X Financial (NYSE: XYF) reported unaudited second-quarter 2026 net revenue of RMB993.6 million ($146.4 million), down 56.3% from a year earlier and 15.5% from the previous quarter. Net income fell 91.1% year over year to RMB47.0 million ($6.9 million), although it rose 23.8% sequentially. The company facilitated and originated RMB11.63 billion in loans, down 70.2% year over year and 20.5% quarter over quarter, as active borrowers fell 74.8% year over year to approximately 720,258. Delinquency rates improved sequentially to 1.73% for loans 31–60 days past due and 9.09% for loans 91–180 days past due, but both remained above year-earlier levels. Non-GAAP adjusted net income was RMB165.8 million, while basic earnings were RMB1.26 per ADS and adjusted basic earnings were RMB4.44 per ADS. X Financial repurchased approximately 2.63 million ADSs for about $12.49 million from Jan. 1 through Aug. 14, leaving approximately $35.50 million under its existing $100 million buyback program through Nov. 30, 2026. Its board approved a semi-annual dividend of $0.28 per ADS, payable on or about Sept. 28, 2026, to shareholders of record on Sept. 10. The company said China’s internet-based lending rules continued to evolve under heightened oversight and warned that implementation of current and emerging requirements could materially hurt results.