Qfin Holdings Inc. (QFIN) tumbled 17.6% to $9.50 in midday trading on Wednesday, hitting a new 52-week low of $9.47 after the company reported weaker-than-expected quarterly results and announced a one-time tax charge.
The Beijing-based consumer finance firm posted total net revenue of RMB 3.57 billion for the second quarter of 2026, missing the consensus estimate of RMB 4.02 billion by 11.2% and down 31.6% from the same period last year. Non-GAAP net profit fell to RMB 455 million, a 51.7% decline from the prior quarter and an 80.2% drop year-over-year. The company also recorded a one-time tax expense of approximately RMB 500 million, which further pressured earnings.
Analysts responded swiftly to the results. Citi downgraded QFIN to Sell from Buy, cutting its price target to $8 from $30.10. JPMorgan shifted to Underweight with a $9 target, while Morgan Stanley downgraded the stock to Equalweight and reduced its target from $25 to $13, citing liquidity concerns and challenges in debt collection. Jefferies trimmed its target to $15.40 from $20.40, attributing the revision to weak loan volumes and guidance that trailed consensus.
The broader market showed little reaction to Qfin’s decline. The S&P 500 was essentially flat, the Dow Jones edged slightly lower, and the Nasdaq dipped modestly, indicating the selloff was driven primarily by company-specific factors. The drop reflects ongoing pressures in China’s consumer credit sector, where tighter regulations and cautious lending practices have reduced loan volumes and compressed margins across fintech lenders.
Qfin’s stock has fallen more than 70% from its 52-week high of $32.69, underscoring the challenges facing the company amid a challenging operating environment.
