X Financial Reports Q2 Earnings Amid Reduced Loan Volumes and Improved Credit Metrics
In its second-quarter earnings call on August 24, 2026, X Financial (NYSE:XYF) reported a significant decline in loan volumes and revenue as the company prioritized credit quality, liquidity, and balance-sheet strength. Loan facilitation dropped by 70.2% year over year to RMB 11.63 billion, while net revenue fell 56.3% to RMB 993.6 million. Credit metrics showed sequential improvement but remained elevated compared to the prior-year period. The company's 31–60 day delinquency rate decreased to 1.73%, and its 91–180 day delinquency rate improved to 9.09%. Management attributed these improvements to tighter underwriting standards and enhanced collections efforts, though they noted that older loans continued to pose challenges. Net income for the quarter rose slightly from RMB 37.9 million in Q1 to RMB 47 million. X Financial also announced a $0.28-per-ADS dividend but did not provide guidance for the third quarter due to ongoing uncertainty.
Topics: credit quality delinquency rates loan volumes net income improvement revenue decline