| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 98 | 2.2x | 17.8x | Top tier | |
Growth | 23 | 6.0% | 7.1% | Bottom tier | |
Quality | 84 | — | — | Top tier | |
Safety | 60 | — | — | Around median | |
Capital Return | 98 | — | 2.12% | Top tier | |
Momentum | 1 | -55.4% | 2.9% | Bottom tier | |
Sentiment | 82 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Qfin Holdings operates a digital consumer finance platform that relies on an AI-powered engine for credit decision-making and asset allocation. The company generates revenue from more capital-intensive credit-driven services and more capital-light platform services, while expanding its capabilities through technology solutions for financial institutions and operations outside China under its One Core, Two Wings strategy. By the end of the second quarter of fiscal year 2026, the platform served 168 financial institutions, and the cumulative number of credit-line users it had served exceeded 65 million.
In the second quarter of fiscal year 2026, net revenue amounted to 3.57 billion yuan, down from 3.91 billion yuan in the first quarter of fiscal year 2026 and 5.22 billion yuan in the comparable quarter, representing a year-over-year decline of approximately 31.6%. Credit-driven services generated 2.60 billion yuan, or approximately 72.8% of revenue, while platform services generated 969.8 million yuan, or approximately 27.2%. Non-GAAP net income amounted to 455 million yuan, compared with 946 million yuan in the previous quarter and 1.85 billion yuan in the comparable quarter, equivalent to a calculated margin of approximately 12.7% of quarterly revenue. Reported earnings per share were 0.48 dollars, versus estimates of 0.96 dollars and 1.78 dollars in the comparable quarter.
EDGAR data for fiscal year 2025 shows revenue of 19.2 billion dollars, gross profit of 16.2 billion dollars, and net income of 6.0 billion dollars, compared with revenue of 17.2 billion dollars, gross profit of 14.3 billion dollars, and net income of 6.3 billion dollars in fiscal year 2024. This implies annual revenue growth of approximately 11.6% and a calculated gross margin of approximately 84.4%, but net income declined by approximately 4.8%. Earnings per share increased from 20.64 dollars in fiscal year 2024 to 22.01 dollars in fiscal year 2025.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on QFIN is Buy, with an average price target of 14.18 dollars and a range between 13 and 15.4 dollars, without a separate breakdown of Hold and Sell recommendations in the available data. The average target is approximately 69.8% above the 52-week low of 8.355 dollars but approximately 56.6% below the high of 32.69 dollars; this wide gap is consistent with the reassessment of profitability following the second-quarter fiscal year 2026 miss and guidance for a year-over-year decline of between 67% and 73% in third-quarter net income. No valid price-to-earnings ratio is available in the data, so the valuation assessment is based on the target range and the dispersion of the 52-week range rather than an earnings multiple.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Net revenue declined to 3.57 billion yuan from 5.22 billion yuan in the comparable quarter, alongside declines in loan volumes and average pricing. Non-GAAP net income fell to 455 million yuan from 1.85 billion yuan, while earnings per share were 0.48 dollars versus estimates of 0.96 dollars. The company also recorded a non-recurring tax expense of approximately 500 million yuan that raised the effective tax rate to 60.3%, while it expects a tax rate of approximately 20% subsequently.
Management expects non-GAAP net income of between 400 and 500 million yuan in the third quarter of fiscal year 2026. This represents a year-over-year decline of between 67% and 73%. The guidance assumes a meaningful decline in loan volume and higher C-M2 and funding costs, with risk management and efficiency prioritized over growth.
The indicators recorded in the second quarter of fiscal year 2026 improved, as the over-90-day delinquency ratio declined to 2.83% from 3.50%, and the 30-day collection rate increased to 88.1% from 85.8%. C2M2 also declined to 0.66% from 0.80%, while provision coverage reached 472%. However, the FPD 3 and FPD 7 indicators increased by approximately 20% month over month in August 2026, and management estimated that C2M2 for that month increased by approximately 25% compared with July.
Loan volume enabled by technology solutions reached 10.5 billion yuan in the second quarter of fiscal year 2026, representing a year-over-year increase of approximately 515%, while the outstanding balance reached 16.1 billion yuan, up 313%. The company secured two projects with banks to develop an AI loan officer and an AI credit officer in the areas of marketing growth and credit risk management. The AI loan officer targets retail, small and medium-sized enterprise, and corporate banking, while the AI credit officer supports transaction analysis, audio and visual due diligence, and small and medium-sized enterprise credit reviews.
The company increased the contribution of asset-backed securities, with issuance rising by 90% sequentially to 5.5 billion yuan in the second quarter of fiscal year 2026 and issuance costs declining by approximately 20 basis points. Liquidity and short-term investments amounted to 10.63 billion yuan, while leverage declined from 2.4 times to 2.1 times. Nevertheless, the company suspended share repurchases in late June 2026, tightened underwriting standards, and reduced credit limits and approval rates to protect asset quality and liquidity.
The board approved a fiscal year 2026 first-half dividend of 0.23 dollars per Class A ordinary share, or 0.46 dollars per ADS, for shareholders of record on September 9, 2026. This is equivalent to a payout ratio of approximately 30%. The company had repurchased approximately 463 thousand ADS for around 7 million dollars in the second quarter, but it suspended the program in late June 2026 due to the sector's liquidity crisis and emphasized the priority of building an additional financial buffer.
