QFIN · Qfin Holdings, Inc.

Qfin Holdings reported first-quarter 2026 results that reflected ongoing regulatory tightening and a cautious operational posture. Total net revenue decreased 7% sequentially and 17% year-over-year to RMB3,909 million, driven primarily by a 26.8% drop in loan facilitation volume to RMB65 billion and a shift toward capital-light models. Net income fell to RMB880 million from RMB1,016 million in the prior quarter and RMB1,797 million a year ago, with GAAP net income margin compressing to 22.5% from 38.3% in Q1 2025. Non-GAAP net income was RMB946 million, down from RMB1,071 million sequentially and RMB1,926 million year-over-year.

Credit quality metrics showed mixed trends: the 90+ day delinquency rate stood at 3.50%, while Day-1 delinquency was 5.7% and 30-day collection rate at 85.8%. Management highlighted proactive tightening of credit standards and optimization of loan portfolio, leading to improved risk performance. The company expanded its cumulative registered users to 297.5 million and financial institutional partners to 167.

On the capital allocation front, Qfin repurchased US$577 million of its 0.50% convertible notes due 2030 for US$502 million, reducing outstanding to US$113 million, which strengthens the balance sheet. Total cash and short-term investments were approximately RMB10.8 billion at quarter-end. For the second quarter of 2026, the company guided net income between RMB830-910 million and non-GAAP net income between RMB900-980 million, implying a year-over-year decline of 47-51%, reflecting continued regulatory and macro uncertainties. Management emphasized AI-driven transformation and early-stage global expansion as long-term strategic priorities.