X Financial Q1 Revenue Drops 39.3% to RMB1.18B as Net Income Falls 91.7%
XYF•X Financial's Q1 net revenue fell 39.3% YoY to RMB 1.18 billion (US$170.5 million), and net income plunged 91.7% to RMB 37.9 million (US$5.5 million) due to higher credit provisions and tighter credit standards. Loan facilitation volumes dropped 58.4% YoY to RMB 14.63 billion, while 91–180-day delinquency rose to 9.95%.
1. Q1 Financial Performance
X Financial reported total net revenue of RMB 1.18 billion in Q1 2026, down 39.3% year-over-year and 19.9% sequentially. Net income declined 91.7% to RMB 37.9 million, with non-GAAP adjusted net income of RMB 81.2 million and operating margin at 12.0%, reflecting elevated credit costs and narrower margins.
2. Loan Origination Decline
Total loans facilitated and originated amounted to RMB 14.63 billion, a 58.4% drop year-over-year and 35.8% decline quarter-over-quarter. Active borrowers fell 60.6% from a year ago to approximately 956,520, as management tightened credit standards and prioritized higher-quality originations.
3. Delinquency Trends
Delinquency for loans 31–60 days past due improved to 2.61% from 2.90% at year-end 2025, while 91–180-day delinquency rose to 9.95% from 6.31%. The higher 91–180-day rate reflects migration of existing delinquent balances and a reduced outstanding loan base rather than fresh deterioration in new originations.
4. Q2 Guidance and Risk Controls
X Financial expects Q2 loan facilitation and origination between RMB 11.5 billion and RMB 12.5 billion, reflecting a measured pace and focus on asset quality. The company plans further risk management enhancements, strengthened collection strategies and disciplined capital deployment to bolster balance sheet resilience.
