X Financial (XYF) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with RMB 38.99 billion in loan originations, up 71.4% year-over-year, and 3.72 million loans facilitated, driven by robust borrower demand and improved risk management.

• Net income for Q2 2025 was RMB 528 million, a 27.1% increase year-over-year; non-GAAP adjusted net income reached RMB 593.2 million, up 58.3% year-over-year.

• Return on equity improved to 27.9%, reflecting enhanced capital efficiency and earnings growth.

• Maintained a capital-light, high-ROE consumer lending platform, emphasizing scalable growth and disciplined capital allocation.

• Achieved a 230% one-year stock return (Aug 2024–Aug 2025) and authorized a $115 million share buyback program, representing 14% of current float.

Financial highlights

• Total net revenue in Q2 2025 was RMB 2.27 billion, up 65.6% year-over-year and 17.3% sequentially, driven by higher loan volumes.

• Income from operations rose to RMB 675.1 million, a 45.8% year-over-year increase; operating margin remained near 30%.

• Net income per basic ADS was RMB 12.60, up 48.9% year-over-year; non-GAAP adjusted net income per basic ADS was RMB 14.16, up 85.8% year-over-year.

• ROE sustained above 18% for four years, reaching 24% in 2024; ROA improved from 10% to 13%.

• Cash and cash equivalents as of June 30, 2025, were RMB 1,152.99 million, with total equity at RMB 7,720.9 million.

Outlook and guidance

• Q3 2025 loan facilitation and origination expected in the range of RMB 32–34 billion, reflecting a deliberate moderation to prioritize asset quality and profitability.

• Projecting 30% volume growth in FY2025, with continued focus on capital efficiency and shareholder returns.

• Management remains confident in meeting full-year growth targets, emphasizing asset quality over pure volume growth.