X Financial Reports Sharp Decline in Active Borrowers Amid Shrinking Lending Platform
X Financial (NYSE:XYF) reported a significant decline in its active-borrower count, falling by 74.8% year over year to approximately 720,258 as of Q2 2026. The company's net revenue dropped 56.3% annually and 15.5% sequentially to RMB993.6 million during the same period. Total loan amount facilitated also fell by 70.2%, indicating a substantial contraction in its lending platform. Despite these challenges, credit performance showed signs of stabilization with delinquency rates improving for both short- and medium-term loans. The company attributed this to stricter underwriting standards and increased collection efforts. However, the active-borrower count continued to fall by 24.7% from Q1, highlighting ongoing operational difficulties. X Financial's operating costs decreased sequentially, contributing to a modest improvement in profitability with an increase of 38.6% in operating income to RMB194.9 million and improved margins. However, net income fell sharply by 91.1%, raising concerns about the company’s ability to sustain operations without loosening underwriting standards or facing regulatory constraints.
Topics: borrower_count credit_metrics revenue