Shares of FinVolution Group (NYSE: FINV) plummeted 5.78% in Wednesday's trading session following the release of the company's third quarter 2025 financial results. The Chinese fintech platform's earnings and revenue fell short of analyst expectations, while management significantly lowered its full-year revenue guidance.
FinVolution reported adjusted earnings of 2.48 Chinese renminbi ($0.34) per American depositary share for the quarter, down from 2.55 renminbi a year earlier and below the analyst estimate of 2.56 renminbi. Revenue rose 6.4% year-over-year to 3.49 billion renminbi, but still missed the consensus forecast of 3.63 billion renminbi.
The most significant factor contributing to the stock's decline was likely the company's revised full-year 2025 revenue guidance. FinVolution now expects revenue between 13.1 billion and 13.7 billion renminbi, a substantial reduction from its previous forecast of 14.4 billion to 15 billion renminbi issued in August. This lowered outlook suggests the company is facing headwinds in its core Chinese market.
Indeed, FinVolution's results showed some concerning trends in its China business. Transaction volume in mainland China decreased by 3.8% year-over-year to 47.6 billion renminbi. The company attributed this decline to "recent regulatory changes in China" that have introduced near-term uncertainties.
Despite the overall negative reaction, there were some bright spots in FinVolution's report. The company's international business showed strong growth, with revenue increasing 37.4% year-over-year to 873.3 million renminbi, now representing 25% of total revenue. Additionally, the total outstanding loan balance grew 13.2% to 77.1 billion renminbi.
Investors will be closely watching how FinVolution navigates the regulatory challenges in China and whether its international expansion can offset domestic pressures in the coming quarters. The stock's sharp decline reflects market concerns about the company's near-term growth prospects and ability to meet its revised targets.