X Financial (XYF) investor relations material

Executive summary

• Q4 2025 saw deliberate moderation in loan origination and borrower activity to prioritize credit quality amid a challenging external environment, with total loan amount facilitated at RMB 22.8 billion, down 29.5% year-over-year; FY2025 total was RMB 130.6 billion, up 24.5% year-over-year.

• Served over 6.7 million active borrowers in 2025, facilitating 12.8 million new loans and reaching nearly 140 million registered users since inception.

• Operational focus shifted to internal platforms, tighter risk controls, and automation to enhance efficiency and compliance.

• Platform design prioritizes profitability and scalability, achieving a 21% operating margin and 19% net margin in 2025.

• Leadership team has deep experience in fintech, capital markets, and risk management, with a founder who previously led a NASDAQ-listed company.

Financial highlights

• Q4 2025 net revenue was RMB 1.47 billion, down 14.1% year-over-year and 25.1% sequentially; FY2025 net revenue rose 30.1% to RMB 7.64 billion.

• Q4 2025 net income was RMB 57.2 million, down 85.2% year-over-year; FY2025 net income was RMB 1.46 billion, slightly down from RMB 1.54 billion in 2024.

• FY2025 EPS grew 17.6% year-over-year to $5.15, marking three consecutive years of double-digit EPS growth and a 21.5% CAGR since 2021.

• Operating and marketing expenses for Q4 2025 decreased 23.9% year-over-year, while credit provisions rose 194.7%.

• Total assets grew 24.1% year-over-year to RMB 14.7 billion as of Q4 2025; shareholders’ equity increased to RMB 7.84 billion, with an equity-to-assets ratio of 53.4%.

Outlook and guidance

• Near-term outlook remains cautious due to evolving regulatory developments, macroeconomic uncertainty, and limited visibility on regional policy implementation.

• Management expects Q1 2026 loan facilitation volume between RMB 14.5 billion and RMB 15.5 billion.

• Focus remains on asset quality, disciplined risk management, cost control, and liquidity preservation.

• Platform remains focused on capital-light, high-ROE growth, with continued emphasis on disciplined capital allocation and shareholder returns.

• Management will adapt operational approaches as regulatory expectations develop.