Shares of Qifu Technology (NASDAQ: QFIN) plummeted 14.59% in after-hours trading on Tuesday, November 18, 2025, following the release of its third-quarter earnings report that fell short of analyst expectations and highlighted ongoing challenges in China's fintech sector.

The AI-empowered Credit-Tech platform reported a net income of RMB1.43 billion ($201.2 million) for Q3, down from RMB1.80 billion in the same period last year. Adjusted earnings per ADS came in at RMB11.36 ($1.60), missing the analyst consensus estimate of $1.68. Despite a 19.1% year-over-year increase in total revenue to RMB5.21 billion ($731.2 million), investors were spooked by the company's cautious outlook and declining profitability.

Haisheng Wu, CEO of Qifu Technology, acknowledged the challenging operating environment, stating, "Later part of the third quarter was a rather challenging period of time as we continued to adjust our operations to cope with macro uncertainties and the latest regulatory changes." The company reported fluctuations in overall risk levels and tightened risk standards in response to liquidity issues in high-risk segments of the consumer finance industry.

Adding to investors' concerns, Qifu Technology provided a conservative outlook for the fourth quarter of 2025, expecting net income between RMB0.92 billion and RMB1.12 billion, representing a year-on-year decline between 39% and 49%. This cautious guidance reflects the company's prioritization of risk control amidst persistent macroeconomic uncertainties in China's fintech sector.

The sharp stock decline indicates that investors are reassessing Qifu Technology's near-term growth prospects in light of the challenging regulatory and economic environment facing China's consumer finance industry. As the company navigates these headwinds, market participants will likely focus on its ability to maintain asset quality and adapt its business model to evolving regulatory requirements.