Qfin (NASDAQ:QFIN) Posts Earnings Results, Misses Expectations By $0.58 EPS

Qfin (NASDAQ:QFIN) released its quarterly earnings data on Tuesday. The company reported $0.48 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.58), Zacks reports. The business had revenue of $524.96 million during the quarter, compared to analyst estimates of $562.45 million. Qfin had a net margin of 22.23% and a return on equity of 15.44%.

Here are the key takeaways from Qfin’s conference call:

• Q2 revenue fell to RMB 3.57 billion from RMB 3.91 billion in Q1 and RMB 5.22 billion a year earlier, while non-GAAP net profit declined to RMB 455 million. Results were pressured by lower loan volume and pricing, deleveraging, and a one-off tax expense of approximately RMB 500 million.
• Industry liquidity tightened sharply following a late-June peer event and stricter regulation, prompting Qfin to reduce originations and tighten underwriting. Management expects loan volume to remain below Q2 levels for the foreseeable future, with risk-bearing loan C-M2 potentially rising about 25% sequentially in August and taking two to three quarters to normalize.
• Collection capacity shortages caused by a nationwide regulatory campaign are weighing on recovery efficiency, while external funding costs increased about 25 basis points in July and August. Management expects funding costs to rise further in the second half and issued Q3 non-GAAP net income guidance of only RMB 400 million to RMB 500 million, down 67% to 73% year over year.
• Despite the downturn, Qfin reported improving Q2 credit metrics, including a C-M2 ratio of 0.66% and an 88.1% 30-day collection rate, while reducing acquisition spending and weaker API exposure. Its technology-solutions business also expanded rapidly, with enabled loan volume up approximately 515% year over year to RMB 10.5 billion, supported by new AI projects with banks.

Qfin Stock Performance

QFIN opened at $9.35 on Thursday. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.22 and a quick ratio of 2.22. The business has a fifty day simple moving average of $13.54 and a 200 day simple moving average of $13.89. Qfin has a 1 year low of $9.21 and a 1 year high of $32.69. The company has a market capitalization of $1.14 billion, a PE ratio of 2.25 and a beta of 0.63.

Insiders Place Their Bets

In other news, Director Xiaohuan Chen bought 4,000 shares of the company’s stock in a transaction dated Tuesday, June 9th. The stock was bought at an average price of $14.41 per share, with a total value of $57,640.00. Following the completion of the acquisition, the director owned 19,000 shares of the company’s stock, valued at $273,790. This represents a 26.67% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 17.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Qfin

A number of hedge funds have recently added to or reduced their stakes in QFIN. Dimensional Fund Advisors LP lifted its position in shares of Qfin by 9.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,988,999 shares of the company’s stock valued at $38,350,000 after acquiring an additional 176,754 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Qfin by 198.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,842,278 shares of the company’s stock worth $35,501,000 after purchasing an additional 1,224,164 shares during the period. Geode Capital Management LLC raised its stake in Qfin by 5.2% in the fourth quarter. Geode Capital Management LLC now owns 1,260,258 shares of the company’s stock valued at $24,172,000 after purchasing an additional 62,640 shares in the last quarter. Voloridge Investment Management LLC raised its stake in Qfin by 124.1% in the fourth quarter. Voloridge Investment Management LLC now owns 1,163,392 shares of the company’s stock valued at $22,419,000 after purchasing an additional 644,171 shares in the last quarter. Finally, Qube Research & Technologies Ltd lifted its position in Qfin by 78.3% during the third quarter. Qube Research & Technologies Ltd now owns 1,008,011 shares of the company’s stock worth $29,011,000 after purchasing an additional 442,550 shares during the period. Institutional investors own 74.81% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on QFIN shares. Jefferies Financial Group reaffirmed a “buy” rating and set a $15.40 price target on shares of Qfin in a report on Wednesday. Weiss Ratings downgraded shares of Qfin from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, July 13th. Citigroup lowered shares of Qfin from a “buy” rating to a “sell” rating and set a $8.00 price objective on the stock. in a research report on Wednesday. Zacks Research upgraded shares of Qfin from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Finally, Morgan Stanley downgraded shares of Qfin from an “overweight” rating to an “equal weight” rating and set a $13.00 target price for the company. in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $12.29.

Key Stories Impacting Qfin

Here are the key news stories impacting Qfin this week:

• Positive Sentiment: Qfin declared a semi-annual dividend alongside its second-quarter results, providing some shareholder income and signaling continued capital returns. Qfin Holdings Announces Second Quarter and Interim 2026 Unaudited Financial Results and Declares Semi-Annual Dividend
• Positive Sentiment: Morgan Stanley lowered its rating to Equal Weight but maintained a $13 price target, implying meaningful potential recovery from recent levels. However, the less bullish rating reflects reduced conviction in the near-term outlook. The Fly
• Neutral Sentiment: Qfin reported quarterly revenue of approximately $525 million, net income profitability and a 22.23% net margin, but the figures were insufficient to offset the earnings shortfall and weaker outlook.
• Negative Sentiment: Second-quarter EPS was $0.48, well below analyst estimates ranging from $0.96 to $1.06, while revenue also missed expectations of roughly $562 million. EPS fell substantially from $1.78 a year earlier. Qfin Holdings Misses Q2 Earnings Estimates
• Negative Sentiment: Management’s expectation for additional softness in the third quarter increased concerns about slowing business momentum and pressured the stock after the earnings release. Qfin Stock Slumps After Q2 Earnings
• Negative Sentiment: JPMorgan downgraded QFIN to Underweight and cut its target to $9 from $13.50; Citigroup moved from Buy to Sell with an $8 target. These revisions reinforce concerns about persistent industry headwinds. Qfin Cut to Underperform at J.P. Morgan
• Negative Sentiment: The Law Offices of Frank R. Cruz announced an investigation into potential federal securities-law violations related to Qfin’s disclosures, adding legal and reputational risk. The announcement does not establish wrongdoing. Securities Fraud Investigation Into Qfin Holdings

Qfin Company Profile

360 DigiTech, Inc (NASDAQ: QFIN) is a China‐based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises.

The company’s flagship platform offers an end‐to‐end digital lending experience, from application and credit evaluation to disbursement and repayment.