Qifu Technology Q2 net revenue falls to $3.57 billion
Qifu Technology reported Q2 net revenue of $3.57 billion, down from $3.91 billion in Q1 and $5.22 billion a year earlier, and said non-GAAP net profit fell to $455 million.
On Tuesday, Qifu Technology (NASDAQ: QFIN ) discussed second-quarter financial results during its earnings call.
The full transcript is provided below.
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Access the full call at Summary QFIN Holdings reported a decline in Q2 net revenue to $3.57 billion, down from $3.91 billion in Q1 and $5.22 billion a year ago, primarily due to reduced risk-bearing loans and lower loan pricing.
The company emphasized its focus on risk management and operational efficiency amid tightened regulatory scrutiny and a liquidity squeeze within the industry.
QFIN's AI-powered credit decision engine and asset distribution platform served 168 financial institutions, with improved risk metrics and a 13% reduction in customer acquisition expenses sequentially.
The company recorded a year-on-year decline in non-GAAP net profit to $455 million, largely due to lower loan volumes and a significant one-off tax-related expense.
QFIN's strategic initiatives include advancing their 'one core two wings' strategy, emphasizing tech solutions for financial institutions and overseas market expansion.
Looking forward, QFIN expects non-GAAP net income for Q3 2026 to decline by 67% to 73% year-over-year, reflecting cautious business planning amid regulatory and market challenges.
Management highlighted the implementation of new regulatory policies, leading to tighter funding conditions and operational challenges, but expressed confidence in long-term growth potential through strategic risk management and capital allocation.
Full Transcript Aisha, Operator Ladies and gentlemen, thank you for standing by and welcome to the QFIN holdings second quarter 2026 earnings conference call.
All participants are in listen-only mode.
There will be a presentation followed by a question-and-answer session.
If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad.
Please also note today's event is being recorded.
At this time, I'd like to turn the conference call over to Ms.
Kiranji, Senior Director of Capital Markets.
Please go ahead, Karen.
Karen, Senior Director of Capital Markets Thank you, Aisha.
Hello everyone and welcome to QFIN holdings second quarter 2026 earnings conference call.
Our earnings release was distributed earlier today and is available on our IR website.
Joining me today are Mr.
Wu Haishen, our CEO, Mr.
Alex Xu, our CFO, and Mr.
Zheng Yan, our CIO.
Now I will quickly cover the Safe Harbor Statement.
Today's discussions may contain forward-looking statements, particularly statements about our business and the financial results, that are subject to risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements.
Please refer to the Safe Harbor statement in our earnings release which also contains a reconciliation of the non-GAAP financial measures to GAAP financial measures.
Now I will turn the call over to Mr.
Wu Haishen.
Please go ahead.
Zheng Yan, President Hello everyone.
Thank you for joining us today.
Since the start of 2026, China's consumer finance industry has remained under pressure.
According to the People's Bank of China, the outstanding balance of short-term household consumer loans fell by more than RMB 660 billion from the beginning of the year through the end of Q2, reflecting continued voluntary and involuntary deleveraging among households.