X FINANCIAL SP.ADR/6 CL.A

X Financial improved profitability in the second quarter of 2026: net income rose to RMB 47 million from RMB 37.9 million in the prior quarter, while revenue fell 56.3% to RMB 993.6 million. Loan origination volume shrank 70.2% year on year, while operating costs and expenses fell by about 50%, leading to a wider operating margin. Management cites capital preservation, tighter credit standards and cost control as priorities, but declined to give a quantitative forecast for Q3. The board approved a semiannual cash dividend of $0.28 per ADS and continued buybacks; the stock reacted slightly positive in premarket trading. » More on de.investing.com

X Financial reported total net revenue of USD 170.5 million for Q1 2026, a decline of 39.3% year over year, and a net profit of USD 5.5 million (‑91.7%). The company deliberately reduced lending to favor portfolio quality, which led to lower loan volumes, reduced marketing and customer-acquisition costs, and higher credit costs. The operating margin improved sequentially to 12.0% but remains well below the prior-year level. For Q2 2026, X Financial expects further declines in lending and is focused on capital preservation, disciplined underwriting and cost control. » More on de.investing.com

X Financial intentionally reduced loan originations in Q4 2025 to prioritize portfolio health, resulting in RMB 22.77 billion in loans and a ~20% drop in active borrowers year‑over‑year. Delinquency rates rose materially (31–60 day 2.9%, 91–180 day 6.31%), prompting RMB 669.3 million of credit‑related provisions that pushed Q4 operating income and margins to near zero. Management warned that regulatory changes, notably "Notice Nine" and new whitelist rules for bank partners, create significant uncertainty for pricing and funding and could materially impair future results. The company reported lower Q4 revenue and profitability but continued share repurchases while maintaining a cautious stance focused on asset quality, cost control and liquidity preservation. » More on finance.yahoo.com