FinVolution Group management highlighted what it described as a “resilient” full-year performance in 2025 despite regulatory uncertainty in China and a challenging macro environment, while pointing to accelerating contributions from overseas operations and an expanded shareholder return program.
On the call, executives said full-year group revenue reached RMB 13.6 billion, up 3.8% year-over-year, while net profit rose to RMB 2.5 billion, an increase of 6.6%. Full-year transaction volume totaled RMB 200 billion, down 2.9%, which management attributed to regulatory uncertainty in China during the second half of the year.
International growth and a larger revenue mix
CEO Tiezheng Li described FinVolution’s approach as “local excellence, global outlook,” and said the company has evolved from operating each overseas market as a standalone effort to building platform-level capabilities that can be reused across countries. He characterized this as a “LEGO+ strategy,” citing the transfer of regulatory experience, product development, risk analytics, centralized funding, and ecosystem partnerships across borders.
Within Southeast Asia, management said both Indonesia and the Philippines achieved full-year profitability in 2025 and together contributed over $15 million in combined operating profit. The company also said it doubled its unique user base across Indonesia and the Philippines to 5.9 million for the full year.
CFO Jiayuan Xu said international transaction volume reached RMB 4.1 billion (or $0.6 billion) in the fourth quarter, up 14% year-over-year, while unique borrowers increased to 3.8 million, up 133.8% year-over-year. He pointed to regulatory clarity in Indonesia following an announcement in July to maintain an interest rate cap, and noted that a new interest rate cap is scheduled to take effect in the Philippines on April 10, 2026, which the company believes will favor players with strong technology and operational capabilities.
Australia entry and the Fundo acquisition
FinVolution said it entered Australia during the fourth quarter through the acquisition of a lending platform, Fundo. Management described Australia as a “developed market” with a mature regulatory framework and said it views the market as under-digitalized with near-prime customers who have unmet demand for digital lending.
In response to analyst questions, management outlined its rationale for moving into developed markets as a way to diversify geographically and hedge volatility in any single market, while applying experience gained navigating China’s increasingly rigorous regulatory environment and scaling profitable businesses overseas.
Regarding Australia specifically, management cited the size of the unsecured personal loan market—described on the call as around AUD 33 billion—and said competition appears “moderate” with no dominant digital player. They also said the company views itself as having a first-mover advantage as “one of the first Chinese players” to enter the market.
Management said Fundo holds an ACL license, which it characterized as time-consuming and costly to obtain independently, and added that Fundo was already “self-sustaining and profitable” with strong risk controls. Looking ahead, executives said their 2026 focus for Australia includes sharpening risk models, refining operations, and optimizing funding costs to improve unit economics, with the goal of accelerating Fundo’s growth in origination, volume, and revenue.
China business: tighter underwriting and risk containment efforts
In China, management said new regulations reshaped the operating landscape in the fourth quarter, prompting the company to prioritize risk management over loan origination. As a result, it tightened underwriting and enhanced risk controls, leading to fourth-quarter loan origination volume of CNY 38.7 billion and loan balance of CNY 68.3 billion.
Li said “vintage loss” for new loan origination stabilized around 3.0%, while risk in the outstanding loan portfolio trended up as expected, with CM2 rising from 0.61% to 0.77% in the quarter. Xu added that early risk indicators began showing signs of peaking in mid-December, with day-one delinquency and the 30-day collection rate improving afterward. He also said the company added new funding partners and reduced funding costs by 20 basis points quarter-over-quarter to 3.4%, while the take rate held steady at around 3%. China revenue in the fourth quarter was RMB 2.1 billion, he said.
During Q&A, management provided additional detail on risk trends. They said early risk indicators increased from 5% in the third quarter to 5.5% in the fourth quarter, and the 30-day loan collection rate declined from 88% to 86%. They also stated that day-one delinquency trended down in January and February 2026 for two consecutive months, with day-one delinquency “around 5%,” while emphasizing continued vigilance until recovery is clearer.
Shareholder returns and 2026 outlook
Management emphasized shareholder returns as a key theme. The company said it repurchased $107 million of shares in 2025, calling it a record since its IPO, and announced approximately $74.5 million in dividends for 2025. Executives said the total payout amounted to a “50% payout” level. Xu added that the dividend per share increased 10.5% to $0.306 for the year.
In response to a question about sustaining buybacks, management said it executed $40.7 million of buybacks in the first quarter (described as its largest quarterly buyback excluding a prior quarter tied to a convertible issuance). They also said that, so far in the first quarter of 2026, the company executed another $38 million in buybacks, and that it had $74 million remaining under its $115 million authorization as of year-end 2025. Management also noted that the chairman and senior management team purchased $1.9 million worth of ADSs using personal funds.
For 2026, Xu said FinVolution expects full-year group revenue to decline 5% to 15% year-over-year due to recent regulatory changes in China. Management also said it expects international revenue to account for roughly 30% of full-year total revenue in 2026, and that profitability should scale from the $15 million operating profit delivered by Indonesia and the Philippines in 2025.
In discussing overseas customer acquisition strategies, management outlined a three-part approach:
- Paid traffic acquisition through channels such as Google, Facebook, Instagram, and TikTok.
- Embedding into high-frequency spending scenarios, including offline installment lending in Indonesia enabled by its MFI license.
- Building user loyalty through brand and experience to improve lifetime value.
Executives also cited specific initiatives, including Indonesia’s offline consumption finance presence in mobile phone stores and other small-ticket items, and Philippines partnerships that embed buy-now, pay-later at online checkout and other daily-use scenarios. Xu said embedded e-commerce partnerships contributed 43% of the Philippines’ volume in the quarter, compared with 13% a year ago, and that total transaction volume in the Philippines reached $0.2 billion, up 64% year-over-year.
Separately, Li noted an emergency humanitarian response following severe flooding in Indonesia in late November 2025, including emergency kitchens and sanitation facilities benefiting approximately 1,800 residents across six locations in Sumatra. He also said the company’s S&P CSA score increased for seven consecutive years.
FinVolution, also known as PPDAI Group (NYSE:FINV) in its public listing history, closed the call by reiterating its intent to manage its China business “with patience,” continue investing in international growth, and focus on technology and partnerships to support long-term development.
About PPDAI Group (NYSE:FINV)
PPDAI Group Inc operates an online consumer finance marketplace that connects individual and institutional investors with personal and small-business borrowers. Through its digital platform, the company facilitates unsecured consumer loans, auto refinancing loans and small-business financing by leveraging proprietary credit assessment tools and big data analytics. Investors gain exposure to a diversified portfolio of retail credit assets, while borrowers benefit from streamlined application processes and competitive financing rates.
At the core of PPDAI’s offering is a multi-layered risk management framework that combines automated credit scoring, manual underwriting oversight and third-party data verification.
