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

X Financial (NYSE: XYF)

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

The company

to a more conservative lending approach and intentional slowdown in loan expansion to safeguard asset quality and manage risk. anticipates loan originations in Q4 2025 to fall between RMB21.0–23.0 billion, with total originations for 2025 . This cautious expansion in Q3 and highlights the company’s emphasis on prudent risk controls.

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

At the same time,

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 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,

. The company’s shares traded at a forward P/E of 25, down from 38 three months earlier, as the company shifts its strategy to focus more on risk management.