Qfin Holdings (QFIN-S; NASDAQ: QFIN) reported unaudited first-quarter 2026 results showing weaker top- and bottom-line performance amid tighter regulation and reduced loan demand.

Financial Performance • Total net revenue declined to RMB3.91 billion, down 16.6% year on year and 4.5% quarter on quarter. • Net income fell to RMB879.80 million, a 51.0% drop from the prior-year period and a 13.4% sequential decrease. • Non-GAAP net income slipped 50.9% YoY to RMB945.90 million; margin narrowed to 24.2% from 41.1%. • Operating margin compressed to 25.0% (Q1 2025: 42.1%); total operating costs rose 7.9% YoY to RMB2.93 billion despite lower revenue. • Operating cash flow generated RMB2.10 billion; cash, restricted cash and short-term investments totalled roughly RMB10.80 billion at quarter-end.

Business Volumes and Asset Quality • Loan facilitation and origination volume dropped 26.8% YoY to RMB65.03 billion, with capital-light products (“ICE” and total technology solutions) down 28.3% to RMB31.42 billion. • Outstanding loan balance contracted 18.5% YoY to RMB114.39 billion; capital-light balance declined 29.3% to RMB55.66 billion. • Platform-connected consumers rose 11.0% YoY to 297.50 million, while cumulative approved credit users reached 64.80 million (+10.9% YoY). • 90-day-plus delinquency rate stood at 3.50%; Day-1 delinquency was 5.7%, and the 30-day collection rate reached 85.8%. Repeat borrowers accounted for 86.8% of first-quarter originations.

Segment Trends Credit-Driven Services revenue slipped 4.9% YoY to RMB2.96 billion, weighed by a 68.3% plunge in capital-heavy facilitation fees. Financing income rose 11.2% YoY on a higher average on-balance-sheet loan book but eased sequentially due to lower rates.

Platform Services revenue dropped 39.8% YoY to RMB951.90 million, reflecting subdued activity on the ICE channel; referral fees tumbled 52.6% YoY. Sequentially, platform fees improved as take rates increased.

Balance-Sheet Actions Qfin repurchased US$577 million of its US$690 million 0.50% convertible notes due 2030 for US$502 million, leaving US$113 million outstanding and reducing long-term leverage.

Outlook Management guides second-quarter 2026 net income between RMB830 million and RMB910 million, and non-GAAP net income between RMB900 million and RMB980 million, implying a 47%–51% YoY decline amid continued regulatory tightening and cautious loan growth strategies.