Qfin Holdings Announces Third Quarter 2025 Unaudited Financial Results

Third Quarter 2025 Financial Highlights

• Total net revenue was RMB5,205.7 million (US$731.2 million), compared to RMB5,215.9 million in the prior quarter.

• Net income was RMB1,432.5 million (US$201.2 million), compared to RMB1,730.5 million in the prior quarter.

• Non-GAAP^*9 net income was RMB1,508.2 million (US$211.9 million), compared to RMB1,849.0 million in the prior quarter.

• Net income per fully diluted American depositary share (“ADS”) was RMB10.80 (US$1.52), compared to RMB12.76 in the prior quarter.

• Non-GAAP net income per fully diluted ADS was RMB11.36 (US$1.60), compared to RMB13.63 in the prior quarter.

_{9 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP operating margin, Non-GAAP net income margin and Non-GAAP net income per fully diluted ADS are Non-GAAP financial measures. For more information on these Non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.}

Mr. Haisheng Wu, Chief Executive Officer and Director of Qfin Holdings, commented, “Later part of the third quarter was a rather challenging period of time as we continued to adjust our operations to cope with macro uncertainties and the latest regulatory changes. We continued to see further fluctuation in overall risk levels as liquidity issues in high-risk segments caused ripple effect across the consumer finance industry, despite our effort to mitigate the risks by tightening risk standards in the middle of the quarter. We will remain prudent in our business planning as the industry settles under the new regulatory structure in the following quarters.

In the first three quarters of the year, we issued nearly RMB18.9 billion ABS, an over 40% increase over the same period last year. Our blended funding cost remained at historical low despite somewhat tightening industry liquidity. Approximately 48% of the quarter-end loan balance was under the capital-light model, ICE and total technology solutions, as we continued to make necessary adjustments to our business mix to reflect the changing industry dynamic. We expect such adjustment to continue in the coming quarters as we aim to optimize our business mix under the new operating environment.

As macro challenges and uncertainties persist, we will continue to try to maintain resilience of our baseline business. Meanwhile, the drastically changing environment also present us opportunities to further streamline our operations and optimize resource allocation in the near term, and capture new growth curves when industry recovers in the long run.”

“We delivered another quarter of solid financial results despite a rapidly changing uncertain macro environment. For the third quarter, total revenue was RMB5.21 billion and Non-GAAP net income was RMB1.51 billion,” Mr. Alex Xu, Chief Financial Officer, commented. “We also generated approximately RMB2.50 billion in cash from operations in the quarter. Total cash^*10 and short-term investment was approximately RMB14.3 billion at the end of the third quarter. Our strong financial position should enable us to navigate through this particularly challenging environment, achieve our transitional goals and also meet our commitment and obligations to the market.”

Mr. Yan Zheng, Chief Risk Officer, added, “In the third quarter, we observed increased fluctuation in portfolio risks as macro headwinds and regulatory uncertainties continued to impact users’ financial wellbeing and reduce liquidity in the high-risk segment. Among key leading indicators, Day-1 delinquency rate^*11 was 5.5% in the third quarter, and 30-day collection rate^*12 was 85.7%. As we further tightened our risk standard in September and October, new loans’ risk performance shows signs of stabilization and marginal improvement in the most recent data. However, we expect to see continued risk fluctuation in the next few months as underperformance of prior loans may continue to overweigh the improvement of the new loans till the mix reverses.”

_{10 Including “Cash and cash equivalents”, “Restricted cash” and “Security deposit prepaid to third-party guarantee companies”.
11 “Day-1 delinquency rate” is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such specified date.
12 “30-day collection rate” is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that became overdue as of such specified date.}

Third Quarter 2025 Financial Results

Total net revenue was RMB5,205.7 million (US$731.2 million), compared to RMB4,370.2 million in the same period of 2024, and RMB5,215.9 million in the prior quarter.

Net revenue from Credit Driven Services was RMB3,868.6 million (US$543.4 million), compared to RMB2,901.0 million in the same period of 2024, and RMB3,565.5 million in the prior quarter.

Loan facilitation and servicing fees-capital heavy were RMB513.9 million (US$72.2 million), compared to RMB258.7 million in the same period of 2024 and RMB460.9 million in the prior quarter. The year-over-year and sequential increases were primarily driven by the increases in capital-heavy loan facilitation volume.

Financing income^*13 was RMB2,340.6 million (US$328.8 million), compared to RMB1,744.1 million in the same period of 2024 and RMB2,205.0 million in the prior quarter. The year-over-year and sequential increases were primarily due to the growth in the average outstanding balance of the on-balance-sheet loans.

Revenue from releasing of guarantee liabilities was RMB912.8 million (US$128.2 million), compared to RMB794.6 million in the same period of 2024, and RMB805.3 million in the prior quarter. The year-over-year and sequential increases were in line with the increases of the average outstanding balance of off-balance-sheet capital-heavy loans.

Other services fees were RMB101.2 million (US$14.2 million), compared to RMB103.7 million in the same period of 2024, and RMB94.5 million in the prior quarter. The sequential increase was primarily due to an increase in the late payment fees under the credit driven services.

Net revenue from Platform Services was RMB1,337.1 million (US$187.8 million), compared to RMB1,469.1 million in the same period of 2024 and RMB1,650.3 million in the prior quarter.

Loan facilitation and servicing fees-capital light were RMB263.1 million (US$37.0 million), compared to RMB574.6 million in the same period of 2024 and RMB326.8 million in the prior quarter. The year-over-year and sequential decreases were primarily due to the decreases in capital-light loan facilitation volume.

Referral services fees were RMB648.1 million (US$91.0 million), compared to RMB763.1 million in the same period of 2024 and RMB986.4 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decreases in loan facilitation volume through ICE.

Other services fees were RMB425.9 million (US$59.8 million), compared to RMB131.4 million in the same period of 2024 and RMB337.1 million in the prior quarter. The year-over-year and sequential increases were primarily due to the increases in other value-added services under platform services.

Total operating costs and expenses were RMB3,505.6 million (US$492.4 million), compared to RMB2,081.0 million in the same period of 2024 and RMB3,079.7 million in the prior quarter.

Facilitation, origination and servicing expenses were RMB760.6 million (US$106.8 million), compared to RMB707.9 million in the same period of 2024 and RMB781.0 million in the prior quarter. The year-over-year increase was primarily due to higher collection fees.

Funding costs were RMB142.8 million (US$20.1 million), compared to RMB146.8 million in the same period of 2024 and RMB142.1 million in the prior quarter. The year-over-year decrease was primarily due to lower average costs of ABS issuance, partially offsetting by the increase in fundings from ABS.

Sales and marketing expenses were RMB664.8 million (US$93.4 million), compared to RMB419.9 million in the same period of 2024 and RMB662.7 million in the prior quarter. The year-over-year increase was primarily due to the increase in the allocation of marketing resources to embedded finance channels and content feed advertisements to generate more effective leads.

General and administrative expenses were RMB143.8 million (US$20.2 million), compared to RMB92.0 million in the same period of 2024 and RMB175.9 million in the prior quarter. The year-over-year and sequential changes mainly reflected the changes in share-based compensations.

Provision for loans receivable was RMB837.8 million (US$117.7 million), compared to RMB477.5 million in the same period of 2024 and RMB773.8 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile. Furthermore, the year-over-year increase was also due to the increase in loan origination volume of on-balance-sheet loans.

Provision for financial assets receivable was RMB81.9 million (US$11.5 million), compared to RMB64.4 million in the same period of 2024 and RMB66.6 million in the prior quarter. The year-over-year and sequential increases were primarily due to the increases in capital-heavy loan facilitation volume and the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

Provision for accounts receivable and contract assets was RMB100.9 million (US$14.2 million), compared to RMB108.8 million in the same period of 2024 and RMB79.9 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile and the changes in capital-heavy and capital-light loan facilitation volume.

Provision for contingent liability was RMB773.1 million (US$108.6 million), compared to RMB63.6 million in the same period of 2024 and RMB397.6 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increases in capital-heavy loan facilitation volume and reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

Income from operations was RMB1,700.1 million (US$238.8 million), compared to RMB2,289.2 million in the same period of 2024 and RMB2,136.2 million in the prior quarter.

Non-GAAP income from operations was RMB1,775.9 million (US$249.5 million), compared to RMB2,315.5 million in the same period of 2024 and RMB2,254.7 million in the prior quarter.

Operating margin was 32.7%. Non-GAAP operating margin was 34.1%.

Income before income tax expense was RMB1,831.3 million (US$257.2 million), compared to RMB2,356.9 million in the same period of 2024 and RMB2,172.0 million in the prior quarter.

Income taxes expense was RMB398.8 million (US$56.0 million), compared to RMB558.1 million in the same period of 2024 and RMB441.5 million in the prior quarter.

Net income was RMB1,432.5 million (US$201.2 million), compared to RMB1,798.8 million in the same period of 2024 and RMB1,730.5 million in the prior quarter.

Non-GAAP net income was RMB1,508.2 million (US$211.9 million), compared to RMB1,825.1 million in the same period of 2024 and RMB1,849.0 million in the prior quarter.

Net income margin was 27.5%. Non-GAAP net income margin was 29.0%.

Net income attributed to the Company was RMB1,436.0 million (US$201.7 million), compared to RMB1,802.9 million in the same period of 2024 and RMB1,734.0 million in the prior quarter.

Non-GAAP net income attributed to the Company was RMB1,511.8 million (US$212.4 million), compared to RMB1,829.2 million in the same period of 2024 and RMB1,852.5 million in the prior quarter.

Net income per fully diluted ADS was RMB10.80 (US$1.52).

Non-GAAP net income per fully diluted ADS was RMB11.36 (US$1.60).

Weighted average basic ADS used in calculating GAAP net income per ADS was 130.97 million.

Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 133.05 million.

Ordinary shares outstanding as of September 30, 2025 was 260,370,224.

_{13 “Financing income” is generated from loans facilitated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.}

30 Day+ Delinquency Rate by Vintage and 180 Day+ Delinquency Rate by Vintage

The following charts and tables display the historical cumulative 30 day+ delinquency rates by loan facilitation and origination vintage and 180 day+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the Company’s platform. Loans under “ICE” and total technology solutions are not included in the 30 day+ charts and the 180 day+ charts:

http://ml.globenewswire.com/Resource/Download/a6f2c1b2-3c50-469b-bada-d18ed1057b73

http://ml.globenewswire.com/Resource/Download/90d5aa69-e2ac-4ca4-ade6-69f6c5f4fcaf

Update on Share Repurchase

On November 19, 2024, the Board approved a share repurchase plan (the “2025 Share Repurchase Plan”) whereby the Company is authorized to repurchase up to US$450 million worth of its ADSs or Class A ordinary shares over the next 12 months starting from January 1, 2025.

As of November 18, 2025, the Company had in aggregate purchased approximately 7.3 million ADSs on the open market for a total amount of approximately US$281 million (inclusive of commissions) at an average price of US$38.7 per ADS pursuant to the 2025 Share Repurchase Plan.

Business Outlook

As macro environment uncertainties persist, the Company intends to put risk control as top priority for the time being and maintain a prudent approach in its business planning for the next couple of quarters. As such, for the fourth quarter of 2025, the Company expects to generate a net income between RMB0.92 billion and RMB1.12 billion and a non-GAAP net income^*14 between RMB1.0 billion and RMB1.2 billion, representing a year-on-year decline between 39% and 49%. For full year 2025, the Company expects to generate a net income between RMB5.88 billion and RMB6.08 billion and a non-GAAP net income between RMB6.28 billion and RMB6.48 billion, representing a year-on-year change of -2% to +1%. This outlook reflects the Company’s current and preliminary views, which is subject to material changes.

_{14 Non-GAAP net income represents net income excluding share-based compensation expenses.}

Conference Call Preregistration

Qfin Holdings’ management team will host an earnings conference call at 7:30 PM U.S. Eastern Time on Tuesday, November 18, 2025 (8:30 AM Beijing Time on Wednesday, November 19, 2025).

All participants wishing to join the conference call must pre-register online using the link provided below.

Registration Link: https://s1.c-conf.com/diamondpass/10051202-aikhpy.html

Upon registration, each participant will receive details for the conference call, including dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company’s website at https://ir.qfin.com.

About Qfin Holdings

Qfin Holdings is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The Company is dedicated to making credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions.

For more information, please visit: https://ir.qfin.com.

Use of Non-GAAP Financial Measures Statement

To supplement our financial results presented in accordance with U.S. GAAP, we use Non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our Non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the Non-GAAP financial measures.

We use Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses. Non-GAAP operating margin is equal to Non-GAAP income from operation divided by total net revenue. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP net income margin is equal to Non-GAAP net income divided by total net revenue. Non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses. Non-GAAP net income per fully diluted ADS represents net income excluding share-based compensation expenses per fully diluted ADS. Such adjustments have no impact on income tax. We believe that Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that Non-GAAP income from operation and Non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our Non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of Non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 7.1190 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2025.

Safe Harbor Statement

Any forward-looking statements contained in this announcement are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. Qfin Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, changes in laws, rules and regulatory environments, the recognition of the Company’s brand, market acceptance of the Company’s products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in Qfin Holdings’ filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Qfin Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Qfin Holdings       
E-mail: ir@qfin.com