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Qudian Inc. Reports on Third Quarter 2025 Financial Results

Qudian Inc. (NYSE: QD), a consumer-oriented technology company based in China, has announced its unaudited financial results for the third quarter ended September 30, 2025. The highlights of the quarter include a pronounced drop in total revenues, driven primarily by the winding down of last-mile delivery operations.

Financial Overview

In Q3 2025, Qudian recorded total revenues of RMB 8.5 million (approximately US$ 1.2 million), which marks an 84.5% decrease compared to RMB 55.0 million in the same quarter last year. This sharp revenue decline reflects the company's strategic pivot, winding down its last-mile delivery service to focus on more profitable ventures.

In contrast, net income attributable to shareholders showed a noticeable increase to RMB 409.9 million (around US$ 57.6 million), compared to RMB 131.9 million for Q3 2024. This translates to a net income per diluted American Depository Share (ADS) of RMB 2.47 (or US$ 0.35). This positive shift underscores Qudian's effective cash management strategies despite the substantial decline in revenue.

Operating Expenses and Profitability

Operating costs dropped only modestly by 2.3%, settling at RMB 119.1 million (US$ 16.7 million), demonstrating the company’s commitment to controlling expenses during this transitional phase. However, specific areas within operating expenses displayed variance, such as a considerable 86.6% decrease in the cost of revenues, reducing it to RMB 6.5 million (US$ 0.9 million), attributable to the reduction of service costs linked to the last-mile delivery service closure.

Conversely, general and administrative expenses surged by 41.1%, totaling RMB 82.7 million (US$ 11.6 million) mainly due to heightened depreciation and property tax expenses after completing the company's headquarters construction. Research and development expenses also saw a decline of 23.8%, falling to RMB 11.1 million (US$ 1.6 million) due to a reduced workforce.

Despite these fluctuations, Qudian reported a loss from operations amounting to RMB 110.6 million (US$ 15.5 million), increased from RMB 67.0 million the previous year, attributed to the winding down of business activities and rising depreciation costs.

Cash Flow and Investments

As of September 30, 2025, Qudian's cash and cash equivalents were remarkably solid at RMB 7,010.6 million (approximately US$ 948.8 million) alongside restricted cash of RMB 1,518.7 million (around US$ 213.3 million). Notably, domestic operations generated a net cash flow of RMB 384.0 million (US$ 53.9 million) from operational activities, driven significantly by interest and investment income.

Qudian's investment strategies were reinforced in Q3, reflected by a noteworthy 84.5% increase in interest and investment income, climbing to RMB 421.3 million (US$ 59.2 million). The company also reported a gain from derivative instruments up 144.4% year-over-year, signaling a diverse strategy towards risk management and financial instrument utilization.

Future Strategizing and Share Repurchase

In light of the recent shifts in market dynamics, Qudian is channeling its efforts toward exploring new business avenues that promise long-term shareholder value. The company’s board approved a substantial share repurchase program aimed at acquiring up to US$ 300 million worth of Class A ordinary shares or ADSs over 36 months, which commenced in June 2024. As leverage towards market perception, Qudian has successfully repurchased 26.3 million ADSs at an average price of $2.7 per ADS as of mid-November 2025.

Conclusion

In summary, Qudian Inc. expresses a commitment to navigating its transformative phase while maintaining solid financial health, leveraging its cash reserves and diverse investment gains. As it focuses on optimizing its business model, stakeholders await further developments in innovative offerings that meet consumer demand. For more information on Qudian, please visit Qudian's Investor Relations.