Shares of Qfin Holdings slid 18.56% to $9.50 on Wednesday, extending losses after the Chinese fintech lender reported second-quarter results that missed revenue estimates and revealed a steep decline in profitability.
The stock touched a new 52-week low of $9.47 during the session, bringing its decline to more than 70% from its 52-week high of $32.69. Trading volumes were elevated, with the drop concentrated in midday U.S. trading.
Qfin posted total net revenue of RMB 3.57 billion for the quarter, down 31.6% from a year earlier and missing the consensus estimate of RMB 4.02 billion by 11.2%. Non-GAAP net profit fell to RMB 455 million, less than half the RMB 946 million recorded in the prior quarter and down sharply from RMB 1.85 billion in the same period last year. Adjusted earnings per share came in at $6.56, exceeding the $4.90 consensus but overshadowed by a one-time tax expense of approximately RMB 500 million.
The results follow a broader slowdown in China’s consumer credit market, where tighter regulations and cautious lending practices have constrained loan volumes and compressed margins across the fintech sector.
Analysts responded swiftly to the report. Citi downgraded Qfin to Sell from Buy and slashed its price target to $8 from $30.10. JPMorgan shifted to Underweight with a $9 target, while Morgan Stanley cut its rating to Equalweight and reduced its target to $13 from $25. Jefferies trimmed its target to $15.40 from $20.40, citing weak loan growth and guidance that trailed consensus.
Broader U.S. equity indices showed little movement, with the S&P 500 flat, the Dow Jones slightly lower, and the Nasdaq modestly weaker, indicating the selloff was driven by company-specific factors rather than broader macro trends.
