Noah (NOAH) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 25, 2026 astatine 8:51 AM CDT 27 min read

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Tuesday, March 24, 2026 astatine 8 p.m. ET

• Chairman and CEO — Zhe Yin

• Chief Financial Officer — Qing Pan

• Co-Founder and Director — Jingbo Wang

• President — Dorian Chiu

Zhe Yin: [Interpreted] Good time to everyone, and convey you for joining america today. 2026 marks the 21st twelvemonth since Noah was established. In a marketplace situation defined by continuous improvement and restructuring, our strategical absorption has ne'er been clearer. We stay firmly focused connected serving planetary Chinese precocious nett worthy and ultra-high nett worthy clients operating done licensed section entities to supply compliance, semipermanent wealthiness absorption services crossed aggregate jurisdictions. More importantly, we are completing a captious translation evolving from a wealthiness absorption instauration chiefly driven by merchandise income into a broad platform, centered connected plus allocation, planetary structuring and AI systems. In 2025, this translation began to output tangible operating results.

This is not a truly impermanent concern adjustment, but the cardinal reconstruction of our operating model. For Noah 2025 represents an important milestone. Looking astatine our afloat twelvemonth results [indiscernible] prime of our profitability is improving astatine a faster gait than the stabilization of our gross structure. For the afloat year, nett revenues were RMB 2.6 billion, broadly level year-over-year. However, operating nett was RMB 777 million, up 22.5% year-over-year with operating borderline improving to 29.8% and non-GAAP nett income expanding 11.2% year-over-year to RMB 612 million. Excluding the interaction of nonoperating items, adjusted non-GAAP nett income was astir RMB 753 million.

What matters astir astatine this signifier is not the implicit standard of our profitability but the improving underlying structure. This nett maturation was not driven by one-off factors, but by optimized outgo structure, enhanced operating ratio and the ongoing displacement successful gross premix toward investment-related businesses. This reflects however our profitability is shifting from cyclical volatility towards structural stability. This is simply a quantitative change, not simply quantitative growth. From a concern perspective, portion our home and overseas concern segments are moving astatine antithetic paces, they are pulling successful the aforesaid direction. Investment capabilities are becoming the superior maturation engine.

Net revenues from our overseas wealthiness absorption concern were RMB 550 cardinal successful 2025 and down 18.8% year-over-year, chiefly owed to a diminution successful security merchandise organisation revenue. However, overseas AUA grew to USD 9.5 billion, up 8.6% year-over-year. Notably, transaction worth of U.S. dollar-denominated backstage secondary products tripled year-over-year to USD 950 million. The fig of overseas registered clients approached 20,000, up 13.2% year-over-year, of which progressive clients exceeded 6,200, up 12.4% year-over-year. Net revenues from Olive, the overseas plus absorption concern RMB 550 cardinal for the afloat year, up 26.3% year-over-year, chiefly driven by higher absorption fees resulting from AUM growth. Overseas AUM reached USD 6.1 billion, up astir 4% year-over-year, accounting for 30% of full AUM.