QFIN

Image source: The Motley Fool. Tuesday, Aug. 25, 2026 at 8:30 p.m. ET Senior Director of Capital Markets - Karen Ji Chief Executive Officer - Haisheng Wu Chief Financial Officer - Zuoli Xu Chief Risk Officer - Zheng Yan Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Qfin Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Ms. Karen Ji, Senior Director of Capital Markets. Please go ahead, Karen. Karen Ji: Thank you, Asia. Hello, everyone, and welcome to Qfin Holdings Second Quarter 2026 Earnings Conference Call. Our earnings release was distributed earlier today and is available on our IR website. Joining me today are Mr. Wu Haisheng, our CEO; Mr. Alex Xu, our CFO; and Mr. Zheng Yan, our CRO. Now I will quickly cover the safe harbor statement. Today's discussions may contain forward-looking statements, particularly statements about our business and financial results that are subject to risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor statement in our earnings release, which also contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Now I will turn the call over to Mr. Wu Haisheng. Please go ahead. Haisheng Wu: Hello, everyone. Thank you for joining us today. Since the start of 2026, China's consumer finance industry has remained under pressure. According to the People's Bank of China, the outstanding balance of short-term household consumer loans fell by more than RMB 660 billion from the beginning of the year through the end of Q2, reflecting continued voluntary and involuntary deleveraging among households. Meanwhile, regulatory oversight continued to tighten. A series of measures were introduced to close regulatory gaps and promote a healthier, more compliant industry environment. These measures bring the entire credit industry under a stricter framework, covering pricing, marketing, funding, collections and payments. In late June, an unexpected industry event then triggered a crisis of confidence in the loan facilitation sector. This caused liquidity to tighten sharply across the market. Against this backdrop of profound industry adjustment and structural shakeout, we remained committed to prudent operations, prioritizing compliance, risk management and efficiency over scale. By continuously optimizing our user mix and business structure, we further enhanced operational efficiency and strengthened the resilience of our business model. As of the end of Q2, our AI-powered credit decision engine and asset distribution platform served 168 financial institutions. Delivering intelligent digital credit services to over 65 million credit line users on a cumulative basis, we maintained rigorous risk management standards while driving cost and efficiency improvements. In Q2, total loan facilitation and origination volume on our platform reached approximately RMB 63.4 billion, down 2.5% sequentially. Risk metrics continued to improve, accompanied by lower funding costs and greater operating efficiency. Amid a rapidly evolving industry landscape and broad-based contraction in consumer credit supply, we maintained a prudent balance across risk, scale and profitability, demonstrating strong operational resilience. Risk management underpins every business decision we make and is critical to our ability to navigate industry cycles and achieve sustainable growth. Since the second half of 2025, risk optimization has remained our top priority. By expanding our base of high-quality users and optimizing our business mix, we have kept the risk level of new loans at historical lows. In Q2, our risk indicators continue to improve. The C2M2 ratio declined by 17% sequentially to 0.66%, approaching the level in Q2 last year. This improvement reflected the benefits of our earlier asset mix adjustments and risk strategy optimization as well as enhanced post-loan management capabilities. During the quarter, we further refined our pre-loan and in-loan risk strategies with closer monitoring of multiple borrowing and the changes in customer liquidity. By analyzing multiple signals, including recent customer behavior, external borrowing exposure and changes in debt levels, we can quickly identify users with high debt burdens or declining income stability. This allows us to tighten risk strategies promptly and reduce our exposure to high-risk segments. For post-loan management, we continued to refine our collection scorecard or C scorecard, improving our ability to segment users by risk level, willingness to repay and repayment capacity. We then tailored our outreach strategies and offer targeted relief or repayment plans based on each customer's risk profile and actual ability to repay. These measures have improved the customer experience and made our collection efforts more efficient. As a result, our 30-day collection rate improved each month throughout Q2 and averaged 88.1%, up 2.3 percentage points sequentially. We also embedded risk discipline earlier in the customer acquisition process. Given the uncertain regulatory environment, we moderated the pace of acquisition spending and continue to optimize our customer and loan mix. In Q2, customer acquisition expenses decreased by approximately 13% sequentially, while high-quality users accounted for a larger share of loans issued to new users. We also maintained strict discipline on payback periods. By improving the user experience, we increased retention and repeat borrowing, which in turn raised user lifetime value. In addition, we continue to scale back long-tail API channels with weaker customer quality and less stable returns. As a result, API channels share of new credit line users declined by 11 percentage points sequentially, while the API contribution to new loan originations fell by 3 percentage points. Following these adjustments, ROA for API channels improved by around 1.87 percentage points. As our user and the channel mix improved, the average pricing of new loans decreased further to 18.2% in Q2. The higher quality user mix allows us to align our assets more effectively with funding demand while further strengthening our asset quality. On the funding front, we further optimized our funding mix by increasing the contribution of ABS to external funding and proactively scaling back marginal assets with higher funding costs. As a result, our overall funding costs declined by approximately 10 basis points sequentially in Q2, supported by our long track record of stable asset performance. Our ABS issuance increased 90% sequentially to RMB 5.5 billion in the quarter, while issuance costs decreased by around 20 basis points. Following an unexpected industry event in late June, financial institutions have become increasingly risk-averse. Funding supply has fallen sharply, placing the industry under significant liquidity pressure. As a leading platform, we benefit from more diversified funding sources, stronger risk performance and asset pricing that aligns well with regulatory guidance. As a result, our funding supply has held up better than most of our peers. We expect funding conditions to remain tight in the second half of the year with funding costs to potentially increase. We will continue to build on our asset strength and work to maintain stable funding supply. At the same time, we will better match funding with assets to improve capital efficiency and overall portfolio yields. Tighter funding conditions will also materially affect industry risk levels. To prepare for potential volatility ahead, we will continue refining our risk management and asset distribution strategies while proactively optimizing the allocation of our collection resources. These steps will help us maintain an adequate margin of safety in a volatile market environment. On the regulatory front, new requirements covering comprehensive financing cost of personal loans disclosures and the online marketing of financial products are taking effect in Q3. Together, these measures establish higher standards for transparency and consumer protection across the industry. They also raised the bar for our operational execution. Meanwhile, an ongoing nationwide regulatory campaign targeting the collection industry has led to a severe shortage of collection capacity across the board and put significant near-term pressure on collection costs and efficiency. Over the longer term, however, these measures will help foster a healthier and more sustainable industry ecosystem. We expect industry resources to increasingly concentrate among leading players with reasonable pricing, strong risk management and disciplined operations. As we strengthen the foundation of our credit business and refine our unit economics, we continued to advance our One Core, Two Wings strategy, extending our proven technology and credit capabilities to tech solutions for financial institutions and our overseas business. In Q2, loan volume enabled by our tech solutions business reached RMB 10.5 billion, up approximately 515% year-over-year, while outstanding loan balance reached around RMB 16.1 billion at quarter end, up 313%. Through FocusPRO and other solutions, we embed our capabilities spanning customer acquisition, product, risk management, operations and post-loan management into the workflows of financial institutions, enabling banks to serve customer segments typically priced between 3% and 12%. Our AI plus credit strategy also made meaningful progress. Recently, we secured 2 AI agent development projects with banks covering marketing growth and credit risk management. Our AI loan officer will be deployed across the bank's retail, SME and corporate banking businesses, supporting relationship managers from lead identification and customer engagement to conversion. Our AI credit officer will support SME lending in areas such as transaction analysis, audio and video due diligence and credit review and approval, which will help banks improve credit assessment and approval efficiency. These wins demonstrate growing recognition of our AI agent capabilities in real-world environments at financial institutions. With both projects entering implementation, we are now positioned to provide deeper support for the digital and intelligent transformation of financial institutions. This progress comes as the regulatory framework for AI in financial services enters a new phase. Since July, regulators have issued a series of major policy documents, including guidance on the secure development and the use of AI in banking and insurance sectors. These policies mark that AI plus finance is shifting from encouraging innovation to prioritizing security and compliance. We believe this shift will create greater market opportunities for our AI solutions, which are secure, compliant and deeply integrated into real-world financial workflows. Overseas markets represent a long-term growth opportunity for us. By combining the technology and know-how we have developed in China's credit market with strong local operations, we are trying to build an efficient and replicable model for overseas expansion. During the quarter, we continued to refine our risk models and deepen our understanding of the European and Latin American markets. Based on small-scale sample data, our models have already shown competitive performance in select markets. With continued iteration and refinement, we believe our strength in risk management and technology will set us apart in overseas markets. In Southeast Asia, we are steadily advancing licensing efforts, exploring partnership opportunities and building local teams. We expect more progress in the second half of the year. At this stage, we are taking a disciplined approach to overseas expansion, carefully balancing risk and capital deployment to ensure efficient capital allocation. At the organizational level, we continued our transformation into an AI native company. We are gradually turning the knowledge and capabilities accumulated across our teams, documents and systems into organizational assets that AI can understand and use. We have also begun building our proprietary agent platform. The value of AI native transformation extends beyond efficiency gains. It is about turning individual and team experience into shared reusable organizational capabilities and creating a new form of organizational leverage. Over time, this will accelerate learning and iteration across the organization while steadily raising both execution efficiency and the ceiling of what we can achieve. Looking to the second half, industry adjustments are still underway, and the market volatility is accelerating the exit of weaker platforms. In the process, we have already seen many competitors leaving the market. As a result, customer acquisition costs have fallen sharply and the non-compliant practices are decreasing. Once the dust settles, we expect a more stable and predictable regulatory environment. We will remain disciplined and vigilant in our approach to both regulation and risk. Under the new regulatory framework, we will continue to strengthen our capabilities, refine our business model and improve operating efficiency. Precedents from overseas markets suggest that as the market transitions from this order to order, even industry leaders often experience short-term pain. This is an inevitable part of the process. However, those that successfully navigate the transition will emerge better positioned for sustainable growth and long-term success. Going forward, we will remain firmly committed to our One Core, Two Wings strategy, anchored by our domestic credit business and supported by tech solutions commercialization and overseas expansion. As we advance this strategy, we will continue to pursue sustainable, high-quality growth. We are confident that we will thrive over the long term. Thank you. With that, I will now turn the call to Alex. Zuoli Xu: Thank you, Haisheng. Good morning and good evening, everyone. Welcome to our second quarter earnings call. It was a very eventful quarter where unexpected crisis at some peers in late June triggered an industry-wide liquidity squeeze, compounded by increasingly stringent regulatory scrutiny, which caused significant changes in industry behavior and reshaped the landscape. For the time being, our managerial priority is to maintain financial discipline and focus on cost reduction and risk mitigation. Total net revenue for Q2 was CNY 3.57 billion versus CNY 3.91 billion in Q1 and RMB 5.22 billion a year ago. Revenue from credit-driven service, capital-heavy, was CNY 2.6 billion in Q2 compared to CNY 2.96 billion in Q1 and CNY 3.57 billion a year ago. The year-on-year and sequential decline was mainly due to decrease in risk-bearing loans as well as a decline in average pricing of loans. Overall funding cost declined roughly 10 basis points Q-on-Q as contribution from ABS increased in funding mix and off-balance sheet loans further declined in Q2. Revenue from platform service, capital-light, was CNY 969.8 million in Q2 compared to CNY 951.9 million in Q1 and CNY 1.65 billion a year ago. The year-on-year decline was mainly due to significantly lower ICE contribution due to drastic changes in market conditions. During the quarter, average IRR of the loans we originated and/or facilitated was 18.2% compared to 18.7% in the prior quarter. As we continued to focus on attracting and retaining high-quality users, looking forward, we may see modest fluctuation in average pricing under current regulatory framework. Sales and marketing expenses declined 13% Q-on-Q and 40% year-on-year. We added approximately 830,000 new credit line users in Q2 versus 1.19 million in Q1. We took a more cautious view in customer acquisition and we will continue to maintain controlled pace to acquire new users in the near term in response to the volatile market environment and restrictive regulatory changes. 90-day delinquency rate was 2.83% in Q2 compared to 3.5% in Q1, which reflects improved risk performance early in 2026. As a reminder, 90-day delinquency rate is a lagging indicator and has little predicted power of future risk metrics. Day 1 delinquency rate was 5.6% in Q2 versus 5.7% in Q1. 30-day collection rate was 88.1% in Q2 versus 85.8% in Q1. C-M2, which represents the outstanding delinquency rate after 30-day collection was 0.66% in Q2 versus 0.8% in Q1. The noticeable risk improvement in Q2 was mainly related to our risk tightening measures and loan mix shift toward new loans. While overall risk performance in July remained largely unchanged from June, the positive trend took a sudden reversal in August. The aftermath of the liquidity crisis at some peers and the nationwide regulatory action against the credit collection operations recently caused significant headwinds in the risk management across the entire financial service industry. In response to the drastically changing industry dynamic, most participants start to lift their risk bar in August, which in turn caused a further tightening of liquidity supply in the market. We observed sharp upward swing of C-M2 in recent weeks, which may significantly impact our operation for the rest of the year. While we already took proactive measures since late June and even more decisive actions in August, it will probably still take at least 2 to 3 quarters to bring the C-M2 ratio back to a reasonable level. Given current macro environment and regulatory changes, we continued to take prudent approach to book provisions against potential credit losses. Total new provision for risk-bearing loans in Q2 were approximately CNY 1.72 billion versus CNY 1.68 billion in Q1. New provision booking ratio, which is defined as total new provision divided by total quarterly risk-bearing loan volume reached a historical high at 5.36% in Q2. Write-backs of previous provisions were approximately CNY 649 million in Q2 versus CNY 308 million in Q1. Provision coverage ratio, which is defined as total outstanding provisions divided by total outstanding delinquent risk-bearing loan -- loan balance between 90 and 180 days were 472% in Q2 compared to 391% in Q1. Non-GAAP net profit was CNY 455 million in Q2 compared to CNY 946 million in Q1 and CNY 1.85 billion a year ago. The significant year-on-year decline in profitability was mainly due to lower loan volume and pricing and the deleveraging in operation. In Q2, we incurred a one-off tax-related expense of approximately RMB 500 million, which was caused by a change in tax treatment of certain entity based on the updated interpretation of related tax regulation by the tax authorities. As a result, the effective tax rate for Q2 was 60.3%, significantly higher than normal. Based on the tax authorities' guidance, we now expect the effective tax rate for the operations to be around 20% going forward. Leverage ratio, which is defined as risk-bearing loan balance divided by shareholders' equity was 2.1x in Q2 versus 2.4x in Q1 due to the lower risk-bearing loan balance. We expect to see leverage ratio fluctuated around this level in the near future. We generated approximately CNY 1.09 billion cash from operations in Q2 compared to CNY 2.1 billion in Q1. Total cash and cash equivalents and short-term investments were CNY 10.63 billion in Q2 compared to CNY 10.79 billion in Q1. In Q2, we in aggregate repurchased approximately 463,000 of our ADS in open market for a total amount of approximately USD 7 million, inclusive of commissions at the average price of CNY 15.19 per ADS. We suspended the repurchase in late June due to the sudden outbreak of the liquidity crisis at some peers that triggered industry-wide liquidity squeeze and the panic. In accordance with our current dividend policy, our Board has approved a dividend of USD 0.23 per Class A ordinary share or USD 0.46 per ADS for the first half of 2026 to holder of record of Class A ordinary share and ADS as of the close of the business day on September 9, 2026, Hong Kong time and New York Time, respectively. The dividend payout ratio is approximately 30%. As we have discussed, given the volatile market environment and serious mishaps among some peers and intensifying regulatory scrutiny, we continue to face heavy headwinds in the coming quarters. We believe the top priority for the company and the management at this point in time are to mitigate risks, streamline operation, cut costs, support strategic initiatives. Meanwhile, we may need to build additional financial buffer in the intermediate term to counter any unexpected industry volatility. In the long run, though, we still believe that optimized capital allocation is a key to drive long-term value for the company and stakeholders. Finally, regarding our business outlook, given the macro and the regulatory headwinds, we will take extra cautious approach in business planning for the rest of 2026. For the third quarter of 2026, the company expects to generate non-GAAP net income between RMB 400 million and RMB 500 million, representing year-on-year decline between 67% and 73%. This outlook reflects the company's current and preliminary view, which is subject to material changes. With that, I would like to conclude our prepared remarks. Operator, we can now take some questions. Operator: [Operator Instructions] The first question comes from Richard Xu with Morgan Stanley. Richard Xu: [Interpreted] Essentially, I have 2 questions. One is on the liquidity tightening in third quarter. Essentially, the company has taken measures to control the credit quality and what is the expected vintage loss increases? And also, are there room in the provisions to cushion the impact? Second is, given the tightening of the collection policies, what's the expectation of the recovery ratio? And what are the measures the company has taken to mitigate the problems? Zuoli Xu: Okay. Thank you, Richard. I think both of the questions is regarding to risk management and collection issue. So I'll pass it over to Mr. Zheng Yan, our CRO. Yan Zheng: [Interpreted] I will briefly translate for Mr. Zheng. The current uptick in risk was indeed triggered by a chain reaction set off by a well-known industry incident, compounded by the nationwide crackdown on the collection industry that began in late July. Since early July, financial institutions have visibly tightened their risk appetite, leading to a widespread funding shortage across the industry. Smaller platforms with weaker qualifications have faced even more severe funding constraints. Funding conditions tightened further in August and have shown no sign of improvement to date. At the same time, the ongoing nationwide regulatory campaign targeting the collection industry has created severe shortages in collection capacity with a notable impact on recovery efficiency. This is a challenge faced universally across the industry. On the risk front, overall performance remained relatively stable in July with C2M2 remaining largely flat compared to June. However, risk levels began to rise in August. Based on early-stage risk indicators of FPD 3 and FPD 7 for August, we have seen an increase of approximately 20% month-over-month. We expect C2M2 for August to increase by roughly 25% sequentially. Based on our discussions with peers, most platforms experienced a sharp spike in risk in August and have been actively adjusting their risk strategies. That said, the observed risk trends are still relatively short term in nature, and we will need more time to assess the ultimate risk level taking into account evolving market conditions and actual collection performance. As such, risk management has become our top priority in recent months. Based on our ongoing monitoring of evolving market conditions, we have progressively escalated our response from a precautionary tightening stance in late June to early July to an accelerated tightening approach in August. We moved swiftly to deploy measures across 2 key areas: risk strategy and post-loan management. In terms of risk strategies, we will further strengthen the identification of high-risk customer segments with a particular focus on those activating multi-platform borrowing, exposure to mid- and lower-tier platform distress, liquidity strength, frequent short-term delinquencies and on stable income profiles. We will accelerate the iteration of our short-term risk models, increasing the update frequency of key models from monthly to weekly to enhance our ability of identifying inflection point in customer risk behavior. At the same time, we are tightening underwriting standards across new originations and optimizing our customer mix. We are reducing risk exposure across 3 dimensions: customer engagement, transaction approval and asset distribution by lowering credit limits, tightening approval rates and raising the bar for both on balance sheet and capital-heavy loan facilitation assets. Going forward, we will continue to monitor early-stage risk metrics such as FPD 3 and FPD 7 for new loans as well as DPD 7 for existing portfolios while tracking risk divergence across different customer segments and channels. Should these indicators do not stabilize, we plan to further tighten segment-specific screening criteria and asset distribution controls by late August to early September. On the post-loan management front, our near-term priority is to stabilize staffing and collection capacity, optimizing case allocation and prevent further deterioration in both delinquency inflow and collection rates. For high-risk segments, such as those with significant multi-platform borrowing, repeat delinquencies or high risk work from our collection scorecard, we are intervening early with dedicated personnel and offering relief plans. Over the medium term, we aim to build a sustainable post-loan management capability that balances recovery performance with regulatory compliance through intelligent negotiation tools, differentiated relief solutions and closer integration between pre-loan and post-loan processes. And now I will pass over to CFO for the questions regarding provision. Zuoli Xu: Okay. On provision, given the current market condition, the volatility and the significant challenge to asset quality, we have maintained a very prudent provision approach, right? In Q2, as I mentioned, new provision as a percentage of risk-bearing loan reached a historical high at approximately 5.4%. As you may know, our normalized risk control target is to keep a vintage loss largely within the range of 3% to 3.5%. And historically, we only have 2 quarters to reach that level to be around 4%. So basically, even under the most extreme assumptions, we believe our current provision level are more than sufficient to cover potential losses in any dramatic industry or market events. Operator, next one. Operator: The next question comes from Alex Ye with UBS. Xiaoxiong Ye: [Interpreted] So I'll translate for my question. So what's the current loan volume run rate for your July and August? So how much does it decline from the Q2 level? And was this decline largely due to the shortage of funding supply or is it more due to your proactive risk appetite control? And so should we take this as a temporary shock given the ongoing industry difficulties? And let's say, if we do see the funding supply getting normalized afterwards, should we expect this loan volume to somehow recover to your Q2 level? Zuoli Xu: Okay. Alex, let me take this one. In terms of loan volume, starting in July, we saw a significant tightening of industry-wide funding supply. Our ICE business was the most affected segment. The capital-light model experienced a minor impact, while funding for on-balance sheet and capital-heavy loans remained relatively unaffected. The liquidity issue caused about 10% direct impact on our loan volume in July. At the same time, given early signs of customer borrowing and liquidity stress, we're also proactively tightening some risk exposure. Combined, these factors led to a 15% decline in July loan volume. In August, ICE funding tightened further, while funding for on-balance sheet loans and capital-heavy and capital-light loan remained sufficient. However, given our own risk performance and our assessment of current market environment, including liquidity pressures and constraints to collection resources, we decided to adopt a more conservative risk strategy and tightened further from July. As risk optimization takes time, we expect to remain cautious on origination throughout Q3. So the volume decline in July was partly due to funding availability, while the pullback in August and September is more about our own risk appetite tightening. As a leading platform, we have more diversified funding, stronger risk performance and regulatory aligned pricing, giving us far greater funding resilience than most peers. Based on past experience, risk optimization typically takes 2 to 3 quarters. So we don't expect the loan volume to return to Q2 levels anytime soon. On the funding side, with regulatory uncertainty still there and the shakeout of smaller players still ongoing, we will stay cautious and prioritize the asset quality in the near term. We will revisit growth after the industry environment stabilizes. Operator: The next question comes from Emma Xu with BofA Securities. Emma Xu: [Interpreted] So given the deteriorating industry environment, coupled with tightening regulatory trends, will the company adjust the shareholder return policy? Zuoli Xu: Okay. Emma, I will take on this one. While we are still generating decent earnings and solid operating cash flow, the ongoing industry adjustment has clearly put pressure on our profitability and cash flow for the next few quarters. In the near term, as regulatory uncertainty lingers and market volatility intensifies, we have established a clear set of priority in terms of capital allocation. Our first and foremost priority is to weather the storm and safeguard the safety of the company as well as the company's long-term operational stability. In addition, we will continue to put resources to our long-term strategic initiatives. And of course, in the long run, we still intend to maintain a reasonable shareholder return policy. And going forward, as the industry and the regulatory environment evolves, we will continuously assess and optimize our capital allocation strategy based on our sustainable normalized earnings and cash flows. Thank you. Operator: The next question comes from Cindy Wang with China Renaissance. Yun-Yin Wang: [Interpreted] So I have 1 question. Could management tell us the main assumptions behind the Q3 guidance? And what are the key factors behind the changes? And how does management view the long-term trend of these metrics? Zuoli Xu: Okay. Cindy, I will take this one as well. In Q3, we are obviously operating in a very highly volatile market environment. Funding supply across the industry has become extremely tight with the severe liquidity pressure on market players. The implementation of the multiple new regulatory policies also adding operational uncertainty. At the same time, a wave of small platform is facing accelerated exiting due to the funding depletion and deteriorating asset quality, further amplifying the market volatility. In such an environment, I think we must remain highly disciplined. Risk control and efficiency comes first and growth take a back seat. okay? For Q3, in terms of loan volume, we are assuming a meaningful decline from Q2 as we have tightened our risk control measures significantly in this challenging market condition, okay? However, given the liquidity pressure and the impacts on ongoing regulatory campaign on collections and the fact that the major platforms are all pulling back at the same time, we still expect the C-M2 for Q3 to rise noticeably from Q2 level. On provision, as I mentioned earlier, we will continue to take a prudent approach to reflect actual risk performance and the changes in the market dynamic. And in terms of funding cost, we've already seen funding cost -- external funding costs increased by around 25 basis points in July and August. We expect the recent risk volatility in the -- to heighten the funding partners' concern and further tightening the funding supply. At the same time, some institution investors have become more risk-averse in their ADS subscription. As a result, we anticipate overall funding costs will trend up in the second half of the year. And we take a more conservative approach to customer acquisition, as Haisheng mentioned earlier. Rather than pursuing volume, we will focus on sharpening the acquisition efficiency, improving customer quality and enhance user life cycle value. Over the past 2 months, nearly every key element of our business has changed dramatically and all in the ways that interconnect to each other and hard to entangle. This is not a company-specific issue. It's an industry-wide phenomenon, making our operational environment far more complex. That said, as industry consolidate plays out, we expect consolidation condition to normalize and most of these factors to come back to their normal trajectory over the course of the next few quarters. Thank you. Operator: The next question comes from [ Yoyo Fan ] with CICC. Unknown Analyst: [Interpreted] This is Yoyo Fan from CICC. Two questions here. Firstly, lots of small to medium platforms are now facing liquidity pressure. So how do you view the current market environment and the competitive landscape? And what's your customer acquisition and growth strategy for the second half of the year? Secondly, we have seen quite a big shift in the domestic operating environment over the past 6 months. How do you consider about building up the overseas strategy? Could you walk us through the latest update on the overseas market? These 2 questions. Zuoli Xu: Okay. Thank you, Yoyo. Let me take both as well. In terms of competition, the well-known incident has tightened industry funding and driven acquisition spending down across the board. Industry-wide spending fell nearly 50% month-over-month in July with another 20% in August. Today, only a handful of platforms, including us, are still spending meaningfully. Most peers have pulled back sharply and long-tier players are even leaving market. So purely on acquisition cost and spending intensity, market competition has clearly moderated compared to the past. From our perspective, however, liquidity remains tight, regulations are still evolving and the quality of new customers also require ongoing monitoring. We are, therefore, focusing on the actual return from acquisition spending. At this stage, we place greater emphasis on the returns from our acquisition spending rather than simply pursuing new customer volume. We aim to enhance the long-term value generated by each dollar spent on acquisition while maintaining a disciplined approach to risk. On execution, we are bidding differently by user risk and value, prioritizing higher LTV users while keeping acquisition costs in check. We are also improving user experience and engagement to lift retention and repeat rate. On API channel, we are reallocating resources dynamically based on profitability, cutting back on long-tail channels with weaker quality and stability to build a safety margin. Following our adjustment in the first half of the year, ROE for API channel improved by more than 1 percentage point, further strengthening the resilience of our overall business against the market volatility. Looking into the second half, we expect industry adjustment and the exit of weaker platforms to continue for some time. Our near-term focus is, therefore, to strengthen the fundamentals of our business, improve our customer and channel mix as well as enhancing the efficiency of funding merchant. Over the longer term, we believe the industry will become healthier after this round of adjustment. And market share is likely to become increasingly concentrated among leading platforms. For us, this is not only a process of refining our business structure, but also an opportunity to further strengthen our competitive position. Once the market becomes more sensible and competition returns to a normal level, we will be well positioned to adjust our market spending timely and capture new growth opportunities. And for your second question, in terms of overseas expansion, we have made steady progress in Europe and Latin America, deepening market knowledge, localizing risk models and balancing growth and risk through diversified business model. In Latin America, our self-build models are already showing encouraging early results, and we are iterating our models and user selection strategy. In Europe, we have deployed our own models and are leveraging local credit bureau and open banking data to sharpen risk detection. In Southeast Asia and other high potential markets, we are advancing license, building teams and exploring partnerships. In every overseas market, we treat regulation and risk with deep respect. We also know that risk model validation and unit economics refinement take time. We are still early in all this market with small teams, small capital, modest team test and learning on business model, customer acquisition and risk control, watching risk rewarded closely. As we prove our capabilities, we will bring in external funding to reduce the burden on our own balance sheet. For us, overseas expansion is a long game, and I think we have enough patience. That's all. Thank you. Operator: There are no further phone questions at this time. I'll now hand it back to management for closing remarks. Please go ahead. Haisheng Wu: Okay. Thank you again for joining us. If you have additional questions, please reach us offline. Thank you. Karen Ji: Thank you. Operator: That does conclude our conference call for today. Thank you for participating, and you may now disconnect. 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Interested in Qfin Holdings Inc. - Sponsored ADR? Here are five stocks we like better. Second-quarter results weakened sharply: Revenue fell to RMB 3.57 billion and non-GAAP net profit dropped to RMB 455 million, pressured by lower loan balances, pricing and a one-time RMB 500 million tax expense. Industry conditions remain challenging: Tighter regulation and liquidity constraints led Qfin to reduce loan growth and strengthen underwriting, while early August indicators pointed to a renewed increase in credit risk despite improved second-quarter delinquency metrics. Management expects continued pressure: Third-quarter non-GAAP net income is forecast at RMB 400 million to RMB 500 million, with loan volume expected to decline meaningfully; Qfin is focusing on cost control, diversified funding and expanding its technology-solutions business. 4 Stocks That May Get a Big Earnings Bump This Week Qfin (NASDAQ:QFIN) reported lower second-quarter revenue and profit as China’s consumer finance sector faced tighter regulation, reduced liquidity and heightened credit-risk concerns. Management said it is prioritizing risk controls, cost reductions and operational resilience over near-term loan growth. CEO Haisheng Wu said China’s consumer finance market remained under pressure through the first half of 2026. He cited a decline of more than RMB 660 billion in outstanding short-term household consumer loans from the beginning of the year through the end of the second quarter, according to the People’s Bank of China. Regulatory measures targeting loan pricing, marketing, funding, collections and payments also became more stringent, he said. → Rocket Lab's Sell-Off Is Fading—Is It Finally Safe to Buy? Buy the Dip on 3 Overlooked Names With Major Potential In late June, an industry event triggered a crisis of confidence in the loan-facilitation sector and sharply tightened market liquidity, according to management. Wu said Qfin’s diversified funding sources, risk performance and pricing aligned with regulatory guidance helped its funding supply hold up better than that of many peers, though the company expects conditions to remain tight during the second half. CFO Alex Xu said second-quarter total net revenue was RMB 3.57 billion, down from RMB 3.91 billion in the first quarter and RMB 5.22 billion a year earlier. Revenue from credit-driven, capital-heavy services fell to RMB 2.60 billion from RMB 2.96 billion in the prior quarter, which Xu attributed to lower risk-bearing loan balances and lower average loan pricing. → Travel + Leisure Goes Big—Is It Ready to Rally? DeepSeek IPO Remains Far Off—Investors Eye 4 Chinese AI Stocks Platform-service, capital-light revenue was RMB 969.8 million, compared with RMB 951.9 million in the first quarter and RMB 1.65 billion a year earlier. Xu said the year-over-year decline reflected a substantially lower contribution from the company’s ICE business amid changing market conditions. Total loan facilitation and origination volume reached approximately RMB 63.4 billion, down 2.5% sequentially. Average annualized loan pricing, or IRR, declined to 18.2% from 18.7% in the first quarter. Sales and marketing expense fell 13% sequentially and 40% year over year. Qfin added about 830,000 new credit-line users, compared with 1.19 million in the prior quarter. Non-GAAP net profit was RMB 455 million, versus RMB 946 million in the first quarter and RMB 1.85 billion a year earlier. The company generated RMB 1.09 billion in operating cash flow during the quarter, down from RMB 2.1 billion in the first quarter. Cash, cash equivalents and short-term investments totaled RMB 10.63 billion at quarter-end, compared with RMB 10.79 billion three months earlier. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Xu also said Qfin recorded approximately RMB 500 million in one-time tax-related expense following an updated interpretation of tax regulations by authorities. The expense drove the quarterly effective tax rate to 60.3%. Based on guidance from tax authorities, the company expects its effective tax rate to be about 20% going forward. Qfin reported improving credit metrics during the second quarter, although management warned that conditions worsened in August. The 90-day delinquency rate declined to 2.83% from 3.5% in the first quarter, while the 30-day collection rate increased to 88.1% from 85.8%. The company’s C-M2 ratio, which represents outstanding delinquency following the 30-day collection period, declined to 0.66% from 0.8% sequentially. However, Chief Risk Officer Yan Zheng said early-stage August indicators, including FPD3 and FPD7, rose about 20% month over month. Management expects the August C-M2 ratio to increase by roughly 25% sequentially. Zheng said the risk deterioration followed tighter funding across the industry and a nationwide regulatory campaign affecting the collections sector, which has reduced collection capacity and pressured recovery efficiency. Qfin has responded by tightening underwriting, reducing credit limits, increasing risk-model update frequency and adjusting asset distribution controls, management said. New provisions for risk-bearing loans were RMB 1.72 billion, compared with RMB 1.68 billion in the first quarter. The new-provision booking ratio reached a historical high of 5.36% of quarterly risk-bearing loan volume. Xu said the company believes its provision levels are sufficient even under severe industry stress scenarios. Wu said Qfin continued to adjust its customer and channel mix during the quarter. Customer-acquisition expenses fell about 13% sequentially, while the share of new credit-line users coming through API channels declined by 11 percentage points. API channels’ contribution to new loan originations decreased by 3 percentage points, and their return on assets improved by about 1.87 percentage points, according to the company. Qfin also increased asset-backed securities issuance by 90% sequentially to RMB 5.5 billion, while ABS issuance costs fell by about 20 basis points. Overall funding costs declined about 10 basis points in the second quarter, though Xu said external funding costs rose about 25 basis points during July and August and could continue trending higher in the second half. Beyond its domestic credit business, Qfin said loan volume enabled by its technology-solutions segment reached RMB 10.5 billion, up approximately 515% year over year. Outstanding loans enabled by that business totaled about RMB 16.1 billion at quarter-end, up 313%. The company also said it secured two bank AI-agent development projects focused on marketing growth and credit-risk management. For the third quarter, Qfin expects non-GAAP net income of RMB 400 million to RMB 500 million, representing a year-over-year decline of 67% to 73%. Management expects loan volume to decline meaningfully from second-quarter levels as the company maintains a conservative risk posture. The board approved a first-half dividend of $0.23 per Class A ordinary share, or $0.46 per ADS, with a payout ratio of approximately 30%. Qfin repurchased about 463,000 ADSs for roughly $7 million during the quarter before suspending repurchases in late June amid the industry liquidity squeeze. 360 DigiTech, Inc (NASDAQ: QFIN) is a China‐based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises. The company's flagship platform offers an end‐to‐end digital lending experience, from application and credit evaluation to disbursement and repayment. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Qfin Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Net Revenue: RMB3.57 billion in Q2, down from RMB3.91 billion in Q1 and RMB5.22 billion a year ago. Credit-Driven Service Revenue (Capital-Heavy): RMB2.6 billion in Q2, compared to RMB2.96 billion in Q1 and RMB3.57 billion a year ago. Platform Service Revenue (Capital-Light): RMB969.8 million in Q2, versus RMB951.9 million in Q1 and RMB1.65 billion a year ago. Average Loan Pricing (IRR): 18.2% in Q2, down from 18.7% in the prior quarter. Non-GAAP Net Profit: RMB455 million in Q2, compared to RMB946 million in Q1 and RMB1.85 billion a year ago. New Provision for Risk-Bearing Loans: Approximately RMB1.72 billion in Q2, versus RMB1.68 billion in Q1. New Provision Booking Ratio: Reached a historical high of 5.36% in Q2. Provision Coverage Ratio: 472% in Q2, up from 391% in Q1. 90-Day Delinquency Rate: 2.83% in Q2, down from 3.5% in Q1. Day-One Delinquency Rate: 5.6% in Q2, versus 5.7% in Q1. 30-Day Collection Rate: 88.1% in Q2, up from 85.8% in Q1. C-M2 Ratio: 0.66% in Q2, down from 0.8% in Q1. Total Loan Facilitation and Origination Volume: Approximately RMB63.4 billion in Q2, down 2.5% sequentially. Tech Solutions Loan Volume: RMB10.5 billion in Q2, up approximately 515% year over year. Tech Solutions Outstanding Loan Balance: Approximately RMB16.1 billion at quarter end, up 313% year over year. Sales and Marketing Expenses: Declined 13% quarter-over-quarter and 40% year-over-year. New Credit Line Users: Approximately 830,000 added in Q2, versus 1.19 million in Q1. Funding Costs: Declined approximately 10 basis points sequentially. ABS Issuance: Increased 90% sequentially to RMB5.5 billion in Q2. Cash Flow from Operations: Approximately RMB1.09 billion in Q2, compared to RMB2.1 billion in Q1. Total Cash and Short-Term Investments: RMB10.63 billion in Q2, versus RMB10.79 billion in Q1. Leverage Ratio: 2.1 times in Q2, down from 2.4 times in Q1. Effective Tax Rate: 60.3% in Q2 due to a one-time tax-related expense of approximately RMB500 million. Q3 2026 Outlook: Non-GAAP net income expected between RMB400 million and RMB500 million, representing a year-over-year decline between 67% and 73%. Warning! GuruFocus has detected 2 Warning Sign with QFIN. Is QFIN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Risk metrics improved in Q2, with C-M2 ratio declining 17% sequentially to 0.66% and 30-day collection rate rising to 88.1%. Funding costs decreased by approximately 10 basis points sequentially, aided by a 90% increase in ABS issuance to RMB5.5 billion. Tech solutions business showed strong growth, with loan volume up 515% year-over-year and outstanding balance up 313%. Customer acquisition costs fell sharply due to reduced industry competition, allowing for more efficient spending. Provision coverage ratio strengthened to 472%, providing a robust buffer against potential credit losses. Net revenue declined significantly, falling to RMB3.57 billion in Q2 from RMB5.22 billion a year ago, with non-GAAP net profit down to RMB455 million from RMB1.85 billion. A one-off tax-related expense of approximately RMB500 million inflated the effective tax rate to 60.3% in Q2. Industry-wide liquidity squeeze and regulatory crackdown on collections have led to a sharp rise in C-M2 in August, with expectations of continued deterioration for two to three quarters. Funding costs are expected to increase in the second half of 2026, with external funding costs already up 25 basis points in July and August. Q3 guidance indicates a significant year-over-year decline in non-GAAP net income of 67% to 73%, reflecting ongoing market volatility and risk tightening. Q: What measures has the company taken to control credit quality amid the liquidity tightening in Q3, and what is the expected vintage loss increase? Are there provisions to cushion the impact?A: CRO Zheng Yan detailed a multi-pronged response. Risk management is the top priority, with measures escalated from a precautionary stance in late June to accelerated tightening in August. This includes strengthening identification of high-risk segments (multi-platform borrowers, those exposed to distressed platforms), accelerating risk model iteration from monthly to weekly updates, and tightening underwriting standards across new originations. Post-loan management focuses on stabilizing collection capacity and intervening early with high-risk segments. CFO Alex Xu added that the new provision booking ratio hit a historical high of 5.36% in Q2, and even under extreme assumptions, current provisions are more than sufficient to cover potential losses from dramatic industry events. Q: What is the current loan volume run rate for July and August, and is the decline due to funding shortages or proactive risk control? Should this be seen as temporary?A: CFO Alex Xu explained that the July loan volume decline of 15% was split between a 10% direct impact from industry-wide funding supply tightening (especially affecting the ICE business) and a 5% proactive tightening of risk exposure. In August, the pullback is more about the company's own risk appetite tightening in response to market conditions. He noted that risk optimization typically takes two to three quarters, so loan volume is not expected to return to Q2 levels anytime soon, and the company will prioritize asset quality over growth in the near term. Q: Given the deteriorating industry environment, will the company adjust its shareholder return policy?A: CFO Alex Xu stated that while the company is still generating decent earnings and cash flow, the industry adjustment has pressured profitability. The near-term capital allocation priority is to "weather the storm" and safeguard the company's long-term operational stability. While the long-term intention to maintain a reasonable shareholder return policy remains, the company will continuously assess and optimize its capital allocation strategy based on sustainable normalized earnings and cash flows as the environment evolves. Q: What are the main assumptions behind the Q3 guidance, and what are the key factors behind the changes?A: CFO Alex Xu outlined a highly volatile environment with extremely tight funding supply and new regulatory policies adding uncertainty. The guidance assumes a meaningful decline in loan volume from Q2 due to significantly tightened risk control measures. The company expects C-M2 to rise noticeably in Q3 due to liquidity pressures and the regulatory campaign on collections. External funding costs have already increased by around 25 basis points in July and August, and are expected to trend up further. The company is taking a more conservative approach to customer acquisition, focusing on efficiency and customer quality over volume. Q: How does the company view the current competitive landscape, and what is the customer acquisition strategy for the second half? What are the latest updates on overseas markets?A: CFO Alex Xu noted that industry-wide acquisition spending fell nearly 50% month-over-month in July and another 20% in August, with only a handful of platforms still spending meaningfully. The company is focusing on the actual return from acquisition spending, prioritizing higher lifetime value users and reallocating resources based on profitability. On overseas expansion, steady progress is being made in Europe and Latin America with encouraging early results from self-built models. In Southeast Asia, the company is advancing licensing and building local teams. The approach remains disciplined, treating it as a long game with a focus on risk validation and unit economics before scaling. Q: What is the expectation for the recovery ratio given the tightening of collection policies, and what measures are being taken to mitigate the problems?A: CRO Zheng Yan acknowledged that the nationwide regulatory campaign against the collection industry has created severe shortages in collection capacity, impacting recovery efficiency across the industry. The near-term priority is to stabilize staffing and collection capacity, optimize case allocation, and prevent further deterioration in delinquency inflow and collection rates. For high-risk segments, the company is intervening early with dedicated personnel and offering relief plans. Over the medium term, the goal is to build a sustainable post-loan management capability that balances recovery performance with regulatory compliance through intelligent negotiation tools and closer integration between pre-loan and post-loan processes. Q: Can you provide more detail on the risk performance trends observed in July and August?A: CRO Zheng Yan reported that overall risk performance remained relatively stable in July, with C-M2 largely flat compared to June. However, risk levels began to rise in August. Early-stage risk indicators (FPD3 and FPD7) for August increased by approximately 20% month-over-month, and C-M2 for August is expected to increase by roughly 25% sequentially. The company noted that most platforms experienced a sharp spike in risk in August, and the observed trends are still relatively short-term, requiring more time to assess the ultimate risk level. Q: How is the company's tech solutions business performing, and what is the progress on the "One Core, Two Wings" strategy?A: CEO Haisheng Wu highlighted that the tech solutions business (one of the "two wings") saw loan volume reach RMB10.5 billion in Q2, up approximately 515% year-over-year, with outstanding loan balance reaching around RMB16.1 billion, up 313%. The company recently secured two AI agent development projects with banks covering marketing growth and credit risk management, demonstrating growing recognition of its AI capabilities. The "One Core" domestic credit business remains the anchor, while overseas expansion represents the other "wing," with disciplined progress being made in Europe, Latin America, and Southeast Asia. Q: What is the company's outlook for funding costs and the funding environment in the second half of the year?A: CEO Haisheng Wu stated that following the unexpected industry event in late June, financial institutions have become increasingly risk-averse, and funding supply has fallen sharply. As a leading platform, QFIN benefits from more diversified funding sources and stronger risk performance, so its funding supply has held up better than most peers. However, funding conditions are expected to remain tight in the second half, with funding costs potentially increasing. CFO Alex Xu added that external funding costs have already increased by around 25 basis points in July and August, and the recent risk volatility is expected to heighten funding partners' concerns and further tighten supply. Q: How is the company managing its balance sheet and capital allocation in the current environment?A: CFO Alex Xu reported that the leverage ratio (risk-bearing loan balance divided by shareholders' equity For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Qfin Holdings Inc. - Sponsored ADR (QFIN) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50.00%. A quarter ago, it was expected that this company would post earnings of $0.96 per share when it actually produced earnings of $1.04, delivering a surprise of +8.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Qfin Holdings Inc. - Sponsored ADR, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $525.65 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.09%. This compares to year-ago revenues of $728.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Qfin Holdings Inc. - Sponsored ADR shares have lost about 43% since the beginning of the year versus the S&P 500's gain of 11.8%. While Qfin Holdings Inc. - Sponsored ADR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Qfin Holdings Inc. - Sponsored ADR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.92 on $458.51 million in revenues for the coming quarter and $3.74 on $1.98 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. IREN Limited (IREN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 27. This company is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of -625%. The consensus EPS estimate for the quarter has been revised 42.9% lower over the last 30 days to the current level. IREN Limited's revenues are expected to be $138.89 million, down 25.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qfin Holdings Inc. - Sponsored ADR (QFIN) : Free Stock Analysis Report IREN Limited (IREN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SHANGHAI, China, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Qfin Holdings, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qfin Holdings” or the “Company”), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the second quarter and six months ended June 30, 2026 and declared its semi-annual dividend. Second Quarter 2026 Business Highlights As of June 30, 2026, our platform has connected 168 financial institutional partners and 301.8 million consumers*1 with potential credit needs, cumulatively, an increase of 9.4% from 275.8 million a year ago. Cumulative users with approved credit lines*2 were 65.6 million as of June 30, 2026, an increase of 9.0% from 60.2 million as of June 30, 2025. Cumulative borrowers with successful drawdown, including repeat borrowers, was 39.9 million as of June 30, 2026, an increase of 8.5% from 36.8 million as of June 30, 2025. In the second quarter of 2026, financial institutional partners originated 11,554,533 loans*3 through our platform. Total facilitation and origination loan volume*4 was RMB63,377 million, a decrease of 25.1% from RMB84,609 million in the same period of 2025. RMB31,343 million of such loan volume was under capital-light model, Intelligence Credit Engine (“ICE”) and total technology solutions*5, a decrease of 10.5% from RMB35,032 million in the same period of 2025. Total outstanding loan balance*6 was RMB107,562 million as of June 30, 2026, a decrease of 23.2% from RMB140,080 million as of June 30, 2025. RMB53,983 million of such loan balance was under capital-light model, “ICE” and total technology solutions, a decrease of 24.5% from RMB71,530 million as of June 30, 2025. The weighted average contractual tenor of loans originated by financial institutions across our platform in the second quarter of 2026 was approximately 11.6 months, compared with 10.3 months in the same period of 2025. 90 day+ delinquency rate*7 of loans originated by financial institutions across our platform was 2.83% as of June 30, 2026. Repeat borrower contribution*8 of loans originated by financial institutions across our platform for the second quarter of 2026 was 89.4%. 1 Refers to cumulative registered users across our platform.2 “Cumulative users with approved credit lines” refers to the total number of users who had submitted their credit applications and were approved with a credit line at the end of each period.3 Including 742,821 loans across “V-pocket”, and 10,811,712 loans across other products.4 Refers to the total principal amount of loans facilitated and originated during the given period. 5 “ICE” is an open platform primarily on our “Qifu Jietiao” APP (previously known as “360 Jietiao”), we match borrowers and financial institutions through big data and cloud computing technology on “ICE”, and provide pre-loan investigation report of borrowers. For loans facilitated through “ICE”, the Company does not bear principal risk. Under total technology solutions, we have been offering end-to-end technology solutions to financial institutions based on on-premise deployment, SaaS or hybrid model since 2023.6 “Total outstanding loan balance” refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, excluding loans delinquent for more than 180 days.7 “90 day+ delinquency rate” refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under “ICE” and total technology solutions are not included in the delinquency rate calculation.8 “Repeat borrower contribution” for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period. Second Quarter 2026 Financial Highlights Total net revenue was RMB3,566.6 million (US$525.6 million), compared to RMB3,909.3 million in the prior quarter. Net income was RMB401.4 million (US$59.2 million), compared to RMB879.8 million in the prior quarter. Non-GAAP*9 net income was RMB454.9 million (US$67.0 million), compared to RMB945.9 million in the prior quarter. Net income per fully diluted American depositary share (“ADS”) was RMB3.28 (US$0.48), compared to RMB7.16 in the prior quarter. Non-GAAP net income per fully diluted ADS was RMB3.72 (US$0.55), compared to RMB7.70 in the prior quarter. 9 Non-GAAP income from operations, Non-GAAP net income, Non-GAAP net income attributed to the Company, Non-GAAP operating margin, Non-GAAP net income margin and Non-GAAP net income per fully diluted ADS are Non-GAAP financial measures. For more information on these Non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release. Mr. Haisheng Wu, Chief Executive Officer and Director of Qfin Holdings, commented, “In the second quarter, we navigated a challenging market environment marked by continued industry contraction, tighter regulatory oversight, and a sudden industry-wide liquidity shock in late June. Despite these headwinds, we made steady progress in solidifying our user base, refining our risk models, and enhancing operational efficiency, and delivered improved risk and operational metrics. “Looking ahead, we expect industry adjustments to continue, with funding conditions and risk management likely to remain under pressure. In response, we will adopt an even more prudent approach to growth, risk, and capital allocation to preserve our resilience through the cycle. “We are advancing our overseas expansion strategy with discipline, carefully calibrating risk and capital deployment to ensure attractive returns. At the same time, we are transforming into an AI-native organization—not only to drive efficiency, but to create lasting organizational leverage. “As the industry undergoes its inevitable shakeout, we are confident that our disciplined approach will position us not just to endure, but to emerge stronger after the dust settles in the future.” “As industry adjustment deepens and market volatility increases, we maintained an unwavering focus on asset quality and operational efficiency. In the quarter, total net revenue reached RMB3.57 billion, with Non-GAAP net income of RMB454.9 million,” Mr. Alex Xu, Chief Financial Officer, commented. “We generated RMB1.1 billion in cash from operations. Total cash*10 and short-term investment stood at approximately RMB10.6 billion at the end of the second quarter. Our strong financial position gives us the flexibility to navigate this challenging market environment and advance our long-term growth strategy. At the same time, we are taking a more prudent approach to capital deployment, with a continued focus on operational refinement to drive better efficiency.” Mr. Yan Zheng, Chief Risk Officer, added, “In this quarter, we delivered steady improvement in our risk metrics, reflecting our ongoing efforts to adapt and strengthen our risk strategies amid shifting market conditions. Among key leading indicators, Day-1 delinquency rate*11 was 5.6% in the second quarter, and 30-day collection rate*12 was 88.1%. In recent months, with industry-wide funding constraints driving up risk volatility, we are responding decisively—tightening our risk standards, upgrading our user mix, and fine-tuning our collection efforts to reduce our overall risk exposure.” 10 Including “Cash and cash equivalents”, “Restricted cash” and “Security deposit prepaid to third-party guarantee companies”.11 “Day-1 delinquency rate” is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such specified date.12 “30-day collection rate” is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that became overdue as of such specified date. Second Quarter 2026 Financial Results Total net revenue was RMB3,566.6 million (US$525.6 million), compared to RMB5,215.9 million in the same period of 2025, and RMB3,909.3 million in the prior quarter. Net revenue from Credit Driven Services was RMB2,596.7 million (US$382.7 million), compared to RMB3,565.5 million in the same period of 2025, and RMB2,957.4 million in the prior quarter. Loan facilitation and servicing fees-capital heavy were RMB74.4 million (US$11.0 million), compared to RMB460.9 million in the same period of 2025 and RMB136.2 million in the prior quarter. The year-over-year and sequential decreases were primarily due to lower capital-heavy loan facilitation volume. Financing income*13 was RMB1,839.9 million (US$271.2 million), compared to RMB2,205.0 million in the same period of 2025 and RMB2,021.6 million in the prior quarter. The year-over-year decrease was primarily due to lower loan pricing, partially offset by growth in the average outstanding balance of on-balance-sheet loans. The sequential decrease was mainly driven by declines in both the average outstanding balance and pricing of on-balance-sheet loans. Revenue from releasing of guarantee liabilities was RMB658.7 million (US$97.1 million), compared to RMB805.3 million in the same period of 2025, and RMB752.6 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decreases in average outstanding balance of off-balance-sheet capital-heavy loans. Other services fees were RMB23.8 million (US$3.5 million), compared to RMB94.5 million in the same period of 2025, and RMB47.0 million in the prior quarter. The year-over-year and sequential decreases were primarily due to the decline in the late payment fees under the credit driven services. Net revenue from Platform Services was RMB969.8 million (US$142.9 million), compared to RMB1,650.3 million in the same period of 2025 and RMB951.9 million in the prior quarter. Loan facilitation and servicing fees-capital light were RMB201.7 million (US$29.7 million), compared to RMB326.8 million in the same period of 2025 and RMB211.1 million in the prior quarter. The year-over-year decrease was primarily due to the decline in the average outstanding balance of capital-light loans and the lower revenue sharing ratio. The sequential decrease was mainly due to the lower revenue sharing ratio, partially offset by higher capital-light loan facilitation volume. Referral services fees were RMB370.8 million (US$54.6 million), compared to RMB986.4 million in the same period of 2025 and RMB475.7 million in the prior quarter. The year-over-year and sequential decreases were primarily driven by the decline in loan facilitation volume through ICE. Other services fees were RMB397.4 million (US$58.6 million), compared to RMB337.1 million in the same period of 2025 and RMB265.2 million in the prior quarter. The year-over-year and sequential increases were mainly due to the increase in other post-loan services under the platform services. Total operating costs and expenses were RMB2,405.6 million (US$354.5 million), compared to RMB3,079.7 million in the same period of 2025 and RMB2,930.5 million in the prior quarter. Facilitation, origination and servicing expenses were RMB676.1 million (US$99.6 million), compared to RMB781.0 million in the same period of 2025 and RMB817.3 million in the prior quarter. The year-over-year decrease was in line with the changes in total loan facilitation volume. The sequential decrease was mainly driven by lower collection fees. Funding costs were RMB129.0 million (US$19.0 million), compared to RMB142.1 million in the same period of 2025 and RMB128.3 million in the prior quarter. The year-over-year decrease was mainly due to lower average costs of ABS issuance and the decline in funding from ABS. Sales and marketing expenses were RMB396.8 million (US$58.5 million), compared to RMB662.7 million in the same period of 2025 and RMB455.9 million in the prior quarter. The year-over-year and sequential decreases were primarily due to our prudent approach to customer acquisition amid challenging market conditions. General and administrative expenses were RMB136.6 million (US$20.1 million), compared to RMB175.9 million in the same period of 2025 and RMB158.6 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decline in share-based compensation. Provision for loans receivable was RMB931.5 million (US$137.3 million), compared to RMB773.8 million in the same period of 2025 and RMB1,234.7 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile and changes in the on-balance-sheet loan origination volume. Provision for financial assets receivable was RMB17.8 million (US$2.6 million), compared to RMB66.6 million in the same period of 2025 and RMB21.0 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decreases in capital-heavy loan facilitation volume and reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile. Provision for accounts receivable and contract assets was RMB120.3 million (US$17.7 million), compared to RMB79.9 million in the same period of 2025 and RMB20.4 million in the prior quarter. The year-over-year and sequential increases reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile and the collectability of its accounts receivable. Provision for contingent liabilities was RMB-2.7 million (US$-0.4 million), compared to RMB397.6 million in the same period of 2025 and RMB94.4 million in the prior quarter. The year-over-year and sequential decreases were mainly due to the decreases in capital-heavy loan facilitation volume and reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile. Income from operations was RMB1,161.0 million (US$171.1 million), compared to RMB2,136.2 million in the same period of 2025 and RMB978.9 million in the prior quarter. Non-GAAP income from operations was RMB1,214.5 million (US$179.0 million), compared to RMB2,254.7 million in the same period of 2025 and RMB1,045.0 million in the prior quarter. Operating margin was 32.6%. Non-GAAP operating margin was 34.1%. Income before income tax expense was RMB1,092.5 million (US$161.0 million), compared to RMB2,172.0 million in the same period of 2025 and RMB1,140.5 million in the prior quarter. Income taxes expense was RMB691.1 million (US$101.9 million), compared to RMB441.5 million in the same period of 2025 and RMB260.7 million in the prior quarter. The Company accrued a non-recurring tax-related expense of approximately RMB500 million in the second quarter, which was caused by a change in tax treatment of certain entities based on the updated interpretation of related tax regulations by the tax authorities. Net income was RMB401.4 million (US$59.2 million), compared to RMB1,730.5 million in the same period of 2025 and RMB879.8 million in the prior quarter. Non-GAAP net income was RMB454.9 million (US$67.0 million), compared to RMB1,849.0 million in the same period of 2025 and RMB945.9 million in the prior quarter. Net income margin was 11.3%. Non-GAAP net income margin was 12.8%. Net income attributed to the Company was RMB405.9 million (US$59.8 million), compared to RMB1,734.0 million in the same period of 2025 and RMB883.3 million in the prior quarter. Non-GAAP net income attributed to the Company was RMB459.4 million (US$67.7 million), compared to RMB1,852.5 million in the same period of 2025 and RMB949.4 million in the prior quarter. Net income per fully diluted ADS was RMB3.28 (US$0.48). Non-GAAP net income per fully diluted ADS was RMB3.72 (US$0.55). Weighted average basic ADS used in calculating GAAP net income per ADS was 121.77 million. Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 123.61 million. Ordinary shares outstanding as of June 30, 2026 was 243,165,684. 13 “Financing income” is generated from loans facilitated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers. 30 Day+ Delinquency Rate by Vintage and 180 Day+ Delinquency Rate by Vintage The following charts and tables display the historical cumulative 30 day+ delinquency rates by loan facilitation and origination vintage and 180 day+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the Company’s platform. Loans under “ICE” and total technology solutions are not included in the 30 day+ charts and the 180 day+ charts: http://ml.globenewswire.com/Resource/Download/4f9b1f61-b3dd-4e8a-bebd-060611404115 http://ml.globenewswire.com/Resource/Download/04ae1d37-88a8-4c1a-9a17-7852437ab208 Appointment of a New Independent DirectorThe board of directors of the Company (the “Board”) has approved the appointment of Prof. Dong Lou as an independent director of the Company, effective on August 25, 2026.Prof. Dong Lou has served as a Chair Professor of Finance at the Hong Kong University of Science and Technology Business School since 2024, where he also holds the Citi Professorship in Business. He has served as the Director of the HKUST Institute for Financial Research and Associate Dean (Strategic Planning and Research) of the HKUST Business School since 2024. Prof. Lou also served as a Professor of Finance at the London School of Economics and Political Science from 2022 to 2025, having previously served as an Associate Professor from 2015 to 2022 and an Assistant Professor from 2009 to 2015. He currently serves as an Associate Editor of the Journal of Finance, the Journal of Financial Economics, and Management Science. Prof. Lou is a Council Member of the Society for Financial Studies, an Advisor to the Hong Kong Institute for Monetary and Financial Research, a Co-Director of the HKUST-DXM Joint Laboratory on AI in Finance, a Research Fellow at the Centre for Economic Policy Research, and a Senior Fellow of the Asian Bureau of Finance and Economic Research. Prof. Lou received his Ph.D. in Finance from Yale University in 2009 and his B.S. in Computer Science, Summa Cum Laude, from Columbia University in 2004.Mr. Haisheng Wu, Chief Executive Officer and Director of Qfin Holdings, said, “We are honored to welcome Prof. Lou to join the Board and look forward to the contributions his talents and experience will bring to our Board and our operations.” Semi-Annual Dividend for the First Half of 2026 The Board has approved a dividend of US$0.23 per Class A ordinary share, or US$0.46 per ADS for the first half of 2026 to holders of record of Class A ordinary shares and ADSs as of the close of business on September 9, 2026 Hong Kong Time and New York Time, respectively, in accordance with the Company’s dividend policy. For holders of Class A ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong no later than 4:30 p.m. on September 9, 2026 (Hong Kong Time). The payment date is expected to be on September 28, 2026 for holders of Class A ordinary shares and on or around October 1, 2026 for holders of ADSs. Update on Share Repurchase On March 25, 2025, the Board approved a share repurchase plan (the “March 2025 Share Repurchase Plan”) whereby the Company is authorized, with no definitive term, to use the net proceeds of approximately US$677 million from the offering of convertible senior notes due 2030 to repurchase its ADSs and/or Class A ordinary shares. As of August 25, 2026, the Company had in aggregate purchased approximately 5.6 million ADSs concurrently with the pricing of the offering of the convertible senior notes and on the open market, for a total amount of approximately US$234 million (inclusive of commissions) at an average price of US$41.8 per ADS pursuant to the March 2025 Share Repurchase Plan. Business Outlook As macro environment uncertainties and regulatory pressure persist, the Company intends to take an even more prudent approach in its business planning. As such, for the third quarter of 2026, the Company expects to generate a net income between RMB360 million and RMB460 million and a non-GAAP net income*14 between RMB400 million and RMB500 million, representing a year-on-year decline between 67% and 73%. This outlook reflects the Company’s current and preliminary views, which is subject to material changes. 14 Non-GAAP net income represents net income excluding share-based compensation expenses. Conference Call Preregistration Qfin Holdings’ management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, August 25, 2026 (8:30 AM Beijing Time on Wednesday, August 26, 2026). All participants wishing to join the conference call must pre-register online using the link provided below. Registration Link: https://s1.c-conf.com/diamondpass/10056626-hxqxg1.html Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at https://ir.qfin.com. About Qfin Holdings Qfin Holdings is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The Company is dedicated to making credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions. For more information, please visit: https://ir.qfin.com. Use of Non-GAAP Financial Measures Statement To supplement our financial results presented in accordance with U.S. GAAP, we use Non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our Non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the Non-GAAP financial measures. We use Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses. Non-GAAP operating margin is equal to Non-GAAP income from operation divided by total net revenue. Non-GAAP net income represents net income excluding share-based compensation expenses. Non-GAAP net income margin is equal to Non-GAAP net income divided by total net revenue. Non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses. Non-GAAP net income per fully diluted ADS represents net income excluding share-based compensation expenses per fully diluted ADS. Such adjustments have no impact on income tax. We believe that Non-GAAP income from operation, Non-GAAP operating margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that Non-GAAP income from operation and Non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our Non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of Non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2026. Safe Harbor Statement Any forward-looking statements contained in this announcement are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. Qfin Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, changes in laws, rules and regulatory environments, the recognition of the Company’s brand, market acceptance of the Company’s products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in Qfin Holdings’ filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Qfin Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For more information, please contact: Qfin Holdings E-mail: [email protected]

Webull Corporation (BULL) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to a loss of $1.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +133.33%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.02, delivering a surprise of -33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Webull Corporation, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $198.83 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.62%. This compares to year-ago revenues of $131.49 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Webull Corporation shares have added about 2.1% since the beginning of the year versus the S&P 500's gain of 12.4%. While Webull Corporation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Webull Corporation was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $186.69 million in revenues for the coming quarter and $0.14 on $719.22 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Qfin Holdings Inc. - Sponsored ADR (QFIN), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 25. This company is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -46.1%. The consensus EPS estimate for the quarter has been revised 5.2% lower over the last 30 days to the current level. Qfin Holdings Inc. - Sponsored ADR's revenues are expected to be $519.98 million, down 28.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Webull Corporation (BULL) : Free Stock Analysis Report Qfin Holdings Inc. - Sponsored ADR (QFIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SHANGHAI, China, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Qfin Holdings, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qfin Holdings” or the “Company”), a leading AI-empowered Credit-Tech platform in China, today announced that it will report its unaudited financial results for the second quarter ended June 30, 2026, after U.S. markets close on Tuesday, August 25, 2026. Qfin Holdings’ management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, August 25, 2026 (8:30 AM Beijing Time on Wednesday, August 26, 2026). Conference Call Preregistration All participants wishing to join the conference call must pre-register online using the link provided below. Registration Link: https://s1.c-conf.com/diamondpass/10056626-hxqxg1.html Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin. Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at https://ir.qfin.com. About Qfin Holdings Qfin Holdings is a leading AI-empowered Credit-Tech platform in China. By leveraging its sophisticated machine learning models and data analytics capabilities, the Company provides a comprehensive suite of technology services to assist financial institutions and consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The Company is dedicated to making credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions. For more information, please visit: https://ir.qfin.com. Safe Harbor Statement Any forward-looking statements contained in this announcement are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. Qfin Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, changes in laws, rules and regulatory environments, the recognition of the Company’s brand, market acceptance of the Company’s products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in Qfin Holding’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Qfin Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For more information, please contact: Qfin Holdings E-mail: [email protected]

Wall Street expects a year-over-year increase in earnings on higher revenues when XP Inc.A (XP) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +18.6%. Revenues are expected to be $976.54 million, up 24.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For XP Inc.A, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.20%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that XP Inc.A will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that XP Inc.A would post earnings of $0.48 per share when it actually produced earnings of $0.47, delivering a surprise of -2.08%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. XP Inc.A appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Qfin Holdings Inc. - Sponsored ADR (QFIN), another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $0.99 for the quarter ended June 2026. This estimate points to a year-over-year change of -44.4%. Revenues for the quarter are expected to be $520.01 million, down 28.6% from the year-ago quarter. The consensus EPS estimate for Qfin Holdings Inc. - Sponsored ADR has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +5.58%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Qfin Holdings Inc. - Sponsored ADR will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report XP Inc. (XP) : Free Stock Analysis Report Qfin Holdings Inc. - Sponsored ADR (QFIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Atlanticus Holdings Corporation (ATLC) came out with quarterly earnings of $2.5 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $1.72 per share when it actually produced earnings of $2.23, delivering a surprise of +29.65%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Atlanticus, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $744.31 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.37%. This compares to year-ago revenues of $393.82 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Atlanticus shares have added about 66.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Atlanticus has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Atlanticus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.08 on $800.5 million in revenues for the coming quarter and $9.48 on $3.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Qfin Holdings Inc. - Sponsored ADR (QFIN), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -44.4%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. Qfin Holdings Inc. - Sponsored ADR's revenues are expected to be $520.01 million, down 28.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atlanticus Holdings Corporation (ATLC) : Free Stock Analysis Report Qfin Holdings Inc. - Sponsored ADR (QFIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research