Qfin Holdings (QFIN) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 profitability, with net revenue of RMB4,370 million and non-GAAP net income of RMB1,825 million, driven by prudent operations, risk optimization, and operational efficiency.

• Served over 55 million users and empowered 162 financial institutions cumulatively, with cumulative borrowers reaching 33.1 million as of September 30, 2024.

• Maintained a leading position as a consumer credit-tech platform in China, with robust user growth and platform strategy broadening business boundaries.

Financial highlights

• Q3 net revenue was RMB4,370 million, up 2.1% year-over-year and 5% sequentially.

• Non-GAAP net income reached RMB1,825 million, up 54.5% year-over-year and 29.1% sequentially.

• Non-GAAP net income per diluted ADS rose to RMB12.4, up 71.5% year-over-year.

• Net take rate improved to 5.9% in Q3 2024 from 3.3% in Q3 2023.

• ROE increased to 32.2% in Q3 2024.

Outlook and guidance

• Q4 2024 non-GAAP net income expected between RMB1.8–1.9 billion, representing 57–65% year-over-year growth.

• Management remains prudent on 2025 outlook due to macro and policy uncertainties, focusing on healthy operations and platform execution.

• Near-term focus on quality growth, optimizing loan mix, and diversifying user acquisition channels.

• Medium-term initiatives include strategic investment in AI and LLM technologies to drive efficiency.