Qifu Technology, Inc ((QFIN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call from Qifu Technology, Inc. painted a picture of both resilience and challenges. While the company demonstrated growth in its technology solutions, it is also navigating significant regulatory hurdles and rising delinquency rates in a tightening liquidity environment.
Steady Financial Results Amid Macro Headwinds
Qifu Technology, Inc. reported a non-GAAP net income of RMB 1.51 billion for the third quarter, reflecting solid profitability and operational resilience despite the challenging economic conditions. This performance underscores the company’s ability to maintain financial stability even as macroeconomic pressures mount.
Strong Growth in Technology Solutions
The company’s Technology Solutions business experienced a remarkable 218% sequential growth in loan volume. This surge was fueled by expanding collaborations with financial institutions and the development of AI agents, highlighting the company’s strategic focus on leveraging technology for growth.
Increase in ABS Issuance
Qifu Technology issued RMB 4.5 billion in asset-backed securities (ABS) during the quarter, marking a 29% year-over-year increase. For the first nine months of 2025, total ABS issuance grew by 41% year-over-year, indicating strong demand and effective capital market strategies.
Efficient User Acquisition
The company achieved a 9% growth in new credit line users, reaching 1.95 million, while reducing the average cost per user by 8%. This improvement in user acquisition efficiency is a testament to the company’s effective marketing and operational strategies.
Regulatory Challenges and Market Adjustments
The consumer finance sector in China is undergoing regulatory-driven adjustments, which have led to a decline in short-term consumer loans for three consecutive quarters. These regulatory challenges are prompting the company to adapt its strategies to align with the evolving market landscape.
Increased Delinquency Rates
The 90-day delinquency rate rose to 2.09% in Q3 from 1.97% in Q2, reflecting an increase in overall portfolio risk amid a tighter liquidity environment. This uptick underscores the need for enhanced risk management practices.
Pressure from Funding Liquidity
Funding liquidity in the high-price segment continued to tighten, contributing to an increase in overall delinquency risk across the industry. This pressure highlights the challenges faced by the company in securing cost-effective funding.
Decline in Platform Service Revenue
Revenue from platform service capital light decreased to CNY 1.34 billion in Q3 from CNY 1.65 billion in Q2. This decline was primarily due to lower capital light facilitation and ICE volume, indicating a need for strategic adjustments in this area.
Forward-Looking Guidance
Looking ahead, Qifu Technology anticipates a non-GAAP net income between CNY 1 billion and CNY 1.2 billion for Q4 2025. Despite the slight increase in delinquency rates, the company remains focused on optimizing risk strategies and leveraging its AI-powered platform to drive loan facilitation and origination. The company remains cautious about volatile market conditions but is committed to maintaining its growth trajectory.
In conclusion, Qifu Technology, Inc.’s earnings call highlighted a mixed outlook. While the company is making significant strides in technology solutions and maintaining steady financial results, it faces considerable challenges from regulatory adjustments and increased delinquency rates. Investors and stakeholders will be keenly watching how the company navigates these challenges in the coming quarters.