X Financial reports 56.3% Q2 revenue drop

• X Financial saw its Q2 2026 net revenue fall 56.3% year-over-year to RMB993.6 million.
• Despite the revenue hit, non-GAAP adjusted net income increased 104.3% quarter-over-quarter to RMB165.8 million.
• Management cited continued regulatory uncertainty in China's internet lending sector as an ongoing business risk.

X Financial (NYSE:XYF) reported second-quarter 2026 total net revenue of RMB993.6 million (US$146.4 million), marking a 56.3 percent year-over-year decline.

This revenue drop aligned with a 70.2 percent year-over-year fall in total loan origination volume to RMB11.63 billion.

Despite the volume decline, non-GAAP adjusted net income increased by 104.3 percent quarter-over-quarter to reach RMB165.8 million.

The board also declared a semi-annual dividend of US$0.28 per share payable to stockholders in late September 2026.

The company continues to execute a US$100 million share buyback program that remains effective through November 30, 2026.

Management stated that ongoing regulatory uncertainty in China’s internet lending market could adversely impact future operating results.