Qfin (QFIN) investor relations material

Executive summary

• Navigated a challenging macro and regulatory environment with a focus on risk mitigation, efficiency, and cost reduction.

• Achieved 64.8 million cumulative users with approved credit lines as of March 31, 2026, and partnered with 167 financial institutions.

• Prioritized high-quality user acquisition, disciplined marketing, and optimized asset mix, resulting in improved risk metrics and operational efficiency.

• Continued investment in AI and technology to enhance risk management, operational productivity, and cost efficiency, expanding reach to underserved borrowers.

• Accelerated overseas expansion, launching pilot operations in new markets and localizing risk models.

Financial highlights

• Q1 2026 net revenue was RMB3,909 million, down from RMB4,691 million year-over-year and RMB4,093 million in Q4.

• Non-GAAP net income for Q1 2026 was RMB946 million, compared to RMB1,926 million a year ago and RMB1,071 million in Q4.

• Loan facilitation volume for Q1 2026 was RMB65.0 billion, down from RMB88.9 billion a year ago and RMB70.3 billion in Q4.

• Outstanding loan balance at the end of Q1 2026 was RMB114.4 billion, down from RMB140.3 billion a year ago.

• Generated RMB2.1 billion cash from operations; cash and equivalents at RMB10.79 billion.

Outlook and guidance

• Q2 2026 non-GAAP net income expected between RMB900 million and RMB980 million, a 47%-51% year-over-year decline.

• Will maintain a cautious and prudent approach in business planning, focusing on risk control, efficiency, and cost-cutting amid ongoing macro and regulatory uncertainty.

• Continued focus on expanding user base, deepening partnerships, and leveraging AI-driven credit assessment.