Summary of X Financial Q3 2025 Earnings Call

1Key Financial Results and Metrics

Total Net Revenue: RMB 1.96 billion, up 23.9% year-over-year but down 13.7% sequentially from Q2.

Loan Originations: RMB 33.64 billion, an 18.7% increase year-over-year but a 13.7% decline from Q2.

Outstanding Loan Balance: RMB 62.83 billion, up 37.3% year-over-year.

Active Borrower Base: Approximately 2.44 million, down 14.4% sequentially but up 24.2% year-over-year.

Net Income: RMB 421.2 million, up 12.1% year-over-year but down 20.2% sequentially.

Return on Equity: 21.5%.

Delinquency Rates: 31-60 days delinquency at 1.85% (up from 1.16% in Q2), and 91-180 days delinquency at 3.52% (up from 2.91% in Q2).

2Strategic Updates and Business Highlights

The company moderated growth to focus on asset quality and risk management amid a more regulated environment.

Enhanced technology platform and data analytics to improve underwriting precision and decision-making.

Strengthened partnerships and operational processes to support long-term scalability.

Improved borrower experience through simplified application flows and faster approval times.

Continued emphasis on collection infrastructure and proactive credit risk management.

3Forward Guidance and Outlook

For Q4 2025, X Financial expects loan origination volumes between RMB 21 billion and RMB 23 billion.

Full-year loan facilitation guidance is set at RMB 128.82 billion to RMB 130.8 billion.

Management remains focused on asset quality and credit discipline rather than aggressive volume expansion, anticipating continued challenges in the operating environment.

4Bad News, Challenges, or Points of Concern

Credit Quality Pressure: Rising delinquency rates indicate increasing repayment stress among borrowers, reflecting broader market trends.

Regulatory Environment: Ongoing scrutiny in China's fintech sector may exert pressure on pricing and profitability, with potential negative impacts on take rates.

Sequential Decline in Key Metrics: Notable declines in loan origination and net income sequentially from Q2, raising concerns about the sustainability of growth.

Market Sentiment: The stock price reflects skepticism regarding future growth prospects, with peers performing poorly, which could affect investor confidence.

5Notable Q&A Insights

Management acknowledged the challenges posed by the regulatory environment and the impact on credit quality, indicating a cautious outlook for delinquencies.

Funding partners have not significantly altered their commitments, and liquidity remains stable.

The company is committed to maintaining its dividend while balancing capital allocation between share repurchases and organic growth.

Management indicated that buybacks would be considered if the stock price remains disconnected from fundamentals, but they are currently focused on maintaining dividends as a return to shareholders. This summary encapsulates the key aspects of X Financial's Q3 2025 earnings call, highlighting both the company's strategic direction and the challenges it faces in a changing regulatory landscape.