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Qifu Technology
(NASDAQ:QFIN)
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Rating:69Neutral
Price Target:
$14.50
▲(2.62% Upside)
Action:Downgraded
Date:07/12/26
The score is supported primarily by strong financial quality (high margins and low leverage) and very attractive valuation (low P/E and high dividend yield). These positives are offset by weak technicals (price below key moving averages with soft momentum) and an earnings-call outlook that points to meaningful near-term profit pressure despite improving risk and funding indicators.
Positive Factors
High Profitability
Sustained high gross and net margins indicate durable unit economics and pricing power in Qifu’s credit‑tech offerings. Strong margins support cash generation, allow reinvestment in product and risk systems, and provide a stable earnings base even if origination volumes fluctuate over months.
Negative Factors
Revenue Contraction
Material year-over-year declines in revenue and non‑GAAP net income signal weakening demand or pricing compression. Persistent top‑line erosion reduces operating leverage, constrains reinvestment, and could force ongoing cost trimming that impedes growth initiatives over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and net margins indicate durable unit economics and pricing power in Qifu’s credit‑tech offerings. Strong margins support cash generation, allow reinvestment in product and risk systems, and provide a stable earnings base even if origination volumes fluctuate over months.
Read all positive factors
Qifu Technology (QFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend Yield7.3%
Average Volume (3M)1.54M
Price to Earnings (P/E)1.6
Beta (1Y)1.33
Revenue Growth5.63%
EPS Growth-16.83%
CountryUS
Employees3,527
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)53.92
Shares Outstanding141,509,640
10 Day Avg. Volume1,359,534
30 Day Avg. Volume1,544,463
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.37
Price to Sales (P/S)0.48
P/FCF Ratio0.83
Enterprise Value/Market Cap5.35
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit0.76
Enterprise Value/Ebitda1.40
Forecast
1Y Price Target
$14.15Price Target Upside0.14% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)27.27
Revenue Forecast (FY)$14.41B
Qifu Technology Business Overview & Revenue Model
Company Description
Qifu Technology, Inc. (QFIN), known as 360 DigiTech, Inc. until its rebranding in March 2023, is a credit technology firm based in the People's Republic of China. Through its 360 Jietiao platform, the company facilitates credit-driven services by ...
How the Company Makes Money
Qifu Technology makes money primarily by providing credit-tech services to financial institution partners (e.g., banks and other licensed financial institutions) that fund loans to consumers sourced through Qifu’s platform. Its revenue model gener...
Qifu Technology Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call reflects a balanced message: management reported meaningful improvements in risk metrics, collection efficiency, tech-driven growth (notably 7x YoY in tech-solutions loan volume), funding optimization and active capital management, but these operational gains were accompanied by notable declines in revenue, origination volume, margins, and profitability. Management reiterated a conservative posture given regulatory and macro uncertainty and guided materially lower YoY profit for Q2.Positive Updates
Improved Risk Metrics and Portfolio Health
Multiple leading and portfolio risk indicators improved in Q1: FPD7 for new loans declined ~20% sequentially versus Q4; FPD7 for loans issued Jan–Mar fell ~5% vs December; FPD30+ declined ~22% in Q1 vs Q4. The C2M2 outstanding delinquency rate decreased ~17% sequentially to 0.8% and by March had returned to levels seen in July–August 2025.
Negative Updates
Decline in Origination and Total Loan Volume
Total loan facilitation and origination volume on the platform declined ~7.5% sequentially to RMB65 billion amid a soft retail credit market and industry adjustments. Household short-term consumer loan balances in the industry fell ~RMB470 billion (5%) sequentially, reflecting weak demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Risk Metrics and Portfolio Health
Multiple leading and portfolio risk indicators improved in Q1: FPD7 for new loans declined ~20% sequentially versus Q4; FPD7 for loans issued Jan–Mar fell ~5% vs December; FPD30+ declined ~22% in Q1 vs Q4. The C2M2 outstanding delinquency rate decreased ~17% sequentially to 0.8% and by March had returned to levels seen in July–August 2025.
Read all positive updates
Company Guidance
Qifu guided Q2 non‑GAAP net income of RMB900–980 million (down ~47–51% YoY), signaling a cautious plan amid continued macro and regulatory uncertainty; this follows Q1 non‑GAAP net income of ~RMB946M, Q1 revenue of RMB3.91B, and Q1 loan facilitation/origination of RMB65B (–7.5% QoQ) with average IRR 18.7% (vs 19.5% in Q4). Management emphasized prioritizing risk control, efficiency and cost cutting while pointing to improving risk metrics — FPD7 down ~20% QoQ, FPD30+ down ~22% QoQ, C2M2 0.8% (–17% QoQ), 30‑day collection rate 85.8% (+1.8 ppt QoQ), day‑1 delinquency 5.7% (vs 6.1%), 90‑day delinquency 3.5%, new provisions RMB1.68B (vs RMB1.92B), provision coverage 391% and leverage 2.4x — and to funding stability with ABS issuance of RMB2.9B (+16% QoQ), funding cost down ~10 bps QoQ and cash/short‑term investments of RMB10.79B.Qifu Technology Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.46B | 18.68B | 17.17B | 16.29B | 16.55B | 16.64B |
| Gross Profit | 12.90B | 15.23B | 10.60B | 10.45B | 11.70B | 12.84B |
| EBITDA | 6.93B | 7.24B | 8.08B | 7.98B | 8.92B | 9.93B |
| Net Income | 5.05B | 5.80B | 6.26B | 4.29B | 4.02B | 5.78B |
Balance Sheet | ||||||
| Total Assets | 54.13B | 56.95B | 48.13B | 45.82B | 40.34B | 33.50B |
| Cash, Cash Equivalents and Short-Term Investments | 6.55B | 7.55B | 7.85B | 4.19B | 7.22B | 6.12B |
| Total Debt | 2.19B | 3.82B | 1.40B | 827.73M | 180.70M | 423.36M |
| Total Liabilities | 29.73B | 32.79B | 23.89B | 23.81B | 21.41B | 18.29B |
| Stockholders Equity | 24.27B | 24.11B | 24.19B | 21.94B | 18.85B | 15.20B |
Cash Flow | ||||||
| Free Cash Flow | 7.22B | 10.84B | 9.19B | 7.03B | 5.90B | 5.76B |
| Operating Cash Flow | 10.30B | 11.08B | 9.34B | 7.12B | 5.92B | 5.79B |
| Investing Cash Flow | -7.43B | -13.08B | -7.99B | -11.15B | -7.36B | -6.06B |
| Financing Cash Flow | -4.96B | 2.78B | -2.11B | 1.07B | 3.20B | 2.26B |
Qifu Technology Technical Analysis
Negative
14.13
Price Trends
14.39
Negative
13.76
Negative
16.81
Negative
Market Momentum
-0.18
Positive
34.17
Neutral
9.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QFIN, the sentiment is Negative. The current price of 14.13 is below the 20-day moving average (MA) of 15.06, below the 50-day MA of 14.39, and below the 200-day MA of 16.81, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 34.17 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QFIN.
Qifu Technology Risk Analysis
Qifu Technology disclosed 88 risk factors in its most recent earnings report. Qifu Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qifu Technology Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.10B | 3.52 | 5.33% | 5.20% | 0.84% | -12.02% | |
69 Neutral | $1.82B | 1.61 | 20.88% | 7.30% | 5.63% | -16.83% | |
69 Neutral | $268.38M | 1.18 | 12.17% | 8.86% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $110.05M | -0.35 | 0.54% | 10.37% | -13.83% | -154.13% | |
| ― | $2.33B | -2.75 | -2.37% | ― | ― | ― |
* Financial Sector Average
QFIN
Qifu Technology
12.80
-26.29
-67.26%
YRD
Yiren Digital
1.23
-4.56
-78.76%
FINV
FinVolution Group
4.57
-5.43
-54.30%
LX
Lexinfintech Holdings
1.49
-4.75
-76.13%
LU
Lufax Holding
1.25
-1.50
-54.55%
Qifu Technology Corporate Events
Qfin Holdings Announces Resignation of Director Dan Zhao Effective June 3, 2026
Jun 3, 2026
Qfin Holdings, Inc., a Shanghai-based foreign private issuer in the financial services and fintech-related sector, maintains a board-led governance structure to guide its strategy and regulatory compliance. The company’s presence in U.S. cap...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.