Noah Holdings Ltd (NOAH) saw its stock price plummet 5.29% during Friday's trading session, despite reporting year-over-year and sequential growth in profitability for the first quarter of 2025. The sharp decline comes as investors digest mixed results from the company's earnings report.

While Noah's Q1 non-GAAP net income increased 27.4% sequentially to RMB 168.8 million (US$23.3 million) and its operating margin expanded to 30.3%, the company faced headwinds in its domestic market. Domestic net revenues declined 14.3% from the previous quarter to RMB 310.4 million, signaling challenges in the company's core Chinese market.

The earnings report highlighted Noah's ongoing efforts to implement a CAPEX-light strategy and expand overseas amid a challenging global macroeconomic environment and low-interest rates in China. These factors have negatively impacted Chinese high-net-worth individual sentiment and topline growth. Despite a substantial year-over-year increase in transaction value for RMB-denominated private secondary products, investors appear concerned about the company's ability to maintain growth in its domestic market, leading to the significant stock price drop.