Qfin Holdings Inc reported second-quarter 2026 adjusted earnings per share of $6.56, exceeding the $4.90 forecast by 33.9%, while total net revenue declined 11.2% year-over-year to CNY 3.57 billion, missing the $4.02 billion estimate. Revenue from credit-driven services fell 27.2% year-over-year to CNY 2.6 billion, while platform services revenue dropped 41.3% to CNY 969.8 million.
Non-GAAP net profit for the quarter was RMB 455 million, down 51.9% sequentially and 75.4% year-over-year. Loan facilitation and origination volume totaled approximately RMB 63.4 billion, a 2.5% sequential decline. The tech solutions business saw loan volume reach RMB 10.5 billion, up roughly 515% year-over-year, with outstanding balances at RMB 16.1 billion by quarter-end, a 313% increase. New credit line users fell to 830,000 from 1.19 million in the prior quarter.
Operating cash flow decreased 48.1% from the first quarter to RMB 1.09 billion, while cash and short-term investments stood at RMB 10.63 billion. The company maintained its dividend at $0.46 per ADS for the first half of 2026. One-time tax-related expenses totaled about RMB 500 million for the quarter.
Chief Executive Officer Wu Haisheng noted the ongoing pressure in China’s consumer finance sector, emphasizing the company’s focus on compliance and risk management amid industry adjustments. Chief Financial Officer Alex Xu highlighted the impact of a liquidity squeeze in late June and heightened regulatory scrutiny, which reshaped industry behavior. The average pricing of new loans fell to 18.2%, while overall funding costs declined sequentially but rose about 25 basis points in July and August.
Shares of Qfin closed at $11.53 in regular trading, up 4.91%, but declined 11.01% in after-hours trading to $10.26. The stock has traded within a 52-week range of $10.85 to $32.69.
