Noah Reports Q2 2025 Earnings: Strong Rebound in Profitability Driven by Improved Investor Sentiment and Growing Overseas Momentum

Rhea-AI Summary

Noah Holdings (NYSE: NOAH) reported strong Q2 2025 financial results, with net revenues reaching RMB 630 million (US$87.9 million), up 2.2% year-over-year. The company's non-GAAP net income surged 78.2% year-over-year to RMB 189 million (US$26.4 million).

Key highlights include significant overseas expansion, with international business now representing 47.1% of total net revenues. The company's overseas relationship manager team grew by 34.5% to 152 managers. Total assets under management reached RMB 145.1 billion (US$20.3 billion).

Noah also announced a strategic partnership with Coinbase Asset Management to establish its first stablecoin yield fund, marking its entry into digital asset management. The company outlined three strategic priorities focusing on global expansion, product diversification, and operational efficiency enhancement.

Positive

• Non-GAAP net income increased 78.2% year-over-year to RMB 189 million
• Income from operations grew 20.2% year-over-year to RMB 161 million
• Overseas business now represents 47.1% of total net revenues
• Transaction value increased 17.7% year-over-year to RMB 17.0 billion
• Overseas relationship manager team expanded by 34.5% year-over-year
• Strategic partnership with Coinbase Asset Management for digital asset expansion

Negative

• Modest revenue growth of only 2.2% year-over-year
• Exposure to uncertain global economic environment and market conditions

Insights

Financial Analyst

Noah's Q2 shows robust 78.2% non-GAAP profit growth with successful overseas expansion now representing 47.1% of revenues.

Noah Holdings has delivered a notably strong quarter with non-GAAP net income surging 78.2% year-over-year to RMB 189 million (US$26.4 million), significantly outpacing its modest 2.2% revenue growth. This profitability boost signals effective cost discipline and operational leverage, with income from operations climbing 20.2% year-over-year to RMB 161 million.

The company's strategic pivot toward international expansion is yielding substantial results, with overseas business now generating 47.1% of total net revenues at RMB 297 million. Most impressively, 85% of newly generated revenue in H1 came from overseas products, demonstrating successful market diversification beyond mainland China. This global strategy is backed by tangible growth metrics: a 34.5% year-over-year increase in overseas relationship managers and a 12.5% rise in active overseas clients.

Noah's revenue composition is also improving qualitatively. Distribution of investment products revenue jumped 92.0% year-on-year, while transaction value for RMB-denominated products increased 35.0%. The company's RMB 145.1 billion (US$20.3 billion) in assets under management includes growing USD-denominated assets, reflecting client demand for currency diversification.

The partnership with Coinbase Asset Management to establish a stablecoin yield fund represents a strategic move into digital assets, potentially opening new revenue streams in a growth sector. This initiative, combined with Noah's "Business Partner" cooperation model in mature markets like the US, Canada, and Japan, positions the company to further accelerate its international growth trajectory while maintaining the strong profitability demonstrated this quarter.

SHANGHAI, Aug. 29, 2025 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive advisory services on global investment and asset allocation primarily for global Chinese high-net-worth investors ("HNWIs"), reported unaudited financial results for three months and six months ended June 30, 2025.

Net revenues for the second quarter reached RMB 630 million (US$87.9 million), up 2.2% year-over-year, while non-GAAP net income rose 78.2% year-over-year and 12.0% sequentially to RMB 189 million (US$26.4 million). Income from operations increased by 20.2% year-over-year to RMB161 million (US$22.5 million), reflecting disciplined cost management and operating leverage. For the first half of 2025, Noah generated net revenues of RMB 1.24 billion and non-GAAP net income of RMB 358 million, a 33.9% year-over-year improvement.

Zander Yin, Co-Founder, Director, and CEO of Noah, commented, "We are pleased to report a solid performance that reflects our flexibility and resilience in navigating a challenging period for the wealth management industry. Profitability and revenue from investment products rebounded strongly on the back of our strategic initiatives over the past few quarters to improve operational efficiency and accelerate our overseas expansion. Net revenues from overseas now accounts for nearly 50% of total net revenues, reinforcing the effectiveness of our global expansion strategy. Income from operations and non-GAAP net income surged driven by strong growth in distribution of investment products from our expanding portfolio and an uptick in management fees."

"Today, we are also pleased to announce that we have selected Coinbase Asset Management as a strategic partner, to establish Olive's first stablecoin yield fund. We shall expand our digital asset-related product lines and collaborate with licensed, compliant institutions to capture opportunities in this rapidly growing emerging asset class. This initiative aims to open new growth engines for our clients' global asset allocation strategies, with future expansion opportunities in compliant digital-asset fund management."

Improving Revenue Structure

Noah continued to optimize its revenue mix in the second quarter, with revenue from the distribution of investment products surging 92.0% year-on-year and 30.6% sequentially. One-time commissions and service fees from the distribution of investment products now accounts for more than 30% of one-time commission revenue, a multi-year high. Transaction value for RMB-denominated products increased 35.0% year-over-year and 8.3% sequentially, while USD-denominated transaction value grew 5.2% year-over-year and 3.8% sequentially, lifting total transaction value to RMB 17.0 billion, up 17.7% year-over-year and 5.4% sequentially.

As of June 30, total assets under management stood at RMB 145.1 billion (US$20.3 billion), with USD-denominated assets under management up 7.4% to US$5.8 billion and USD-denominated assets under advisory rising 6.6% to US$9.1 billion, underscoring the success of the Company's product depth and global allocation capabilities.

Overseas Expansion Gaining Momentum

Noah's overseas business drove significant top-line growth, with net revenues from overseas products of RMB 297 million (US$41.4 million) in the second quarter, representing 47.1% of total net revenues. Most notably, 85% of newly generated revenue came from overseas products in the first half of the year, reflecting the momentum its global strategy is gaining. The Company's overseas relationship manager team grew by 34.5% year-over-year to 152, bringing the total registered overseas client base to over 18,900 and the number of overseas active clients increased by 12.5% year-over-year.

Outlook

Looking ahead to the second half of 2025, Noah will focus its efforts on three strategic priorities to sustain growth and strengthen its competitive position:

• Expand its global Chinese HNWI client base by rolling out a "Business Partner" cooperation model in mature markets such as the United States, Canada and Japan. This approach pairs experienced local talent with Noah's global product capabilities, aligns incentives from product development through sales, and leverages cross-selling opportunities to accelerate recruitment and client engagement.
• Broaden its global product offerings across both primary and secondary markets. In the primary market, it will expand ecosystem partnerships to develop customized investment solutions and secure exclusive opportunities. In the secondary market, Noah will draw on its global research platform to select top-tier managers to strengthen its robust asset allocation solutions. At the same time, it will fast-track its digital-asset roadmap—building on the Coinbase stablecoin fund launch—to introduce licensed, compliant digital asset-related vehicles and capture emerging demand for this asset class.
• Further enhance operational efficiency and client service by embedding AI throughout its front-, middle- and back-office functions while pursuing growth. Investments in its global booking-center network and digital platform will streamline client outreach, product integration and cross-border risk controls.

Mr. Yin added, "As we continue to work toward strengthening our position in the market, we recognize that the broader economic environment presents uncertainties, and we remain vigilant in managing these challenges. Our focus remains on executing our strategy to drive long-term, sustainable growth while maintaining prudent oversight of market conditions to deliver steady returns for our shareholders. With streamlined operations, a fortress balance sheet, and deepening overseas presence, I am confident that we can successfully navigate this uncertain global environment."

About Noah Holdings Limited

Noah Holdings Limited (NYSE: NOAH and HKEX: 6686) is a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for global Chinese high-net-worth investors. Noah's American depositary shares, or ADSs, are listed on the New York Stock Exchange under the symbol "NOAH," and its shares are listed on the main board of the Hong Kong Stock Exchange under the stock code "6686." One ADS represents five ordinary shares, par value $0.00005 per share.

In the first half of 2025, Noah distributed RMB33.1 billion (US$4.6 billion) of investment products. Through Gopher Asset Management and Olive Asset Management, Noah had assets under management of RMB145.1 billion (US$20.3 billion) as of June 30, 2025.

Noah's domestic and overseas wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah's network covers major cities in mainland China, as well as Hong Kong (China), New York, Silicon Valley, Singapore, and Los Angeles. The Company's wealth management business had 464,631 registered clients as of June 30, 2025. Through its domestic and overseas asset management business operated by Gopher Asset Management and Olive Asset Management, Noah manages private equity, public securities, real estate, multi-strategies and other investments denominated in RMB and other currencies. The Company also operates other businesses.

For more information, please visit Noah at ir.noahgroup.com. 

 

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SOURCE Noah Holdings Limited

FAQ

What were Noah Holdings (NOAH) Q2 2025 earnings results?

Noah reported net revenues of RMB 630 million (US$87.9 million), up 2.2% year-over-year, and non-GAAP net income of RMB 189 million (US$26.4 million), up 78.2% year-over-year.

How much of Noah's revenue comes from overseas operations in Q2 2025?

Overseas operations generated RMB 297 million (US$41.4 million), representing 47.1% of total net revenues, with 85% of newly generated revenue coming from overseas products in H1 2025.

What is Noah's total assets under management as of Q2 2025?

Noah's total assets under management stood at RMB 145.1 billion (US$20.3 billion), with USD-denominated assets under management at US$5.8 billion and USD-denominated assets under advisory at US$9.1 billion.

What is Noah's partnership with Coinbase Asset Management about?

Noah selected Coinbase Asset Management as a strategic partner to establish Olive's first stablecoin yield fund, aiming to expand their digital asset-related product lines and capture opportunities in this emerging asset class.

What are Noah's strategic priorities for the second half of 2025?

Noah's three strategic priorities are: expanding its global Chinese HNWI client base, broadening global product offerings across primary and secondary markets, and enhancing operational efficiency through AI integration.