360 DigiTech, Inc. Q2 2026 Earnings Recap

Qfin Holdings’ shares dropped 14.9% following earnings as investors were disappointed by cautious guidance driven by worsening industry liquidity, tightening regulatory oversight, and expected margin pressure amid a contracting consumer finance market.

Key Takeaways

• Total loan facilitation volume declined 2.5% sequentially to RMB 63.4 billion, reflecting ongoing market contraction.
• Risk metrics improved with the C2M2 ratio falling 17% sequentially to 0.66%, supported by stringent risk controls and better post-loan management.
• Funding costs decreased modestly by 10 basis points sequentially due to increased ABS issuance, which rose 90% to RMB 5.5 billion, though funding conditions are expected to tighten going forward.
• Customer acquisition spend was cut by 13% sequentially, and the quality of new users improved, alongside lower average pricing on new loans at 18.2%.
• Management signaled caution on the outlook given recent liquidity shocks and regulatory shifts, anticipating continued funding pressure and the need for tighter risk and asset allocation strategies.