Core Insights - Qfin Holdings reported its unaudited financial results for Q3 2025, highlighting a challenging macroeconomic environment and regulatory changes impacting operations [1][13][15]. Business Highlights - As of September 30, 2025, Qfin's platform connected 167 financial institutional partners and 283.7 million consumers, marking an 11.6% increase from 254.3 million a year prior [11]. - Cumulative users with approved credit lines reached 62.1 million, up 12.6% from 55.2 million year-over-year [11]. - The number of cumulative borrowers with successful drawdowns was 38.1 million, reflecting a 15.1% increase from 33.1 million a year ago [11]. - In Q3 2025, financial institutional partners originated 22,475,059 loans through the platform [11]. - Total loan facilitation and origination volume was RMB 83,280 million, a 1.0% increase from RMB 82,436 million in the same period of 2024 [11]. Financial Highlights - Total net revenue for Q3 2025 was RMB 5,205.7 million (US$ 731.2 million), compared to RMB 4,370.2 million in the same period of 2024 [19][18]. - Net income was RMB 1,432.5 million (US$ 201.2 million), down from RMB 1,798.8 million in Q3 2024 [36]. - Non-GAAP net income was RMB 1,508.2 million (US$ 211.9 million), compared to RMB 1,825.1 million in the same period of 2024 [37]. - The weighted average contractual tenor of loans originated was approximately 10.58 months, compared to 10.12 months in Q3 2024 [11]. - The 90-day+ delinquency rate was 2.09% as of September 30, 2025 [11]. Operational Insights - The company issued nearly RMB 18.9 billion in asset-backed securities (ABS) in the first three quarters of 2025, over a 40% increase from the same period last year [14]. - Approximately 48% of the quarter-end loan balance was under the capital-light model, ICE, and total technology solutions [14]. - The company aims to maintain resilience in its baseline business while optimizing resource allocation amid macro challenges [15]. Future Outlook - For Q4 2025, the company expects net income between RMB 0.92 billion and RMB 1.12 billion, representing a year-on-year decline of 39% to 49% [43]. - For the full year 2025, net income is projected to be between RMB 5.88 billion and RMB 6.08 billion, reflecting a year-on-year change of -2% to +1% [43].

Core Viewpoint - Qfin Holdings, Inc. reported strong financial results for the second quarter of 2025, with total net revenue reaching RMB5,215.9 million (US$728.1 million), reflecting a year-over-year increase of 25.4% from RMB4,160.1 million in the same period of 2024. The company also announced a semi-annual dividend of US$0.38 per Class A ordinary share [10][17][41]. Financial Highlights - Total net revenue for Q2 2025 was RMB5,215.9 million (US$728.1 million), compared to RMB4,690.7 million in the prior quarter and RMB4,160.1 million in the same period of 2024 [10][17]. - Net income for Q2 2025 was RMB1,730.5 million (US$241.6 million), a decrease from RMB1,796.6 million in the prior quarter but an increase from RMB1,376.5 million in the same period of 2024 [18][35]. - Non-GAAP net income for Q2 2025 was RMB1,849.0 million (US$258.1 million), compared to RMB1,926.2 million in the prior quarter and RMB1,413.4 million in the same period of 2024 [18][36]. - Total outstanding loan balance was RMB140,080 million as of June 30, 2025, an increase of 13.4% from RMB123,551 million a year ago [11][10]. Business Performance - The platform connected 165 financial institutional partners and 275.8 million consumers with potential credit needs, marking an 11.4% increase from 247.6 million a year ago [11]. - Cumulative users with approved credit lines reached 60.2 million, up 12.3% from 53.6 million a year ago [11]. - The company facilitated 23,638,189 loans in Q2 2025, with total facilitation and origination loan volume reaching RMB84,609 million, a 16.1% increase from RMB72,864 million in the same period of 2024 [11][10]. Operational Insights - The weighted average contractual tenor of loans originated was approximately 10.33 months, compared to 9.97 months in the same period of 2024 [11]. - The 90-day+ delinquency rate was 1.97% as of June 30, 2025 [11]. - Repeat borrower contribution for loans originated was 93.8% in Q2 2025 [11]. Strategic Developments - The company issued a record amount of Asset-Backed Securities (ABS) during the quarter, and the blended funding cost declined despite liquidity shortages in certain industry segments [14]. - More than half of new credit line users were acquired through embedded finance partners, indicating a diversification in user acquisition channels [14]. - The company plans to allocate more resources to AI applications across its credit service offerings to enhance efficiency and service quality [15]. Future Outlook - For Q3 2025, the company expects net income between RMB1.52 billion and RMB1.72 billion, and non-GAAP net income between RMB1.60 billion and RMB1.80 billion, reflecting a year-on-year decline of 2% to 13% [44].