X Financial (NYSE: XYF) saw its revenue drop 14% year-over-year in the fourth quarter of 2025. The company faced sharply rising delinquency rates and surging credit provisions, leading to a 96% collapse in operating income to RMB 20 million. Analysts highlight regulatory uncertainties as a key challenge.
X Financial, listed on the NYSE under the ticker XYF, encountered significant headwinds in Q4 2025. Revenue fell 14% from the prior year, while credit provisions jumped 194.7%. These pressures contributed to operating income plummeting 96% to RMB 20 million, as the firm shifted toward quality lending and risk reduction strategies amid rising delinquencies and regulatory risks in the sector. Previously, the company had shown revenue acceleration with improving delinquency rates and government-backed consumer loans, though marketing costs had impacted profitability. The stock now trades at a deep discount, reflecting a 0.94x price-to-earnings ratio. However, analysts point to deteriorating loan quality and broader regulatory uncertainty as factors outweighing the apparent valuation appeal. One analyst maintains a HOLD rating on XYF, advising to await regulatory clarity and normalized delinquency rates before increasing exposure.