China's X Financial Q2 revenue falls 56% on lower loan volumes

X Financial

24/08/2026 11:00

Overview
China fintech platform's Q2 revenue dropped 56% yr/yr due to lower loan facilitation volumes
Adjusted net income and EPS for Q2 fell sharply yr/yr but improved from prior quarter
Company repurchased 2.63 mln ADSs and declared semi-annual dividend of $0.28 per ADS

Outlook
Company says regulatory uncertainty may materially affect future operating results
X Financial will continue to prioritize disciplined underwriting and conservative capital deployment
Company plans to maintain cost discipline and preserve liquidity amid evolving regulatory environment

Result Drivers
LOWER LOAN VOLUMES - Revenue and profit declines driven by substantially lower loan facilitation and origination volumes, per management
BORROWER CONTRACTION - Active borrowers fell 74.8% yr/yr, further reducing loan activity, according to President Kent Li
COST CONTROL - Lower operating costs and credit-related provisions partially offset weaker operating contribution

Company press release: ID:nPnbhp8K2a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 993.58 mln
 
Q2 EPS
 
RMB 1.26
 
Q2 Adjusted Net Income
 
RMB 165.84 mln
 

Analyst Coverage
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)