Qfin Holdings Shares Surge 24% Amid Improved Asset Quality
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Significant Stock Surge: Qfin Holdings shares jumped approximately 24% on Wednesday, reflecting investor optimism regarding the company's resilient asset quality and strong cash flow despite a sharp decline in quarterly profits.
- Decline in Profit and Revenue: The company reported a first-quarter net income of RMB 879.8 million, down from RMB 1.8 billion a year earlier, while total net revenue fell to RMB 3.91 billion from RMB 4.69 billion, indicating reduced loan volumes amid tighter regulatory conditions.
- Loan Origination Volume Drop: Loan origination volume decreased by 26.8% to RMB 65.03 billion, with outstanding loan balances down 18.5%, demonstrating the firm's cautious approach to credit risk management.
- Improved Asset Quality: Despite earnings pressure, the 90-day delinquency rate improved to 3.5%, and operating cash flow remained robust, indicating a strong liquidity position for the company.
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Analyst Views on QFIN
Wall Street analysts forecast QFIN stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 15.370
Low
21.00
Averages
36.93
High
50.00
Current: 15.370
Low
21.00
Averages
36.93
High
50.00
About QFIN
Qfin Holdings Inc, formerly Qifu Technology Inc, is a holding company mainly engaged in credit technology services. The Company’s services are divided into credit-driven services and platform services according to the nature of the service and the level of related credit risk. The credit-driven services match potential borrowers with financial institutions, enabling financial institutions to obtain borrowers, conduct credit evaluation, fund matching and post-loan services. The platform services include a full range of loan assistance and post-loan services under the capital-light model, intelligent marketing services, referral services, and risk management software as services (SaaS) for financial institution partners under the Intelligent Credit Engine (ICE) model.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Qfin Surges 26.93% After Q1 Earnings Beat Expectations
- Significant Stock Surge: Qfin's stock soared by 26.93% during Wednesday's trading session, reaching a price of $15.98 by 1:50 p.m. ET, indicating strong market enthusiasm following its earnings report.
- Earnings Meet Expectations: Despite lower-than-expected sales, Qfin reported non-GAAP earnings of $1.12 per American depositary share and sales of $566.74 million, which fell short by $22.8 million, yet still met earnings expectations.
- Improved Asset Quality: The company achieved a delinquency rate of 3.5% in the first quarter, reflecting an improvement in asset quality, and management's forward guidance has instilled optimism among investors regarding future business prospects.
- Future Guidance: Qfin is guiding for net income between 830 million and 910 million Chinese renminbi for the current quarter, suggesting another significant decline in overall net income, but also leaving room for potential sequential improvement, showcasing the company's cautious approach to risk management.
See More
Qfin Holdings Shares Surge 24% Amid Improved Asset Quality
- Significant Stock Surge: Qfin Holdings shares jumped approximately 24% on Wednesday, reflecting investor optimism regarding the company's resilient asset quality and strong cash flow despite a sharp decline in quarterly profits.
- Decline in Profit and Revenue: The company reported a first-quarter net income of RMB 879.8 million, down from RMB 1.8 billion a year earlier, while total net revenue fell to RMB 3.91 billion from RMB 4.69 billion, indicating reduced loan volumes amid tighter regulatory conditions.
- Loan Origination Volume Drop: Loan origination volume decreased by 26.8% to RMB 65.03 billion, with outstanding loan balances down 18.5%, demonstrating the firm's cautious approach to credit risk management.
- Improved Asset Quality: Despite earnings pressure, the 90-day delinquency rate improved to 3.5%, and operating cash flow remained robust, indicating a strong liquidity position for the company.
See More
Qfin Holdings Reports Q1 Earnings Miss with Declining Revenue
- Revenue Decline: Qfin Holdings reported Q1 revenue of $566.74 million, a 16.63% year-over-year decline, missing estimates by $22.78 million, indicating significant competitive pressures in the market.
- User Growth: As of March 31, 2026, the platform connected 167 financial institutional partners and 297.5 million consumers with potential credit needs, reflecting an 11.0% increase year-over-year, demonstrating progress in expanding market reach.
- Loan Origination: In Q1, the platform facilitated 12,925,120 loans with a total volume of RMB 65,034 million, down 26.8% from the previous year, highlighting weakened market demand and challenges faced by the company.
- Future Outlook: The company expects Q2 2026 net income to range between RMB 830 million and RMB 910 million, representing a year-over-year decline of 47% to 51%, indicating pressure on future profitability and uncertainty in the market environment.
See More
Qfin (QFIN) Q1 2026 Earnings Call Transcript
See More
Qfin Holdings Reports Earnings Beat Amid Revenue Decline
- Earnings Surprise: Qfin Holdings Inc. reported earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.96, although this reflects a decline from $1.74 per share a year ago, indicating volatility in profitability.
- Revenue Performance: The company posted revenues of $566.74 million for the quarter, surpassing the Zacks Consensus Estimate by 5.05%, yet this marks a decrease from $646.4 million year-over-year, highlighting challenges from intensified market competition and shifting customer demands.
- Stock Performance: Qfin Holdings Inc. shares have dropped approximately 39.5% since the beginning of the year, contrasting with the S&P 500's gain of 9.2%, indicating a significant underperformance in the market, prompting investors to closely monitor future earnings expectations.
- Future Outlook: While the current consensus EPS estimate stands at $0.90 on revenues of $494.51 million, the unfavorable trend in estimate revisions has led to a Zacks Rank of 5 (Strong Sell), suggesting that the stock may continue to face pressure in the near term.
See More
Qfin Holdings Reports Q1 2026 Financial Highlights Amid Regulatory Challenges
- Significant User Growth: As of March 31, 2026, Qfin Holdings' platform connected 167 financial institutions and 297.5 million consumers, representing an 11% increase from the previous year, indicating strong market appeal and potential credit demand.
- Decline in Loan Origination: In Q1 2026, total loan volume facilitated through the platform was RMB 65.034 billion, a 26.8% decrease year-over-year, reflecting the challenges in the market environment and the company's cautious strategy amid tightened credit standards.
- Revenue and Profit Decline: The company reported net revenue of RMB 39.093 billion for Q1 2026, down 4.5% from the previous quarter, with net income of RMB 8.798 billion, a 51% year-over-year decline, highlighting the impact of regulatory pressures on profitability.
- Cautious Future Outlook: Qfin expects Q2 2026 net income to range between RMB 8.30 billion and RMB 9.10 billion, reflecting a cautious stance on market uncertainties while emphasizing ongoing investments in its global expansion plans.
See More
Qfin Surges 26.93% After Q1 Earnings Beat Expectations
- Significant Stock Surge: Qfin's stock soared by 26.93% during Wednesday's trading session, reaching a price of $15.98 by 1:50 p.m. ET, indicating strong market enthusiasm following its earnings report.
- Earnings Meet Expectations: Despite lower-than-expected sales, Qfin reported non-GAAP earnings of $1.12 per American depositary share and sales of $566.74 million, which fell short by $22.8 million, yet still met earnings expectations.
- Improved Asset Quality: The company achieved a delinquency rate of 3.5% in the first quarter, reflecting an improvement in asset quality, and management's forward guidance has instilled optimism among investors regarding future business prospects.
- Future Guidance: Qfin is guiding for net income between 830 million and 910 million Chinese renminbi for the current quarter, suggesting another significant decline in overall net income, but also leaving room for potential sequential improvement, showcasing the company's cautious approach to risk management.
See More
Qfin Holdings Shares Surge 24% Amid Improved Asset Quality
- Significant Stock Surge: Qfin Holdings shares jumped approximately 24% on Wednesday, reflecting investor optimism regarding the company's resilient asset quality and strong cash flow despite a sharp decline in quarterly profits.
- Decline in Profit and Revenue: The company reported a first-quarter net income of RMB 879.8 million, down from RMB 1.8 billion a year earlier, while total net revenue fell to RMB 3.91 billion from RMB 4.69 billion, indicating reduced loan volumes amid tighter regulatory conditions.
- Loan Origination Volume Drop: Loan origination volume decreased by 26.8% to RMB 65.03 billion, with outstanding loan balances down 18.5%, demonstrating the firm's cautious approach to credit risk management.
- Improved Asset Quality: Despite earnings pressure, the 90-day delinquency rate improved to 3.5%, and operating cash flow remained robust, indicating a strong liquidity position for the company.
See More
Qfin Holdings Reports Q1 Earnings Miss with Declining Revenue
- Revenue Decline: Qfin Holdings reported Q1 revenue of $566.74 million, a 16.63% year-over-year decline, missing estimates by $22.78 million, indicating significant competitive pressures in the market.
- User Growth: As of March 31, 2026, the platform connected 167 financial institutional partners and 297.5 million consumers with potential credit needs, reflecting an 11.0% increase year-over-year, demonstrating progress in expanding market reach.
- Loan Origination: In Q1, the platform facilitated 12,925,120 loans with a total volume of RMB 65,034 million, down 26.8% from the previous year, highlighting weakened market demand and challenges faced by the company.
- Future Outlook: The company expects Q2 2026 net income to range between RMB 830 million and RMB 910 million, representing a year-over-year decline of 47% to 51%, indicating pressure on future profitability and uncertainty in the market environment.
See More
Qfin (QFIN) Q1 2026 Earnings Call Transcript
See More
Qfin Holdings Reports Earnings Beat Amid Revenue Decline
- Earnings Surprise: Qfin Holdings Inc. reported earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.96, although this reflects a decline from $1.74 per share a year ago, indicating volatility in profitability.
- Revenue Performance: The company posted revenues of $566.74 million for the quarter, surpassing the Zacks Consensus Estimate by 5.05%, yet this marks a decrease from $646.4 million year-over-year, highlighting challenges from intensified market competition and shifting customer demands.
- Stock Performance: Qfin Holdings Inc. shares have dropped approximately 39.5% since the beginning of the year, contrasting with the S&P 500's gain of 9.2%, indicating a significant underperformance in the market, prompting investors to closely monitor future earnings expectations.
- Future Outlook: While the current consensus EPS estimate stands at $0.90 on revenues of $494.51 million, the unfavorable trend in estimate revisions has led to a Zacks Rank of 5 (Strong Sell), suggesting that the stock may continue to face pressure in the near term.
See More
Qfin Holdings Reports Q1 2026 Financial Highlights Amid Regulatory Challenges
- Significant User Growth: As of March 31, 2026, Qfin Holdings' platform connected 167 financial institutions and 297.5 million consumers, representing an 11% increase from the previous year, indicating strong market appeal and potential credit demand.
- Decline in Loan Origination: In Q1 2026, total loan volume facilitated through the platform was RMB 65.034 billion, a 26.8% decrease year-over-year, reflecting the challenges in the market environment and the company's cautious strategy amid tightened credit standards.
- Revenue and Profit Decline: The company reported net revenue of RMB 39.093 billion for Q1 2026, down 4.5% from the previous quarter, with net income of RMB 8.798 billion, a 51% year-over-year decline, highlighting the impact of regulatory pressures on profitability.
- Cautious Future Outlook: Qfin expects Q2 2026 net income to range between RMB 8.30 billion and RMB 9.10 billion, reflecting a cautious stance on market uncertainties while emphasizing ongoing investments in its global expansion plans.
See More
