This article first appeared on GuruFocus .
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Transaction Volume:RMB42.6 billion, broadly steady with last quarter.
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Group Net Revenue:RMB3.2 billion, up 6% sequentially.
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Operating Profit:Increased by 13% sequentially.
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Net Profit:RMB421 million, up 1% sequentially.
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Overseas Revenue:RMB949 million, up 35% year over year.
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Overseas Operating Profit:RMB46 million, up 88% year over year.
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China Net Revenue:RMB2.2 billion, up 7% sequentially.
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Take Rate:Increased from 3% to 3.2%.
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Vintage Delinquency Rate:Eased from 3% to 2.7%.
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Day 1 Delinquency Rate:Improved from 5.5% to 5.2%.
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30-Day Collection Rate:Increased from 85.9% to 86.8%.
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M2 Default Rate:Declined from 0.77% to 0.68%.
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Overseas Adjusted EBITDA:RMB47.5 million, up 87% year over year.
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Dividend Per ADS:USD0.306, reflecting a 10.5% increase year over year.
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Share Repurchase:USD54 million deployed as of end of April.
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Revenue Guidance for 2026:RMB11.5 billion to RMB12.9 billion.
Release Date: May 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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FinVolution Group ( NYSE:FINV ) reported a 6% sequential increase in net revenue, reaching RMB3.2 billion.
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The Overseas business segment contributed 30% of group revenue, with a 35% year-over-year increase in revenue.
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Operating profit improved by 13% sequentially, demonstrating enhanced operational efficiency.
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The company has successfully expanded its customer base, adding approximately 0.6 million new borrowers in China, a 7% sequential increase.
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FinVolution Group ( NYSE:FINV ) has maintained a strong focus on technology, with over 120 active AI initiatives enhancing operational efficiency.
Negative Points
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The company faces ongoing regulatory uncertainties in China, which could impact future operations.
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Foreign exchange fluctuations negatively affected net profit, which only increased by 1% sequentially.
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The first quarter experienced typical seasonal softness, with transaction volumes holding steady rather than growing.
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Despite improvements, the Chinese market remains in a recovery phase, with risk management still a key focus.
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The company anticipates higher compliance costs due to tighter marketing regulations for financial products.
Q & A Highlights
Q: Can you provide an outlook on the company's buyback strategy and its pace for the coming quarters? A: Jiayuan Xu, CFO : We have been actively executing buybacks, with $39 million in the first quarter and an additional $15 million by the end of April, totaling $54 million this year. Our Board has approved a new $150 million program lasting two years. Our goal is to maximize shareholder return through business expansion and share repurchase, balancing based on liquidity and price.
Q: How will the new regulatory document on online marketing of financial products impact your operations? A: Tiezheng Li, CEO : The regulation aims to protect consumers and ensure only licensed players offer financial products. It will increase compliance costs and require adjustments in marketing and user traffic flow. However, we see it as an opportunity to raise standards and believe it will be a net positive in the medium to long term.
Q: Has domestic risk performance improved in April and May, and will transaction volume in China increase in the second quarter? A: Jiayuan Xu, CFO : Risk performance has continued to improve, with day one delinquency falling below 5%. We are selectively raising our risk appetite, offering more credit to high-quality borrowers, and expanding our customer pool. We aim to sustain first-quarter growth momentum into the second quarter while balancing volume, risk, and profitability.
Q: What are the key drivers for sustainable growth in the Overseas market, and what is the outlook? A: Tiezheng Li, CEO : Our Overseas business has grown significantly, with a 69% CAGR in transaction volume from 2020 to 2025. Key drivers include a data-driven tech platform, institutional funding, and high-quality customer segments. We are confident in continued growth in Indonesia, the Philippines, and Australia, aiming to become a global example of a technology-driven financial platform.
Q: What considerations led to the segment disclosure, and can you share some operating indicators for overseas markets? A: Jiayuan Xu, CFO : The segment disclosure reflects the maturity and profitability of our Overseas business. We won't break down APR, funding cost, or risk by market due to differences, but compliance is a priority. We aim to progressively improve risk metrics and have expanded funding partners, optimizing costs. The disclosure provides transparency into our global growth strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
