Qfin Holdings, Inc. (QFIN) Q3 2025 Earnings Call Transcript
Total loan facilitation and origination volume RMB 83.3 billion in Q3, broadly in line with Q2. The steady performance was achieved despite macroeconomic headwinds.
Non-GAAP net income RMB 1.51 billion in Q3. This reflects solid profitability and operating resilience.
Non-GAAP EPADS (Earnings Per ADS) RMB 11.36 in Q3, indicating strong financial performance.
ABS issuance RMB 4.5 billion in Q3, up 29% year-over-year. Issuance costs decreased by 10 basis points, optimizing funding structure.
Total ABS issuance (first 9 months of 2025) RMB 18.9 billion, a 41% year-over-year increase, further optimizing funding structure.
New credit line users 1.95 million in Q3, a 9% sequential increase. Average cost per credit line user declined by 8%.
New borrowers 1.35 million in Q3, a 10% sequential increase.
Loan volume from embedded finance channels Increased by 11% sequentially in Q3, driven by the addition of 7 new strategic partners.
Loan volume supported by Technology Solutions business Grew by approximately 218% sequentially in Q3, showcasing exponential growth.
Total net revenue CNY 5.21 billion in Q3, compared to CNY 5.22 billion in Q2 and CNY 4.37 billion a year ago. The year-over-year increase was driven by higher capital-heavy loan balance.
Revenue from credit-driven service (capital heavy) CNY 3.87 billion in Q3, compared to CNY 3.57 billion in Q2 and CNY 2.9 billion a year ago. The increase was due to higher capital-heavy loan balance.
Revenue from platform service (capital light) CNY 1.34 billion in Q3, compared to CNY 1.65 billion in Q2 and CNY 1.47 billion a year ago. The decline was due to lower capital-light facilitation and ICE volume.
90-day delinquency rate 2.09% in Q3, compared to 1.97% in Q2, reflecting increased portfolio risk.
Day 1 delinquency rate 5.5% in Q3, compared to 5.1% in Q2, indicating rising delinquency risk.
30-day collection rate 85.7% in Q3, compared to 87.3% in Q2, showing a decline in collection efficiency.
C-M2 delinquency rate 0.79% in Q3, compared to 0.64% in Q2, reflecting increased portfolio risk.
New provisions for risk-bearing loans CNY 2.58 billion in Q3, compared to CNY 2.5 billion in Q2, despite lower risk-bearing loan volume.
Write-backs of previous provisions CNY 785 million in Q3, compared to CNY 1.18 billion in Q2, reflecting a more conservative approach to credit loss provisions.
Provision coverage ratio 613% in Q3, near historical highs, indicating strong provisioning against delinquent loans.
Non-GAAP net profit CNY 1.51 billion in Q3, compared to CNY 1.85 billion in Q2 and CNY 12.35 billion a year ago, reflecting solid profitability.
Cash from operations CNY 2.5 billion in Q3, compared to CNY 2.62 billion in Q2, showcasing strong cash flow.
Total cash and cash equivalents and short-term investment CNY 14.35 billion in Q3, compared to CNY 13.34 billion in Q2, indicating a strong financial position.
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Qfin Transitions from Fintech Star to Struggler Amid New Regulatory Changes
Weak Financial Performance: Qfin Holdings Inc. reported a 0.2% decline in revenue and a 17% drop in net profit for the third quarter, marking its first revenue contraction in over two years, and issued a bearish outlook for the remainder of the year.
Regulatory Challenges: The company faces increased regulatory scrutiny that is expected to impact its loan facilitation business, as new rules emphasize risk management and may limit loan growth.
Rising Default Risks: Qfin's provisions for bad loans surged due to an increase in delinquent loans, reflecting the broader economic challenges in China, where consumer and business borrowing has decreased.
Market Reaction: Following the disappointing quarterly results, Qfin's stock fell significantly, underperforming the market, as investors remain cautious due to the company's high exposure to regulatory and economic changes.
JP Morgan Adjusts Qfin Holdings Rating to Neutral and Reduces Price Target to $21
Real-time Intelligence: Benzinga Pro offers the fastest news alerts to help traders stay informed and make timely decisions in the stock market.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters, enhancing their trading strategies.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and experiences.
Market Winning Tools: The platform is designed to provide traders with the tools and information necessary to succeed in their trading endeavors.
Qfin Holdings is Underpriced
Qfin Holdings Inc Oversold Status: Shares of Qfin Holdings Inc recently entered oversold territory with an RSI reading of 26.4, indicating potential buying opportunities as the stock price fell to $18.6601.
Dividend Yield Opportunity: The company's annualized dividend of $1.52 per share translates to a yield of 6.78% based on a recent share price of $22.42, making it attractive for dividend investors.
Investor Sentiment: The low RSI suggests that heavy selling may be exhausting, prompting bullish investors to consider entry points for purchasing shares.
Dividend History Importance: Investors are encouraged to review QFIN's dividend history to assess the likelihood of continued dividend payments, as dividends can be unpredictable.
Qfin Holdings Inc. - Sponsored ADR (QFIN) Reports Q3 Earnings Below Expectations
Earnings Performance: Qfin Holdings Inc. reported quarterly earnings of $1.52 per share, missing estimates and showing a decline from $1.74 per share a year ago, resulting in a -9.52% earnings surprise.
Revenue Growth: The company achieved revenues of $731.25 million, exceeding expectations by 6.86% and marking an increase from $622.74 million in the previous year.
Stock Outlook: Qfin Holdings has underperformed the market with a 42.1% decline this year, and its current Zacks Rank is #5 (Strong Sell), indicating expected underperformance in the near future.
Future Estimates: The consensus EPS estimate for the upcoming quarter is $1.51, with revenues projected at $665.72 million, while the industry rank suggests potential for better performance in the Financial - Miscellaneous Services sector.
Earnings Report for After-Hours Trading on November 18, 2025: DLB, POWL, GBDC, QFIN, SQM, SBLK, LZB, VREX, CCIF
Earnings Reports Overview: Several companies, including Dolby Laboratories, Powell Industries, and Golub Capital BDC, are set to report earnings for the quarter ending September 30, 2025, with varying forecasts indicating decreases in earnings per share compared to the previous year.
Performance Expectations: Despite expected declines in earnings, companies like Dolby and Powell have consistently beaten earnings expectations in the past year, suggesting potential resilience in their performance.
Industry Comparisons: The Price to Earnings (P/E) ratios for these companies indicate that they are expected to have higher earnings growth compared to their industry peers, with Dolby and Powell showing ratios above their respective industry averages.
Notable Increases and Decreases: Sociedad Quimica y Minera S.A. is projected to see a significant increase in earnings, while Star Bulk Carriers Corp. and La-Z-Boy Incorporated are expected to report substantial decreases in earnings per share compared to the same quarter last year.
Qfin Holdings Shares Drop Following Disappointing Q3 Earnings
Q3 Financial Performance: Qfin Holdings (QFIN) reported a significant Q3 loss, with non-GAAP earnings per American depository share (EPADS) of RMB 11.36, missing estimates and declining from previous quarters. Revenue was RMB 5.21B, slightly above consensus but down from the prior quarter.
Market Challenges: The company faced economic uncertainties and regulatory changes, leading to increased risk levels and a rise in loan delinquency rates, which reached 2.09% as of September 30, 2025.
Future Projections: Qfin anticipates a non-GAAP net income of RMB 1.0B-RMB 1.2B for Q4, reflecting a year-over-year decline of 39%-49%.
Operational Adjustments: CEO Haisheng Wu noted that the company is adjusting operations to navigate macroeconomic challenges and has tightened risk standards in response to liquidity issues in high-risk segments.
Qfin Transitions from Fintech Star to Struggler Amid New Regulatory Changes
Weak Financial Performance: Qfin Holdings Inc. reported a 0.2% decline in revenue and a 17% drop in net profit for the third quarter, marking its first revenue contraction in over two years, and issued a bearish outlook for the remainder of the year.
Regulatory Challenges: The company faces increased regulatory scrutiny that is expected to impact its loan facilitation business, as new rules emphasize risk management and may limit loan growth.
Rising Default Risks: Qfin's provisions for bad loans surged due to an increase in delinquent loans, reflecting the broader economic challenges in China, where consumer and business borrowing has decreased.
Market Reaction: Following the disappointing quarterly results, Qfin's stock fell significantly, underperforming the market, as investors remain cautious due to the company's high exposure to regulatory and economic changes.
JP Morgan Adjusts Qfin Holdings Rating to Neutral and Reduces Price Target to $21
Real-time Intelligence: Benzinga Pro offers the fastest news alerts to help traders stay informed and make timely decisions in the stock market.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters, enhancing their trading strategies.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, sharing knowledge and experiences.
Market Winning Tools: The platform is designed to provide traders with the tools and information necessary to succeed in their trading endeavors.
Qfin Holdings is Underpriced
Qfin Holdings Inc Oversold Status: Shares of Qfin Holdings Inc recently entered oversold territory with an RSI reading of 26.4, indicating potential buying opportunities as the stock price fell to $18.6601.
Dividend Yield Opportunity: The company's annualized dividend of $1.52 per share translates to a yield of 6.78% based on a recent share price of $22.42, making it attractive for dividend investors.
Investor Sentiment: The low RSI suggests that heavy selling may be exhausting, prompting bullish investors to consider entry points for purchasing shares.
Dividend History Importance: Investors are encouraged to review QFIN's dividend history to assess the likelihood of continued dividend payments, as dividends can be unpredictable.
Qfin Holdings Inc. - Sponsored ADR (QFIN) Reports Q3 Earnings Below Expectations
Earnings Performance: Qfin Holdings Inc. reported quarterly earnings of $1.52 per share, missing estimates and showing a decline from $1.74 per share a year ago, resulting in a -9.52% earnings surprise.
Revenue Growth: The company achieved revenues of $731.25 million, exceeding expectations by 6.86% and marking an increase from $622.74 million in the previous year.
Stock Outlook: Qfin Holdings has underperformed the market with a 42.1% decline this year, and its current Zacks Rank is #5 (Strong Sell), indicating expected underperformance in the near future.
Future Estimates: The consensus EPS estimate for the upcoming quarter is $1.51, with revenues projected at $665.72 million, while the industry rank suggests potential for better performance in the Financial - Miscellaneous Services sector.
Earnings Report for After-Hours Trading on November 18, 2025: DLB, POWL, GBDC, QFIN, SQM, SBLK, LZB, VREX, CCIF
Earnings Reports Overview: Several companies, including Dolby Laboratories, Powell Industries, and Golub Capital BDC, are set to report earnings for the quarter ending September 30, 2025, with varying forecasts indicating decreases in earnings per share compared to the previous year.
Performance Expectations: Despite expected declines in earnings, companies like Dolby and Powell have consistently beaten earnings expectations in the past year, suggesting potential resilience in their performance.
Industry Comparisons: The Price to Earnings (P/E) ratios for these companies indicate that they are expected to have higher earnings growth compared to their industry peers, with Dolby and Powell showing ratios above their respective industry averages.
Notable Increases and Decreases: Sociedad Quimica y Minera S.A. is projected to see a significant increase in earnings, while Star Bulk Carriers Corp. and La-Z-Boy Incorporated are expected to report substantial decreases in earnings per share compared to the same quarter last year.
Qfin Holdings Shares Drop Following Disappointing Q3 Earnings
Q3 Financial Performance: Qfin Holdings (QFIN) reported a significant Q3 loss, with non-GAAP earnings per American depository share (EPADS) of RMB 11.36, missing estimates and declining from previous quarters. Revenue was RMB 5.21B, slightly above consensus but down from the prior quarter.
Market Challenges: The company faced economic uncertainties and regulatory changes, leading to increased risk levels and a rise in loan delinquency rates, which reached 2.09% as of September 30, 2025.
Future Projections: Qfin anticipates a non-GAAP net income of RMB 1.0B-RMB 1.2B for Q4, reflecting a year-over-year decline of 39%-49%.
Operational Adjustments: CEO Haisheng Wu noted that the company is adjusting operations to navigate macroeconomic challenges and has tightened risk standards in response to liquidity issues in high-risk segments.
