Qfin Sees 140bps Loan Pricing Drop, FTD 30 Down 18% QoQ and 2026 Global Expansion
Qfin Holdings posted a 140 basis-point drop in average loan pricing in Q4 2025, targeting a net take rate above 3% if regulations hold. Tightened underwriting cut new-loan FTD 30 rates 18% QoQ and referral fees fell 85%, while 2026 launches in Europe, Latin America and Southeast Asia commence.
1. Regulatory Impact on Loan Pricing and Take Rates
New regulations over the past year have reduced borrowing costs industry-wide, driving Qfin’s average loan pricing down by 140 basis points in Q4 2025. Management aims to sustain a net take rate above 3% under stable regulatory conditions and maintains a progressive EPS policy while remaining cautious on buybacks.
2. Risk Metrics Improvement and Underwriting Adjustments
In Q4, Qfin tightened underwriting and collections, resulting in an 18% QoQ drop in first-time default (FTD 30) rates for new loans and improved CM2 ratios. The firm will dynamically shift between capital-heavy and capital-light models based on market conditions, with a likely tilt toward capital-light in 2026.
3. Referral Service and ICE Business Trends
Q4 referral service fees plunged 85% QoQ due to reduced volume and lower take rates as the company prioritized sustainable partner relationships. ICE revenue declined amid tight market liquidity, but Qfin plans to stabilize ABS issuance and fund costs to maintain competitive financing.
4. Global Expansion Strategy for 2026
Qfin is focusing on high-quality users and aims to build a leading global credit tech platform, launching operations in new markets across Europe, Latin America and Southeast Asia in 2026. The expansion complements its domestic strategy and positions the company for diversified growth.