Qifu Technology (QFIN) Reports First Quarter 2025 Unaudited Earnings Results

Qifu Technology, Inc. (QFIN) today announced its financial results for the most recent quarter, revealing a significant miss on both earnings and revenue expectations. The company reported earnings per share of $1.74, falling short of the estimated $12.48, while revenue totaled $646.4 million, drastically below the anticipated $4.61 billion. This disappointing performance highlights ongoing challenges for Qifu Technology as it navigates a competitive landscape.

Key Highlights:

• Qifu Technology connected 163 financial institutional partners and 268.2 million consumers with potential credit needs, an 11.1% increase year-over-year.
• Cumulative users with approved credit lines rose to 58.4 million, up 11.6% from the previous year.
• The company facilitated 24,401,374 loans in Q1 2025, with total loan volume reaching RMB88,883 million, a 15.8% increase from Q1 2024.
• The total outstanding loan balance was RMB140,273 million, reflecting a 5.5% year-over-year increase.
• Net revenue for Q1 2025 was RMB4,690.7 million, compared to RMB4,153.2 million in Q1 2024.
• Non-GAAP net income was RMB1,926.2 million, up from RMB1,204.8 million in the same period last year.
• The company expects Q2 2025 net income between RMB1.65 billion and RMB1.75 billion, indicating a year-on-year growth of 24% to 31%.

Summary: Qifu Technology, a leading AI-empowered Credit-Tech platform in China, reported strong financial results for the first quarter of 2025, with total net revenue reaching RMB4,690.7 million, a significant increase from RMB4,153.2 million in the same period last year. The company also saw a rise in cumulative users with approved credit lines and successful loan drawdowns, indicating robust growth in its user base and loan facilitation activities. CEO Haisheng Wu noted, “First quarter came in stronger than typical seasonal trend despite the ongoing macroeconomic challenges,” highlighting the positive impact of government stimulus on user activity.

Looking ahead, Qifu Technology remains cautious due to macroeconomic uncertainties but is optimistic about its growth trajectory. The company anticipates a net income of RMB1.65 billion to RMB1.75 billion for the second quarter of 2025, reflecting a year-on-year growth of 24% to 31%. CFO Alex Xu emphasized the company’s strong financial position, which supports its strategic initiatives and shareholder returns, stating, “We are pleased to start 2025 with another quarter of solid financial results despite an uncertain macro environment.”

Qifu Technology, Inc. (QFIN) has experienced a rollercoaster ride in its stock price, showcasing a remarkable one-year increase of 114.75%, despite a recent dip of 3.30% over the past week. This volatility reflects the company’s mixed financial performance, highlighted by a staggering price-to-earnings ratio of just 0.54, suggesting that the stock may be undervalued relative to its earnings potential. While the company has demonstrated impressive growth in free cash flow with a two-year compound annual growth rate (CAGR) of 25.92%, its revenue has faced challenges, declining at a CAGR of nearly 16%. On the profitability front, QFIN boasts a robust net profit margin of 40.32% and a return on invested capital of 22.85%, indicating efficient management and strong operational performance. The stock’s recent surge over the past month by 26.74% may signal renewed investor confidence, despite the underlying revenue struggles. As QFIN navigates these financial metrics, investors will be keenly watching how the company addresses its revenue challenges while capitalizing on its cash flow strengths. Overall, Qifu Technology’s performance presents a compelling case for both caution and optimism in the current market landscape.

Qifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People’s Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. It offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People’s Republic of China.