X Financial (XYF) Q3 2025 earnings summary

Executive summary

• Q3 2025 marked a shift to a more disciplined, regulated operating environment, with loan origination reaching RMB 33.64 billion, up 18.7% year over year but down 13.7% sequentially, reflecting a focus on prudent growth and asset quality.

• Net income for Q3 2025 was RMB 421.2 million, up 12.1% year over year but down 20.2% from the previous quarter, with a high-ROE, capital-light platform supporting scalable, efficient growth.

• Active borrowers reached 2.44 million, up 24.2% year over year, while cumulative active borrowers rose 28.1% to 19.69 million.

• Operational enhancements included improved borrower experience, streamlined application processes, and strengthened risk controls.

• Despite a softer environment, profitability and positive earnings were maintained, demonstrating resilience.

Financial highlights

• Total net revenue in Q3 2025 was RMB 1.96 billion, up 23.9% year over year but down 13.7% sequentially.

• Income from operations was RMB 331.9 million, down 29.9% year over year and 46.4% sequentially, mainly due to higher provisions.

• Non-GAAP adjusted net income was RMB 438.2 million, up 1% year over year and down 26.1% from Q2.

• Total assets stood at RMB 14.69 billion, up 26.4% year over year; shareholders' equity was RMB 7.93 billion, up 15%.

• Cash and cash equivalents stood at RMB 890.9 million as of September 30, 2025.

Outlook and guidance

• Q4 2025 loan origination is expected to be RMB 21–23 billion; full-year 2025 guidance is RMB 128.8–130.8 billion.

• Management prioritizes asset quality, credit discipline, and profitability over aggressive volume growth.

• Management anticipates continued regulatory and credit challenges but remains confident in long-term growth and disciplined execution.