Shares of Qfin Holdings fell as much as 18.91% on Wednesday after the Chinese consumer finance firm reported weaker-than-expected second-quarter results and faced a wave of analyst downgrades.
The stock dropped 17.6% during the session to $9.50, briefly touching a new 52-week low of $9.47. The decline extended a year-to-date slump, leaving Qfin trading more than 70% below its 52-week high of $32.69.
Qfin reported total net revenue of RMB 3.57 billion for the quarter, a 31.6% decline from the same period last year and 11% below the consensus estimate of RMB 4.02 billion. Non-GAAP net income fell to RMB 455 million, down from RMB 946 million in the prior quarter and RMB 1.85 billion in Q2 2025. While adjusted earnings per share of $6.56 slightly exceeded expectations of $4.90, a one-off tax expense of approximately RMB 500 million pressured the bottom line.
Analysts responded swiftly, with Citi downgrading Qfin to "sell" from "buy" and cutting its price target to $8.00 from $30.10. JPMorgan shifted its stance to "underweight" with a $9.00 target, while Morgan Stanley lowered its rating to "neutral" and reduced its target to $13.00 from $25.00, citing liquidity and bad debt challenges. Jefferies also trimmed its target to $15.40 from $20.40, citing weak loan volumes and guidance below consensus.
The broader market offered no offset, with the S&P 500 flat, the Dow Jones slightly lower, and the Nasdaq modestly down, indicating the selloff was company-specific rather than driven by macro factors. The results underscore ongoing stress in China’s consumer credit sector, where tighter regulations and cautious lending have constrained loan volumes and margins across fintech lenders.
Qfin’s shares have declined more than 70% from their 52-week peak, reflecting investor concerns over the company’s near-term outlook amid a challenging regulatory and economic environment in China.
