| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 98 | 1.5x | 17.3x | Top tier | |
Growth | 23 | 6.0% | 7.1% | Bottom tier | |
Quality | 84 | — | — | Top tier | |
Safety | 60 | — | — | Around median | |
Capital Return | 99 | 14.65% | 0.06% | Top tier | |
Momentum | 1 | -71.0% | -1.7% | Bottom tier | |
Sentiment | 33 | 7 | 3 | Bottom tier |
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 in digital credit services, combining loan facilitation and origination with technology services for financial institutions. It generates revenue from capital-intensive credit services, in which it bears credit risk, and from more capital-light platform services. In quarter 2 of fiscal year 2026, ended 2026-06-30, credit services revenue reached 2.6 billion yuan, compared with 969.8 million yuan for platform services. By the end of the same period, its credit decision-making and asset distribution ecosystem served 168 financial institutions, and the cumulative number of users with approved credit lines exceeded 65 million.
According to EL7 data, revenue in quarter 2 of fiscal year 2026, ended 2026-06-30, was approximately 3.6 billion yuan, down 17.8% from the same quarter of the previous year, while net income reached 404.8 million yuan. Gross margin was 77.4%, while operating margin, as calculated by EL7, was approximately 32.0%, compared with 50.2% in quarter 2 of fiscal year 2025, a decline of 18.2 percentage points. The volume of loans facilitated and originated through the platform reached 63.4 billion yuan in quarter 2 of fiscal year 2026, down 2.5% from the previous quarter, as management prioritized credit quality and efficiency over expansion.
Qfin is expanding its technology solutions business through FocusPRO and services that integrate customer acquisition, risk management, operations, and collections into financial institutions' systems. In quarter 2 of fiscal year 2026, ended 2026-06-30, the volume of loans supported by these solutions reached 10.5 billion yuan, an increase of approximately 515% from the same quarter of the previous year, while their outstanding balance reached 16.1 billion yuan, up 313% from the end of the same quarter of the previous year. This business gives the company a path to expand beyond traditional loan facilitation, but deteriorating risk indicators in August 2026 and tighter funding and collections conditions are putting underlying profitability under pressure.
Automated analysis for informational purposes only — not investment advice.
Q2 FY2026
When: 2026-11-18
Testing the adjusted net income range of 400 million to 500 million yuan for quarter 3 of fiscal year 2026 in the expected earnings announcement
Testing the 30-day collection rate against the 88.1% recorded in quarter 2 of fiscal year 2026, ended 2026-06-30, at the expected earnings announcement
Testing operating margin, as calculated by EL7, against the 32.0% recorded in quarter 2 of fiscal year 2026, ended 2026-06-30, at the expected earnings announcement
The average analyst price target is 14.18 dollars, within a range of 13 dollars to 15.4 dollars, with a consensus leaning toward Buy; these targets reflect analysts' estimates of the trajectory of the business and earnings. The average lies between the bounds, but the continued positive consensus coincides with two target cuts and no increases recorded over 90 days through 2026-10-21. Jefferies lowered its target to 15.4 dollars on 2026-08-26, followed by BofA Securities lowering its target to 11 dollars on 2026-09-10; the latter target is below the displayed consensus range, illustrating how individual estimates differ from that range.
Figures in the text are as of 2026-10-21; the live price is shown at the top of the page.
Qfin combines capital-intensive credit services with more capital-light platform services, which generated revenue of 2.6 billion yuan and 969.8 million yuan, respectively, in quarter 2 of fiscal year 2026, ended 2026-06-30. FocusPRO allows financial institutions to use the company's capabilities in customer acquisition, risk management, operations, and collections. The volume of loans supported by technology solutions reached 10.5 billion yuan in the same period, an increase of approximately 515% from the same quarter of the previous year. On the 2026-08-25 call, the company announced two banking AI agent projects in marketing and credit risk management.
Net income reached 404.8 million yuan in quarter 2 of fiscal year 2026, ended 2026-06-30, and the quarter included a nonrecurring tax expense of approximately 500 million yuan. However, revenue according to EL7 data also declined 17.8% from the same quarter of the previous year, and operating margin, as calculated by EL7, fell to 32.0% compared with 50.2% in quarter 2 of fiscal year 2025. Management expected, on the 2026-08-25 call, a tax rate of approximately 20% for operations in subsequent periods. Nevertheless, it set adjusted net income guidance for quarter 3 of fiscal year 2026 between 400 million and 500 million yuan, down between 67% and 73% from the same quarter of the previous year.
The delinquency rate for loans more than 90 days overdue declined to 2.83% in quarter 2 of fiscal year 2026, ended 2026-06-30, and the 30-day collection rate reached 88.1%. However, management explained on the 2026-08-25 call that the indicator for loans more than 90 days overdue is a lagging measure with limited ability to predict subsequent risks. In August 2026, the early delinquency indicators FPD 3 and FPD 7 rose approximately 20% from the previous month, with C2M2 expected to rise approximately 25% on the same basis. The strength of the operating case therefore depends on halting this deterioration and maintaining collections under regulatory constraints.
The board approved a dividend of 0.23 dollars per Class A ordinary share, equivalent to 0.46 dollars per American depositary share, for the first half of fiscal year 2026, with a record date of 2026-09-09. The payout ratio was approximately 30%, while the company repurchased approximately 463,000 depositary shares for 7 million dollars in quarter 2 of fiscal year 2026, ended 2026-06-30. It suspended repurchases in late June 2026 following the sector's liquidity crisis. Management emphasized on the 2026-08-25 call that protecting financial stability and funding strategic initiatives take precedence over capital return decisions.
Qfin is expected to announce earnings on 2026-11-18, with the adjusted non-GAAP net income range of 400 million to 500 million yuan for quarter 3 of fiscal year 2026 standing out as a direct test of guidance. The 30-day collection rate of 88.1% in quarter 2 of fiscal year 2026, ended 2026-06-30, provides a reference for assessing the impact of collection restrictions. Operating margin, as calculated by EL7, of 32.0% in the same period also provides a benchmark for testing the company's ability to contain operating pressure. The significance of these figures depends on profitability being accompanied by stable loan quality, following the deterioration management described in August 2026.