FinVolution Group (NYSE: FINV) reported first-quarter net profit fell 43 percent as a contraction in its domestic Chinese business overshadowed strong growth in its overseas markets.
"In the first quarter, we delivered continued growth in our overseas business and a resilient performance in the Chinese Mainland segment against an evolving regulatory backdrop, demonstrating the strength of our two-engine model," Tiezheng Li, Vice Chairman and Chief Executive Officer of FinVolution, said.
Net profit for the three months ended March 31 was RMB 421.1 million ($61.0 million), down from RMB 737.6 million in the same period of 2025. Total net revenue declined to RMB 3.21 billion from RMB 3.48 billion. The company’s American depositary shares showed little reaction in pre-market trading.
The results highlight the fintech platform’s ongoing pivot to international markets as its home market slows. Overseas markets now contribute 29.6 percent of total revenue, up from a smaller base a year ago, a shift the company is formally recognizing by reporting overseas business as a separate segment for the first time.
FinVolution’s core business in the Chinese mainland saw a significant slowdown. Transaction volume fell 21.6 percent year-over-year to RMB 38.5 billion. The outstanding loan balance in China also decreased by 9.8 percent to RMB 65.1 billion. The number of unique borrowers in the quarter declined by 22.7 percent to 1.7 million, reflecting a more cautious approach to customer acquisition and risk management in the region.
In contrast, the company’s international operations in Indonesia, the Philippines, and Australia showed robust growth. Transaction volume in these markets surged 36.7 percent to RMB 4.1 billion, with the outstanding loan balance growing 36.8 percent to RMB 2.6 billion. The number of unique overseas borrowers more than doubled, increasing 155.4 percent to 4.5 million, which drove a 34.5 percent increase in overseas revenue to RMB 948.9 million.
For the full year, FinVolution reaffirmed its revenue guidance to be in the range of RMB 11.5 billion to RMB 12.9 billion. The company also continued its capital return program, repurchasing $39.4 million of its shares in the first quarter.
The quarter’s performance tests the company's diversification strategy, with its international segment now critical to offsetting domestic headwinds. Investors will be closely watching the second-quarter results to see if overseas growth can continue to accelerate and eventually compensate for the slowdown in the larger, more mature China market.
This article is for informational purposes only and does not constitute investment advice.
