FinVolution's FY25 revenue falls 39% amid regulatory and credit challenges, but international growth remains strong.

FinVolution reported a 39% drop in operating income for FY25, with revenue declining to CNY3 billion due to regulatory pressures and credit challenges. Despite these headwinds, the company's international expansion is robust, contributing 25% of revenue and generating a $15 million profit during a costly growth phase. Domestic regulations and deteriorating digital credit quality internationally have impacted performance, but tightening regulations are expected to stabilize the situation. The company is viewed as a seasoned player positioned to benefit from consolidation in local fintech markets, prompting an upgrade to a cautious buy rating.