Qfin Holdings (QFIN) stock slid 13% in Tuesday after-hours trading after the fintech’s Q3 loss was much wider than the consensus estimate amid economic uncertainties, regulatory changes and fluctuating risk levels.
“The 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,” said CEO Haisheng Wu. “We continued to see further fluctuation in overall risk levels as liquidity issues in high-risk segments caused ripple effects across the consumer finance industry, despite our effort to mitigate the risks by tightening risk standards in the middle of the quarter.”
Qfin (QFIN) expects Q4 non-GAAP net income of RMB 1.0B-RMB 1.2B, representing a TY/Y decline of 39%-49%.
Q3 non-GAAP earnings per American depository share (“EPADS”) of RMB 11.36 (US$1.60), missing the Visible Alpha consensus of RMB 11.99, fell from RMB 13.63 in Q2 and RMB 12.35 in last year’s Q3.
Q3 non-GAAP operating margin of 34.1% slid from 53.05 in last year’s Q3.
Revenue of RMB 5.21B (US$731.2M), topping the Visible Alpha consensus of RMB 5.04B, slipped from RMB 5.22B in the prior quarter and RMB 4.37B in the year-ago period.
Provision for loans receivable climbed to RMB 837.8M from RMB 773.8M in the prior quarter and RMB 477.5M in the year-ago quarter.
Total facilitation and origination loan volume reached RMB 83.3B, down 1.6% from Q2 and up 1.0% from Q3 2024.
90-day+ delinquency rate of loans originated by financial institutions across Qfin’s (QFIN) platform was 2.09% as of Sept. 30, 2025, up from 1.97% at June 30.
Conference call at 7:30 PM ET.