China's X Financial Q4 revenue falls, net income drops

Overview

• China fintech platform's Q4 2025 revenue fell 14.1% yr/yr

• Q4 net income dropped 85.2% yr/yr due to higher credit provisions and lower facilitation revenue

• As of March 15, company repurchased $53.85 mln in shares and declared a semi-annual dividend

Outlook

• X Financial expects Q1 2026 loan origination of RMB 14.5 bln to RMB 15.5 bln

Result Drivers

• LOWER ORIGINATION VOLUMES - Co said Q4 loan origination and active borrowers declined due to focus on higher-quality origination and tighter credit standards

• HIGHER CREDIT PROVISIONS - Co said profitability was significantly impacted by higher credit-related provisions and lower loan facilitation revenue

Company press release: ID:nPn149xJBa

Key Details

Analyst Coverage

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 18 three months ago

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