Qfin Holdings, Inc. Q4 FY2025 earnings call

In 2025, China's consumer finance industry underwent systemic restructuring. Kewfin proactively pivoted strategy, put compliance and risk management at core. Q4 loan facilitation and origination volume down 21.8% y-o-y. Full year performance resilient, loan volume up 1.6%. Strengthened risk management, optimized business structure. Technology solutions business grew strongly in 2025, loan volume up ~448% y-o-y. Focus Pro lending solution helped banks serve underserved segments. AI Plus Credit strategy's AI agents showed early results. 2026 focus on serving high-quality users, diversifying funding channels, optimizing funding structure, continuing overseas expansion

Total net revenue for Q4 was $4.09 billion. Revenue from credit-driven service was $3.43 billion in Q4. Revenue from platform service was $660 million in Q4. Total loan facilitation and origination volume in Q4 decreased by 21.8% year-over-year to RMB 70.3 billion. Full year total loan facilitation and origination volume reached approximately RMB 327.1 billion, up 1.6% year-over-year. Non-GAAP net income in Q4 decreased by 45.7% year-over-year to RMB 1.07 billion, full year non-GAAP net income declined 1% year-over-year to RMB 6.35 billion. Non-GAAP EP ADS in Q4 decreased by 39.8% year-over-year to RMB 8.23, full year increased 10.4% year-over-year to RMB 46.8

For 2026 first quarter, company expects non-GAAP net income between RMB $900 million and RMB $950 million, a year-on-year decline between 51% and 53%. Looking ahead, will continue to dynamically adjust risk strategies, diversify funding channels, optimize funding structure, focus on high-quality users in acquisition, and advance overseas expansion

Challenging market environment with tightened liquidity, suppressed credit demand. Regulatory uncertainty. Risk metrics experienced volatilities, C2M2 ratio increased. Funding environment challenging with potential short-term volatility in funding costs. Industry consolidation带来的不确定性

Q: About average loan price trend and net take rate, A: Over past year regulations drove down borrowing costs, Q4 take rate 3.5%, expect to maintain ~3% in stable regulatory environment.

Q: About risk trend and business structure choice, A: Q4 industry faced pressure, took steps in underwriting and collections, saw FPD30 drop. Business structure will dynamically change based on market condition, 2026 likely move toward capital light a bit.

Q: About ICE business and funding cost, A: ICE business referral service fee down due to volume decline and take rate adjustment. Funding cost affected by macro and regulatory environment, ABS funding cost and loan facilitation business funding face uncertainty but will continue to expand channels and optimize structure.

Q: About credit risk stabilization and overseas expansion, A: CM2 ratio improved but need time to see sustainability, will focus on quality over volume. Overseas expansion will speed up, enter multiple markets including Europe, Latin America, Southeast Asia