X Financial Reports Strong Q1 2025 Performance Amidst Market Challenges

X Financial, a prominent player in the consumer finance sector operating in China, has reported a robust first quarter for 2025, showcasing significant growth in revenue and net income. The company, listed on the New York Stock Exchange, saw its stock close at $17.4 on May 20, 2025, slightly below its 52-week high of $18.4 but well above the 52-week low of $3.68.

Earnings Highlights

For the first quarter of 2025, X Financial reported a substantial increase in earnings, with net income rising to RMB458.13 million, or RMB10.56 per share, compared to RMB363.14 million, or RMB7.32 per share, in the same period last year. Excluding certain items, the adjusted earnings were RMB488.77 million or RMB10.74 per share. Revenue for the quarter surged by 60.5% to RMB1.937 billion from RMB1.207 billion in the previous year.

Operational Performance

The company’s operational metrics also reflected strong performance. Total loan facilitation volume increased by 63.4% year-over-year to RMB35.1 billion. Net income grew by 26.2% to RMB458.1 million, while active borrowers rose by 77.1% to 2.43 million. X Financial’s asset quality improved, with delinquency rates declining significantly.

Financial Strategy and Outlook

Despite a slight decline in operating margin to 29.6% from 31.2% due to increased marketing costs, X Financial announced a new US$100 million share repurchase program, underscoring its confidence in the company’s financial health. The company’s strong balance sheet is supported by RMB2.1 billion in total cash.

Guidance and Future Prospects

Looking ahead, X Financial provided revenue guidance for the next quarter, projecting RMB37.5-RMB39.5 billion. The company’s strategic investments in marketing and borrower acquisition, despite leading to higher operating costs, are expected to support continued growth.

Conference Call and Investor Engagement

To discuss these results in detail, X Financial hosted a conference call on May 20, 2025, at 7:30 AM ET. The call was part of the company’s ongoing efforts to engage with investors and provide transparency regarding its financial performance and strategic direction.

In summary, X Financial’s Q1 2025 results reflect a strong operational performance and strategic positioning in the consumer finance industry, with significant growth in key financial metrics and a commitment to enhancing shareholder value through strategic initiatives.