X Financial (XYF) Q1 2025 earnings summary

Executive summary

• Facilitated RMB 35.15 billion in loans in Q1 2025, up 8.8% sequentially and 63.4% year-over-year, with 3.14 million loans and 2.43 million active borrowers, reflecting strong platform growth and effective risk management.

• Revenue reached RMB 1.94 billion, up 13.4% from Q4 and over 60% year-over-year, driven by operational improvements and disciplined expense management.

• Asset quality improved, with 31-60 day delinquency rate at 1.25% (down from 1.61% YoY) and 91-180 day delinquency at 2.7% (down from 4.37% YoY).

• Growth strategies focus on expanding the user base, strengthening technology and risk management, optimizing product offerings, and diversifying funding sources.

• The company leverages proprietary risk management and credit insurance models, partnering with high-quality financial institutions and guarantee companies.

Financial highlights

• Total net revenue for Q1 2025 reached RMB 1,938 million, up 60.4% year-over-year, driven by higher loan facilitation volume and increased service and guarantee fees.

• Non-GAAP adjusted net income was RMB 467 million, up 44.9% year-over-year.

• Income from operations reached RMB 573 million, up 52% year-over-year, with a strong operating margin of 29.6%.

• Net income per basic ADS was RMB 10.92, up 46.8% year-over-year; non-GAAP adjusted net income per basic ADS was RMB 11.10, up 68.2%.

• Outstanding loan balance as of Q1 2025 was RMB 35,149 million, up from RMB 21,505 million in Q1 2024.

Outlook and guidance

• Q2 2025 loan origination guidance: RMB 37.5–39.5 billion, reflecting continued strong demand and execution.

• Confident in achieving 30% volume growth for 2025, with Q4 volume outlook uncertain due to regulatory changes.

• Management emphasizes continued optimization of credit assessment systems, expansion of user base, and scaling up of funding sources.

• Expect some regulatory-driven industry shocks in Q4 but remain confident in compliance and growth prospects.