QFIN's operating margin experienced significant contraction, falling from a peak of 54.7% in 2025Q1 to 20.0% by 2025Q4, reflecting sensitivity to shifting loan facilitation economics.
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 15.23B | 10.6B | 10.45B | 11.7B | 12.84B | 10.36B | 6.25B | 3.47B | 590.03M | -27.65M |
| Gross Margin % | 81.51% | 61.77% | 64.13% | 70.66% | 77.16% | 76.36% | 87.1% | 93.19% | 90.17% | -694.81% |
| Gross Profit Growth % | 43.61% | 1.5% | -10.69% | -8.87% | 23.94% | 65.79% | 79.99% | 488.22% | 2234.09% | - |
| Operating Expenses | 8.9B | 3.08B | 5.59B | 7.23B | 6.05B | 6.57B | 3.28B | 1.81B | 376.99M | 41.1M |
| OpEx % of Revenue | 47.65% | 17.92% | 34.32% | 43.65% | 36.37% | 48.41% | 45.73% | 48.63% | 57.61% | 1032.75% |
| Selling, General & Admin | 0 | 2.18B | 2.36B | 2.62B | 2.65B | 1.54B | 3.28B | 1.88B | 391.43M | 41.1M |
| SG&A % of Revenue | - | 12.67% | 14.49% | 15.83% | 15.92% | 11.32% | 45.73% | 50.55% | 59.82% | 1032.75% |
| Research & Development | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 6.33B | 7.53B | 4.86B | 4.47B | 6.79B | 3.79B | 2.97B | 1.66B | 213.04M | -68.74M |
| Operating Margin % | 33.86% | 43.86% | 29.82% | 27.02% | 40.79% | 27.94% | 41.37% | 44.56% | 32.56% | -1727.56% |
| Operating Income Growth % | -15.98% | 55.01% | 8.6% | -34.1% | 79.05% | 27.73% | 78.79% | 679.03% | 409.91% | - |
| EBITDA | 6.39B | 7.6B | 4.93B | 4.55B | 6.85B | 3.83B | 2.97B | 1.66B | 214.35M | -68.26M |
| EBITDA Margin % | 34.22% | 44.29% | 30.27% | 27.48% | 41.19% | 28.21% | 41.48% | 44.66% | 32.76% | -1715.44% |
| EBITDA Growth % | -15.91% | 54.21% | 8.39% | -33.61% | 79.08% | 28.62% | 78.84% | 676.04% | 414.01% | - |
| D&A (Non-Cash Add-back) | 68.12M | 74.89M | 73.76M | 76.98M | 65.97M | 36.06M | 7.64M | 3.76M | 1.31M | 482.4K |
| EBIT | 7.18B | 8.01B | 7.91B | 8.84B | 9.86B | 8.58B | 2.97B | 1.66B | 213.04M | -68.74M |
| Net Interest Income | 8.34B | 6.87B | 5.33B | 3.67B | 2.31B | 2.26B | 1.27B | 206.25M | 38.95M | 7.2K |
| Interest Income | 8.34B | 6.87B | 5.33B | 3.67B | 2.31B | 2.26B | 1.31B | 277.87M | 53.39M | 7.2K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 41.71M | 71.62M | 14.44M | 0 |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 7.18B | 7.89B | 5.28B | 4.74B | 7.02B | 4.08B | 2.97B | 1.66B | 213.04M | -68.74M |
| Pretax Margin % | 38.41% | 45.98% | 32.4% | 28.65% | 42.21% | 30.09% | 41.37% | 44.56% | 32.56% | -1727.38% |
| Income Tax | 1.36B | 1.64B | 1.01B | 736.8M | 1.26B | 586.04M | 465.98M | 466.36M | 48.18M | -19.02M |
| Effective Tax Rate % | 18.99% | 20.83% | 19.12% | 15.54% | 17.92% | 14.36% | 15.7% | 28.1% | 22.61% | 27.67% |
| Net Income | 5.8B | 6.26B | 4.29B | 4.02B | 5.78B | 3.5B | 2.5B | 1.19B | 164.87M | -49.72M |
| Net Margin % | 31.04% | 36.49% | 26.31% | 24.31% | 34.76% | 25.78% | 34.88% | 32.04% | 25.2% | -1249.46% |
| Net Income Growth % | -7.43% | 46.18% | 6.49% | -30.4% | 65.35% | 39.78% | 109.63% | 623.81% | 431.6% | - |
| Net Income (Continuing) | 5.81B | 6.25B | 4.27B | 4.01B | 5.76B | 3.5B | 2.5B | 1.19B | 164.87M | -49.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 42.13M | 56.18M | 72.37M | 84.14M | 12.75M | 512K | 1.29M | 0 | 0 | 0 |
| EPS (Diluted) | 85.58 | 41.90 | 26.07 | 25.42 | 35.52 | 21.53 | 16.61 | -19.53 | 1.12 | -0.25 |
| EPS Growth % | 104.25% | 60.72% | 2.56% | -28.43% | 64.98% | 29.62% | 185.05% | -1843.75% | 548% | - |
| EPS (Basic) | 87.40 | 42.62 | 26.71 | 26.17 | 37.18 | 22.19 | 17.30 | -19.53 | 1.12 | -0.25 |
| Diluted Shares Outstanding | 68.04M | 151.72M | 164.25M | 161.01M | 160.7M | 153.33M | 150.47M | 101.38M | 143.83M | 198.35M |
| Basic Shares Outstanding | 66.62M | 149.01M | 160.37M | 156.29M | 153.63M | 149.11M | 144.41M | 101.38M | 143.83M | 198.35M |
| Dividend Payout Ratio | 23.76% | 20.16% | 21.98% | 24.57% | - | - | - | - | - | - |
Regulatory interest rate caps
As reported in recent financial statements, QFIN's gross margin fluctuated significantly from a low of 55.7% in 2024Q1 to a peak of 78.7% in 2025Q2, highlighting the inherent sensitivity of the firm's credit-tech business model to shifting loan facilitation economics and competitive pricing pressures.
The wide variance in gross margins suggests that the company's transition toward a capital-light model is not yet yielding a linear improvement in profitability. Investors should monitor whether these fluctuations stem from changes in the underlying credit quality of the borrower base or aggressive pricing adjustments required to maintain market share against peers.
Based on the provided income statement data, QFIN's operating margin reached a high of 54.7% in 2025Q1 before contracting to 20.0% by 2025Q4, indicating that the company has yet to achieve a stable, scalable cost structure despite its significant investment in digital infrastructure.
The sharp decline in operating margins during the most recent quarter suggests that SG&A expenses may be becoming less efficient relative to revenue generation. This trend warrants further investigation into whether the company is facing rising customer acquisition costs or if it is intentionally sacrificing short-term profitability to defend its market position.
According to the company's quarterly filings, stock-based compensation reached $129.6 million in 2025Q1, representing a meaningful non-cash expense that periodically obscures the underlying cash-generating capacity of the firm's core credit facilitation operations during periods of high growth.
The intermittent nature of these charges suggests that management's compensation structure may be tied to specific performance milestones, which can create volatility in reported net income. Analysts should adjust for these non-cash items to better assess the true operational profitability of the platform.
While QFIN maintains a strong net margin of 24.7% as of 2025Q4, the historical data reveals a pattern of margin compression that may indicate long-term structural risks to the company's ability to maintain its current take rates in a tightening regulatory environment.
Short-term profitability appears robust, yet the downward trend in operating margins from the 2025Q1 peak suggests that the firm's competitive moat may be narrowing. Investors should remain cautious regarding the potential for further regulatory intervention to limit the interest rate spreads that currently underpin the company's earnings.
Quick answers to the most common questions about buying QFIN stock.
Qfin Holdings, Inc. (QFIN) is profitable, generating $5.80B in net income for the fiscal year ending 2025 with a net profit margin of 31.0%.
Qfin Holdings, Inc. (QFIN) reported an operating income of $6.33B, resulting in an operating profit margin of 33.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Qfin Holdings, Inc. (QFIN) generated $15.23B in gross profit for the year, representing a gross profit margin of 81.5%. This demonstrates the company's core pricing power and production efficiency.