X Financial reported third‑quarter 2025 revenue of RMB 1.96 billion, a 23.9% increase from the same period last year, driven by stronger demand in its core consumer‑lending segment and a modest uptick in fee income. Net income fell 20.2% sequentially to RMB 421.2 million, but rose 12.1% year‑over‑year, reflecting a rebound in operating income after a sharp decline in the prior quarter.
The company’s total loan amount facilitated and originated in Q3 was RMB 33.64 billion, down 13.7% quarter‑over‑quarter from RMB 38.12 billion in Q2 but up 18.7% year‑over‑year from RMB 27.90 billion in Q3 2024. The decline in quarterly volume is attributed to a moderation in borrower activity amid tighter credit conditions, while the year‑over‑year growth signals a gradual recovery in the consumer‑lending market.
Delinquency metrics turned negative: the 31‑to‑60‑day delinquency rate rose to 1.85% in Q3, up from 1.16% at the end of Q2 and 1.02% a year earlier. The increase reflects a higher concentration of borrowers facing repayment challenges, a trend that management has flagged as a key risk to monitor.
Operating margin contracted to 18.5% in Q3, a sharp drop from 29.7% in Q2 and 32.2% in Q3 2024. The compression is driven by higher provision for credit losses, increased guarantee liability costs, and rising operating expenses, all of which offset the revenue growth.
Management reiterated a cautious outlook. For Q4, X Financial expects total loan origination between RMB 21 billion and RMB 23 billion, and for the full year 2025 it projects total loan origination of RMB 128.8 billion to RMB 130.8 billion. President Kent Li said the company is “prioritizing quality and discipline over near‑term growth” and CFO Frank Fuya Zheng noted that rising delinquency rates “are still developing and have not stabilized.”
Investors reacted to the mixed results, focusing on margin compression and the uptick in delinquency rates. The company’s guidance signals a measured pace of origination and a continued emphasis on credit quality, which may temper enthusiasm for short‑term growth but underscores a commitment to long‑term resilience.
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