X Financial Shifts to Risk-First Approach: Third Quarter Revenue Drops 13.7% Amid Strategic Change

Bitget App

Trade smarter

Bitget

News

Markets

X Financial Shifts to Risk-First Approach: Third Quarter Revenue Drops 13.7% Amid Strategic Change

Bitget-RWA2025/11/23 08:04

By:Bitget-RWA

- X Financial reported 23.9% YoY revenue growth to RMB1.96B in Q3 2025, but saw 13.7% sequential decline due to cautious lending and risk prioritization. - Net income rose 12.1% annually to RMB421M but fell 20.2% sequentially, driven by higher credit provisions and operating costs. - Share repurchases under $100M buyback program totaled $67.9M, with $48M remaining as the company emphasizes disciplined risk management. - Strategic pivot to risk mitigation contrasts with broader fintech sector caution, refle

X Financial (NYSE: XYF)

released Q3 2025 results that were mixed

, as annual revenue growth was counterbalanced by a quarter-over-quarter decrease due to slowing borrower demand and increased credit expenses. The fintech company reported total net revenue of RMB1.96 billion for the quarter,

marking a 23.9% rise compared to the same quarter in 2024

but a 13.7% reduction from Q2 2025. Net profit climbed 12.1% year-over-year to RMB421.24 million, yet dropped 20.2% from the previous quarter,

mainly due to greater provisions for credit losses and higher operating costs

Non-GAAP adjusted net profit fell 26.1% from the prior quarter

to RMB438.18 million, though this was a 1.0% improvement over last year.

The company

linked the quarter-over-quarter revenue drop

to a more conservative lending approach and intentional slowdown in loan expansion to safeguard asset quality and manage risk.

X Financial

anticipates loan originations in Q4 2025 to fall between RMB21.0–23.0 billion, with total originations for 2025

estimated at RMB128.8–130.8 billion

. This cautious expansion

comes after a 13.7% quarter-over-quarter revenue decrease

in Q3 and highlights the company’s emphasis on prudent risk controls.

X Financial Shifts to Risk-First Approach: Third Quarter Revenue Drops 13.7% Amid Strategic Change image 0

Returning value to shareholders remained a central focus

, as X Financial bought back 4.26 million ADSs for US$67.9 million under its US$100 million repurchase plan since January 2025. The buyback, set to end in November 2026, still has US$48.0 million available

as reported by Marketscreener

. Company leadership expressed optimism about sustained growth and enhancing shareholder returns, though future buybacks will depend on market trends.

At the same time,

Bank of America revised its commitments

in November 2025, which included switching a direct-pay letter of credit for Illinois Finance Authority bonds to JPMorgan Chase Bank. The bank also arranged $1.45 billion in financing for BX Commercial Mortgage Trust 2025-JDI, with Fitch Ratings providing initial assessments. These developments illustrate ongoing momentum in commercial real estate and credit markets, although

X Financial’s performance points to increased caution in the fintech industry

as credit risks remain elevated.

X Financial’s earnings per ADS dropped from the previous quarter but improved year-over-year, with basic EPS at RMB10.56 for Q3 2025,

up 34.4% from Q3 2024

. The company’s shares traded at a forward P/E of 25, down from 38 three months earlier,

indicating investor caution

as the company shifts its strategy to focus more on risk management.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- XRP faces critical junctures near $2.14 as Grayscale's spot ETF (GXRP) launch looms, with $1.75 support level pivotal for short-term stability. - A death cross pattern raises bearish concerns, suggesting potential 55% price drop to $1 if technical indicators fail to hold. - Institutional crypto products like Leverage Shares' 3x ETFs and 1inch's liquidity pools highlight growing institutional interest amid market volatility. - DeFi struggles with $12B idle capital while projects like Mutuum Finance aim to

Bitget-RWA•2025/11/23 08:44

XRP News Update: XRP ETF Buzz vs. Death Cross: Can the $1.75 Support Level Remain Intact?

Bitcoin Updates: Negative Derivatives Meet Optimistic Institutions as Bitcoin's Future Remains Uncertain

- Bitcoin fell below $85,500 amid bearish derivatives positioning, macroeconomic uncertainty, and dormant wallet sell pressure, with puts dominating calls at $85,000 strike price. - Institutional bulls like Michael Saylor's Strategy reported $2.8B Q3 profits from BTC holdings and pledged continued accumulation during the slump. - The Bitcoin for America Act proposes tax payments in BTC without capital gains liability, aiming to create a Strategic Bitcoin Reserve and modernize U.S. finance. - Derivatives pl

Bitget-RWA•2025/11/23 08:44

Bitcoin Updates: Negative Derivatives Meet Optimistic Institutions as Bitcoin's Future Remains Uncertain

Bitcoin Experiences Sharp Decline as Macroeconomic Conditions Change: The Impact of Increasing Interest Rates and Heightened Regulatory Oversight on Cryptocurrency Values

- Bitcoin's 2025 late-year drop from $126,000 to $80,000 reflects heightened sensitivity to Fed policy shifts and regulatory pressures. - Fed officials like Susan Collins signaled "mildly restrictive" policy, crushing rate cut expectations and triggering 70% decline in December cut odds. - Regulatory crackdowns on crypto mixing and mining contrasted with institutional buying (e.g., Cardone Capital's $15. 3M Bitcoin purchase) amid market volatility. - Political uncertainty (60% expect Trump-era crypto gains

Bitget-RWA•2025/11/23 08:22

Bitcoin’s Abrupt Price Swings and Institutional Outflows: An In-Depth Analysis of Market Dynamics and Liquidity Challenges

- Institutional investors are shifting capital from Bitcoin to AI infrastructure, driven by higher returns in 2025. - Bitcoin's liquidity has declined, with order book depth dropping to $14M by mid-2025, exacerbating volatility. - Structural shifts, including mining repurposing and AI-focused capital flows, threaten Bitcoin's hash rate and market stability. - Alternative projects like XRP Tundra and AI-driven risks challenge Bitcoin's dominance, complicating investor strategies.

Bitget-RWA•2025/11/23 08:22