Qudian Inc. (QD) stock is soaring 5.26% in pre-market trading on Monday following the release of its third-quarter 2025 financial results. Despite a significant drop in revenue, the company reported a substantial increase in net income, impressing investors.
The consumer-oriented technology company's total revenues for Q3 2025 were RMB8.5 million (US$1.2 million), an 84.5% decrease from RMB55.0 million in the same period last year. However, net income attributable to Qudian's shareholders surged to RMB409.9 million (US$57.6 million), compared to RMB131.9 million in Q3 2024. This translates to a net income per diluted ADS of RMB2.47 (US$0.35).
The company's improved profitability, despite lower revenue, can be attributed to a significant increase in interest and investment income, which rose by 84.5% to RMB421.3 million (US$59.2 million). Additionally, Qudian reported a 144.4% increase in gain on derivative instruments to RMB73.9 million (US$10.4 million). These financial results demonstrate Qudian's ability to generate substantial profits even as it winds down its last-mile delivery business, signaling effective cash management and investment strategies.
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