Qfin Holdings Announces Fourth Quarter and Full Year 2025 Unaudited Financial Results and Raises Semi-Annual Dividend
SHANGHAI, China, March 17, 2026 (GLOBE NEWSWIRE) -- Qfin Holdings, Inc. (NASDAQ:QFIN, HKEx: 3660)) ("Qfin Holdings" or the "Company"), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025 and raised semi-annual dividend.
Fourth Quarter 2025 Business Highlights
- As of December 31, 2025, our platform has connected 167 financial institutional partners and 291.3 million consumers*1 with potential credit needs, cumulatively, an increase of 11.5% from 261.2 million a year ago.
- Cumulative users with approved credit lines*2 were 63.6 million as of December 31, 2025, an increase of 11.8% from 56.9 million as of December 31, 2024.
- Cumulative borrowers with successful drawdown, including repeat borrowers was 38.9 million as of December 31, 2025, an increase of 13.0% from 34.4 million as of December 31, 2024.
- In the fourth quarter of 2025, financial institutional partners originated 16,510,467 loans*3 through our platform.
- Total facilitation and origination loan volume*4 was RMB70,297 million, a decrease of 21.8% from RMB89,885 million in the same period of 2024. RMB30,772 million of such loan volume was under capital-light model, Intelligence Credit Engine ("ICE") and total technology solutions*5, a decrease of 35.6% from RMB47,796 million in the same period of 2024.
- Total outstanding loan balance*6 was RMB126,012 million as of December 31, 2025, a decrease of 8.0% from RMB137,014 million as of December 31, 2024. RMB59,497 million of such loan balance was under capital-light model, "ICE" and total technology solutions, a decrease of 25.3% from RMB79,599 million as of December 31, 2024.
- The weighted average contractual tenor of loans originated by financial institutions across our platform in the fourth quarter of 2025 was approximately 11.0 months, compared with 10.0 months in the same period of 2024.
- 90 day+ delinquency rate*7 of loans originated by financial institutions across our platform was 2.71% as of December 31, 2025.
- Repeat borrower contribution*8 of loans originated by financial institutions across our platform for the fourth quarter of 2025 was 90.8%.
1 Refers to cumulative registered users across our platform.
2 "Cumulative users with approved credit lines" refers to the total number of users who had submitted their credit applications and were approved with a credit line at the end of each period.
3 Including 1,036,802 loans across "V-pocket", and 15,473,665 loans across other products.
4 Refers to the total principal amount of loans facilitated and originated during the given period.
5 "ICE" is an open platform primarily on our "Qifu Jietiao" APP (previously known as "360 Jietiao"), we match borrowers and financial institutions through big data and cloud computing technology on "ICE", and provide pre-loan investigation report of borrowers. For loans facilitated through "ICE", the Company does not bear principal risk.
Under total technology solutions, we have been offering end-to-end technology solutions to financial institutions based on on-premise deployment, SaaS or hybrid model since 2023.
6 "Total outstanding loan balance" refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, excluding loans delinquent for more than 180 days.
7 "90 day+ delinquency rate" refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under "ICE" and total technology solutions are not included in the delinquency rate calculation.
8 "Repeat borrower contribution" for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period.
Fourth Quarter 2025 Financial Highlights
- Total net revenue was RMB4,092.7 million (US$585.3 million), compared to RMB5,205.7 million in the prior quarter.
- Net income was RMB1,016.1 million (US$145.3 million), compared to RMB1,432.5 million in the prior quarter.
- Non-GAAP*9 net income was RMB1,070.6 million (US$153.1 million), compared to RMB1,508.2 million in the prior quarter.
- Net income per fully diluted American depositary share ("ADS") was RMB7.82 (US$1.12), compared to RMB10.80 in the prior quarter.
- Non-GAAP net income per fully diluted ADS was RMB8.23 (US$1.18), compared to RMB11.36 in the prior quarter.
9 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP net income attributed to the Company, 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.
Full Year 2025 Operational Highlights
- Total loan facilitation and origination volume*4 in 2025 was RMB327,069 million, representing an increase of 1.6% from RMB321,969 million in 2024. Loan facilitation volume*4 under Platform Services was RMB144,376 million, a decrease of 15.4% from RMB170,589 million in 2024.
- The weighted average contractual tenor of loans facilitated and originated was 10.50 months in full year 2025, compared with 10.05 months in 2024.
- Repeat borrower contribution was 93.3% in full year 2025, compared with 93.1% in 2024.
Full Year 2025 Financial Highlights
- Total net revenue was RMB19,205.1 million (US$2,746.3 million), compared to RMB17,165.7 million in 2024.
- Net income was RMB5,975.6 million (US$854.5 million), compared to RMB6,248.1 million in 2024.
- Non-GAAP net income was RMB6,354.0 million (US$908.6 million), compared to RMB6,415.7 million in 2024.
- Net income per fully diluted ADS was RMB44.02 (US$6.30), compared to RMB41.28 in 2024.
- Non-GAAP net income per fully diluted ADS was RMB46.79 (US$6.69), compared to RMB42.39 in 2024.
Mr. Haisheng Wu, Chief Executive Officer and Director of Qfin Holdings, commented, "In the fourth quarter, we continued to face significant challenges in our operations as macro uncertainties and regulatory changes caused industry-wide liquidity squeeze and elevated risk levels. We tried to make proactive changes, including tightening risk standards, adjusting business mixes, and optimizing cost structure, to mitigate some of the impact. We will remain prudent in our business planning as the industry as a whole has yet to stabilize under the evolving regulatory guidelines and challenging macro environment.
While making necessary adjustments to our domestic businesses, we continued to focus our effort on establishing international operations. During the quarter, we allocated additional resources and expanded our footprint into several developing markets by acquiring necessary credentials and setting up local organizations. We believe these international markets present attractive growth opportunities and will enable us to diversify our business mixes geographically over the long term.
As macro challenges and uncertainties persist, we will continue to strive to maintain resilience of our baseline business. It is essential that we remain vigilant to the drastically changing environment, and we are prepared to take decisive action to further streamline our operations and optimize resource allocations."
"We met most of our operational and financial targets in the fourth quarter under an extremely challenging environment. For 2025, total revenue was RMB19.21 billion and Non-GAAP net income was RMB6.35 billion," Mr. Alex Xu, Chief Financial Officer, commented. "Meanwhile, we generated a record-setting RMB11.1 billion in cash from operations in 2025. Total cash*10 and short-term investment was in aggregate approximately RMB10.7 billion at the end of 2025. In 2025, we returned approximately RMB6.16 billion (US$880 million) to shareholders through share repurchase and cash dividend. We also utilized a narrow market window to retire a substantial portion of our long term debt, which further strengthened our balance sheet. Our strong financial position is expected to enable us to navigate through this particularly challenging environment, achieve our strategic goals, and meet our commitment and obligations to the market."
Mr. Yan Zheng, Chief Risk Officer, added, "In the fourth quarter, we experienced noticeable increase in portfolio risks as macro headwinds and regulatory uncertainties continued to put significant pressure on market liquidity, particularly in the high-risk segment. Among key leading indicators, Day-1 delinquency rate*11 was 6.1% in the fourth quarter, and 30-day collection rate*12 was 84.1%. However, the risk tightening measures we took during the quarter started to show marginally favorable results in recent months, as the risk performance of new loans started to improve and their contribution gradually increased."
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.
Fourth Quarter 2025 Financial Results
Total net revenue was RMB4,092.7 million (US$585.3 million), compared to RMB4,482.3 million in the same period of 2024, and RMB5,205.7 million in the prior quarter.
Net revenue from Credit Driven Services was RMB3,432.2 million (US$490.8 million), compared to RMB2,889.5 million in the same period of 2024, and RMB3,868.6 million in the prior quarter.
Loan facilitation and servicing fees-capital heavy were RMB200.3 million (US$28.6 million), compared to RMB363.0 million in the same period of 2024 and RMB513.9 million in the prior quarter. The year-over-year and sequential decreases were primarily due to the decreases in capital-heavy loan facilitation volume.
Financing income*13 was RMB2,206.3 million (US$315.5 million), compared to RMB1,667.3 million in the same period of 2024 and RMB2,340.6 million in the prior quarter. The year-over-year increase was primarily due to the growth in average outstanding balance of the on-balance-sheet loans. The sequential decrease was mainly driven by lower interest rates of the on-balance-sheet loans.
Revenue from releasing of guarantee liabilities was RMB916.6 million (US$131.1 million), compared to RMB761.8 million in the same period of 2024, and RMB912.8 million in the prior quarter. The year-over-year increase was mainly due to the increase in average outstanding balance of off-balance-sheet capital-heavy loans.
Other services fees were RMB109.0 million (US$15.6 million), compared to RMB97.4 million in the same period of 2024, and RMB101.2 million in the prior quarter. The year-over-year and sequential increases were primarily due to the increases in the late payment fees under the credit driven services.
Net revenue from Platform Services was RMB660.5 million (US$94.5 million), compared to RMB1,592.8 million in the same period of 2024 and RMB1,337.1 million in the prior quarter.
Loan facilitation and servicing fees-capital light were RMB198.9 million (US$28.4 million), compared to RMB515.1 million in the same period of 2024 and RMB263.1 million in the prior quarter. The year-over-year decrease was primarily due to the decrease in capital-light loan facilitation volume. The sequential decrease was mainly driven by a decline in value-added services, partially offset by higher capital-light loan facilitation volume.
Referral services fees were RMB99.7 million (US$14.3 million), compared to RMB907.2 million in the same period of 2024 and RMB648.1 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 RMB361.9 million (US$51.8 million), compared to RMB170.5 million in the same period of 2024 and RMB425.9 million in the prior quarter. The year-over-year and sequential changes reflected the changes in other value-added services under platform services.
Total operating costs and expenses were RMB3,225.3 million (US$461.2 million), compared to RMB2,591.9 million in the same period of 2024 and RMB3,505.6 million in the prior quarter.
Facilitation, origination and servicing expenses were RMB745.8 million (US$106.6 million), compared to RMB734.7 million in the same period of 2024 and RMB760.6 million in the prior quarter.
Funding costs were RMB141.4 million (US$20.2 million), compared to RMB126.8 million in the same period of 2024 and RMB142.8 million in the prior quarter. The year-over-year and sequential changes reflected the net impact of increased funding from ABS and lower average ABS issuance costs.
Sales and marketing expenses were RMB550.6 million (US$78.7 million), compared to RMB523.9 million in the same period of 2024 and RMB664.8 million in the prior quarter. The sequential decline was primarily due to our prudent approach to overall customer acquisition under the rapidly-changing market environment.
General and administrative expenses were RMB142.8 million (US$20.4 million), compared to RMB156.1 million in the same period of 2024 and RMB143.8 million in the prior quarter.
Provision for loans receivable was RMB1,190.3 million (US$170.2 million), compared to RMB598.4 million in the same period of 2024 and RMB837.8 million in the prior quarter. The year-over-year and sequential increases were mainly due to increases in loan origination volume of on-balance-sheet loans and reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.
Provision for financial assets receivable was RMB46.5 million (US$6.7 million), compared to RMB63.3 million in the same period of 2024 and RMB81.9 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decreases in capital-heavy loan facilitation volume and reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.
Provision for accounts receivable and contract assets was RMB70.3 million (US$10.1 million), compared to RMB77.5 million in the same period of 2024 and RMB100.9 million in the prior quarter. The year-over-year and sequential decreases was primarily due to decline in the loan facilitation volume.
Provision for contingent liability was RMB337.7 million (US$48.3 million), compared to RMB311.4 million in the same period of 2024 and RMB773.1 million in the prior quarter. The year-over-year increase reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile. The sequential decrease was mainly due to the decrease in capital-heavy loan facilitation volume.
Income from operations was RMB867.4 million (US$124.0 million), compared to RMB1,890.3 million in the same period of 2024 and RMB1,700.1 million in the prior quarter.
Non-GAAP income from operations was RMB921.9 million (US$131.8 million), compared to RMB1,950.0 million in the same period of 2024 and RMB1,775.9 million in the prior quarter.
Operating margin was 21.2%. Non-GAAP operating margin was 22.5%.
Income before income tax expense was RMB1,152.6 million (US$164.8 million), compared to RMB1,932.7 million in the same period of 2024 and RMB1,831.3 million in the prior quarter.
Income taxes expense was RMB136.5 million (US$19.5 million), compared to RMB20.0 million in the same period of 2024 and RMB398.8 million in the prior quarter.
Net income was RMB1,016.1 million (US$145.3 million), compared to RMB1,912.7 million in the same period of 2024 and RMB1,432.5 million in the prior quarter.
Non-GAAP net income was RMB1,070.6 million (US$153.1 million), compared to RMB1,972.4 million in the same period of 2024 and RMB1,508.2 million in the prior quarter.
Net income margin was 24.8%. Non-GAAP net income margin was 26.2%.
Net income attributed to the Company was RMB1,019.5 million (US$145.8 million), compared to RMB1,916.6 million in the same period of 2024 and RMB1,436.0 million in the prior quarter.
Non-GAAP net income attributed to the Company was RMB1,074.0 million (US$153.6 million), compared to RMB1,976.4 million in the same period of 2024 and RMB1,511.8 million in the prior quarter.
Net income per fully diluted ADS was RMB7.82 (US$1.12).
Non-GAAP net income per fully diluted ADS was RMB8.23 (US$1.18).
Weighted average basic ADS used in calculating GAAP net income per ADS was 128.78 million.
Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 130.54 million.
Ordinary shares outstanding as of December 31,2025 was 243,823,900.
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.
Full Year 2025 Financial Results
Total net revenue was RMB19,205.1 million (US$2,746.3 million), compared to RMB17,165.7 million in 2024.
Net revenue from Credit Driven Services was RMB13,977.2 million (US$1,998.7 million), compared to RMB11,719.0 million in 2024.
Loan facilitation and servicing fees-capital heavy were RMB1,604.9 million (US$229.5 million), compared to RMB1,016.5 million in 2024. The year-over-year increase was primarily due to the increase in capital-heavy loan facilitation volume.
Financing income was RMB8,569.1 million (US$1,225.4 million), compared to RMB6,636.5 million in 2024. The year-over-year increase was primarily due to the growth in average outstanding balance of on-balance-sheet loans.
Revenue from releasing of guarantee liabilities was RMB3,413.0 million (US$488.0 million), compared to RMB3,695.0 million in 2024. The year-over-year decrease was in line with the overall trend of the average outstanding balance of off-balance-sheet capital-heavy loans.
Other services fees were RMB390.3 million (US$55.8 million), compared to RMB371.0 million in 2024. The year-over-year increase was mainly due to the increase in late payment fees under the credit driven services.
Net revenue from Platform Services was RMB5,227.8 million (US$747.6 million), compared to RMB5,446.6 million in 2024.
Loan facilitation and servicing fees-capital light were RMB1,162.6 million (US$166.2 million), compared to RMB2,116.8 million in 2024. The year-over-year decrease was primarily due to a decline in loan facilitation volume under the capital-light model.
Referral services fees were RMB2,738.8 million (US$391.6 million), compared to RMB2,842.6 million in 2024. The year-over-year decrease was primarily due to a decrease in the loan facilitation volume through ICE.
Other services fees were RMB1,326.5 million (US$189.7 million), compared to RMB487.2 million in 2024. The year-over-year increase was primarily due to an increase in other value-added services under platform services.
Total operating costs and expenses were RMB12,526.6 million (US$1,791.3 million), compared to RMB9,637.1 million in 2024.
Facilitation, origination and servicing expenses were RMB3,001.9 million (US$429.3 million), compared to RMB2,900.7 million in 2024.
Funding costs were RMB548.9 million (US$78.5 million), compared to RMB590.9 million in 2024. The year-over-year decrease was mainly due to the lower average ABS issuance costs, partially offset by the growth in funding from ABS.
Sales and marketing expenses were RMB2,469.5 million (US$353.1 million), compared to RMB1,725.9 million in 2024. The year-over-year increase was mainly due to the increase in the allocation in marketing resources to embedded finance channels.
General and administrative expenses were RMB659.0 million (US$94.2 million), compared to RMB449.5 million in 2024. The year-over-year increase mainly reflected the increase in share-based compensations.
Provision for loans receivable was RMB3,625.0 million (US$518.4 million), compared to RMB2,773.3 million in 2024. The year-over-year increase was mainly due to the growth in loan origination volume of on-balance-sheet loans and reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.
Provision for financial assets receivable was RMB234.9 million (US$33.6 million), compared to RMB296.9 million in 2024. The year-over-year decrease reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.
Provision for accounts receivable and contract assets was RMB319.5 million (US$45.7 million), compared to RMB421.5 million in 2024. The year-over-year decrease reflected the decline in the capital-heavy and capital-light loan facilitation volume in total and the Company's consistent approach in assessing provisions commensurate with its underlying loan profile.
Provision for contingent liability was RMB1,667.7 million (US$238.5 million), compared to RMB478.4 million in 2024. The year-over-year increase reflected the Company's consistent approach in assessing provisions commensurate with its underlying loan profile and an increase in capital-heavy loan facilitation volume.
Income from operations was RMB6,678.4 million (US$955.0 million), compared to RMB7,528.6 million in 2024.
Non-GAAP income from operations was RMB7,056.8 million (US$1,009.1 million), compared to RMB7,696.2 million in 2024.
Operating margin was 34.8%. Non-GAAP operating margin was 36.7%.
Income before income tax expense was RMB7,376.1 million (US$1,054.8 million), compared to RMB7,892.4 million in 2024.
Income taxes expense was RMB1,400.5 million (US$200.3 million). Effective tax rate was 18.1%, compared to 20.4% in 2024.
Net income attributed to the Company was RMB5,989.7 million (US$856.5 million), compared to RMB6,264.3 million in 2024.
Non-GAAP net income attributed to the Company was RMB6,368.1 million (US$910.6 million), compared to RMB6,431.9 million in 2024.
Net income margin was 31.1%. Non-GAAP net income margin was 33.1%.
Net income per fully diluted ADS was RMB44.02 (US$6.30).
Non-GAAP net income per fully diluted ADS was RMB46.79 (US$6.69).
Weighted average basic ADS used in calculating GAAP net income per ADS was 133.25 million.
Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 136.09 million.
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:
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Semi-Annual Dividend for the Second Half of 2025
The board of directors of the Company (the "Board") has approved a dividend of US$0.39 per Class A ordinary share, or US$0.78 per ADS for the second half of 2025 to holders of record of Class A ordinary shares and ADSs as of the close of business on April 22, 2026 Hong Kong Time and New York Time, respectively, in accordance with the Company's dividend policy. For holder of Class A ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong no later than 4:30 p.m. on April 22, 2026 (Hong Kong Time). The payment date is expected to be on May 8, 2026 for holders of Class A ordinary shares and around May 14, 2026 for holders of ADSs.
Update on 2025 Share Repurchase Plan
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 December 31, 2025, the Company had utilized substantially all of the total authorized value for the 2025 Share Repurchase Plan and in aggregate purchased approximately 15.9 million ADSs on the open market for a total amount of approximately US$450 million (inclusive of commissions) at an average price of US$28.2 per ADS pursuant to the 2025 Share Repurchase Plan.
Update on Convertible Senior Notes
On March 27, 2025, the Company completed the offering of convertible senior notes in an aggregate principal amount of US$690 million due 2030 (the "2030 Notes") to certain qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2030 Notes are general unsecured obligations of the Company and bear interest at a rate of 0.50% per annum, payable semiannually in arrears on April 1 and October 1 of each year, beginning on October 1, 2025.
On March 25, 2025, the Board approved a share repurchase plan (the "March 2025 Share Repurchase Plan") whereby the Company is authorized to use to the net proceeds from the offering of convertible senior notes due 2030 to repurchase its ADSs and/or Class A ordinary shares. Concurrently with the pricing of the offering of the convertible senior notes, on March 25, 2025, the Company repurchased approximately 5.1 million ADSs with an aggregate value of approximately US$227 million at a price of US$44.23 per ADS.
As of March 17, 2026, the Company had repurchased approximately US$460 million in aggregate principal amount of the 2030 Notes for US$399 million in cash on the open market and in off-market privately negotiated transactions. Approximately US$230 million in aggregate principal amount of the 2030 Notes remained outstanding. The repurchase of the 2030 Notes is expected to enable the Company to reduce its long-term debt obligations and realize noticeable cash gains.
Business Outlook
As macro environment uncertainties and regulatory pressure 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 first quarter of 2026, the Company expects to generate a net income between RMB830 million and RMB880 million and a non-GAAP net income*14 between RMB900 million and RMB950 million, representing a year-on-year decline between 51% and 53%. 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 8:30 PM U.S. Eastern Time on Tuesday, March 17, 2026 (8:30 AM Beijing Time on Wednesday, March 18, 2026).
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/10053496-puzjin.html
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode 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 RMB6.9931 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 December 31, 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: [email protected]
| Unaudited Condensed Consolidated Balance Sheets | |||
| (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted) | |||
| December 31, | December 31, | December 31, | |
| 2024 | 2025 | 2025 | |
| RMB | RMB | USD | |
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 4,452,416 | 4,696,817 | 671,636 |
| Restricted cash | 2,353,384 | 2,844,101 | 406,701 |
| Short term investments | 3,394,073 | 2,852,254 | 407,867 |
| Security deposit prepaid to third-party guarantee companies | 162,617 | 325,698 | 46,574 |
| Funds receivable from third party payment service providers | 462,112 | 848,163 | 121,286 |
| Accounts receivable and contract assets, net | 2,214,530 | 950,267 | 135,886 |
| Financial assets receivable, net | 1,553,912 | 1,510,205 | 215,956 |
| Amounts due from related parties | 8,510 | - | - |
| Loans receivable, net | 26,714,428 | 34,680,954 | 4,959,310 |
| Prepaid expenses and other assets | 1,464,586 | 772,999 | 110,537 |
| Total current assets | 42,780,568 | 49,481,458 | 7,075,753 |
| Non-current assets: | |||
| Accounts receivable and contract assets, net-noncurrent | 27,132 | 21,992 | 3,145 |
| Financial assets receivable, net-noncurrent | 170,779 | 209,459 | 29,952 |
| Amounts due from related parties | 51 | - | - |
| Loans receivable, net-noncurrent | 2,537,749 | 4,002,159 | 572,301 |
| Property and equipment, net | 362,774 | 636,994 | 91,089 |
| Land use rights, net | 956,738 | 966,582 | 138,219 |
| Intangible assets | 11,818 | 10,670 | 1,526 |
| Goodwill | 42,414 | 45,200 | 6,464 |
| Deferred tax assets | 1,206,325 | 1,379,933 | 197,328 |
| Other non-current assets | 36,270 | 195,348 | 27,934 |
| Total non-current assets | 5,352,050 | 7,468,337 | 1,067,958 |
| TOTAL ASSETS | 48,132,618 | 56,949,795 | 8,143,711 |
| LIABILITIES AND EQUITY | |||
| Current liabilities: | |||
| Payable to investors of the consolidated trusts-current | 8,188,454 | 9,922,559 | 1,418,907 |
| Accrued expenses and other current liabilities | 2,492,921 | 2,935,726 | 419,803 |
| Amounts due to related parties | 67,495 | - | - |
| Short term loans | 1,369,939 | 1,202,891 | 172,011 |
| Convertible senior notes-current | - | 1,019,130 | 145,734 |
| Guarantee liabilities-stand ready | 2,383,202 | 2,314,865 | 331,021 |
| Guarantee liabilities-contingent | 1,820,350 | 1,872,149 | 267,714 |
| Income tax payable | 1,040,687 | 1,083,176 | 154,892 |
| Other tax payable | 109,161 | 9,333 | 1,335 |
| Total current liabilities | 17,472,209 | 20,359,829 | 2,911,417 |
| Non-current liabilities: | |||
| Deferred tax liabilities | 439,435 | 320,149 | 45,781 |
| Payable to investors of the consolidated trusts-noncurrent | 5,719,600 | 9,930,000 | 1,419,971 |
| Convertible senior notes-noncurrent | - | 1,583,213 | 226,396 |
| Other long-term liabilities | 255,155 | 599,561 | 85,736 |
| Total non-current liabilities | 6,414,190 | 12,432,923 | 1,777,884 |
| TOTAL LIABILITIES | 23,886,399 | 32,792,752 | 4,689,301 |
| TOTAL QFIN HOLDINGS, INC EQUITY | 24,190,043 | 24,114,915 | 3,448,386 |
| Noncontrolling interests | 56,176 | 42,128 | 6,024 |
| TOTAL EQUITY | 24,246,219 | 24,157,043 | 3,454,410 |
| TOTAL LIABILITIES AND EQUITY | 48,132,618 | 56,949,795 | 8,143,711 |
| Unaudited Condensed Consolidated Statements of Operations (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted) | |||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Credit driven services | 2,889,500 | 3,432,203 | 490,798 | 11,719,027 | 13,977,218 | 1,998,716 | |||||||
| Loan facilitation and servicing fees-capital heavy | 362,958 | 200,329 | 28,647 | 1,016,514 | 1,604,903 | 229,498 | |||||||
| Financing income | 1,667,340 | 2,206,269 | 315,492 | 6,636,511 | 8,569,063 | 1,225,360 | |||||||
| Revenue from releasing of guarantee liabilities | 761,827 | 916,631 | 131,076 | 3,695,017 | 3,412,952 | 488,046 | |||||||
| Other services fees | 97,375 | 108,974 | 15,583 | 370,985 | 390,300 | 55,812 | |||||||
| Platform services | 1,592,752 | 660,524 | 94,453 | 5,446,629 | 5,227,841 | 747,571 | |||||||
| Loan facilitation and servicing fees-capital light | 515,062 | 198,928 | 28,446 | 2,116,797 | 1,162,563 | 166,244 | |||||||
| Referral services fees | 907,207 | 99,652 | 14,250 | 2,842,637 | 2,738,786 | 391,641 | |||||||
| Other services fees | 170,483 | 361,944 | 51,757 | 487,195 | 1,326,492 | 189,686 | |||||||
| Total net revenue | 4,482,252 | 4,092,727 | 585,251 | 17,165,656 | 19,205,059 | 2,746,287 | |||||||
| Facilitation, origination and servicing | 734,659 | 745,774 | 106,644 | 2,900,704 | 3,001,938 | 429,271 | |||||||
| Funding costs | 126,841 | 141,374 | 20,216 | 590,935 | 548,936 | 78,497 | |||||||
| Sales and marketing | 523,936 | 550,552 | 78,728 | 1,725,877 | 2,469,546 | 353,140 | |||||||
| General and administrative | 156,061 | 142,800 | 20,420 | 449,505 | 658,980 | 94,233 | |||||||
| Provision for loans receivable | 598,353 | 1,190,252 | 170,204 | 2,773,323 | 3,625,042 | 518,374 | |||||||
| Provision for financial assets receivable | 63,251 | 46,545 | 6,656 | 296,857 | 234,924 | 33,594 | |||||||
| Provision for accounts receivable and contract assets | 77,450 | 70,315 | 10,055 | 421,481 | 319,532 | 45,692 | |||||||
| Provision for contingent liabilities | 311,372 | 337,708 | 48,292 | 478,404 | 1,667,742 | 238,484 | |||||||
| Total operating costs and expenses | 2,591,923 | 3,225,320 | 461,215 | 9,637,086 | 12,526,640 | 1,791,285 | |||||||
| Income from operations | 1,890,329 | 867,407 | 124,036 | 7,528,570 | 6,678,419 | 955,002 | |||||||
| Interest income, net | 74,951 | 54,971 | 7,861 | 237,015 | 278,626 | 39,843 | |||||||
| Foreign exchange gain | 2,680 | 33,723 | 4,822 | 1,512 | 159,570 | 22,818 | |||||||
| Fair value change of derivatives | - | (48,847 | ) | (6,985 | ) | - | (175,691 | ) | (25,123 | ) | |||
| Gain on debt extinguishment | - | 270,135 | 38,629 | - | 270,135 | 38,629 | |||||||
| Other (expense) income, net | (35,251 | ) | (24,780 | ) | (3,543 | ) | 125,325 | 165,076 | 23,606 | ||||
| Income before income tax expense | 1,932,709 | 1,152,609 | 164,820 | 7,892,422 | 7,376,135 | 1,054,775 | |||||||
| Income taxes expense | (20,042 | ) | (136,506 | ) | (19,520 | ) | (1,644,306 | ) | (1,400,492 | ) | (200,268 | ) | |
| Net income | 1,912,667 | 1,016,103 | 145,300 | 6,248,116 | 5,975,643 | 854,507 | |||||||
| Net loss attributable to noncontrolling interests | 3,970 | 3,446 | 493 | 16,198 | 14,048 | 2,009 | |||||||
| Net income attributable to ordinary shareholders of the Company | 1,916,637 | 1,019,549 | 145,793 | 6,264,314 | 5,989,691 | 856,516 | |||||||
| Net income per ordinary share attributable to ordinary shareholders of Qfin Holdings, Inc. | |||||||||||||
| Basic | 6.70 | 3.96 | 0.57 | 21.02 | 22.48 | 3.21 | |||||||
| Diluted | 6.62 | 3.91 | 0.56 | 20.64 | 22.01 | 3.15 | |||||||
| Net income per ADS attributable to ordinary shareholders of Qfin Holdings, Inc. | |||||||||||||
| Basic | 13.40 | 7.92 | 1.14 | 42.04 | 44.96 | 6.42 | |||||||
| Diluted | 13.24 | 7.82 | 1.12 | 41.28 | 44.02 | 6.30 | |||||||
| Weighted average shares used in calculating net income per ordinary share | |||||||||||||
| Basic | 285,872,913 | 257,551,859 | 257,551,859 | 298,012,150 | 266,496,992 | 266,496,992 | |||||||
| Diluted | 289,427,077 | 261,071,759 | 261,071,759 | 303,449,864 | 272,171,878 | 272,171,878 | |||||||
| Unaudited Condensed Consolidated Statements of Cash Flows (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted) | |||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Net cash provided by operating activities | 3,051,606 | 3,154,623 | 451,105 | 9,343,311 | 11,083,748 | 1,584,956 | |||||||
| Net cash used in investing activities | (945,611 | ) | (1,005,164 | ) | (143,737 | ) | (7,994,081 | ) | (13,082,044 | ) | (1,870,707 | ) | |
| Net cash (used in) provided by financing activities | (1,873,516 | ) | (4,212,147 | ) | (602,329 | ) | (2,114,463 | ) | 2,783,865 | 398,087 | |||
| Effect of foreign exchange rate changes | 31,464 | (21,535 | ) | (3,079 | ) | 12,036 | (50,451 | ) | (7,215 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 263,943 | (2,084,223 | ) | (298,040 | ) | (753,197 | ) | 735,118 | 105,121 | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 6,541,857 | 9,625,141 | 1,376,377 | 7,558,997 | 6,805,800 | 973,216 | |||||||
| Cash, cash equivalents, and restricted cash, end of period | 6,805,800 | 7,540,918 | 1,078,337 | 6,805,800 | 7,540,918 | 1,078,337 | |||||||
| Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted) | |||||
| Three months ended December 31, | |||||
| 2024 | 2025 | 2025 | |||
| RMB | RMB | USD | |||
| Net income | 1,912,667 | 1,016,103 | 145,300 | ||
| Other comprehensive income, net of tax of nil: | |||||
| Foreign currency translation adjustment | 145,610 | (50,929 | ) | (7,283 | ) |
| Other comprehensive income (loss) | 145,610 | (50,929 | ) | (7,283 | ) |
| Total comprehensive income | 2,058,277 | 965,174 | 138,017 | ||
| Comprehensive loss attributable to noncontrolling interests | 3,970 | 3,446 | 493 | ||
| Comprehensive income attributable to ordinary shareholders | 2,062,247 | 968,620 | 138,510 | ||
| Year ended December 31, | |||||
| 2024 | 2025 | 2025 | |||
| RMB | RMB | USD | |||
| Net income | 6,248,116 | 5,975,643 | 854,507 | ||
| Other comprehensive income, net of tax of nil: | |||||
| Foreign currency translation adjustment | 46,534 | (207,571 | ) | (29,682 | ) |
| Other comprehensive income (loss) | 46,534 | (207,571 | ) | (29,682 | ) |
| Total comprehensive income | 6,294,650 | 5,768,072 | 824,825 | ||
| Comprehensive loss attributable to noncontrolling interests | 16,198 | 14,048 | 2,009 | ||
| Comprehensive income attributable to ordinary shareholders | 6,310,848 | 5,782,120 | 826,834 | ||
| Unaudited Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for number of shares and per share data, or otherwise noted) | |||||
| Three months ended December 31, | |||||
| 2024 | 2025 | 2025 | |||
| RMB | RMB | USD | |||
| Reconciliation of Non-GAAP Net Income to Net Income | |||||
| Net income | 1,912,667 | 1,016,103 | 145,300 | ||
| Add: Share-based compensation expenses | 59,720 | 54,493 | 7,792 | ||
| Non-GAAP net income | 1,972,387 | 1,070,596 | 153,092 | ||
| GAAP net income margin | 42.7 | % | 24.8 | % | |
| Non-GAAP net income margin | 44.0 | % | 26.2 | % | |
| Net income attributable to shareholders of Qfin Holdings, Inc. | 1,916,637 | 1,019,549 | 145,793 | ||
| Add: Share-based compensation expenses | 59,720 | 54,493 | 7,792 | ||
| Non-GAAP net income attributable to shareholders of Qfin Holdings, Inc. | 1,976,357 | 1,074,042 | 153,585 | ||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS - diluted | 144,713,538 | 130,535,880 | 130,535,880 | ||
| Net income per ADS attributable to ordinary shareholders of Qfin Holdings, Inc. - diluted | 13.24 | 7.82 | 1.12 | ||
| Non-GAAP net income per ADS attributable to ordinary shareholders of Qfin Holdings, Inc. - diluted | 13.66 | 8.23 | 1.18 | ||
| Reconciliation of Non-GAAP Income from operations to Income from operations | |||||
| Income from operations | 1,890,329 | 867,407 | 124,036 | ||
| Add: Share-based compensation expenses | 59,720 | 54,493 | 7,792 | ||
| Non-GAAP Income from operations | 1,950,049 | 921,900 | 131,828 | ||
| GAAP operating margin | 42.2 | % | 21.2 | % | |
| Non-GAAP operating margin | 43.5 | % | 22.5 | % | |
| Year ended December 31, | |||||
| 2024 | 2025 | 2025 | |||
| RMB | RMB | USD | |||
| Reconciliation of Non-GAAP Net Income to Net Income | |||||
| Net income | 6,248,116 | 5,975,643 | 854,507 | ||
| Add: Share-based compensation expenses | 167,613 | 378,374 | 54,107 | ||
| Non-GAAP net income | 6,415,729 | 6,354,017 | 908,614 | ||
| GAAP net income margin | 36.4 | % | 31.1 | % | |
| Non-GAAP net income margin | 37.4 | % | 33.1 | % | |
| Net income attributable to shareholders of Qfin Holdings, Inc. | 6,264,314 | 5,989,691 | 856,516 | ||
| Add: Share-based compensation expenses | 167,613 | 378,374 | 54,107 | ||
| Non-GAAP net income attributable to shareholders of Qfin Holdings, Inc. | 6,431,927 | 6,368,065 | 910,623 | ||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS - diluted | 151,724,932 | 136,085,939 | 136,085,939 | ||
| Net income per ADS attributable to ordinary shareholders of Qfin Holdings, Inc. - diluted | 41.28 | 44.02 | 6.30 | ||
| Non-GAAP net income per ADS attributable to ordinary shareholders of Qfin Holdings, Inc. - diluted | 42.39 | 46.79 | 6.69 | ||
| Reconciliation of Non-GAAP Income from operations to Income from operations | |||||
| Income from operations | 7,528,570 | 6,678,419 | 955,002 | ||
| Add: Share-based compensation expenses | 167,613 | 378,374 | 54,107 | ||
| Non-GAAP Income from operations | 7,696,183 | 7,056,793 | 1,009,109 | ||
| GAAP operating margin | 43.9 | % | 34.8 | % | |
| Non-GAAP operating margin | 44.8 | % | 36.7 | % | |
