X Financial (NYSE:XYF) Releases Quarterly Earnings Results, Beats Expectations By $0.36 EPS

X Financial (NYSE:XYF) released its quarterly earnings results on Monday. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.29 by $0.36, Zacks reports. The firm had revenue of $146.24 million for the quarter, compared to analyst estimates of $190.63 million. X Financial had a return on equity of 9.19% and a net margin of 9.94%.

Here are the key takeaways from X Financial’s conference call:

• Origination and revenue declined sharply: Loan facilitation volume fell 70.2% year over year to RMB 11.63 billion, while net revenue dropped 56.3% to RMB 993.6 million. The company is prioritizing credit quality and capital preservation over near-term growth.
• Credit metrics improved sequentially but remain elevated: The 31–60-day delinquency rate declined to 1.73% and the 91–180-day rate to 9.09%, although both remained above year-ago levels. Management attributed the improvement to tighter underwriting and stronger collections, while cautioning that older vintages continue to pressure results.
• Profitability improved from the prior quarter: Net income rose 23.8% sequentially to RMB 47 million, adjusted net income increased 104.3% to RMB 166 million, and operating margin expanded to 19.6% from 12% in Q1. However, earnings remained substantially below the prior-year period.
• Balance-sheet credit risk increased: The company recorded RMB 95.3 million of provisions for credit losses related to deposits and other financial assets, largely tied to one funding institution that has delayed returning guarantee funds. Management said the amount was conservatively written down but may ultimately be recovered.
• Capital returns and liquidity remain important priorities: X Financial repurchased approximately 2.63 million ADS for $12.49 million and declared a $0.28-per-ADS cash dividend. The company reported approximately RMB 2 billion in cash and restricted cash, but provided no third-quarter guidance because of ongoing uncertainty.

X Financial Stock Down 1.5%

Shares of XYF opened at $5.42 on Wednesday. The business’s 50 day moving average is $5.00 and its two-hundred day moving average is $4.86. X Financial has a 52-week low of $3.30 and a 52-week high of $15.96. The firm has a market cap of $211.83 million, a price-to-earnings ratio of 2.76 and a beta of 0.46.

X Financial Cuts Dividend

The firm also recently disclosed a dividend, which will be paid on Monday, September 28th. Shareholders of record on Thursday, September 10th will be issued a dividend of $0.28 per share. The ex-dividend date is Thursday, September 10th. This represents a yield of 1,027.0%. X Financial’s payout ratio is currently 15.65%.

Analyst Ratings Changes

Separately, Weiss Ratings cut shares of X Financial from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, August 14th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, X Financial presently has an average rating of “Hold”.

Key Headlines Impacting X Financial

Here are the key news stories impacting X Financial this week:

• Positive Sentiment: Quarterly earnings significantly exceeded expectations. X Financial reported second-quarter 2026 earnings of $0.65 per share, versus the $0.29 consensus estimate. Net margin was 15.06% and return on equity was 14.38%. X Financial quarterly earnings report
• Positive Sentiment: Operating efficiency and credit performance improved. Management’s AI-driven cost reductions, tighter underwriting and lower delinquency rates helped support margins despite weaker loan activity. X Financial pros and cons of owning the stock
• Positive Sentiment: X Financial declared a $0.28-per-share dividend. Shareholders of record on September 10 are scheduled to receive payment on September 28. The reported yield of 1,027% appears inconsistent with the stock’s price and likely reflects a data or annualization error, but the payout remains a potential support for income-focused investors.
• Neutral Sentiment: The stock’s valuation remains low. XYF trades around $5.42, with a price-to-earnings ratio of approximately 1.57, while its 50-day and 200-day moving averages are near $4.99 and $4.85, respectively. The low valuation may reflect both potential value and concerns about earnings durability.
• Negative Sentiment: Revenue missed expectations by a wide margin. Second-quarter revenue was $146.24 million, below the $190.63 million analyst forecast. Revenue fell sequentially as loan facilitation income declined and the company adopted a more cautious origination strategy. X Financial second-quarter earnings highlights

Institutional Trading of X Financial

A number of hedge funds have recently made changes to their positions in the stock. BNP Paribas Financial Markets acquired a new stake in X Financial in the third quarter valued at $105,000. Police & Firemen s Retirement System of New Jersey bought a new stake in shares of X Financial in the 4th quarter worth about $43,000. Russell Investments Group Ltd. increased its position in shares of X Financial by 468.4% in the 3rd quarter. Russell Investments Group Ltd. now owns 33,780 shares of the company’s stock worth $457,000 after purchasing an additional 27,837 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of X Financial in the 2nd quarter valued at about $697,000. Institutional investors and hedge funds own 1.15% of the company’s stock.

X Financial Company Profile

X Financial (NYSE:XYF) is a Beijing-based online credit marketplace focused on providing diversified financing solutions to individuals and small- and medium-sized enterprises (SMEs) in China. The company was established in 2014 and completed its initial public offering on the New York Stock Exchange in 2016. Since inception, X Financial has built a technology-driven platform that connects borrowers with a network of institutional investors, banks and other funding sources, aiming to streamline access to credit and improve lending efficiency.

The company’s core offerings include consumer loans, SME loans, real estate-secured financing and wealth management products.