Qfin Holdings, Inc.

Q1 2026 total net revenue was RMB 3.91 billion, versus RMB 4.09 billion in Q4 and RMB 4.69 billion a year ago. Revenue from credit-driven service, capital heavy, was RMB 2.96 billion, versus RMB 3.43 billion in Q4 and RMB 3.11 billion a year ago; platform service, capital light, was RMB 951.9 million, versus RMB 660 million in Q4 and RMB 1.58 billion a year ago. Non-GAAP net income was RMB 946 million, versus RMB 1.07 billion in Q4 and RMB 1.93 billion a year ago, and non-GAAP EPS was RMB 7.70, versus RMB 8.23 in Q4. Loan facilitation and origination volume fell about 7.5% sequentially to RMB 65 billion; average IRR was 18.7% versus 19.5% in Q4. C2M2 was 0.8% versus 0.97% in Q4, 30-day collection rate was 85.8% versus 84.1%, and 90-day delinquency was 3.5% versus 2.71%. Sales and marketing expense fell 17% sequentially and 23% year over year. Q2 2026 non-GAAP net income is expected to be RMB 900 million to RMB 980 million, implying a 47% to 51% year-over-year decline.

The CEO framed the quarter as a deliberate reset toward a healthier business model amid continued industry restructuring, soft consumer credit demand and regulatory pressure. He emphasized tighter risk management, a shift toward high-quality users, improved collections, lower funding costs, and stronger tech capabilities as the main pillars of the strategy. He also reiterated the company’s “One Core, Two Wings” approach, with domestic credit at the center and tech solutions plus overseas expansion as longer-term growth engines.

The CFO highlighted the revenue and profit declines, attributing them to lower loan volume, lower pricing, higher credit costs and deleveraging. He noted funding cost improved by about 10 bps sequentially, ABS issuance reached RMB 2.9 billion, leverage fell to 2.4x from 2.7x, and cash and cash equivalents plus short-term investments were RMB 10.79 billion. He also said the company repurchased about USD 577 million of convertible bonds for USD 502 million, leaving about USD 113 million outstanding, and said it may opportunistically resume share repurchases while maintaining a progressive dividend policy.

Analysts pressed management on declining loan pricing, the timing of a return to loan growth, CAC trends, and whether risk appetite would be raised now that asset quality has improved. Management said pricing is being used strategically to attract higher-quality users and improve LTV, that it does not want to chase volume blindly, and that the business remains focused on health and sustainability rather than scale. On acquisition, they said blended CAC was roughly flat sequentially because higher-cost bids for high-quality users were offset by cuts in regular segments, and on overseas expansion they said the U.K. and a Latin American launch are early but in line with expectations while Southeast Asia is being planned.