Profitability is deteriorating sharply as net interest income fell 18.2% year-over-year in Q2 2026 and net interest margin compressed 40 basis points sequentially to 3.5%, resulting in the lowest operating income of the last four quarters at $1.1 billion.
Qfin Holdings, Inc. (QFIN) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Net Interest Income | 6.32B | 278.63M | 6.87B | 5.33B | 3.67B | 2.31B | 2.26B | 1.27B | 206.25M | 38.95M | 7.2K |
| NII Growth % | -66.98% | -95.95% | 29.03% | 45.15% | 58.86% | 2.17% | 78.35% | 514.73% | 429.52% | - | - |
| Net Interest Margin % | 11.9% | 0.49% | 14.28% | 11.63% | 9.1% | 6.9% | 9.27% | 6.23% | 2.81% | 1.26% | 0.01% |
| Interest Income | 6.45B | 278.63M | 6.87B | 5.33B | 3.67B | 2.31B | 2.26B | 1.31B | 277.87M | 53.39M | 7.2K |
| Interest Expense | 128.3M | 0 | 0 | 0 | 0 | 0 | 0 | 41.71M | 71.62M | 14.44M | 0 |
| Loan Loss Provision | 6.18B | 4.18B | 6.56B | 5.84B | 4.86B | 3.8B | 3.21B | 883.45M | 182.17M | 49.86M | 31.63M |
| Non-Interest Income | 9.63B | 15.8B | 10.29B | 10.96B | 12.88B | 14.33B | 11.3B | 5.86B | 3.45B | 600.94M | 3.97M |
| Non-Interest Income % | 60.38% | 98.27% | 59.96% | 67.3% | 77.83% | 86.11% | 83.33% | 82.22% | 94.35% | 93.91% | 99.82% |
| Total Net Revenue | 15.95B | 16.08B | 17.17B | 16.29B | 16.55B | 16.64B | 13.56B | 7.13B | 3.65B | 639.89M | 3.98M |
| Revenue Growth % | -7.47% | -6.31% | 5.38% | -1.59% | -0.49% | 22.65% | 90.23% | 95.2% | 470.86% | 15980.95% | - |
| Non-Interest Expense | 4.67B | 4.53B | 3.08B | 5.59B | 7.23B | 6.05B | 6.57B | 3.28B | 1.81B | 376.99M | 41.1M |
| Efficiency Ratio | 29.3% | 28.14% | 17.92% | 34.32% | 43.65% | 36.37% | 48.41% | 46% | 49.58% | 58.91% | 1032.75% |
| Operating Income | 5.1B | 7.38B | 7.53B | 4.86B | 4.47B | 6.79B | 3.79B | 2.97B | 1.66B | 213.04M | -68.74M |
| Operating Margin % | 31.95% | 45.87% | 43.86% | 29.82% | 27.02% | 40.79% | 27.94% | 41.61% | 45.43% | 33.29% | -1727.56% |
| Operating Income Growth % | - | -2.02% | 55.01% | 8.6% | -34.1% | 79.05% | 27.73% | 78.79% | 679.03% | 409.91% | - |
| Pretax Income | 5.21B | 7.38B | 7.89B | 5.28B | 4.74B | 7.02B | 4.08B | 2.97B | 1.66B | 213.04M | -68.74M |
| Pretax Margin % | 32.68% | 45.87% | 45.98% | 32.4% | 28.65% | 42.21% | 30.09% | 41.61% | 45.43% | 33.29% | -1727.38% |
| Income Tax | 1.49B | 1.4B | 1.64B | 1.01B | 736.8M | 1.26B | 586.04M | 465.98M | 466.36M | 48.18M | -19.02M |
| Effective Tax Rate % | 28.49% | 18.99% | 20.83% | 19.12% | 15.54% | 17.92% | 14.36% | 15.7% | 28.1% | 22.61% | 27.67% |
| Net Income | 3.74B | 5.99B | 6.26B | 4.29B | 4.02B | 5.78B | 3.5B | 2.5B | 1.19B | 164.87M | -49.72M |
| Net Margin % | 23.45% | 37.25% | 36.49% | 26.31% | 24.31% | 34.76% | 25.78% | 35.08% | 32.67% | 25.76% | -1249.46% |
| Net Income Growth % | -48.44% | -4.38% | 46.18% | 6.49% | -30.4% | 65.35% | 39.78% | 109.63% | 623.81% | 431.6% | - |
| Net Income (Continuing) | 3.73B | 5.98B | 6.25B | 4.27B | 4.01B | 5.76B | 3.5B | 2.5B | 1.19B | 164.87M | -49.72M |
| EPS (Diluted) | 26.22 | 44.02 | 41.90 | 26.07 | 25.42 | 35.52 | 21.53 | 16.61 | -19.53 | 1.12 | -0.25 |
| EPS Growth % | -6.93% | 5.06% | 60.72% | 2.56% | -28.43% | 64.98% | 29.62% | 185.05% | -1843.75% | 548% | - |
| EPS (Basic) | - | 44.96 | 42.62 | 26.71 | 26.17 | 37.18 | 22.19 | 17.30 | -19.53 | 1.12 | -0.25 |
| Diluted Shares Outstanding | 142.62M | 136.09M | 151.72M | 164.25M | 161.01M | 160.7M | 153.33M | 150.47M | 101.38M | 143.83M | 198.35M |
Quick answers to the most common questions about buying QFIN stock.
For fiscal year 2025, Qfin Holdings, Inc. (QFIN) reported total revenue of $16.08B. This represents a 404045.7% increase compared to $4.0M in 2016.
Qfin Holdings, Inc. (QFIN) is profitable, generating $5.99B in net income for the fiscal year ending 2025 with a net profit margin of 37.2%.
Qfin Holdings, Inc. (QFIN) reported an operating income of $7.38B, resulting in an operating profit margin of 45.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Qfin Holdings, Inc. (QFIN) generated $11.90B in gross profit for the year, representing a gross profit margin of 74.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory interest rate caps
Net Interest Income Decline Accelerates
Net interest income fell 18.2% year-over-year to $1.9 billion in Q2 2026, marking the sharpest decline in the observed period and suggesting significant pressure on interest spreads and loan volume growth.
The sequential decline from $2.2 billion in Q4 2025 to $1.9 billion in Q2 2026 indicates a contraction in the core earnings engine, likely driven by a combination of competitive pricing pressures and the maturing of higher-yield legacy assets. This trend warrants close monitoring as it directly impacts the bank's ability to generate pre-provision net revenue, especially given the concurrent volatility in non-interest income streams.
Net Interest Margin Compression Continues
NIM compressed by 40 basis points quarter-over-quarter to 3.5% in Q2 2026, continuing a downtrend from its 3.9% peak in Q3 2025 and suggesting intensifying competition for quality assets or regulatory constraints on yields.
The margin compression coincides with the NII decline, indicating that the pressure is not merely volumetric but also rooted in the spread between asset yields and funding costs. Given Qifu's capital-light model, this trend may reflect the growing share of platform services with lower associated yields, or it could signal that institutional funding partners are demanding a larger share of the economics.
Efficiency Ratio Deteriorates Sharply
The efficiency ratio ballooned to 45.4% in Q2 2026 from a remarkably low 28.6% a year earlier, indicating that operating leverage has turned negative as revenue growth fails to keep pace with the fixed cost base.
This rapid deterioration from the highly efficient levels seen in mid-2025 suggests that the company is experiencing operating de-leverage, possibly due to sustained investments in platform capabilities or rising compliance costs in a tightening regulatory environment. The metric's swing highlights the inherent volatility in profitability for credit-tech firms where revenue can be episodic.
Provision Volatility Masks Underlying Trends
Provision for credit losses was $802.8 million in Q2 2026, a significant drop from the $1.8 billion peak in Q3 2025, but its ratio to revenue remains elevated, suggesting continued caution on asset quality in the macro environment.
The reduction in absolute provision expense is a positive signal for near-term earnings, but the high relative level compared to historical periods implies management is not yet comfortable with the trajectory of delinquencies, particularly given the noted deflationary pressures in the Chinese economy. The volatility in this line item underscores the challenge of assessing sustainable earnings power without isolating the impact of shifting credit loss assumptions.
Profitability Inflection Point Under Pressure
Q2 2026 represents a potential inflection point where accelerating revenue deterioration and margin compression have combined to produce the lowest operating income of the last four quarters at $1.1 billion.
This quarter's performance contrasts sharply with the robust profitability seen in early 2025, where operating income consistently exceeded $2.0 billion. The inflection appears driven by the dual headwinds of NII decline and efficiency ratio expansion, raising questions about the sustainability of the previous earnings trajectory and testing the resilience of the capital-light business model.
Cash Pile vs. Earnings Quality Challenge
Despite holding $4.7 billion in cash, the persistent decline in core earnings metrics like NII and operating income raises a fundamental question about whether the asset base is being deployed efficiently in the current environment.
The strongest analytical challenge to Qifu's earnings quality is the divergence between its fortress balance sheet, indicated by a 0.16% debt-to-equity ratio, and its deteriorating income statement trajectory. While the cash reserve provides a significant buffer, the negative operating leverage and compressed margins suggest that the core business model is under strain, and the market may be correctly pricing in a prolonged period of subdued returns on that substantial capital base.