X Financial Q2 revenue falls 56.3%, net income rises sequentially
X Financial says second-quarter net revenue fell 56.3% year over year to RMB 993.6 million while net income was RMB 47 million, up 23.8% sequentially.
On Monday, X Financial (NYSE: XYF ) discussed second-quarter financial results during its earnings call.
The full transcript is provided below.
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For comprehensive financial data and transcripts, visit Access the full call at Summary XYF's loan origination in Q2 2026 declined significantly by 70.2% year over year and 20.5% sequentially, focusing on higher quality borrowers and maintaining balance sheet strength.
Total net revenue decreased by 56.3% year over year to RMB 993.6 million, with a sequential decline of 15.5% due to lower loan volumes but partially offset by higher guarantee income.
Operating costs were reduced by 22.9% sequentially, and credit-related provisions decreased, reflecting improved credit conditions and tighter underwriting standards.
Net income for the quarter was RMB 47 million, down substantially from the previous year but up 23.8% from Q1 2026, indicating positive sequential improvement.
The company did not provide quantitative guidance for Q3 due to uncertain market conditions and remains focused on capital preservation and disciplined origination.
XYF continues its share repurchase program, with US$35.5 million remaining under the existing US$100 million program, and announced a cash dividend of US$0.28 per ADS.
Management highlighted a cautious approach to credit, improvements in delinquency rates, and a strong balance sheet with ample liquidity.
The company is exploring new revenue sources and operational efficiencies but remains cautious due to the challenging regulatory environment.
Full Transcript OPERATOR Good day, and welcome to the XYF second quarter 2026 earnings conference call.
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I would now like to turn the conference over to Victoria Yu.
Please go ahead.
Victoria Yu, Investor Relations 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 ir.xiaoyinggroup.com.
On the call today from XYF: Mr.
Ken Li, President; Mr.
Frank Fuyazheng, Chief Financial Officer; and Mr.
Noah Kaufman, Chief Financial Strategy Officer.
Mr.
Li will begin with an overview of our business performance and the key operational developments.
Mr.
Kaufman will then review the second quarter financial performance, followed by Mr.
Jiang who will cover the detailed financial results, capital position and outlook.
After the prepared remarks, Mr.
Li, Mr.
Jiang and Mr.
Kaufman will be available to answer your questions during the Q&A session.