Q1 2026 Qfin Holdings Inc Earnings Call Transcript
Key Points
- Qfin Holdings Inc (QFIN) demonstrated resilience in a challenging market by optimizing its user and asset mix, leading to improved risk indicators and operational efficiency.
- The company served 167 financial institutions with its AI-powered credit decision engine, reaching over 64 million credit line users cumulatively.
- Qfin Holdings Inc (QFIN) achieved a 17% sequential decrease in the C2M2 ratio, indicating improved delinquency rates and risk optimization.
- The company strategically increased marketing spending on high-quality users by 40%, enhancing its user mix and portfolio quality.
- Qfin Holdings Inc (QFIN) reported a sevenfold year-over-year growth in loan volumes empowered by its tech solutions business, showcasing the success of its tech-driven capital-light model.
- Total loan facilitation and origination volume declined by approximately 7.5% sequentially to RMB65 billion, reflecting a softening retail credit market.
- Non-GAAP net income decreased by 11.6% sequentially to approximately RMB950 million, with a decline in non-GAAP EPADS by 6.4%.
- The company faced liquidity pressure in the funding market, although it managed to reduce funding costs by increasing the proportion of ADS in its funding mix.
- Qfin Holdings Inc (QFIN) experienced a significant year-on-year decline in profitability due to lower loan volume, lower pricing, and higher credit costs.
- The company anticipates continued macro uncertainty and regulatory pressure, expecting a year-on-year decline in non-GAAP net income between 47% and 51% for the second quarter of 2026.
Ladies and gentlemen, thank you for standing by and welcome to the Qfin Holdings first-quarter 2026 earnings conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the conference over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen.
Thank you, Darcy. Hello, everyone, and welcome to Qfin Holdings' first-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 Haisheng, our CEO; Mr. Alex Xu, our CFO; and Mr. Zheng Yan, our CRO.
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
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