Shares of Qifu Technology (NASDAQ: QFIN) plummeted 14.59% in Tuesday's trading session following the release of its third-quarter 2025 financial results, which fell short of analyst expectations and highlighted ongoing challenges in China's consumer finance sector.
The AI-empowered Credit-Tech platform reported a net income of RMB1.43 billion ($201.2 million) for Q3, down from RMB1.80 billion in the same period last year. Earnings per ADS came in at RMB10.80 ($1.52), missing the analyst consensus estimate of $1.68. While total revenue increased to RMB5.21 billion ($731.2 million) from RMB4.37 billion a year ago, it was not enough to offset investor concerns about the company's performance and outlook.
Haisheng Wu, CEO of Qifu Technology, acknowledged the challenging operating environment, stating, "Later part of the third quarter was a rather challenging period of time as we continued to adjust our operations to cope with macro uncertainties and the latest regulatory changes." The company reported fluctuations in overall risk levels and tightened risk standards in response to liquidity issues in high-risk segments of the consumer finance industry. Notably, the 90-day+ delinquency rate for loans originated through the platform increased to 2.09% as of September 30, 2025.
Adding to investors' concerns, Qifu Technology provided a cautious outlook for the fourth quarter of 2025, expecting net income between RMB0.92 billion and RMB1.12 billion, representing a year-on-year decline between 39% and 49%. For the full year 2025, the company projects net income between RMB5.88 billion and RMB6.08 billion, indicating a potential year-on-year change ranging from -2% to +1%.
The significant stock price drop reflects investors' reassessment of Qifu Technology's near-term growth prospects in light of the challenging regulatory and economic environment facing China's fintech sector. As the company navigates these headwinds, market participants will likely focus on its ability to maintain asset quality and adapt its business model to evolving regulatory requirements.