Q4 2025 X Financial Earnings Call Transcript
Key Points
- X Financial (XYF) achieved a 24.5% increase in loan origination for the full year 2025 compared to 2024, demonstrating growth despite a challenging environment.
- The company focused on strengthening core operations by enhancing internal platforms, reducing reliance on external traffic sources, and improving efficiency.
- X Financial (XYF) implemented tighter risk controls and underwriting standards to maintain portfolio health and long-term stability.
- The company maintained a solid balance sheet with total assets of RMB14.667 billion and a strong cash position, including restricted cash of approximately RMB2.13 billion.
- X Financial (XYF) continued its share repurchase program, reflecting confidence in its long-term growth outlook and commitment to enhancing shareholder value.
- Loan origination in Q4 2025 declined by 29.5% year over year and 32.3% sequentially, reflecting a deliberate moderation in activity.
- The 31 to 60 day delinquency rate increased to 2.9% by the end of Q4 2025, up from 1.85% in Q3 and 1.17% a year ago, indicating rising credit pressure.
- Total net revenue for Q4 2025 decreased by 14.1% year over year and 25.1% sequentially, impacted by higher credit-related provisions.
- Operating margin in Q4 2025 decreased significantly to 1.4% from 18.5% in Q3 and 30.7% in the same period last year, due to elevated credit costs.
- The regulatory environment in China remains uncertain, with new requirements potentially affecting X Financial (XYF)'s operating results and profitability.
Hello and welcome to the X Financial fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Victoria Yu. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining today's call. Our financial results for the first quarter and the fiscal year ended December 31, 2025 were released earlier today and are available on the company's Investor Relations website at ir.Xiaoyinggroup.com.
On the call today from X Finanical are Mr. Kan Li, President; Mr. Frank Fuya Zheng, Chief Financial Officer; and Mr. Noah Kauffman, Chief Financial Strategy Officer. Mr. Lee will begin with an overview of our business performance and key operational developments. Mr. Kauffman will then discuss the regulatory environment and the fourth quarter financial performance, followed by Mr. Zheng who will review the full financial results, capital position, and outlook. After the prepared remarks, Mr. Li, Mr.
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