Qfin Holdings, Inc. announced its unaudited financial results for the second quarter and interim period ended June 30, 2025. Total net revenue reached RMB5,215.9 million, an increase from RMB4,160.1 million in the same period of 2024. Non-GAAP net income was RMB1,849.0 million, up from RMB1,413.4 million year-over-year, with non-GAAP net income per fully diluted ADS at RMB13.63.
The company reported a total loan facilitation and origination volume of RMB84.6 billion, a 16% increase year-over-year. The take rate for the quarter reached 5.4%, an increase of almost 1 percentage point year-over-year. Qfin Holdings generated approximately RMB2.62 billion in cash from operations and maintained a robust liquidity position with RMB13.34 billion in cash and short-term investments.
Qfin Holdings issued approximately RMB7.8 billion in ABS in Q2, a 70% year-over-year increase, with total ABS issuance in the first half of 2025 nearly matched the full year 2024 total. Overall funding costs decreased by 10 basis points sequentially. The provision coverage ratio reached a near historical high of 662%, and the leverage ratio stood at 2.8x.
The Board approved a dividend of USD 0.76 per ADS for the first half of 2025, and management committed to a payout ratio of over 70% for the next few years. The company repurchased approximately 7.1 million ADSs for RMB277 million under its share repurchase plan, bringing year-to-date repurchases to 12.2 million ADSs, reducing the share count by about 9% since the beginning of the year.
Strategic expansion continued with the embedded finance business adding four new strategic channels, resulting in a 103% year-over-year surge in new credit line users and a 155% increase in loan volumes. The Technology Solutions business saw loan volumes increase by approximately 150% year-over-year, with AI agent products securing commercial orders for launch in Q3 2025. Small-scale overseas operations were launched in the U.K. during Q2 2025.
For the third quarter of 2025, Qfin Holdings expects non-GAAP net income to be between RMB 1.6 billion and RMB 1.8 billion. This guidance anticipates a modest decline in loan volume compared to Q2, driven by further tightening of risk management controls in response to new regulatory rules and potential market volatility.
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