360 Finance Stock Earnings Reports

Qfin delivered a resilient Q1 2026 amid a weak consumer credit market and regulatory tightening by prioritizing compliance, risk control and quality over scale. Key financials: total net revenue RMB 3.91bn (Q-on-Q down), non-GAAP net income RMB 946m (down 11.6% Q-on-Q) and non-GAAP EPADS RMB 7.70. Platform loan facilitation/origination was RMB 65bn (≈7.5% sequential decline). Risk metrics improved meaningfully: FPD7 for new loans fell ~20% Q/Q, C2M2 down ~17% to 0.8%, Day-1 delinquency improved and 30-day collection rate rose to 85.8%. Credit-driven (capital-heavy) revenue fell as off-balance volumes declined; capital-light tech solutions grew (Q1 tech-enabled loans ~RMB 9.96bn, 7x YoY). Funding mix improvement (more ABS) cut funding cost ~10 bps; ABS issuance RMB 2.9bn in Q1. Management is prioritizing high-quality customer acquisition (Q1 spend on that cohort +40% sequentially), tightened underwriting, and iterative A/B/C scorecards; pricing has moderated (average IRR 18.7%) as part of a deliberate trade-off to build LTV and lower risk. Capital allocation: continued CB repurchases (USD 577m principal repurchased to May 26), progressive dividend policy maintained, and buybacks may resume opportunistically. Outlook: cautious near-term due to macro and regulatory uncertainty; Q2 non-GAAP net income guidance RMB 900–980m (Y/Y decline ~47–51%). Strategic priorities remain: One Core (domestic credit) and Two Wings (tech solutions and overseas expansion), plus a multi-year push to become an AI-native organization to drive efficiency and product commercialization.