Qifu Technology, Inc. (QFIN) Q1 2025 Financial Results Overview

May 20, 2025 1:00 AM - Gordon Thompson

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Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660) Q1 2025 Financial Overview

Earnings per Share (EPS): Qifu Technology, Inc. reported a net income per fully diluted ADS of $1.74 (RMB12.62), slightly surpassing the Zacks Consensus Estimate of $1.72, though down from $1.88 (RMB13.24) in Q4 2024.

Revenue: Total net revenue reached $646.4 million (RMB4,690.7 million), missing the $655.0 million analyst forecast but up 4.7% from $617.7 million (RMB4,482.3 million) in the prior quarter.

Financial Metrics: QFIN's low P/E ratio of 3.7 and price-to-sales ratio of 1.5 suggest potential undervaluation, bolstered by strong cash flow and minimal debt.

Qifu Technology, Inc. (NASDAQ: QFIN; HKEx: 3660), a leading AI-driven Credit-Tech platform in China, connects financial institutions with consumers to facilitate credit access. As of March 31, 2025, Qifu partnered with 165 financial institutions and served 268.2 million consumers, an 11.1% year-over-year increase, reinforcing its growing prominence in the credit technology sector.

On May 19, 2025, QFIN reported a net income per fully diluted ADS of $1.74 (RMB12.62), edging out the $1.72 consensus estimate but declining from $1.88 (RMB13.24) in Q4 2024. Non-GAAP net income per fully diluted ADS was $1.86 (RMB13.53), compared to $1.88 (RMB13.66) in the prior quarter. Total net revenue was $646.4 million (RMB4,690.7 million), below the $655.0 million forecast but reflecting a 4.7% increase from $617.7 million (RMB4,482.3 million) in Q4 2024. The revenue shortfall highlights challenges in scaling growth amid regulatory and market pressures, though earnings remain resilient.

QFIN's financial metrics underscore its attractive valuation. A price-to-earnings (P/E) ratio of 3.7 indicates the stock is undervalued relative to earnings, while a price-to-sales (P/S) ratio of 1.5 suggests investors pay $1.50 per dollar of sales. The enterprise value to sales ratio of 1.3 and an enterprise value to operating cash flow ratio of 2.1 reflect efficient operations and robust cash flow generation.

The company's earnings yield of approximately 27% signals strong return potential for investors. A debt-to-equity ratio of 0.06 demonstrates conservative leverage, and a current ratio of 2.5 ensures ample liquidity to cover short-term obligations. With a net income of $247.6 million (RMB1,796.6 million) and non-GAAP net income of $265.4 million (RMB1,926.2 million), down from $263.5 million (RMB1,912.7 million) and $271.7 million (RMB1,972.4 million) in Q4 2024, QFIN continues to navigate China's dynamic Credit-Tech landscape with financial discipline and strategic growth.

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