XYF

Image source: The Motley Fool. Monday, Aug. 24, 2026 at 8:30 a.m. ET President - Kan Li Chief Financial Officer - Frank Fuya Zheng Chief Financial Strategy Officer - Noah Kauffman Operator: Good day, and welcome to the X Financial Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Victoria Yu. Please go ahead. Victoria Yu: Thank you, operator. Hello, everyone, and thank you for joining today's call. Our financial results for the second quarter ended June 30, 2026, were released earlier today and are available on the company's Investor Relations website at ir.xiaoyinggroup.com. On the call today from X Financial are Mr. Kan Li, President; Mr. Frank Fuya Zheng, Chief Financial Officer; and Mr. Noah Kauffman, Chief Financial Strategy Officer. Mr. Li will begin with an overview of our business performance and key operational developments. Mr. Kaufman will then review the second quarter financial performance, followed by Mr. Zheng, who will cover the detailed financial results, capital position and outlook. After the prepared remarks, Mr. Li, Mr. Zheng and Mr. Kaufman will be available to answer your questions during the Q&A session. I remind you that this call may contain forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and involve known or unknown risks, uncertainties and other factors. These factors are difficult to predict and many are beyond the company's control, which may cause actual results, performance and achievements to differ materially from those described in these statements. Further information on these and other risks can be found in our SEC filings. The company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required by law. And it is my pleasure to introduce Mr. Kan Li. Kan Li: Thank you, Victoria, and hello, everyone. In the second quarter of 2026, we maintained the disciplined operating approach that has defined our approach over the past several quarters. Conditions remain challenging, and we continue to place credit quality, liquidity and balance sheet strength ahead of near-term origination volume. During the quarter, we facilitated and originated RMB 11.63 billion in loans, a decline of 70.2% year-over-year and 20.5% sequentially from the first quarter. The pace of contraction moderated meaningfully from the first quarter, consistent with our measured approach to origination in the current environment. Operationally, we continue to concentrate origination in our internally operated channels where borrower quality and unit economics are strongest. Underwriting criteria for newer vintages were refined further. Automation was extended across servicing and collections, and discretionary spending remained tightly controlled. The average loan amount per transaction rose to RMB 12,712, up 8.3% from the prior quarter and 21.3% year-over-year, reflecting a shift in transaction mix toward higher-quality borrowers. From a volume standpoint, we served approximately 720,258 active borrowers in the quarter, down 74.8% year-over-year and 24.7% from the prior quarter. We facilitated approximately 0.91 million loans during the period. Outstanding loan balance at the quarter end stood at RMB 24.97 billion, a decline of 61.5% from the same period of 2025 and 29.2% from the year of the first quarter -- from the end of the first quarter. Credit quality. Credit trends showed encouraging sequential improvement in the second quarter, although overall conditions remain challenging. As of June 30, our 31- to 60-day delinquency rate was 1.73%, compared with 2.61% at the end of Q1 2026 and 1.16% as of the same period of 2025. Our 91- to 180-day delinquency rate improved to 9.09%, compared with 9.95% at the end of Q1 2026 and 2.91% as of the same period of 2025. Both rates improved from the prior quarter, the first sequential improvement we have recorded in several quarters, which we attribute to the tighter underwriting standards applied to recent vintages and additional resources deployed in collections. That said, both rates remained well above prior year levels, and the 91- to 180- day rates, in particular, remained elevated as earlier delinquency balances continue to season through the portfolio. We are not declaring victory on credit. We are maintaining the same conservative stance until the improvement proves durable. With that, I'll turn the call over to Noah, who will take you through the financial results for the second quarter. Noah Kauffman: Thank you, Kan. Hello, everyone. It's great to speak with you again. Kan covered the operational and credit developments, so I'll take you through the financial performance for the second quarter. In the second quarter of 2026, total net revenue was RMB 993.6 million or USD 146.4 million, representing a 56.3% decline year-over-year and a 15.5% decline sequentially from Q1 2026. The year-over-year decline primarily reflects substantially lower loan facilitation volumes, partially offset by higher guarantee income. Total operating costs and expenses came in at RMB 798.6 million or USD 117.7 million, down 22.9% sequentially and 50% year-over-year. Borrower acquisition and marketing expense was RMB 149.5 million or USD 22 million, down from RMB 219.8 million in the first quarter and RMB 756.3 million in the same period last year, as we continue to prioritize capital efficiency over volume growth. Aggregate credit-related provisions were RMB 183.1 million or USD 27 million, down 35.3% sequentially from RMB 282.9 million in the first quarter and 36.4% below the same period last year. Within that, the provision for contingent guarantee liabilities declined to RMB 57.6 million with the guaranteed loan portfolio broadly unchanged from both comparison periods. The decrease primarily reflected the reversal of a portion of provisions recognized in prior periods as the loan loss rate declined during the quarter. Provision for credit losses for deposits and other financial assets increased to RMB 95.3 million. Income from operations was RMB 194.9 million or USD 28.7 million, a 71.1% decrease year-over-year, but an increase of 38.6% sequentially. Operating margin improved to 19.6%, up from 12% in the first quarter, though still below the 29.7% recorded in the prior year period. Income before income taxes was RMB 220 million or USD 32.4 million. Net income was RMB 47 million or USD 6.9 million in the second quarter, compared with RMB 37.9 million in Q1 2026 and RMB 528 million in the same period last year, with income tax expense and investment-related items below the operating line accounting for the difference from pretax income. Net profit margin was 4.7%, compared with 3.2% in the prior quarter and 23.2% a year ago. Return on equity was 2.4% for the quarter, reflecting the reduced earnings base. Taken together, the second quarter represents a second consecutive quarter of sequential improvement in operating performance. Revenue is still finding its floor, but margins, provisions, and net income all moved in the right direction. On the regulatory front, the environment continued to evolve during the quarter. We are monitoring developments closely and have nothing new to report beyond the disclosure in our Form 6-K. With that, I'll hand things over to Frank to take you through the detailed results per ADS metrics, non-GAAP adjustments and the balance sheet. Go ahead, Frank. Fuya Zheng: Thank you, Noah, and hello, everyone. I will walk you through the key financial highlights for the second quarter and then cover the balance sheet, capital returns and our outlook. Please note that all numbers stated are in RMB and rounded. Full details are available in the 6-K filed with the SEC. Financial results. Total net revenue for the second quarter was approximately RMB 994 million, down around 56% from the same period last year and about 16% from the prior quarter. The decline continues to reflect the deliberate reduction in origination activity we have been pursuing, partially offset by growth in the guarantee income. Net income for the quarter was RMB 47 million, up 23.8% from RMB 38 million in the first quarter and down substantially from RMB 528 million in the same period last year. Non-GAAP adjusted net income was RMB 166 million, up 104.3% sequentially and down 72% year-over-year. We view the sequential improvement in both measures as an early indication that our credit and cost actions are taking hold. On a per ADS basis, basic earnings were RMB 1.26 or USD 0.19, compared with RMB 0.96 in the prior quarter and RMB 12.6 a year ago. Non-GAAP adjusted basic earnings per ADS were RMB 4.44 or USD 0.65. Revenue mix. Across our business lines, loan facilitation service fees declined 85.5% year-over-year to RMB 199 million, in line with low origination volumes. Post-origination service fee decreased 41.2% to RMB 160 million, consistent with the smaller outstanding portfolio. Guarantee income more than doubled year-over-year to RMB 225 million, reflecting continued recognition of revenue from our existing guaranteed loan portfolio. Finance income was RMB 278 million, down 13.2%. For the full breakdown by line item, please refer to the 6-K. Balance sheet and liquidity. Our balance sheet remains strongly capitalized at the end of the quarter. Total assets were approximately RMB 12.1 billion, and shareholders' equity was approximately RMB 7.8 billion, giving us an equity-to-asset ratio approximately 64%, up from around 57% at the end of the first quarter. So total cash, including restricted cash, were approximately RMB 2 billion. Liquidity remained ample for the current environment. Capital return to the shareholders. We continue to repurchase shares during the period. From January 1, 2026, through August 14, we repurchased approximately 2.63 million ADSs for a total consideration of approximately USD 12.49 million. We have approximately USD 35.5 million remaining under the existing USD 100 million program, which runs through November 30, 2026. Returning capital to shareholders remains an important part of our capital allocation framework. Dividend update. As a part of our semiannual dividend policy, the Board has approved a cash dividend of USD 0.28 per ADS, which is equivalent to approximately USD 0.0467 per ordinary share. Shareholders of record as of September 10, 2026, will be entitled to receive the dividend, and the payments are expected to be distributed on and around September 28, 2026. ADS holders will receive their dividend payments through our depository at the Bank of New York Mellon shortly thereafter, with timing subject to the brokerage processing. Business outlook. Turning to the outlook. Given the material uncertainties in the current operation environment, we are not providing quantitative guidance for the third quarter at this time. Our priorities are unchanged: capital preservation, disciplined origination, rigorous cost control and protecting the balance sheet. We will resume providing guidance when visibility improves. That concludes our prepared remarks, and we'll now take the questions. Operator, please go ahead. Operator: [Operator Instructions] The first question today comes from [ Brian Guard ] with Warburg Asset Management. Unknown Analyst: I'm very pleased to see that the results have been improving in the last quarter. My question is quite a broad one. I'm a relatively new shareholder to the company. I want to understand theoretically why this company is publicly traded given that tangible book value is over USD 20 per ADS. Why don't you just take this company private? Fuya Zheng: Let me try to answer that question. Again, I think the previous investor asked a similar question before. In China, being a listed company is kind of a privilege and a special status. If we privatize, we might lose the opportunity for current business to be listed again because if you want -- if a Chinese-based company tries to be listed overseas, you need to get approval from the government. And based on our current industry situation, as least for our industry, is not going to be a list. So that's probably the main reason you will rarely see the Chinese-listed company in the U.S. go private. Many years ago, some companies did this kind of thing, and they tried to change venue and tried to be listed in Hong Kong or in China, but it's not -- in generally, everyone don't see -- still prioritize or prefer to be listed in the U.S. That's why. Unknown Analyst: Given that there's such a large gap, what's going to be your process for maybe returning more cash to shareholders or driving the company towards a much higher valuation that's much more close to, say, U.S. style valuations? Fuya Zheng: U.S., compared with U.S. valuations is probably kind of our rich goal. And based on the current business and the current regulation environment, and I think the best way to -- for us and also from investor perspective, as we find new revenue sources, basically reengineer the company to -- other than facilitation business as we are, that probably is the best way. And we are doing the best we can. And basically, based on the very low volume right now, we are doing almost the maximum buyback in the normal buybacks though -- and still preserve enough capital to explore new business opportunity, even though those new venture opportunities are far, not very clear at this point. Noah Kauffman: Yes, this is Noah Kauffman. Just to add kind of to what like Frank was saying. So we have had 2 consecutive quarters of sequential credit improvements. And so the credit metrics, at least over the last couple of quarters, have moved a bit in the right direction. And so the cost base is also getting a bit leaner. So I think, certainly, what Frank says is true, going private is sort of like a one-way door. And so coming back to the public market, especially the Chinese headquartered fintech, is very difficult. And so I think with a couple of quarters kind of moving in the right direction, we're very focused on what are the operational efficiencies that we can add, obviously, as APRs have come down. And then beyond that, what are areas of like organic growth. And certainly, with the strength of the balance sheet, we have the ability to -- as the loan book comes down, cash is freed up. So certainly, we have the ability to continue to pay quite a healthy dividend. But I think on the back of maybe, call it, like a rough year, really rough year, we're not quite ready to throw in the towel. I think things are going in a little bit better direction, and we're obviously watching it. Operator: [Operator Instructions] The next question comes from [ Kenning Zhao ] with [ Norton Andrews ]. Unknown Analyst: I'm from [ Norton Andrews ]. My first question is that there's a significant decrease in provision for contingent guarantee liabilities, down from like RMB 200 million in the first half in 2025 to RMB 57.6 million this half year. I see there's a significant decrease in loan balance -- outstanding loan balance, but the delinquency rate has jumped as well. So I wonder why did you make such adjustment, like, is there some evidence from the most recent vintages? Yes, that's my first question. Noah Kauffman: Yes. [ Kenning ], this is Noah. Thanks for your question. Yes, the main driver is the loss rate assumption. So the guaranteed portfolio itself was broadly unchanged against both the comparison period. So I don't believe it's a size effect. And what moved in our estimate was the average loss rate on the book, which came down during the quarter. And because a portion of that we reserved in prior periods, we were no longer required at that level to reverse it. So that reversal is what makes the line look as low as it does. So I treat that way rather than as a new lower run rate for the provision. On your second point, you're right that the 2 things sit somewhat uncomfortably next to one another, and the distinction that I draw is between the stock and the flow. So the elevated delinquencies that you're seeing are concentrated in older paper that's seasoning through the portfolio. That's roughly like 91 to 180 bucket, and it's still very high, whereas the recent vintages originated under the materially tighter criteria are performing better than what preceded them. And so both delinquency buckets improved sequentially for the first time in several quarters. So the reserve reflects where we think losses on the book are and it's actually -- and where it's composed of today, which is increasingly newer vintages rather than the old book as it looked a year ago. Did you have a second question? Unknown Analyst: Yes, if I may. There's another item like provision for credit losses for deposits and other financial assets. It wasn't material before, but it jumped from -- it's quite big now. It's like RMB 95 million, I think -- RMB 95 million from only like RMB 700,000 before. May I ask what's in that item? Fuya Zheng: That involved from the institutional... Unknown Analyst: From the comprehensive income.... Fuya Zheng: Yes, yes. That involved with one funding institution, and the business with them is already basically gone -- finish, and they haven't returned to our guarantee money yet. So that guarantee money is kind of in real. So it doesn't mean it will eventually will not return to us. But I think for whatever reason, it's behind schedule. So we took a cautious to accounting-wise to write them off at this time. That's about it. So only involve one institution funding partner. Unknown Analyst: Right. I understand. Okay. Yes, that's -- yes, if I may, one more question, but actually, it's quite similar to the previous one, like, if you have any further capital return plans apart from the existing ones given the current market? Fuya Zheng: At this point, we are doing all we can under the normal buyback circumstances and rules. We don't have a particular -- at this time, we don't have particular buyback or prioritization plan at this moment. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks. Victoria Yu: Okay. Thank you, everyone, for joining us today. If you have additional questions, please reach out to our Investor Relations team directly. We appreciate your interest and look forward to speaking with you again soon. Operator, back to you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in X Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and X Financial wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. X Financial (XYF) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

SHENZHEN, China, Aug. 24, 2026 /PRNewswire/ -- X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the second quarter ended June 30, 2026. This press release should be read in conjunction with the Company's Report on Form 6-K for the second quarter ended June 30, 2026, which has been furnished to the U.S. Securities and Exchange Commission and is available on the SEC's website at www.sec.gov and on the Company's investor relations website at http://ir.xiaoyinggroup.com. Second Quarter 2026 Financial and Operational Highlights Total net revenue in Q2 2026 was RMB993.6 million (US$146.4 million), a decrease of 56.3% year-over-year and 15.5% quarter-over-quarter. The year-over-year decline was mainly attributable to substantially lower loan facilitation volumes, which reduced loan facilitation service revenue and post-origination service revenue, partially offset by higher guarantee income. Total loan amount facilitated and originated[1] in Q2 2026 was RMB11.63 billion, down 20.5% quarter-over-quarter and down 70.2% year-over-year. Net income in Q2 2026 was RMB47.0 million (US$6.9 million), a decrease of 91.1% year-over-year but an increase of 23.8% quarter-over-quarter, primarily reflecting the substantially lower operating contribution compared with the prior-year period, partially offset by lower operating costs and credit-related provisions. Delinquency rates for loans 31–60 days past due improved to 1.73% (from 2.61% at the end of Q1 2026 and 1.16% a year ago); loans 91–180 days past due improved to 9.09% (from 9.95% at the end of Q1 2026, though up from 2.91% a year ago). Both delinquency rates improved sequentially but remained materially above prior-year levels, indicating that credit pressure remained elevated in the seasoned portfolio. Mr. Kent Li, President of X Financial, commented: "In the second quarter of 2026, we facilitated and originated RMB11.6 billion in loans, a decline of 20.5% from the prior quarter and 70.2% year-over-year. Borrower activity continued to contract, with active borrowers declining to approximately 720,258, down 74.8% from a year ago, while the average loan amount increased to RMB12,712. The 31–60 day delinquency rate decreased to 1.73% from 2.61% in the prior quarter, and the 91–180 day rate eased to 9.09% from 9.95%. These sequential improvements are constructive, but both delinquency rates remained above prior-year levels and the 91–180 day rate remained elevated. We therefore continue to prioritize disciplined underwriting, collection effectiveness, and conservative capital deployment. While the business remains under pressure from lower origination volumes and a challenging credit environment, our focus remains on preserving balance sheet resilience and operating flexibility." Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the second quarter of 2026, total net revenue was RMB993.6 million, a decrease of 56.3% from the same period last year and 15.5% sequentially. Net income was RMB47.0 million and non-GAAP adjusted net income was RMB165.8 million, both higher than the prior quarter but substantially below the prior-year period. Basic earnings per ADS were RMB1.26, and non-GAAP adjusted earnings per ADS were RMB4.44. Operating margin improved to 19.6% from 12.0% in the prior quarter, but remained below the 29.7% recorded in the same period of 2025. We will continue to manage capital conservatively, maintain cost discipline, and preserve liquidity as we navigate the evolving regulatory and operating environment." Second Quarter 2026 GAAP and Non-GAAP Financial Summary Capital Return Capital Return to Shareholders: From January 1, 2026 through August 14, X Financial repurchased an aggregate of approximately 2.63 million ADSs, for a total consideration of approximately US$12.49 million under its share repurchase programs. The Company now has approximately US$35.50 million remaining under its existing US$100 million share repurchase program, which is effective through November 30, 2026. This program reflects the Company's commitment to returning capital to shareholders and enhancing long-term shareholder value, subject to ongoing assessment of market and regulatory conditions. Repurchases under the program remain subject to market conditions and other factors and may be modified or suspended at management's discretion. Declaration of Semi-Annual Dividend: Pursuant to the semi-annual dividend policy, the Board today approved the declaration and payment of a semi-annual dividend of US$0.28 per ADS (approximately US$0.0467 per ordinary share). The holders of the Company's ordinary shares shown on the Company's record at the close of trading on September 10, 2026 (U.S. Eastern Daylight Time) will be entitled to the semi-annual dividend. These shareholders, including the Bank of New York Mellon, the depositary of our ADS program (the "Depositary"), will receive the payments of dividends on or about September 28, 2026. Dividends to the Company's ADS holders will be paid by the Depositary on or after September 28, 2026, and the precise timing of receipt will vary based on the processing efficiency of the respective holding brokerage. Regulatory Update The regulatory environment governing internet-based lending in the People's Republic of China continued to evolve during the second quarter of 2026, with authorities maintaining heightened oversight across the consumer credit business chain. The Company continues to monitor these developments closely; however, management has limited visibility into the ultimate scope and direction of implementation. If current and emerging regulatory requirements are implemented as currently understood, the Company's operating results may be materially and adversely affected, and historical levels of profitability should not be assumed to be indicative of future performance. Conference Call X Financial's management team will host an earnings conference call at 8:30 AM U.S. Eastern Time on August 24, 2026 (8:30 PM Beijing / Hong Kong Time on August 24, 2026). Dial-in details for the earnings conference call are as follows: Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. A replay of the conference call may be accessed by phone at the following numbers until August 31, 2026: Additional Information This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the second quarter ended June 30, 2026, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on August 24, 2026. About X Financial X Financial (NYSE: XYF) (the "Company") is a leading Chinese fintech platform. The Company is committed to connecting borrowers on its platform with its institutional funding partners. With its proprietary big data-driven technology, the Company has established strategic partnerships with financial institutions across multiple areas of its business operations, enabling it to facilitate and originate loans to prime borrowers under a risk assessment and control system. For more information, please visit http://ir.xiaoyinggroup.com. Use of Non-GAAP Financial Measures In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of the non-GAAP financial measures facilitates investors' assessment of our operating performance and help investors to identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We also believe that the non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We use in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method and impairment losses on long-term investments. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the exchange rate in effect as of June 30, 2026, as published in the Federal Reserve Board's H.10 statistical release. Percentages stated in this release are calculated based on the RMB amounts. Disclaimer Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace's products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law. For more information, please contact: X FinancialMr. Noah Kauffman (Chief Financial Strategy Officer)E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/x-financial-reports-second-quarter-2026-unaudited-financial-results-302857650.html

This article first appeared on GuruFocus. Total Net Revenue: RMB993.6 million (USD146.4 million), down 56.3% year over year and 15.5% sequentially. Loan Facilitation Volume: RMB11.63 billion in loans facilitated and originated, down 70.2% year over year and 20.5% sequentially. Net Income: RMB47 million (USD6.9 million), up 23.8% sequentially but down from RMB528 million in the prior year period. Non-GAAP Adjusted Net Income: RMB166 million, up 104.3% sequentially and down 72% year over year. Operating Margin: Improved to 19.6%, up from 12% in Q1 2026 but below 29.7% in the prior year period. Net Profit Margin: 4.7%, compared with 3.2% in the prior quarter and 23.2% a year ago. Total Operating Costs and Expenses: RMB798.6 million (USD117.7 million), down 22.9% sequentially and 50% year over year. Borrower Acquisition and Marketing Expense: RMB149.5 million (USD22 million), down from RMB219.8 million in Q1 and RMB756.3 million in the prior year period. Credit-Related Provisions: RMB183.1 million (USD27 million), down 35.3% sequentially and 36.4% year over year. Loan Facilitation Service Fees: Declined 85.5% year over year to RMB199 million. Post-Origination Service Fees: Decreased 41.2% to RMB160 million. Guarantee Income: More than doubled year over year to RMB225 million. Finance Income: RMB278 million, down 13.2%. Outstanding Loan Balance: RMB24.97 billion, down 61.5% year over year and 29.2% from the end of Q1. Active Borrowers: Approximately 720,258, down 74.8% year over year and 24.7% sequentially. Average Loan Amount per Transaction: RMB12,712, up 8.3% from the prior quarter and 21.3% year over year. 31- to 60-Day Delinquency Rate: 1.73%, improved from 2.61% at the end of Q1 2026 but above 1.16% in the prior year period. 91- to 180-Day Delinquency Rate: 9.09%, improved from 9.95% at the end of Q1 2026 but above 2.91% in the prior year period. Return on Equity: 2.4% for the quarter. Total Assets: Approximately RMB12.1 billion. Shareholders' Equity: Approximately RMB7.8 billion, with an equity-to-asset ratio of approximately 64%. Total Cash (Including Restricted Cash): Approximately RMB2 billion. Share Repurchases: Approximately 2.63 million ADS repurchased for USD12.49 million from January 1 through August 14, 2026. Dividend: Cash dividend of USD0.28 per ADS approved, payable on or around September 28, 2026. Warning! GuruFocus has detected 2 Warning Sign with XYF. Is XYF fairly valued? Test your thesis with our free DCF calculator. Release Date: August 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sequential improvement in credit quality with 31-60 day delinquency down to 1.73% from 2.61% and 91-180 day down to 9.09% from 9.95%. Operating margin improved to 19.6% from 12% in Q1 2026, reflecting cost control and efficiency gains. Net income rose 23.8% sequentially to RMB47 million, with non-GAAP adjusted net income up 104.3%. Strong balance sheet with equity-to-asset ratio of approximately 64% and ample liquidity of RMB2 billion in cash. Continued capital returns through share repurchases and a declared semiannual dividend of USD0.28 per ADS. Loan origination volume declined 70.2% year-over-year to RMB11.63 billion, reflecting ongoing contraction. Total net revenue fell 56.3% year-over-year to RMB993.6 million, with revenue still finding its floor. Delinquency rates remain well above prior year levels, with 91-180 day rate elevated at 9.09%. Net profit margin dropped to 4.7% from 23.2% a year ago, and return on equity was only 2.4%. No quantitative guidance for Q3 2026 due to material uncertainties, and a provision for credit losses on deposits increased to RMB95.3 million due to a funding partner issue. Q: Why is X Financial still publicly traded given that tangible book value is over USD20 per ADS? Why not take the company private?A: Frank Zheng (CFO) explained that in China, being a listed company is a privilege, and privatizing would risk losing the ability to be listed again, as Chinese companies need government approval for overseas listings, which is unlikely for the fintech industry currently. Noah Kauffman (Chief Financial Strategy Officer) added that going private is a "one-way door" and that with two consecutive quarters of credit improvement, the company is focused on operational efficiencies and organic growth rather than exiting the public market. Q: Given the large gap between the stock price and book value, what is the plan to return more cash to shareholders or drive a higher valuation?A: Frank Zheng (CFO) stated that the best way to close the valuation gap is to find new revenue sources and reengineer the company beyond the loan facilitation business. He noted they are doing the maximum buyback possible under normal rules while preserving capital to explore new business opportunities, though these ventures are not yet clear. Noah Kauffman added that as the loan book comes down, cash is freed up, allowing for continued healthy dividends. Q: Why was there a significant decrease in the provision for contingent guarantee liabilities, from RMB200 million in H1 2025 to RMB57 million in H1 2026, especially given the jump in delinquency rates?A: Noah Kauffman (Chief Financial Strategy Officer) explained that the main driver was a decrease in the average loss rate assumption on the guaranteed loan portfolio, which was broadly unchanged in size. A portion of prior provisions was reversed as the loss rate declined. He distinguished between the "stock" of older delinquent paper seasoning through the portfolio and the "flow" of newer vintages, which are performing better under tighter underwriting criteria, leading to the sequential improvement in delinquency buckets. Q: What is the reason for the jump in the provision for credit losses for deposits and other financial assets, from RMB700,000 to RMB95 million?A: Frank Zheng (CFO) clarified that this involves one institutional funding partner whose business has essentially concluded, but they have not yet returned the guarantee money. The payment is behind schedule, so the company took a cautious approach and wrote it off for accounting purposes, though it may eventually be recovered. Q: Are there any further capital return plans beyond the existing buyback and dividend program?A: Frank Zheng (CFO) stated that at this time, the company is doing all it can under normal buyback rules and does not have a specific additional buyback or prioritization plan at the moment. Q: Can you provide more detail on the sequential improvement in credit quality and whether it is sustainable?A: Kan Li (President) noted that the 31- to 60-day delinquency rate improved to 1.73% from 2.61% in Q1 2026, and the 91- to 180-day rate improved to 9.09% from 9.95%. This was the first sequential improvement in several quarters, attributed to tighter underwriting standards and more resources in collections. However, he cautioned that rates remain well above prior year levels and the company is "not declaring victory" until the improvement proves durable. Q: What is the company's outlook for the third quarter of 2026?A: Frank Zheng (CFO) stated that due to material uncertainties in the operating environment, the company is not providing quantitative guidance for Q3 2026. Priorities remain capital preservation, disciplined origination, rigorous cost control, and protecting the balance sheet. Guidance will resume when visibility improves. Q: How is the company managing costs and operational efficiency given the significant decline in origination volume?A: Noah Kauffman (Chief Financial Strategy Officer) highlighted that total operating costs and expenses declined 22.9% sequentially and 50% year over year. Borrower acquisition and marketing expenses were reduced to RMB149.5 million from RMB219.8 million in Q1, reflecting a focus on capital efficiency over volume growth. The company is concentrating on internally operated channels where borrower quality and unit economics are strongest. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in X Financial Sponsored ADR? Here are five stocks we like better. Loan volumes and revenue fell sharply as X Financial prioritized credit quality, liquidity and balance-sheet strength. Loan facilitation and origination dropped 70.2% year over year to RMB 11.63 billion, while net revenue declined 56.3% to RMB 993.6 million. Credit metrics improved sequentially but remained elevated year over year. The 31–60 day delinquency rate fell to 1.73% and the 91–180 day rate to 9.09%, with management attributing the improvement to tighter underwriting and stronger collections while cautioning that older loans remained problematic. Profitability improved from the first quarter, but remained well below last year. Net income rose to RMB 47 million from RMB 37.9 million sequentially, while the company continued share repurchases and approved a $0.28-per-ADS dividend; it provided no third-quarter guidance because of ongoing uncertainty. X Financial (NYSE:XYF) reported lower second-quarter revenue and loan origination volumes as it maintained a conservative operating approach focused on credit quality, liquidity and balance-sheet strength. Management said tighter underwriting and expanded collections efforts contributed to sequential improvement in delinquency measures, though credit metrics remained substantially weaker than a year earlier. The company facilitated and originated RMB 11.63 billion in loans during the quarter ended June 30, down 70.2% from a year earlier and 20.5% from the first quarter. President Kent Li said the pace of contraction moderated from the prior quarter as the company concentrated originations in internally operated channels with stronger borrower quality and unit economics. → 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run “Conditions remain challenging, and we continue to place credit quality, liquidity, and the balance sheet strength ahead of near-term origination volume,” Li said. X Financial served about 720,258 active borrowers and facilitated approximately 0.91 million loans during the quarter. Active borrowers declined 74.8% year over year and 24.7% sequentially. Outstanding loan balance fell to RMB 24.97 billion at quarter-end, down 61.5% from the comparable 2025 period and 29.2% from the end of the first quarter. → 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs Average loan amount per transaction rose to RMB 12,712, up 8.3% sequentially and 21.3% from a year earlier. Li attributed the increase to a change in transaction mix toward higher-quality borrowers. The company said it further refined underwriting criteria for newer loan vintages, expanded automation in servicing and collections, and kept discretionary expenses under tight control. → 2 Biotech Stocks Shaping Up for Major Breakouts The company’s 31-60 day delinquency rate was 1.73% as of June 30, improving from 2.61% at the end of the first quarter but remaining above 1.16% a year earlier. Its 91-180 day delinquency rate improved to 9.09% from 9.95% at the end of the first quarter, compared with 2.91% in the prior-year period. Li said the sequential improvement was the first recorded in several quarters and reflected tighter standards for recent loan vintages and additional collections resources. He cautioned that the company was not yet declaring a turnaround in credit performance, particularly as older delinquent balances continued to season through the portfolio. Chief Financial Strategy Officer Noah Kauffman said in response to an analyst question that the elevated delinquencies were concentrated in older loans, while newer vintages originated under stricter standards were performing better. Total net revenue was RMB 993.6 million, or $146.4 million, down 56.3% from a year earlier and 15.5% from the first quarter. Kauffman said lower loan facilitation volumes were partly offset by higher guarantee income. Loan facilitation service fees declined 85.5% year over year to RMB 199 million. Post-origination service fees rose 41.2% to RMB 160 million, while guarantee income more than doubled to RMB 225 million. Finance income fell 13.2% to RMB 278 million. Total operating costs and expenses declined 50% year over year and 22.9% sequentially to RMB 798.6 million. Borrower acquisition and marketing expense was RMB 149.5 million, down from RMB 219.8 million in the first quarter and RMB 556.3 million a year earlier. Aggregate credit-related provisions fell 35.3% sequentially to RMB 183.1 million. The provision for contingent guarantee liabilities declined to RMB 57.6 million, which management said reflected a reduction in the estimated loss rate for the guaranteed loan portfolio and reversals of provisions recognized in earlier periods. However, provisions for credit losses on deposits and other financial assets increased to RMB 95.3 million. Chief Financial Officer Frank Fuya Zheng said the charge related to guarantee money associated with one funding institution whose business relationship with the company had ended. Zheng said the funds had not yet been returned and that the company took an accounting precaution to write them off, though he said this did not necessarily mean the funds would not ultimately be recovered. Income from operations rose 38.6% from the first quarter to RMB 194.9 million, though it was down 71.1% from a year earlier. Operating margin improved to 19.6% from 12% in the first quarter, compared with 29.7% in the prior-year period. Net income was RMB 47 million, or $6.9 million, compared with RMB 37.9 million in the first quarter and RMB 528 million a year earlier. Non-GAAP adjusted net income was RMB 166 million, up 104.3% sequentially and down 72% year over year. Basic earnings per ADS were RMB 1.26, or $0.19, while non-GAAP adjusted basic earnings per ADS were RMB 4.44, or $0.65. At quarter-end, X Financial reported approximately RMB 12.1 billion in total assets, RMB 7.8 billion in shareholders’ equity and approximately RMB 2 billion in cash, including restricted cash. Zheng said liquidity remained ample for the current environment. From Jan. 1 through Aug. 14, the company repurchased about 2.63 million ADSs for approximately $12.49 million. About $35.5 million remained under its existing $100 million repurchase program, which expires Nov. 30, 2026. The board also approved a cash dividend of $0.28 per ADS, equivalent to about $0.0467 per ordinary share. Shareholders of record on Sept. 10, 2026, are expected to receive the dividend on or around Sept. 28. Management did not provide quantitative guidance for the third quarter, citing material uncertainty in the operating environment. Zheng said the company’s priorities remain capital preservation, disciplined origination, rigorous cost control and protecting the balance sheet. In response to questions about additional capital returns and a potential privatization, Zheng said the company had no particular buyback expansion or privatization plan at this time. He said management was pursuing share repurchases within normal market rules while preserving capital to explore potential new business opportunities. X Financial (NYSE:XYF) is a Beijing-based online credit marketplace focused on providing diversified financing solutions to individuals and small- and medium-sized enterprises (SMEs) in China. The company was established in 2014 and completed its initial public offering on the New York Stock Exchange in 2016. Since inception, X Financial has built a technology-driven platform that connects borrowers with a network of institutional investors, banks and other funding sources, aiming to streamline access to credit and improve lending efficiency. The company's core offerings include consumer loans, SME loans, real estate-secured financing and wealth management products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "X Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, May 28, 2026 at 7:30 a.m. ET Chief Executive Officer — Kan Li Chief Financial Officer — Noah Kauffman Chief Operating Officer — Fuya Zheng Investor Relations — Victoria Yu Kan Li: Thank you, Victoria, and hello, everyone. In the first quarter of 2026, we continue to operate with a high degree of discipline as the operating environment remained challenging. Carrying forward the more conservative posture we adopted in the second half of 2025, we further reduced the pace of activity in Q1, keeping our business closely aligned with evolving supervisory expectations while maintaining an unwavering focus on credit quality and risk management. During the quarter, we facilitated and originated RMB 14.63 billion in loans, a decline of 58.4% year-over-year and 35.8% sequentially from the fourth quarter. This pullback was deliberate as we continue to place greater priority on portfolio integrity and long-term balance sheet stability over near-term origination volume. Operationally, we made further progress on a number of key initiatives during the quarter. We continued shifting our origination mix toward internally operated channels to deepen borrower relationships and reduce reliance on higher cost third-party traffic. Underwriting criteria were further tightened, compliance infrastructure was strengthened and we continued rolling out process automation across servicing and collections, all with the goal of improving operational efficiency while keeping our cost base lean. From a volume standpoint, borrower activity continued to contract in the first quarter. We served approximately 956,520 active borrowers, down 60.6% year-over-year and 43.5% from the prior quarter. We facilitated approximately 1.25 million loans during the period with an average loan size of RMB 11,741 per transaction. Outstanding loan balance at the quarter end stood at RMB 35.3 billion, a decline of 39.6% from the same period of 2025. Credit quality. Credit conditions remained under pressure in the first quarter, consistent with the broader stress we and other across the industry have been observing. As of March 31, our 31- to 60-day delinquency rate was 2.61% compared with 2.9% at the end of Q4 2025 and 1.25% as of the same period of 2025. Our 91- to 180-day delinquency rate increased to 9.95% compared with 6.31% at the end of Q4 2025 and 2.73% as of the same period of 2025. The data reflects a borrower base under continued financial strain, consistent with what we are seeing across the broader consumer credit industry. We have addressed this by further narrowing our approval criteria, deploying more resources into collections and pulling back on our origination in segments where repayment risk has risen most sharply. Higher credit costs weighed on quarter's financial results, and we accepted that trade-off knowingly. Protecting the integrity of the portfolio matters more to us than defending short-term earnings. Looking ahead, our focus is on keeping credit quality stable, managing liquidity carefully and running the business with the same level of discipline we have maintained throughout this period. With that, I'll turn the call over to Noah, who will cover the key financial results for the first quarter as well as the regulatory environment. Noah Kauffman: Great. Thank you, Kan. Hello, everyone. It's great to speak with you again. Kan walked through the operational and credit developments, so I'll take you through the financial results for the quarter and then provide an update on the regulatory landscape. In the first quarter of 2026, total net revenue was RMB 1.18 billion or USD 170.5 million, representing a 39.3% decline year-over-year and a 19.9% decline sequentially from Q4 2025. Total operating costs and expenses came in at RMB 1.04 billion or USD 150.1 million, down 28.5% sequentially and 24.1% year-over-year. The year-over-year cost reduction was driven by the sharp pullback in borrower acquisition and marketing spend, which fell from RMB 709 million in Q1 2025 to RMB 219.8 million this quarter. Total provisions were RMB 282.9 million or USD 41 million, down substantially from RMB 669.3 million in Q4 2025, which was a meaningful sequential improvement, but still well above the RMB 135.5 million we recorded in the same period last year, continuing to weigh on profitability relative to prior year levels. On the discretionary spending side, we maintained tight control. Borrower acquisitions and marketing expense was RMB 219.8 million or USD 31.9 million in the first quarter, significantly below the RMB 709 million we spent in Q1 2025 as we continue to prioritize capital efficiency over volume growth. Income from operations recovered to RMB 140.7 million or USD 20.4 million, a 75.4% decrease year-over-year, but a meaningful rebound from the depressed Q4 2025 level. Operating margin improved to 12%, up from 1.4% in Q4 2025, that is still well below the 29.6% recorded in the prior year period. Income before income taxes was RMB 136.8 million or USD 19.8 million as the sequential improvement in operating results was partially offset by investment-related items below the operating line. Net income was RMB 37.9 million or USD 5.5 million in the first quarter compared with RMB 57.2 million in Q4 2025 and RMB 458.1 million in Q1 2025. Net profit margin was 3.2% compared with 3.9% in the prior quarter and 23.6% a year ago. Return on equity was 1.9% for the quarter, reflecting the substantial reduced earnings base. On the regulatory environment, the regulatory environment governing Internet-based lending in the People's Republic of China continued to evolve during the first quarter of 2026 with authorities further strengthening oversight across the consumer credit business chain. The company continues to monitor these developments closely. However, management has limited visibility into the ultimate scope and direction of implementation. If current and emerging regulatory requirements are implemented as currently understood, the company's operating results may be materially and adversely affected and historical levels of profitability should not be assumed to be indicative of future performance. The first quarter results reflect a business in transition, revenue and profitability well below prior year levels as we work through a period of elevated credit costs and reduced origination activity, but with early signs of sequential stabilization and operating performance. We are managing carefully through this environment. With that, I'll hand things over to Frank to take you through the detailed financial results per ADS metrics, non-GAAP adjustments and the balance sheet. Fuya Zheng: Thank you, Noah, and hello, everyone. I will walk through the key financial highlights for the first quarter, then cover the balance sheet, capital returns and our outlook. Please note that all numbers stated are in RMB and rounded up. Full details are available in the 6-K filed with the SEC. Financial results. The total net revenue for the first quarter was approximately RMB 1.2 billion, down around 39% from the same period of last year and about 20% from the prior quarter. The decline was driven primarily by the significant reduction in loan origination activity we have been deliberately pursuing and was partially offset by growth in guarantee income and financing income. Operation income was RMB 141 million with an operation margin of 12%, well below 29.6% we recorded a year ago, with a meaningful recovery from the 1.4% we reported in the fourth quarter of 2025. The improvement sequentially reflects the benefit of the lower origination-related provisions as our credit tightening measures took hold. Net income for the quarter was RMB 38 million compared with RMB 458 million in the same period of last year. The sharp year-over-year decline reflects substantially higher credit provisions and the substantially lower revenue base. Non-GAAP adjusted net income was RMB 81 million. On a per ADS base, basic earnings were RMB 0.96 or USD 0.14 compared with RMB 10.92 a year ago and non-GAAP adjusted basic earnings per ADS were RMB 2.8 or USD 0.30. Revenue mix. Across our business lines, the pattern was consistent with the overall volume pullback. Facilitation fees fell sharply as origination volume dropped. Post-origination fee declined more modestly, in line with the smaller outstanding portfolio. On the positive side, guarantee income more than tripled year-over-year, reflecting continued recognition of revenue from our existing guaranteed loan portfolio. Financing income was broadly stable. For the full breakdown by line item, please refer to the 6-K. Balance sheet and liquidity. Our balance sheet remains well capitalized at the end of the quarter. Total assets were approximately RMB 13.6 billion and the shareholders' equity was approximately RMB 7.8 billion, giving us an equity-to-asset ratio of around 57%. We remain in a solid liquidity position and with total cash, including restricted cash of approximately RMB 2.4 billion and the balance sheet is in good shape to navigate the current environment. Capital return to the shareholders. We continued our share repurchase program during the quarter. From January 1 through May 15, 2026, we repurchased approximately 1.8 million ADS for the total approximately USD 8.2 million. We have approximately USD 39.8 million remaining under the existing program, which runs through November 30, 2026. This reflects our ongoing commitment to returning value to the shareholders while maintaining balance sheet strength. Business outlook. Our near-term outlook remains cautious. The regulatory environment continues to evolve quickly, and we have limited visibility into the full scope and timing of the implementations. We expect these dynamics to continue to influence our industry pricing, funding conditions and origination activity for the foreseeable future. For the second quarter of 2026, we expect total loan origination to be in the range of RMB 11.5 billion to RMB 12.5 billion, consistent with our continued focus on quality over volume. We remain focused on capital preservation, disciplined origination and cost control. We will keep investors updated as the regulatory picture becomes clear. That concludes our prepared remarks. We will now take questions. Operator, please go ahead. Operator: [Operator Instructions] We are showing no questions at this time. I would like to turn the conference back over to Victoria Yu for any closing remarks. Victoria Yu: Okay. Thank you, everyone, for joining us today. If you have additional questions, please reach out to our Investor Relations team directly. We appreciate your interest and look forward to speaking with you again. Thank you. Operator, back to you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in X Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and X Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. X Financial (XYF) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. X Financial (NYSE:XYF) maintained a disciplined approach in a challenging operating environment, prioritizing credit quality and risk management. The company made progress in shifting its origination mix towards internally operated channels, reducing reliance on higher-cost third-party traffic. Operational efficiency improved through tightened underwriting criteria, strengthened compliance infrastructure, and increased process automation. Despite a decline in revenue, operating margin improved to 12% from 1.4% in Q4 2025, indicating better cost management. X Financial (NYSE:XYF) continued its share repurchase program, reflecting a commitment to returning value to shareholders. Loan origination volume declined significantly, with a 58.4% year-over-year decrease, impacting revenue generation. The borrower base contracted sharply, with a 60.6% year-over-year decline in active borrowers. Delinquency rates increased, with the 91 to 180-day delinquency rate rising to 9.95%, indicating heightened credit risk. Net income dropped significantly to $37.9 million from $458.1 million in Q1 2025, reflecting higher credit provisions and reduced revenue. The regulatory environment in China remains uncertain, posing potential risks to future operating results and profitability. Warning! GuruFocus has detected 5 Warning Signs with AMBR. Is XYF fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of X Financial's performance in Q1 2026? A: Ken Lee, President, explained that the company operated with discipline amid a challenging environment, reducing loan origination to prioritize portfolio integrity and risk management. Loan facilitation and origination were RMB14.63 billion, a 58.4% year-over-year decline. The focus was on improving operational efficiency and maintaining credit quality. Q: How did the financial results for Q1 2026 compare to previous periods? A: Noah Kaufman, Chief Financial Strategy Officer, reported total net revenue of RMB1.18 billion, a 39.3% year-over-year decline. Operating costs were reduced significantly, and income from operations improved from Q4 2025 levels. However, net income was down to RMB37.9 million from RMB458.1 million in Q1 2025. Q: What were the key financial highlights and challenges faced in Q1 2026? A: Frank Fu Ya Zheng, CFO, highlighted a deliberate reduction in loan origination, impacting revenue. Despite a recovery in operating margin to 12%, net income was significantly lower due to higher credit provisions. The company maintained a strong balance sheet with RMB13.6 billion in total assets. Q: How is X Financial responding to the evolving regulatory environment in China? A: Noah Kaufman noted that the regulatory landscape for internet-based lending is evolving, with increased oversight. The company is closely monitoring these changes, which may materially affect future performance. Management is cautious about the impact on pricing, funding, and origination activities. Q: What is the outlook for X Financial in the near term? A: Frank Fu Ya Zheng stated that the outlook remains cautious due to regulatory uncertainties. The company expects loan origination to be between RMB11.5 billion and RMB12.5 billion in Q2 2026, focusing on quality over volume. Capital preservation and cost control remain priorities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SHENZHEN, China, May 27, 2026 /PRNewswire/ -- X Financial (NYSE: XYF), a leading Chinese fintech platform, today announced its unaudited financial results for the first quarter ended March 31, 2026. This press release should be read in conjunction with the Company's Report on Form 6-K for the first quarter ended March 31, 2026, which has been furnished to the U.S. Securities and Exchange Commission and is available on the SEC's website at www.sec.gov and on the Company's investor relations website at http://ir.xiaoyinggroup.com. First Quarter 2026 Financial and Operational Highlights Total net revenue in Q1 2026 was RMB1.18 billion (US$170.5 million), a decrease of 39.3% year-over-year and 19.9% quarter-over-quarter. The year-over-year decline was primarily driven by significantly lower loan facilitation volumes amid the Company's continued tightening of credit standards and focus on higher-quality origination. Total loan amount facilitated and originated[1] in Q1 2026 was RMB14.63 billion, down 35.8% quarter-over-quarter and down 58.4% year-over-year. Net income in Q1 2026 was RMB37.9 million (US$5.5 million), a decrease of 91.7% year-over-year, primarily reflecting substantially higher credit-related provisions and significantly lower loan facilitation revenue amid reduced origination volumes. Delinquency rates for loans 31–60 days past due improved to 2.61% (from 2.90% at Q4 2025 year-end and 1.25% a year ago); loans 91–180 days past due increased to 9.95% (from 6.31% at Q4 2025 year-end and 2.73% a year ago). The increase in the 91–180 day delinquency rate primarily reflects the migration of previously delinquent balances further into that bucket and the effect of a significantly reduced total outstanding loan balance, both of which contribute to a higher reported rate, rather than a deterioration in the quality of more recent originations. Mr. Kent Li, President of X Financial, commented: "In the first quarter of 2026, we facilitated and originated RMB14.6 billion in loans, reflecting a substantial decline of 35.8% from the prior quarter and 58.4% year-over-year. Borrower activity continued to moderate, with active borrowers declining to approximately 956,520, down 60.6% from a year ago, reflecting the Company's deliberate focus on higher-quality origination and tighter credit standards. The 31–60 day delinquency rate eased to 2.61% from 2.90% in the prior quarter, reflecting improvement in more recent origination quality. The 91–180 day rate rose to 9.95%, driven by the migration of existing delinquent balances further into that bucket rather than fresh deterioration in new originations. In response, we have further strengthened our risk management framework, enhanced collection strategies, and adjusted capital deployment to preserve balance sheet resilience. While profitability was significantly impacted by higher provisions and narrower margins, we believe these actions appropriately position the Company for the challenging environment ahead." Mr. Frank Fuya Zheng, Chief Financial Officer of X Financial, added: "In the first quarter of 2026, total net revenue was RMB1.18 billion, a decrease of 39.3% from the same period last year and 19.9% sequentially. Net income was RMB37.9 million and non-GAAP adjusted net income was RMB81.2 million, both significantly lower than the prior year period, primarily due to substantially higher credit-related provisions and significantly lower loan facilitation revenue amid reduced origination volumes. Basic earnings per ADS were RMB0.96, and non-GAAP adjusted earnings per ADS were RMB2.10. Operating margin improved to 12.0% from 1.4% in the prior quarter, though remained significantly below the 29.6% recorded in the same period of 2025, reflecting the ongoing impact of elevated credit costs and reduced contribution from higher-margin facilitation services. We will continue to manage capital conservatively, strengthen our balance sheet, and maintain cost discipline to support business resilience amid an evolving regulatory and operating landscape." First Quarter 2026 GAAP and Non-GAAP Financial Summary Business Outlook & Capital Return Business Outlook: Based on current trends, X Financial expects the total loan amount facilitated and originated in the second quarter of 2026 to be in the range of RMB 11.5 billion to RMB 12.5 billion. This guidance reflects a measured pace of origination following a sequential decline in the first quarter and management's continued focus on asset quality, credit discipline, and profitability optimization rather than aggressive volume expansion. The Company remains attentive to recent regulatory developments and evolving credit conditions, and acknowledges that potential regulatory changes, once implemented, could adversely affect margins and profitability. The Company will continue to exercise prudent risk control and disciplined execution to navigate the evolving environment and support long-term business resilience. Capital Return to Shareholders: From January 1, 2026 through May 15, 2026, X Financial repurchased an aggregate of approximately 1.8 million ADSs, for a total consideration of approximately US$8.2 million under its share repurchase programs. The Company now has approximately US$39.8 million remaining under its existing US$100 million share repurchase program, which is effective through November 30, 2026. This program reflects the Company's commitment to returning capital to shareholders and enhancing long-term shareholder value, subject to ongoing assessment of market and regulatory conditions. Repurchases under the program remain subject to market conditions and other factors and may be modified or suspended at management's discretion. Regulatory Update The regulatory environment governing internet-based lending in the People's Republic of China continued to evolve during the first quarter of 2026, with authorities further strengthening oversight across the consumer credit business chain. The Company continues to monitor these developments closely; however, management has limited visibility into the ultimate scope and direction of implementation. If current and emerging regulatory requirements are implemented as currently understood, the Company's operating results may be materially and adversely affected, and historical levels of profitability should not be assumed to be indicative of future performance. Conference Call X Financial's management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on May 28, 2026 (7:30 PM Beijing / Hong Kong Time on May 28, 2026). Dial-in details for the earnings conference call are as follows: Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. A replay of the conference call may be accessed by phone at the following numbers until June 04, 2026: Additional Information This press release contains highlights only. For the Company's complete financial results and management's discussion and analysis for the first quarter ended March 31, 2026, please refer to the Form 6-K filed with the U.S. Securities and Exchange Commission on May 27, 2026. About X Financial X Financial (NYSE: XYF) (the "Company") is a leading Chinese fintech platform. The Company is committed to connecting borrowers on its platform with its institutional funding partners. With its proprietary big data-driven technology, the Company has established strategic partnerships with financial institutions across multiple areas of its business operations, enabling it to facilitate and originate loans to prime borrowers under a risk assessment and control system. For more information, please visit http://ir.xiaoyinggroup.com. Use of Non-GAAP Financial Measures In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of the non-GAAP financial measures facilitates investors' assessment of our operating performance and help investors to identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We also believe that the non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We use in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) per basic ADS, (iii) adjusted net income (loss) per diluted ADS, (iv) adjusted net income (loss) per basic share, and (v) adjusted net income (loss) per diluted share, each of which excludes share-based compensation expense, impairment losses on financial investments, income (loss) from financial investments, gain (loss) from financial investments at equity method and impairment losses on long-term investments. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release. Exchange Rate Information This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026, as published in the Federal Reserve Board's H.10 statistical release. Percentages stated in this release are calculated based on the RMB amounts. Disclaimer Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace's products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law. Use of Projections This announcement also contains certain financial forecasts (or guidance) with respect to the Company's projected financial results. The Company's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections or guidance for the purpose of their inclusion in this announcement, and accordingly, they did not express an opinion or provide any other form assurance with respect thereto for the purpose of this announcement. This guidance should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company, or that actual results will not differ materially from those set forth in the prospective financial information. Inclusion of the prospective financial information in this announcement should not be regarded as a representation by any person that the results contained in the prospective financial information will actually be achieved. You should review this information together with the Company's historical information. For more information, please contact: X FinancialMr. Noah Kauffman (Chief Financial Strategy Officer)E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/x-financial-reports-first-quarter-2026-unaudited-financial-results-302783121.html

Image source: The Motley Fool. Thursday, March 26, 2026 at 10 a.m. ET Chief Executive Officer — Kan Li Chief Financial Officer — Noah Kauffman Chief Operating Officer — Fuya Zheng Investor Relations — Victoria Yu Need a quote from a Motley Fool analyst? Email [email protected] Kan Li: Thank you, Victoria, and hello, everyone. In the fourth quarter of 2025, we continue to operate with heightened discipline as the external environment became more demanding. Following a strong first half, we deliberately moderated activity in Q4 to remain aligned with evolving supervisory expectations and to prioritize credit quality and prudent risk management. During the quarter, we facilitated and originated RMB 22.77 billion in loans, representing a 29.5% decline year-over-year and a 32.3% decline sequentially from the previous quarter. This moderation was intentional, reflecting our focus on protecting portfolio health and maintaining long-term stability rather than pursuing near-term volume expansion. For the full year 2025, we facilitated and originated RMB 130.6 billion in loans, up 24.5% from RMB 104.9 billion in 2024. This full year performance reflects the scale we achieved earlier in the year and our ability to operate with discipline as market and regulatory conditions evolved. During the quarter, we focused on strengthening the stability of our core operations through disciplined channel management, tighter risk controls and continued efficiency improvements. We increased the proportion of activity on internal operated platforms to enhance customer stability and reduce dependence on higher-cost external traffic sources. We also further tightened underwriting standards, strengthened compliance processes, optimized operational workflows and expanded automation across services and collection functions to improve efficiency without increasing head count. From an operational standpoint, borrower activity moderated meaningfully in the fourth quarter. We served approximately 1.69 million active borrowers, down 20.2% from a year ago and down 30.7% sequentially. We facilitated approximately 2.47 million loans in the quarter with an average loan amount per transaction of RMB 9,226. We ended the quarter with RMB 50.5 billion in outstanding loan balance, down 3.6% from the same period of 2024. Credit quality. We did observe continued credit pressure during the quarter, consistent with broader market trends and a more cautious industry-wide risk posture. As of December 31, our 31- to 60-day delinquency rate increased to 2.9% compared with 1.85% at the end of Q3 and 1.17% a year ago. Our 91 to 180-days delinquency rate increased to 6.31% compared with 3.52% at the end of Q3 and 2.48% a year ago. These movements reflect rising repayment stress among certain segments as well as a more conservative approach to risk. In response, we tightened underwriting criteria, enhanced collection strategies and adjusted capital deployment to preserve balance sheet resilience. As credit costs increased, we chose to prioritize stability and risk management, which affected short-term earnings but strengthens the foundation of the business. We believe this more cautious stance is appropriate given current conditions. Our near-term priorities remain clear: safeguard portfolio quality, preserve liquidity and maintain discipline in operations. With that, I'll now turn the call to Noah, who will walk through key fourth quarter financial performance and the profitability trends, along with a brief regulatory update. Noah Kauffman: Thank you, Kent. Hello, everyone. It's great to speak with you again. Kent covered the operational and credit picture for the quarter, so I'll focus on the financial performance and our profitability profile in Q4. On the regulatory environment, the regulatory environment governing Internet-based lending in China continued to evolve meaningfully during 2025 with authorities increasingly refining and strengthening oversight across the entire consumer credit chain. The most significant development was Notice 9 issued by the National Financial Regulatory Administration on April 1, 2025, which requires commercial banks to strictly control total borrowing costs. While Notice 9 does not explicitly stipulate a hard cap, in practice, a 24% annum ceiling on total borrowing costs for a single loan is generally being implemented and enforced across the industry. Importantly, 24% may not represent the outer boundary of that pricing pressure. Regulatory authorities have continued to tighten borrowing cost caps applicable to microcredit and consumer finance companies, and those entities may face de facto requirements set below that level. The pace and manner of implementation across different institution types and jurisdictions remain highly uncertain, and we currently have no reliable basis on which to predict the ultimate scope or trajectory of these limitations. If current and emerging requirements are implemented as we currently understand them, our operating results will be adversely and materially affected relative to prior years. The magnitude of that impact is subject to significant uncertainty and investors should not assume our historical profitability levels are indicative of future performance, including the possibility of operating losses in future periods. Notice 9 also requires commercial bank head offices to implement white-list management systems for loan facilitation platform operators, prohibiting cooperation with institutions not on those lists. This has introduced additional uncertainty around our funding relationships and implementation practices vary across banking groups and their subsidiaries. Future regulatory guidance could alter how those determinations are made in ways that affect our authorized funding relationships. And this is just one example of the broader unpredictability we are navigating. Separately, payment institution rating measures issued by the People's Bank of China in December 2025 extend regulatory oversight further across the lending chain, adding to compliance burdens and operational costs for industry participants. We are closely monitoring all of these developments as they continue to evolve in 2026. At this stage, management has limited visibility into the ultimate scope, pace and direction of implementation and the potential impact on our business, financial condition and results of operations cannot be determined with any degree of certainty. On fourth quarter financial performance. In the fourth quarter of 2025, total net revenue was RMB 1.47 billion or USD 209.9 million, representing a 14.1% decrease year-over-year and 25.1% decrease sequentially from Q3. Total operating costs and expenses were RMB 1.45 billion or USD 207 million, down 9.5% sequentially, but up 22.3% year-over-year. The year-over-year increase was driven primarily by materially higher credit-related provisions, while operating expenses also reflected our continued efforts to align spending with a more measured pace of activity. Credit-related provisions were the primary factor weighing on the fourth quarter results. Total provisions were RMB 669.3 million or USD 95.7 million, reflecting higher expected credit losses and a more conservative provisioning across -- in response to elevated risk indicators during the period. We also continue to take a disciplined approach to discretionary spending. For example, borrower acquisition and marketing expense was RMB 212.2 million or USD 30.3 million in Q4, reflecting a substantial reduction compared with both the prior quarter and the same period last year as we prioritized efficiency and risk discipline. As a result, income from operations was RMB 20.2 million or USD 2.9 million, a 96.2% decrease year-over-year and a 94.4% decrease sequentially. Operating margin decreased to 1.4% compared with 18.5% in Q3 and 30.7% in the same period last year. Below operating income, the quarter remained profitable, but at a level that underscores the degree of near-term credit pressure. Income before income taxes was RMB 31.2 million or USD 4.5 million, reflecting the cumulative effect of lower revenue and elevated provisioning. Net income was RMB 57.2 million or USD 8.2 million in Q4 compared with RMB 421.2 million in Q3 and RMB 385.6 million in Q4 of last year. Net profit margin was 3.9% compared with 21.5% in the prior quarter and 22.6% a year earlier. Return on equity decreased to 2.9%, reflecting substantially lower net income during the quarter. Taken together, Q4 reflects a materially different earnings profile compared with earlier periods, driven primarily by higher credit costs and a more measured level of activity. We are managing through this phase with a conservative financial posture and maintaining flexibilities as conditions evolve. With that, I'll now hand the call over to Frank to discuss the full year financial results, per ADS metrics, non-GAAP profitability and our balance sheet and liquidity position. Fuya Zheng: Thank you, Noah, and hello, everyone. I will walk through our full year financial results and then discuss our balance sheet, liquidity and outlook. The full year financial highlights. For the full year 2025, total net revenue was RMB 7.64 billion or USD 1.09 billion, representing a 30% -- 30.1% increase from RMB 5.87 billion in 2024. Income from operations was RMB 1.63 billion or USD 233.1 million compared with RMB 1.87 billion in 2024. Our full year operation margin was 21.3% compared with 31.9% in the prior year, reflecting a higher credit-related provisions and a more cautious operation posture in the second half. Net income for the full year was RMB 1.46 billion or 209.4 million compared with RMB 1.54 billion in 2024. Full year GAAP net profit margin was 19.2% compared with 26.2% in 2024. On a non-GAAP basis, adjusted net income was RMB 1.56 billion or USD 223 million for the fiscal year 2025 compared with RMB 1.54 billion in 2024. Per ADS and the non-GAAP metrics. On a per ADS basis for the full year, net income per ADS was RMB 36 or USD 5.15 and RMB 35.22 or USD 5.04 on a basic and diluted basis, respectively, compared with RMB 31.98 basic and RMB 31.50 diluted in 2024. Non-GAAP adjusted net income per ADS was RMB 38.34 or USD 5.48 and RMB 37.50 or USD 5.36 on a basic and diluted basis, respectively, compared with RMB 31.98 basic and RMB 31.44 diluted in 2024. For additional Q4 context, non-GAAP adjusted net income in the fourth quarter of -- was RMB 31.3 million (sic) [ RMB 61.3 million ] and USD 8.8 million. Non-GAAP adjusted earnings per ADS was RMB 1.56 or USD 0.22 on both a basic and diluted basis. Balance sheet and liquidity. Our balance sheet remains solid as of December 31, 2025. Total assets were RMB 14.67 billion or USD 2.1 billion. Total liability was RMB 6.83 billion or USD 976.5 million or total equities -- total shareholder equities was RMB 7.84 billion or USD 1.12 billion. We ended the year with RMB 987.6 billion (sic) [ RMB 987.6 million ] or USD 141.2 billion (sic) [ USD 141.2 million ] in cash and cash equivalents, and RMB 1.15 billion and USD 133.9 billion (sic) [ USD 163.9 million ] in restricted cash. And for total cash, including restricted cash of approximately RMB 2.13 billion or USD 305.1 million. Capital return to shareholders. As of March 15, 2026, under the company's USD 100 million share repurchase program, the company had repurchased an aggregate of approximately 3.79 million ADS, including approximately 3.37 million ADS and 2.53 million Class A ordinary shares for a total consideration of approximately USD 53.85 million. The company now has approximately USD 46.15 million remaining under the share repurchase program, which is effective through November 30, 2026. This program underscores the company's confidence in its long-term growth outlook and its commitment to enhancing shareholder value. The purchases in the program remain subject to market conditions and other factors and may be modified or suspended at management's discretion. Business outlook. Given evolving regulatory developments and the limited visibility into how recent policy measures will be implemented across different jurisdictions, our near-term outlook remains cautious. The full impact of these changes on funding availability, pricing dynamics and the overall industry activity is still uncertain and may take time to become clear. We are [ prioritizing ] asset quality, disciplined risk management, cost control and the preservation of liquidity and operational flexibility. As the regulatory expectations continue to develop, we are adapting our operation approach to maintain compliance while safeguarding the long-term stability of the business. While we believe our platform is well positioned to navigate a more stringent environment, additional policy adjustments or implementation actions could further affect industry economics and growth perspectives. We will continue to monitor developments closely and will update our outlook as greater clarity emerges. This concludes our prepared remarks, and we will now open the call for questions. Operator, please go ahead. Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Victoria Yu for any closing remarks. Victoria Yu: Thank you, everyone, for joining us today. If you have additional questions, please reach out to our Investor Relations team directly. We appreciate your interest and look forward to speaking with you again soon. Operator, back to you. Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in X Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and X Financial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. X Financial (XYF) Q4 2025 Earnings Transcript was originally published by The Motley Fool