Qfin Holdings reported second-quarter 2026 adjusted earnings per share of $6.56, exceeding the $4.90 consensus estimate by 33.9%, but total net revenue declined to CNY 3.57 billion, missing the $4.02 billion forecast by 11.2%. Revenue fell 31.6% year-over-year and 8.7% sequentially from CNY 3.91 billion in Q1 2026.
Non-GAAP net profit dropped 51.9% from Q1 to RMB 455 million, a 75.4% decline from the same period last year. Revenue from credit-driven services fell 12.2% sequentially and 27.2% year-over-year to CNY 2.6 billion, while platform services revenue edged down 41.3% year-over-year to CNY 969.8 million despite a 1.9% sequential increase.
Loan facilitation and origination volume totaled approximately RMB 63.4 billion, down 2.5% sequentially. Technology solutions loan volume surged 515% year-over-year to RMB 10.5 billion, with an outstanding balance of RMB 16.1 billion at quarter-end, up 313%. New credit line users declined to 830,000 from 1.19 million in Q1, while the 30-day collection rate improved to 88.1%, a 2.3 percentage point sequential increase.
Operating cash flow fell 48.1% from Q1 to RMB 1.09 billion, and cash and short-term investments stood at RMB 10.63 billion. The current ratio was 2.22, and the company’s ABS issuance rose 90% sequentially to RMB 5.5 billion. A one-time tax-related expense of about RMB 500 million was recorded.
Shares of Qfin closed at $11.53 in regular trading, up 4.91% from the prior close of $10.99, but fell 11.01% in after-hours trading to $10.26. The 52-week range is $10.85 to $32.69.
Management highlighted ongoing industry pressures. CEO Wu Haisheng noted that China’s consumer finance sector has faced persistent headwinds in 2026, prompting a focus on compliance, risk management, and efficiency over growth. CFO Alex Xu emphasized safeguarding long-term stability amid market volatility.
Qfin guided for Q3 2026 non-GAAP net income of RMB 400 million to RMB 500 million, implying a 67% to 73% year-over-year decline. Funding costs rose by about 25 basis points in July and August, though overall Q2 funding costs declined by 10 basis points sequentially. ABS issuance costs fell by around 20 basis points, and average loan pricing decreased to 18.2% in Q2.
The People’s Bank of China reported that the outstanding balance of short-term household consumer loans in China fell by over RMB 660 billion in the first half of 2026.
