Shares of Qifu Technology (NASDAQ: QFIN) tumbled 11.20% in pre-market trading on Wednesday, following the release of its third-quarter 2025 financial results that fell short of analyst expectations and highlighted ongoing challenges in China's consumer finance sector.

The AI-empowered Credit-Tech platform reported adjusted earnings per ADS of $1.60 for Q3, missing the analyst consensus estimate of $1.68. Despite beating revenue expectations with $731.2 million against estimates of $711.2 million, investors were spooked by the company's cautious outlook and signs of increasing risk in its loan portfolio.

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 pre-market 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.