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XIAMEN, China – Qudian Inc. (NYSE: QD), a Chinese consumer-oriented tech firm, today released its unaudited financial results for the quarter ending September 30, 2025, revealing a significant decline in revenue offset by a surge in net income.
Q3 2025: By the Numbers
- Revenue: Total revenue plummeted to RMB8.5 million ($1.2 million), a sharp contrast to the RMB55.0 million reported during the same period last year. This 84.5% decrease is primarily attributed to the ongoing phase-out of Qudian’s last-mile delivery business.
- Net Income: Net income attributable to Qudian’s shareholders soared to RMB409.9 million ($57.6 million), compared to RMB131.9 million in Q3 2024. Diluted earnings per ADS (American Depositary Share) stood at RMB2.47 ($0.35). This jump in profitability despite the revenue drop warrants closer inspection.
The company acknowledged the business transition, emphasizing the winding down of its last-mile delivery operations while focusing on maintaining a strong financial position through efficient cash management. The key question moving forward: Can Qudian successfully pivot to new ventures to generate long-term shareholder value?
Delving into the Financial Details:
The significant drop in revenue is a direct consequence of Qudian’s strategic retreat from the intensely competitive last-mile delivery sector. While this move has negatively impacted the top line, it appears to be a calculated step toward restructuring the company’s business model.
Operating costs and expenses saw a modest 2.3% decrease year-over-year, totaling RMB119.1 million ($16.7 million). This suggests the company is making progress in streamlining operations. However, a closer look reveals a more nuanced picture:
- Cost of Revenue: Mirrored the revenue decline, dropping 86.6% due to the reduced last-mile delivery service costs.
- General & Administrative Expenses: Increased by 41.1%, driven by depreciation and property tax expenses related to the completion of Qudian’s new headquarters. This indicates a strategic investment in infrastructure which may yield long-term benefits, but creates a short term impact on expenses.
- R&D Expenses: Declined by 23.8% as a result of workforce reductions, potentially raising concerns about Qudian’s commitment to innovation amidst the current restructuring. It’s crucial to understand if these cuts are targeted and strategic, or if they represent a broader pullback from future technological development.
The company reported an operating loss of RMB110.6 million ($15.5 million) compared to RMB67.0 million last year. The increase in loss can be largely attributed to the business wind-down and increased expenses related to the new headquarters.
The impressive surge in net income is primarily fueled by a substantial increase in investment income, net, which rose 84.5% to RMB421.3 million ($59.2 million). A gain on derivative instruments further contributed to the bottom line jumping 144.4% to RMB73.9 million ($10.4 million). While these gains are impressive, they highlight Qudian’s increasing reliance on investment activities rather than core operational performance.
Liquidity and Share Repurchase Program:
Qudian maintains a healthy cash position with RMB7,010.6 million ($948.8 million) in cash and cash equivalents and RMB1,518.7 million ($213.3 million) in restricted cash as of September 30, 2025. A robust cash reserve provides the company with the financial flexibility to navigate its current transition and explore new business opportunities.
The company’s share repurchase program, initiated in March 2024 with an authorized budget of $300 million, has been actively pursued. As of November 18, 2025, Qudian has repurchased 26.3 million ADSs for a total of approximately $71.1 million, averaging $2.7 per ADS. Cumulatively, the company has bought back 180.6 million ADSs for around $765.3 million, at an average price of $4.2 per ADS. While share repurchases can boost earnings per share, investors will be watching closely to see how effectively Qudian deploys its capital moving forward.
Looking Ahead:
Qudian’s Q3 2025 results paint a complex picture. While profitability has increased due to investment gains, the core business revenue is in sharp decline due to the cessation of last-mile delivery. The company’s success hinges on its ability to identify and capitalize on new business opportunities and strategically allocate its substantial cash reserves in a way that generates sustainable growth.
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QUDIAN INC. |
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Unaudited Condensed Consolidated Statements of Operations |
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Three months ended September 30, |
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(In thousands except for number |
2024 |
2025 |
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of shares and per-share data) |
(Unaudited) |
(Unaudited) |
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RMB |
RMB |
US$ |
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Revenues: |
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Sales income and others |
55,015 |
8,523 |
1,197 |
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Total revenues |
55,015 |
8,523 |
1,197 |
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Operating cost and expenses: |
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|
Cost of revenues |
(48,913) |
(6,549) |
(920) |
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|
Sales and marketing |
(2,123) |
(5,689) |
(799) |
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|
General and administrative |
(58,580) |
(82,672) |
(11,613) |
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|
Research and development |
(14,576) |
(11,102) |
(1,559) |
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|
Reversal of/(Provision for) expected credit losses on |
2,798 |
(180) |
(25) |
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|
Impairment loss from other assets |
(604) |
(12,949) |
(1,819) |
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|
Total operating cost and expenses |
(121,998) |
(119,141) |
(16,735) |
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|
Loss from operations |
(66,983) |
(110,618) |
(15,538) |
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|
Interest and investment income, net |
228,420 |
421,344 |
59,186 |
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|
Loss from equity method investments |
(1,390) |
(102) |
(14) |
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Gain on derivative instruments |
30,246 |
73,921 |
10,384 |
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Foreign exchange loss, net |
(7,898) |
(5,216) |
(733) |
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Other income |
2,030 |
19,131 |
2,687 |
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Other expenses |
(13,809) |
(228) |
(32) |
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Net income before income taxes |
170,616 |
398,232 |
55,940 |
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Income tax expenses |
(38,702) |
11,671 |
1,639 |
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Net income |
131,914 |
409,903 |
57,579 |
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Net income attributable to Qudian Inc.’s |
131,914 |
409,903 |
57,579 |
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