Q2 FY2026
Filed Aug 25, 2026Noah reported Q2 2026 net revenues of RMB619.9 million (US$91.4 million), down 1.5% year-over-year, while net income attributable to Noah shareholders rose 30.0% to RMB232.2 million (US$34.2 million).
Profitability improved substantially through lower operating costs and expenses, lower credit-loss provisions, performance-based income and investment gains, but revenue declined and several international and insurance businesses recorded material revenue declines.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | RMB619.9 million (US$91.4 million) | (0.9)% | (1.5)% |
| Total revenuesGAAP | RMB625.880 million | – | (1.4)% |
| One-time commissionsGAAP | RMB86.680 million | – | (43.9)% |
| Recurring service feesGAAP | RMB155.902 million | – | (3.8)% |
| Performance-based incomeGAAP | RMB96.578 million | – | 595.2% |
| Other service feesGAAP | RMB35.716 million | – | (26.7)% |
| Total revenues from funds Gopher/Olive managesGAAP | RMB251.004 million | – | (1.8)% |
| VAT related surchargesGAAP | (RMB5.981 million) | – | 16.7% |
| Operating costs and expensesGAAP | RMB404.1 million (US$59.5 million) | – | (13.7)% |
| Compensation and benefitsGAAP | RMB260.1 million (US$38.3 million) | – | (13.1)% |
| Selling expensesGAAP | RMB56.1 million (US$8.3 million) | – | (10.0)% |
| General and administrative expensesGAAP | RMB74.8 million (US$11.0 million) | – | 5.1% |
| Provision for credit lossesGAAP | RMB7.7 million (US$1.1 million) | – | (81.4)% |
| Other operating expensesGAAP | RMB22.5 million (US$3.3 million) | – | 162.7% |
| Income gained from government subsidiesGAAP | RMB17.1 million (US$2.5 million) | – | 21.6% |
| Income from operationsGAAP | RMB215.8 million (US$31.8 million) | – | 34.0% |
| Operating marginGAAP | 34.8% | – | – |
| Interest incomeGAAP | RMB30.4 million (US$4.5 million) | – | (9.1)% |
| Investment incomeGAAP | RMB41.8 million (US$6.2 million) | – | – |
| Income tax expenseGAAP | RMB89.9 million (US$13.3 million) | – | 41.2% |
| Net incomeGAAP | RMB236.9 million (US$34.9 million) | – | 32.7% |
| Net marginGAAP | 38.2% | – | – |
| Net income attributable to Noah shareholdersGAAP | RMB232.2 million (US$34.2 million) | – | 30.0% |
| Net margin attributable to Noah shareholdersGAAP | 37.5% | – | – |
| Net income attributable to Noah shareholders per basic ADSGAAP | RMB3.40 (US$0.50) | – | 32.8% |
| Net income attributable to Noah shareholders per diluted ADSGAAP | RMB3.37 (US$0.50) | – | 32.7% |
| Non-GAAP net income attributable to Noah shareholdersnon-GAAP | RMB238.0 million (US$35.1 million) | – | 25.9% |
| Non-GAAP net margin attributable to Noah shareholdersnon-GAAP | 38.4% | – | – |
| Non-GAAP net income attributable to Noah shareholders per diluted ADSnon-GAAP | RMB3.46 (US$0.51) | – | 28.6% |
| Total transaction valueother | RMB17.167 billion | – | 1.1% |
| Number of registered clientsother | 469,987 | 0.2% | 1.2% |
| Number of active clientsother | 10,296 | (4.2)% | 12.4% |
| Total assets under managementother | RMB140.9 billion (US$20.8 billion) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Mainland China public securitiesIncrease in performance-based income generated from the distribution of Mainland China private secondary products. | RMB206.5 million (US$30.4 million) | – | 56.7% |
| Mainland China asset managementDecrease in recurring service fees from private equity products, partially offset by an increase in performance-based income. | RMB165.4 million (US$24.4 million) | – | (6.6)% |
| Mainland China insuranceDecrease in distribution of insurance products. | RMB2.0 million (US$0.3 million) | – | (71.7)% |
| International wealth managementDecrease in one-time commissions from the distribution of International products. | RMB88.9 million (US$13.1 million) | – | (31.3)% |
| International asset managementNot specified. | RMB106.4 million (US$15.7 million) | – | (1.8)% |
| International insurance and comprehensive servicesDecrease in one-time commissions from insurance products. | RMB40.7 million (US$6.0 million) | – | (31.1)% |
| HeadquartersNot specified. | RMB10.0 million (US$1.5 million) | – | (40.0)% |
Capital returns
- Net cash outflow from the Company’s financing activities during the second quarter of 2026 was RMB14.7 million (US$2.2 million), compared with RMB71.5 million in the corresponding period in 2025, primarily due to a decrease in share repurchases.
- Dividend payable was RMB'000 612,000 as of June 30, 2026.
What drove it
- Performance-based income was RMB96.578 million, up 595.2%, led by mainland China private secondary products.
- Total operating costs and expenses decreased 13.7%, including an 81.4% decrease in provision for credit losses.
- Investment income was RMB41.8 million, compared with an investment loss of RMB13.9 million, due to gains resulting from fair value changes in certain equity securities.
- International investment-product transaction value was RMB8.7 billion (US$1.3 billion), compared with RMB8.3 billion in the second quarter of 2025 and RMB8.0 billion in the first quarter of 2026.
- Actively managed international AUM was RMB43.8 billion (US$6.5 billion), compared with RMB42.6 billion as of March 31, 2026 and RMB41.4 billion as of June 30, 2025.
Concerns
- One-time commissions declined 43.9% to RMB86.680 million and recurring service fees declined 3.8% to RMB155.902 million.
- International wealth management revenue declined 31.3% and the segment reported a loss from operations of RMB3.3 million (US$0.5 million), compared with income from operations of RMB27.8 million in the corresponding period in 2025.
- International insurance and comprehensive services revenue declined 31.1%, while mainland China insurance revenue declined 71.7%.
- Total active clients decreased 4.2% from the first quarter of 2026, and aggregate value of investment products distributed declined from RMB23.3 billion in the first quarter of 2026.
- Income tax expense increased 41.2% to RMB89.9 million (US$13.3 million).
What to watch
- Whether performance-based income from mainland China private secondary products continues to offset lower one-time commissions and recurring service fees.
- Transaction value in mainland China mutual fund and private secondary products, which management cited as the reason for the quarter-over-quarter decline in aggregate distribution value.
- The international wealth-management segment’s revenue, relationship-manager count and return to operating profitability.
- AUM allocation and redemptions in mainland China private equity products, where management remains focused on exits from existing vintages.
- Operating cash flow, which moved to a net cash outflow of RMB15.0 million (US$2.2 million).
Balance sheet and cash flow
- Cash and cash equivalents were RMB4,322.7 million (US$637.1 million) as of June 30, 2026, compared with RMB4,280.7 million as of March 31, 2026 and RMB3,821.8 million as of June 30, 2025.
- Short-term investments were RMB'000 711,704 as of June 30, 2026.
- Long-term investments, net were RMB'000 1,051,622 as of June 30, 2026.
- Total Assets were RMB'000 11,636,904 as of June 30, 2026.
- Total Liabilities were RMB'000 2,147,941 as of June 30, 2026.
- Equity was RMB'000 9,488,963 as of June 30, 2026.
- Net cash outflow from operating activities was RMB15.0 million (US$2.2 million), compared with a net cash inflow of RMB27.6 million in the corresponding period in 2025.
- Net cash inflow from investing activities was RMB108.8 million (US$16.0 million), compared with a net cash outflow of RMB171.7 million in the corresponding period in 2025. Redemptions of held-to-maturity investments were the primary reason cited.
Analysis
Noah delivered a profit-led second quarter. Net revenues were RMB619.9 million (US$91.4 million), down 1.5% year-over-year and 0.9% quarter-over-quarter, but income from operations increased 34.0% to RMB215.8 million (US$31.8 million). Operating margin expanded to 34.8% from 25.6%, and net income attributable to Noah shareholders increased 30.0% to RMB232.2 million (US$34.2 million). Non-GAAP net income attributable to Noah shareholders increased 25.9% to RMB238.0 million (US$35.1 million).
The revenue mix shifted sharply toward performance-based income. Performance-based income rose 595.2% to RMB96.578 million, while one-time commissions fell 43.9% to RMB86.680 million, recurring service fees fell 3.8% to RMB155.902 million, and other service fees fell 26.7% to RMB35.716 million. Management attributed the company-wide revenue decline to lower insurance-product commissions and lower recurring service fees, partly offset by performance-based income from mainland China private secondary products.
Mainland China public securities was the principal growth contributor, with revenue up 56.7% to RMB206.5 million (US$30.4 million) and income from operations up 65.5% to RMB178.6 million (US$26.3 million). This contrasted with declines across mainland China asset management, insurance, international wealth management, international asset management and international insurance and comprehensive services. International wealth management revenue fell 31.3% to RMB88.9 million (US$13.1 million) and moved to a RMB3.3 million (US$0.5 million) operating loss. International insurance and comprehensive services revenue fell 31.1% to RMB40.7 million (US$6.0 million).
Cost control was central to the earnings improvement. Operating costs and expenses declined 13.7% to RMB404.1 million (US$59.5 million), aided by lower compensation and benefits and an 81.4% decline in provision for credit losses. Investment income was RMB41.8 million (US$6.2 million), compared with an investment loss of RMB13.9 million a year earlier, due to fair value gains in certain equity securities. Income tax expense increased 41.2% to RMB89.9 million (US$13.3 million), partially offsetting the operating and investment-income gains.
Operating activity was mixed. Aggregate investment-product distribution value was RMB17.1 billion (US$2.5 billion), compared with RMB17.0 billion a year earlier but RMB23.3 billion in the first quarter of 2026. Total AUM was RMB140.9 billion (US$20.8 billion), compared with RMB140.2 billion at March 31, 2026, while cash and cash equivalents were RMB4,322.7 million (US$637.1 million). Operating activities generated a net cash outflow of RMB15.0 million (US$2.2 million), and financing cash outflow declined to RMB14.7 million (US$2.2 million), primarily due to a decrease in share repurchases. The release provided no forward financial guidance.
Management, verbatim
Our forward-looking global deployment and newly optimized cost structure firmly position Noah to navigate these dynamics, ensuring sustainable and high-quality growth for the long term.
Ms. Jingbo Wang, co-founder and chairlady of Noah
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax-rate and other financial guidance were not provided.
- Previous outlook was not provided.
- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Debt was not reported.
- A quantified share-repurchase amount was not reported.
- Quarter-over-quarter comparisons for segment revenue, operating income, net income and EPS were not reported.
- Prior-year values for several expense line items were not stated in the narrative in the same units used for the current-period figures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.