360 DigiTech, Inc. (QFIN): BCG Matrix [Dec-2025 Updated]

You're looking at 360 DigiTech, Inc. (QFIN) at a real inflection point, moving fast from being a traditional lender to a pure Credit-Tech platform, and that shift completely redefines its portfolio. Mapping this out with the Boston Consulting Group Matrix shows clear winners, like the Capital-Light Loan Facilitation model, sitting alongside the massive 275.8 million established consumer base that keeps the lights on as a Cash Cow. Still, we can't ignore the legacy Dogs or the big question mark hanging over 2026's projected -12.4% revenue drop, making this analysis crucial for understanding where 360 DigiTech, Inc. (QFIN) is placing its bets next. Find out below which segments are Stars and which are ripe for divestment.

Background of 360 DigiTech, Inc. (QFIN)

You're looking at 360 DigiTech, Inc. (QFIN), which you should know is now officially called Qifu Technology, Inc. This company operates as a leading Credit-Tech platform right there in China. Essentially, 360 DigiTech, Inc. (QFIN) builds the technology that connects consumers and small-to-medium enterprises (SMEs) needing loans with the financial institutions ready to lend the money. It's a platform-based model, so they make money primarily by earning fees when a loan they facilitate is successfully originated.

The core of their value proposition rests on technology, specifically their proprietary credit assessment tools. They use big data analytics, AI, and machine learning to evaluate creditworthiness in real-time, which helps them serve a specific market segment. Honestly, 360 DigiTech, Inc. (QFIN) focuses on the underserved borrowers-folks who typically don't qualify for credit from traditional banks. For these customers, the affordable line of credit they offer often acts as a supplement to existing credit card debt.

The company has been evolving its structure for a while now. They were established back in July 2011, rebranded to 360 Finance in 2016, and then listed on the NASDAQ in 2018, raising about $51 million in their Initial Public Offering. A key strategic shift for 360 DigiTech, Inc. (QFIN) has been pivoting toward a capital-light operating model since 2018. This means they've been intentionally moving away from capital-intensive services, like taking on credit risk themselves, toward fee-based technology solutions.

To give you a sense of their past growth trajectory, back in the second quarter of 2021, their total net revenues hit RMB4,627.3 million (which was about US$726.8 million), representing a 34.8% jump year-over-year. That growth was partly fueled by the digital lending boom. Furthermore, their progress in the capital-light transition is concrete: the proportion of new loans facilitated under this model grew from 23% in the first quarter of 2020 to 58% by the third quarter of 2022. Also, 360 DigiTech, Inc. (QFIN) provides standardized risk management services, essentially offering their technology stack as Software as a Service (SaaS) modules to institutional partners.

Finance: draft a quick comparison of 2021 revenue growth against the latest available 2025 guidance by next Tuesday.

360 DigiTech, Inc. (QFIN) - BCG Matrix: Stars

You're looking at the engine room of 360 DigiTech, Inc. (QFIN)'s current valuation, the segment that demands investment to secure future Cash Cow status. These are the areas exhibiting high market share momentum within rapidly expanding segments. The core business, Capital-Light Loan Facilitation, is exactly where this growth is concentrated. This model, which emphasizes technology over balance sheet risk, has seen significant adoption; for instance, the proportion of new loans facilitated under this model reached 58% by Q3 2022, demonstrating a clear, successful pivot from capital-heavy services, which is crucial for sustained high growth in the current regulatory climate.

The technological backbone supporting this Star status is the proprietary AI and Big Data Risk Engine. This platform enables the real-time credit assessment necessary to scale efficiently while managing risk in a high-growth environment. This technological moat is what allows 360 DigiTech, Inc. (QFIN) to maintain leadership in a competitive space. The market consensus reflects this potential, with an average analyst recommendation of BUY based on coverage from 19 analysts.

The numbers for 2025 clearly position these units as Stars. The company is forecasted to achieve a strong +17.4% revenue growth in 2025, up from 2024's estimated revenue of $17.2B to an average forecast of $20.2B. Furthermore, earnings per share are projected to increase from $5.71 to an estimated $6.39 in the coming year, representing an expected growth of 11.91%. This combination of high top-line growth and improving profitability underpins the Star classification.

Here's a quick look at the forward-looking metrics supporting this high-growth quadrant:

The Underserved Market Expansion is the fuel for this high growth rate. 360 DigiTech, Inc. (QFIN) is aggressively pushing into lower-tier cities and rural areas, which represent a significant, high-growth segment hungry for digital lending solutions. This strategic focus on less penetrated markets is what keeps the market growth rate high, preventing the business unit from prematurely maturing into a Cash Cow. The company's specialization in providing unsecured consumer loans and working capital financing for micro and small enterprises directly targets this expanding base.

You should note the following characteristics defining these Star units:

• High market share in a growing market segment.
• Requires significant cash for promotion and placement.
• Likely to become Cash Cows if market growth slows.
• Monopolies or first-to-market advantages are common.

Finance: draft 13-week cash view by Friday to ensure adequate funding for these growth initiatives.

360 DigiTech, Inc. (QFIN) - BCG Matrix: Cash Cows

Cash cows are in a position of high market share in a mature market. If competitive advantage has been achieved, cash cows have high profit margins and generate a lot of cash flow. Because of the low growth, promotion and placement investments are low. Investments into supporting infrastructure can improve efficiency and increase cash flow more. Cash cows are the products that businesses strive for. A Cash Cow is a market leader that generates more cash than it consumes. Cash Cows are business units or products with a high market share but low growth prospects. Cash Cows provide the cash required to turn a Question Mark into a market leader, cover the administrative costs of the company, fund research and development, service the corporate debt, and pay dividends to shareholders. Companies are advised to invest in cash cows to maintain the current level of productivity or to 'milk' the gains passively.

Established Consumer Base: A massive network of 275.8 million consumers as of June 30, 2025, provides stable transaction volume. This figure represents the cumulative number of consumers connected with potential credit needs.

Financial Institution Network: Partnerships with 165 financial institutional partners as of June 30, 2025, provide consistent funding and fee income.

Strong Profitability and Dividends: 360 DigiTech, Inc. demonstrates strong cash generation, evidenced by its dividend policy. The latest recommended dividend payment was $0.76 per share, with an ex-dividend date of September 08, 2025. The corresponding payout ratio, representing the percentage of earnings distributed, was 20.16% based on the latest available data.

You can see the recent dividend history below, which shows a consistent commitment to returning capital:

Core Loan Facilitation Fees: This represents stable, high-volume fee income from connecting borrowers and lenders. In the second quarter of 2025, total loan facilitation and origination volume on the platform increased by approximately 16% year-over-year to RMB 84.6 billion. The take rate for the quarter reached 5.4%.

The operational metrics supporting this cash flow include:

• Cumulative users with approved credit lines stood at 60.2 million as of June 30, 2025.
• Cumulative borrowers with successful drawdown, including repeat borrowers, reached 36.8 million as of June 30, 2025.
• The repeat borrower contribution of loans originated by financial institutions was 93.8% for Q2 2025.

The company continues to focus on technology to maintain this position, such as upgrading its Focus PRO credit tech solution into a next-generation super AI credit agent. Finance: draft 13-week cash view by Friday.

360 DigiTech, Inc. (QFIN) - BCG Matrix: Dogs

The Dogs quadrant for 360 DigiTech, Inc. represents business units characterized by low market share in mature or declining sub-segments, which are being actively minimized through strategic pivot.

Legacy Capital-Heavy Loan Book: This segment involves 360 DigiTech, Inc. bearing the credit risk, a model the company has been strategically moving away from. As of the third quarter of 2022, the proportion of new loans originated or facilitated under the capital-light model reached 58%.

Services with Regulatory Headwinds: Products facing tightening Chinese fintech regulations are candidates for the Dog category. A key regulatory pressure point involved interest rate caps; the average pricing on the loan portfolio declined by 200 basis points in the fourth quarter of 2021, with average interest rates on the 360 DigiTech platform dropping below 24% by year-end 2021.

The strategic shift away from capital-heavy operations is quantified by the following historical mix change:

Highly Saturated Consumer Segments: These are mature sub-segments of the prime borrower market where growth is inherently low and competition is intense, forcing a focus on higher-quality borrowers to maintain asset quality. The company noted efforts to introduce more products targeting high-quality B2C borrowers in 2022.

Non-Core Collection Services: Mature services related to post-lending management are typically low-margin endeavors that consume management focus without delivering significant growth or cash flow. The overall company reported a Gross Profit of 17B CNY and an Operating Income of 7,701m CNY, highlighting where the focus must remain, away from low-return support functions.

The company's overall revenue forecast for 2025 was projected around 20.2B CNY, emphasizing that resources are being channeled toward segments expected to contribute to this growth, rather than those in the Dog quadrant.

• Dogs are units where expensive turn-around plans are generally avoided.
• These units frequently break even, neither earning nor consuming much cash.
• They are prime candidates for divestiture to free up tied-up capital.

360 DigiTech, Inc. (QFIN) - BCG Matrix: Question Marks

You're looking at the areas of 360 DigiTech, Inc. (QFIN) that are burning cash now but hold the promise of future dominance. These are the Question Marks-high market growth, but QFIN hasn't secured a leading position yet. They require heavy investment to gain share quickly, or they risk becoming Dogs.

Working Capital Financing for SMEs

The push into Small and Medium Enterprises (SMEs) financing represents a classic Question Mark. You know the market is huge; globally, SMEs account for roughly 90% of all businesses and contribute about 50% to GDP. 360 DigiTech, Inc. is bullish on this segment, believing around 50% of the demand remains unmet in China, providing ample room for growth. Still, conventional banks maintain a strong foothold here. The company has been building share through various acquisition channels. For instance, in Q4 2020, the offline customer reach channel accounted for about 15% of new customer transactions, showing an early effort to build a non-purely-online presence. This segment demands capital for market penetration before it can generate significant, stable returns.

New Technology-as-a-Service (TaaS) Offerings

The evolution of 360 DigiTech, Inc.'s platform services into external technology solutions-a form of Technology-as-a-Service (TaaS)-is another area fitting this quadrant. While the core business remains strong, this new revenue stream is nascent. To give you a sense of scale, in Q4 2024, platform loan volume rose sequentially by 9% to reach RMB 89.9 billion. Contrast that with the revenue from the capital-heavy, credit-driven service, which was RMB 2.89 billion in the same quarter. The growth in platform volume suggests high market interest in the underlying technology, but monetizing this into a dominant, high-margin revenue stream outside of direct loan facilitation is the current challenge requiring investment.

International Expansion Initiatives

Any dedicated, small-scale ventures by 360 DigiTech, Inc. outside of mainland China would fall squarely here. These represent high risk due to unfamiliar regulatory environments and high potential growth if a new market is successfully penetrated. However, based on the latest disclosures, specific, granular financial metrics for new, small-scale international business units as of 2025 are not broken out separately to quantify their market share or cash consumption. The company's primary focus remains on penetrating the domestic Credit-Tech Industry and expanding its user base within China, as evidenced by plans announced in late 2022 to use proceeds from a Global Offering for R&D and domestic penetration.

Post-2025 Revenue Outlook

The immediate future trajectory of 360 DigiTech, Inc.'s overall business performance is a significant question mark, as reflected in analyst consensus forecasts. The current reality, as of September 30, 2025, shows a trailing twelve-month revenue of $2.3B (or 2,296,924 in thousands USD). Yet, the forward-looking estimates suggest a sharp deceleration, which demands immediate strategic attention regarding resource allocation to high-growth areas.

Here's the quick math on the forecasted revenue shift:

The projected average revenue for 2026 is 17.7B, down from the 2025 average forecast of 20.2B, representing a year-over-year drop of -12.4%. This expected contraction in top-line growth forces a critical decision: which current Question Marks deserve the heavy investment needed to quickly become Stars, and which should be divested before they consume more cash and become Dogs in a slowing environment?

The current financial positioning requires you to assess the following:

• Which new offerings have the highest probability of market share capture?
• What is the required investment to achieve Star status in 18 months?
• What is the expected cash burn rate for the SME financing build-out?
• What is the current market share in the SME segment versus key competitors?

Finance: draft 13-week cash view by Friday.