Qudian Inc. reported a net income attributable to shareholders of RMB409.9 million (US$57.6 million) for the third quarter ended September 30 2025, a jump from RMB131.9 million in the same period last year. Total revenue fell 84.5 % to RMB8.5 million, while operating loss widened to RMB110.6 million. Interest and investment income rose 84.5 % to RMB421.3 million, and gains on derivative instruments climbed 144.4 % to RMB73.9 million, offsetting the larger operating loss and driving the strong net income figure. Cash and cash equivalents stood at RMB7,010.6 million (US$948.8 million) as of September 30, 2025, underscoring the company’s robust liquidity position.
The revenue decline reflects the ongoing wind‑down of Qudian’s last‑mile delivery business. Revenue dropped from RMB55.0 million in Q3 2024 to RMB8.5 million in Q3 2025, an 84.5 % year‑over‑year decrease. The sharp contraction signals that the legacy delivery operations are largely complete, and the company is shifting its focus to new growth areas.
Net income surged largely because of non‑operating gains. The 84.5 % increase in interest and investment income, driven by higher returns on short‑term investments, and the 144.4 % rise in derivative gains together more than offset the operating loss. This pattern shows that while core revenue is shrinking, the company’s financial assets are generating significant income, temporarily boosting profitability.
Management noted that the cash‑credit business remains profitable but is being prudently managed amid regulatory headwinds. The company also highlighted its continued investment in the WLM KIDS early‑childhood education platform, which is expected to become a new revenue engine as legacy businesses wind down.
The combination of a strong cash position, significant investment income, and a clear strategic pivot to education positions Qudian to weather the transition. However, the steep revenue decline and the costs associated with the new platform underscore the challenges ahead. Investors will likely focus on whether the company can generate sustainable revenue from WLM KIDS while maintaining profitability as legacy operations wind down.
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