Noah Holdings Reports Strong Q1 2025 Earnings with Growth in Profitability and Margins

Noah's Q1 2025 Earnings Report

In its first-quarter earnings report for 2025, Noah Holdings Limited (NYSE: NOAH, HKEX: 6686) has demonstrated notable growth in profitability and operating margins, signaling a robust recovery for the leading wealth management service provider. The company's recent financial performance underlines its successful strategies in navigating a challenging global macroeconomic environment.

Key Financial Highlights

Noah's non-GAAP net income for Q1 2025 exhibited an impressive sequential increase of 27.4%, reaching RMB 168.8 million (approximately USD 23.3 million). In the same period, revenue from operations saw a rise of 35.2% to RMB 186.0 million (USD 25.6 million), which elevated the operating margin to an impressive 30.3%. Despite broader economic challenges, including low-interest rates in mainland China, Noah's effective cost management and ongoing domestic restructuring initiatives have allowed the company to maintain profitability and generate positive cash flow.

CEO Zander Yin expressed his confidence in these results, attributing them to successful operational efficiency measures and strategic growth in overseas markets. "This recovery not only highlights our resilience but also sets the groundwork for sustainable expansion moving forward," he stated.

Detailed Analysis of Revenue Streams

Noah reported total net revenues of RMB 614.6 million (USD 84.7 million), which reflects a slight decrease of 5.7% from the previous quarter and 5.4% year-over-year. This decline was primarily due to reduced distribution of insurance products and lower recurring service fees from private equity engagements. In contrast, revenues from overseas investment products showed promising growth, climbing 5.0% to RMB 304.2 million (USD 41.9 million), accounting for nearly half of Noah's total revenues.

Cost control measures have significantly contributed to improving profitability, with operating expenses shrinking by 16.7% sequentially. This reduction was propelled by strategic cuts in compensation, benefits, and selling expenses, creating a leaner operational structure that supports profitability amid market fluctuations.

Progress on Overseas Expansion

Noah's international expansion is gaining momentum, as evidenced by a 20.3% annual increase in revenue from overseas investment products, which has successfully offset declines in overseas insurance sales. The company's assets under management in USD rose 14.2% year-over-year, reaching USD 5.9 billion, alongside a significant 8.7% growth in USD-denominated advisory services to USD 9.1 billion.

The expansion of Noah’s overseas team has been notable, with the number of overseas relationship managers increasing by 44% in one year, now totaling 131. The establishment of a new office in Japan exemplifies Noah's commitment to tapping into large, underserved markets among Chinese high-net-worth individuals (HNWIs) in regions such as the US and Canada.

Domestic Restructuring and Future Outlook

Within China, domestic revenues for this quarter totaled RMB 310.4 million, reflecting a decrease largely due to subdued insurance distribution under the prevailing low-interest environment. However, Noah has seen a substantial surge in transaction value for private secondary products, with a year-over-year increase of 257.7% to RMB 3.3 billion.

With a streamlined branch network now covering ten cities, Noah's strategy of deploying online marketing and services is expected to substantially cut fixed costs while enhancing operational metrics going forward.

Noah remains committed to prioritizing shareholder interests and is currently executing a USD 50 million share buyback program, having repurchased over 1.3 million shares to date. In July 2025, the company anticipates distributing dividends that would equate to 100% of 2024's non-GAAP net profits contributed to Noah's shareholders.

Strategic Priorities Ahead

Looking ahead, Noah's strategy for 2025 emphasizes a balanced approach to growth, fostering international expansion while ensuring compliance with local regulations. Investments in AI and technology will enhance its service capabilities, paving the way for diversifying its offerings to meet evolving client needs in fluctuating markets.

In conclusion, with a fortified balance sheet and a clear commitment to operational efficiency, Noah is well-positioned for sustainable and profitable growth in the evolving landscape of global wealth management.

For more information about Noah Holdings, visit ir.noahgroup.com.