Shares of Qifu Technology (NASDAQ: QFIN) tumbled 9.77% in after-hours trading on Tuesday following the release of its third-quarter 2025 financial results, which fell short of expectations and highlighted ongoing challenges in China's consumer finance sector.

The AI-empowered Credit-Tech platform reported a net income of RMB1.43 billion ($201.2 million) for Q3, down from RMB1.73 billion in the previous quarter. Non-GAAP net income also declined to RMB1.51 billion ($211.9 million) from RMB1.85 billion in Q2. The company's total net revenue remained relatively flat at RMB5.21 billion ($731.2 million) compared to the previous quarter.

Qifu Technology's CEO, Haisheng Wu, 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. The 90-day+ delinquency rate for loans originated through the platform increased to 2.09% as of September 30, 2025.

Adding to investors' concerns, Qifu Technology provided a cautious 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 conservative guidance reflects the company's prioritization of risk control amidst persistent macroeconomic uncertainties in China.

The after-hours stock plunge indicates that investors are reassessing Qifu Technology's near-term growth prospects in light of the challenging regulatory and economic environment facing China's fintech sector. 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.