: Ready Capital's third-quarter results were disappointing, leading to a 12% stock decline, closing at $2.22, and an RSI of 26.1, as the company focuses on restoring financial health.
X Financial's Decline: X Financial experienced a 41% drop in stock price over the past month, closing at $6.63 with an RSI of 25.2, despite reporting a year-over-year revenue increase but facing operational challenges.
Daily Upgrade Report for Validea Martin Zweig Strategy - December 2, 2025
Validea's Growth Investor Model: The model, based on Martin Zweig's strategy, identifies growth stocks with accelerating earnings, reasonable valuations, and low debt, highlighting several stocks with improved ratings.
PJT Partners Inc.: This mid-cap growth stock in the Investment Services industry saw its rating increase from 46% to 85%, indicating strong interest based on its fundamentals and valuation.
Insteel Industries Inc.: A small-cap value stock in the construction supplies sector, Insteel's rating also rose from 46% to 85%, reflecting positive underlying fundamentals and valuation metrics.
Valley National Bancorp and Other Stocks: Valley National Bancorp, along with X Financial and Glacier Bancorp, all received ratings of 85%, showcasing their strong fundamentals and potential for growth according to Zweig's investment strategy.
X Financial (NYSE: XYF) Announces Q3 2025 Results: Revenue Increases 23.9% Year-Over-Year, Sequential Drop Due to Higher Credit Costs and Decreased Borrower Activity
Financial Performance: X Financial reported a total net revenue of $275.5 million for Q3 2025, marking a 23.9% increase year-over-year but a 13.7% decline quarter-over-quarter, attributed to reduced borrower activity and a cautious lending environment.
Loan Origination and Delinquency Rates: The company facilitated loans amounting to approximately $4.73 billion, up 18.7% year-over-year but down 13.7% quarter-over-quarter, with delinquency rates increasing, indicating a challenging credit environment.
Profitability and Costs: Net income rose 12.1% year-over-year to $59.2 million, although both net income and adjusted net income decreased sequentially due to higher credit-related provisions and operating costs.
Outlook and Share Repurchase: X Financial anticipates Q4 2025 loan originations between RMB21.0–23.0 billion, with ongoing share repurchase programs reflecting confidence in long-term growth, having repurchased approximately 4.26 million ADSs for about $67.9 million.
X Financial Reports Non-GAAP EPADS of $1.42 and Revenue of $275.45 Million
Q3 Financial Performance: X Financial reported a non-GAAP EPADS of $1.42 and revenue of $275.45 million, reflecting a year-over-year increase of 22.2%.
Future Outlook: Analysts suggest that the most likely path forward for X Financial remains positive despite current geopolitical challenges.
Investment Insights: X Financial is highlighted as a promising tech-finance investment opportunity amid a turbulent market environment.
Dividend Information: The company has a dividend scorecard available, providing insights into its dividend performance and strategy.
X Financial Scheduled to Host Annual General Meeting on December 18, 2025
Annual General Meeting Announcement: X Financial will hold its 2025 annual general meeting on December 18, 2025, in Shenzhen, China, serving as an open forum for shareholders to discuss company affairs, with no proposals for approval.
Record Date for Shareholders: The record date for determining shareholders entitled to attend the meeting is set for December 4, 2025, allowing holders of Class A and Class B ordinary shares to participate in person.
Annual Report Availability: The company has filed its annual report for the fiscal year ended December 31, 2024, with the SEC, which can be accessed online, and hard copies are available upon request.
Company Overview: X Financial is a leading online personal finance company in China, utilizing big data technology to connect borrowers with institutional funding partners and facilitate loans under a risk assessment system.
