Operating margins have deteriorated sharply from 48.9% in 2024Q1 to just 1.4% in 2025Q4, reflecting a breakdown in the company's ability to scale SG&A expenses relative to revenue.
X Financial (XYF) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Net Interest Income | 878.56M | 1.37B | -211.03M | -253.97M | 136.92M | 691.61M | 634.59M | 427.79M | 80.33M | 134.37M | 30.76M |
| NII Growth % | 664.57% | 748.86% | 16.91% | -285.48% | -80.2% | 8.99% | 48.34% | 432.54% | -40.22% | 336.89% | - |
| Net Interest Margin % | 7.26% | 9.34% | -1.79% | -2.18% | 1.55% | 9.42% | 8.46% | 5.17% | 1.73% | 3.46% | 1.83% |
| Interest Income | 1.41B | 1.37B | 1.37B | 1.12B | 970.03M | 691.61M | 634.59M | 427.79M | 80.33M | 134.37M | 30.76M |
| Interest Expense | 528.55M | 0 | 1.58B | 1.37B | 833.11M | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 1.5B | 1.97B | 377.33M | 308.22M | 167.71M | 144.95M | 1.34B | 310.01M | 653.71M | 350.28M | 8.1M |
| Non-Interest Income | 4.16B | 6.06B | 4.5B | 2.16B | 1.35B | 820.32M | -696.09M | 850.7M | 2.09B | 869.21M | -69.93M |
| Non-Interest Income % | 82.57% | 81.57% | 104.92% | 113.32% | 90.81% | 54.26% | 1131.83% | 66.54% | 96.3% | 86.61% | 178.52% |
| Total Net Revenue | 5.04B | 7.43B | 4.29B | 1.91B | 1.49B | 1.51B | -61.5M | 1.28B | 2.17B | 1B | -39.17M |
| Revenue Growth % | 24.43% | 73.25% | 125% | 27.94% | -1.44% | 2558.38% | -104.81% | -41.09% | 116.25% | 2662.22% | - |
| Non-Interest Expense | 2.83B | 3.87B | 2.04B | 129.59M | 102.51M | 176.18M | 202.15M | 304.56M | 431.65M | 174.73M | 99.93M |
| Efficiency Ratio | 56.06% | 52.13% | 47.52% | 6.8% | 6.88% | 11.65% | -328.69% | 23.82% | 19.89% | 17.41% | -255.13% |
| Operating Income | 716.04M | 1.59B | 1.87B | 1.47B | 1.22B | 1.19B | -1.6B | 663.92M | 1.08B | 478.58M | -147.2M |
| Operating Margin % | 14.21% | 21.43% | 43.68% | 77.03% | 81.87% | 78.76% | 2604.07% | 51.93% | 49.99% | 47.69% | 375.81% |
| Operating Income Growth % | - | -15.03% | 27.59% | 20.39% | 2.44% | 174.35% | -341.23% | -38.81% | 126.7% | 425.12% | - |
| Pretax Income | 752.89M | 1.71B | 1.95B | 1.45B | 1.21B | 1.19B | -1.61B | 663.92M | 1.08B | 478.58M | -147.2M |
| Pretax Margin % | 14.94% | 22.99% | 45.36% | 75.95% | 81.07% | 78.76% | 2615.14% | 51.93% | 49.99% | 47.69% | 375.81% |
| Income Tax | 190.71M | 283.7M | 405.7M | 261.13M | 396.07M | 368.74M | -299.88M | -93.1M | 209.92M | 138.25M | -27.02M |
| Effective Tax Rate % | 25.33% | 16.61% | 20.85% | 18.03% | 32.79% | 30.97% | 18.65% | -14.02% | 19.35% | 28.89% | 18.35% |
| Net Income | 562.19M | 1.42B | 1.54B | 1.19B | 812M | 825.41M | -1.31B | 774.28M | 883.11M | 340.28M | -119.57M |
| Net Margin % | 11.15% | 19.17% | 35.9% | 62.25% | 54.49% | 54.59% | 2127.61% | 60.56% | 40.69% | 33.91% | 305.28% |
| Net Income Growth % | -67.83% | -7.48% | 29.75% | 46.16% | -1.62% | 163.08% | -269% | -12.32% | 159.53% | 384.57% | - |
| Net Income (Continuing) | 562.19M | 1.42B | 1.54B | 1.19B | 812M | 825.41M | -1.31B | 774.48M | 883.06M | 339.49M | -120.18M |
| EPS (Diluted) | 88.94 | 205.56 | 189.00 | 146.88 | 90.72 | 88.20 | -146.64 | 87.12 | 104.76 | 43.92 | -18.06 |
| EPS Growth % | -64.29% | 8.76% | 28.68% | 61.9% | 2.86% | 160.15% | -268.32% | -16.84% | 138.52% | 343.19% | - |
| EPS (Basic) | - | 210.18 | 191.94 | 148.26 | 92.40 | 90.24 | -146.64 | 88.86 | 110.94 | 46.92 | -18.06 |
| Diluted Shares Outstanding | 6.32M | 6.93M | 8.15M | 8.08M | 8.96M | 9.36M | 8.92M | 8.88M | 8.44M | 7.77M | 6.61M |
Quick answers to the most common questions about buying XYF stock.
For fiscal year 2025, X Financial (XYF) reported total revenue of $7.43B.
X Financial (XYF) is profitable, generating $1.42B in net income for the fiscal year ending 2025 with a net profit margin of 19.2%.
X Financial (XYF) reported an operating income of $1.59B, resulting in an operating profit margin of 21.4%. This margin reflects the operational efficiency of the business before interest and taxes.
X Financial (XYF) generated $5.47B in gross profit for the year, representing a gross profit margin of 73.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory margin compression risk
Structural Margin Erosion Trends Observed
As reported in recent financial statements, XYF's operating margin plummeted to 1.4% in 2025Q4 from 48.9% in 2024Q1, suggesting that the company's core profitability is facing significant pressure as the cost of maintaining its credit facilitation model rises relative to its top-line revenue generation.
The sharp contraction in operating margins indicates that the company is struggling to maintain efficiency as it scales its loan facilitation services. Investors should monitor whether this margin compression is a temporary result of increased credit provisioning or a permanent shift in the competitive landscape for consumer credit in China.
Operating Leverage Efficiency Rapidly Deteriorating
Based on the provided income statement data, XYF's SG&A expenses surged to $258.3 million in 2025Q4, which significantly outpaced revenue growth and resulted in a dramatic decline in operating income, signaling a potential breakdown in the company's historical ability to scale its platform without proportional cost increases.
The recent spike in SG&A suggests that the company may be forced to spend more aggressively on customer acquisition or compliance to maintain its market position. This trend warrants further investigation into whether the current cost structure is sustainable under the existing regulatory framework for credit services.
Earnings Quality Impacted by Volatility
According to the company's quarterly filings, net income experienced a substantial decline to $56.4 million in 2025Q4, while stock-based compensation reached $48.1 million, indicating that a significant portion of the remaining bottom-line profit is being offset by non-cash equity expenses that dilute shareholder value.
The high ratio of stock-based compensation relative to net income in the most recent quarter suggests that reported earnings may be overstating the cash-generative capacity of the business. Analysts should be cautious of these non-operating items when evaluating the true underlying profitability of the credit facilitation model.
Sustainability of Current Business Model
While XYF maintains a strong cash position, the recent 82.6% decline in EPS growth as reported in 2025Q4 figures suggests that the company's reliance on institutional funding and credit insurance may be reaching a point of diminishing returns in a tightening regulatory environment for Chinese fintech.
Short-term volatility in earnings may indicate that the company's reliance on third-party credit enhancement is becoming more expensive or less effective at mitigating default risks. The market may be underestimating the risk that regulatory caps on interest rates will permanently impair the company's ability to generate profitable loan volumes.