Monitor delinquency trends and regulatory compliance costs in upcoming quarters. The revenue growth trajectory is positive but credit quality deterioration and impending interest rate caps could pressure margins. Focus on the company's ability to manage risk during regulatory transition and the pace of buyback execution.
Price Chart
Executive Summary
Qfin Holdings reported 2025 net revenue of RMB19.2B (up ~12% YoY) but net income attributable to shareholders declined ~4% to RMB6.0B, primarily due to higher provision for loans receivable and contingent liabilities. The 90+ day delinquency rate rose to 2.71% from 2.09%, driven by industry-wide adjustments to new consumer credit regulations. Despite share buybacks boosting EPS, the regulatory overhang and credit deterioration present a mixed outlook.
Key Facts
- Net revenue for 2025: RMB19.2B (US$2.75B), up ~12% from RMB17.2B in 2024
- Net income attributable to shareholders: RMB5.99B (US$856.5M), down ~4% from RMB6.26B in 2024
- EPS (basic) increased to RMB22.48 (US$3.21) from RMB21.02, aided by share repurchases
- 90+ day delinquency rate rose to 2.71% at Dec 31, 2025 vs 2.09% at Dec 31, 2024
- Operating cash flow improved to RMB11.1B (US$1.58B) from RMB9.3B in 2024
- Total assets: RMB56.9B (US$8.1B), up from RMB48.1B; total equity stable at RMB24.2B
- The company executed share repurchases of ~US$450M under 2025 repurchase plan at avg price US$28.2/ADS
- Regulatory changes in 2025 imposed interest rate caps and whitelist requirements on loan facilitation business
Financial Impact
Revenue growth of ~12% offset by earnings decline of ~4% and higher credit provisions; delinquency increase signals deteriorating asset quality
Risk Factors
- Regulatory tightening on consumer credit pricing and loan facilitation could compress margins and reduce loan volume
- Rising delinquency rate may lead to higher credit losses and increased provisioning
- Uncertainty around VIE structure and potential PRC regulatory actions on offshore listings
- Dependence on financial institution partners for funding; any loss of partners could impact growth
- Geopolitical tensions between US and China could affect ADS trading or investor sentiment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001104659-26-049501 |
| Document: qfin-20251231xex4d16.htm | 0001104659-26-049501 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 3, 2026 20w ago | 6-K | — | awaiting T+20 | — | — |
May 12, 2026 23w ago | 6-K | — | awaiting T+20 | — | — |
Apr 27, 2026 25w ago | 6-K | — | awaiting T+20 | — | — |
Apr 27, 2026 26w ago | 20-F | — | awaiting T+20 | — | — |
US Market Status
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