Yiren Digital Reports First Quarter 2026 Unaudited Financial Results

BEIJING, June 25, 2026 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading fintech company specializing in digital consumer lending, insurance and financial technology innovation across China and global markets, today announced its unaudited financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Operational Results

Credit Solution Business

Insurance Brokerage Business

Recent Developments

All-in-AI Strategic Updates

"During the first quarter of 2026, we continued to demonstrate resilience and strong execution across our businesses," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "We maintained a highly disciplined approach in our credit solutions business while driving robust customer growth in our insurance brokerage business, further diversifying our revenue streams. At the same time, we are rapidly advancing our 'All-in-AI' strategy, deepening AI integration across our existing operations and actively expanding our AI application portfolio. Each of these steps accelerates our evolution into an AI-native, multi-industry operating platform, which we expect will unlock significant new growth and enduring value for our Company."

"The credit performance of our newly originated loan assets continued to improve during the quarter, and the overall quality of our loan portfolio has successfully stabilized," Mr. William Hui, Chief Financial Officer of Yiren Digital, said. "The underlying risk trends of our legacy book continue to improve, and we expect to see more meaningful profitability gains in the second half of the year. Meanwhile, we remain focused on optimizing capital allocation and improving investment efficiency to further strengthen our financial position and long-term competitiveness."

First Quarter 2026 Financial Results

Total net revenue in the first quarter of 2026 was RMB915.1 million (US$132.7 million), compared to RMB957.6 million in the fourth quarter of 2025, representing a decrease of 41% from RMB1,554.5 million in the same period of 2025.

Within this, revenue from the credit solution business was RMB795.7 million (US$115.4 million), representing a slight decrease of 4% from RMB832.7 million in the fourth quarter of 2025, and a decrease of 39% compared to the same period in 2025. The decrease was primarily due to lower loan facilitation volume and a reduced service fee rate under the new regulatory framework, as the Company continued to prioritize risk-adjusted growth and maintain a disciplined operating strategy amid evolving market conditions. Revenue from the credit solution business accounted for 87% of total net revenue in the first quarter of 2026, unchanged from the fourth quarter of 2025.

Revenue from the insurance brokerage business was RMB87.2 million (US$12.6 million) in the first quarter of 2026, representing an increase of 4% from RMB83.8 million in the fourth quarter of 2025, and an increase of 22% from RMB71.5 million in the same period of 2025. The sequential and year-over-year growth was primarily driven by the continued expansion of the Company's internet distribution business, which has maintained strong momentum since mid-2025. As a result, the internet distribution business contributed 29% of the insurance brokerage business segment's revenue in the first quarter of 2026, compared with 22% in the fourth quarter of 2025, reflecting the ongoing optimization of the Company's business mix and digital distribution capabilities.

Revenue from other businesses was RMB32.2 million (US$4.7 million), compared with RMB41.1 million in the fourth quarter of 2025 and RMB188.6 million in the same period of 2025. The decrease was mainly attributable to the continued scaling down of the e-commerce business.

Sales and marketing expenses in the first quarter of 2026 were RMB113.6 million (US$16.5 million), compared to RMB206.1 million in the fourth quarter of 2025 and RMB277.0 million in the same period of 2025. The decrease was primarily attributable to lower customer acquisition and marketing spending as the Company maintained a disciplined approach to loan facilitation growth. In addition, the contribution of repeat borrowers increased to 78% in the first quarter of 2026 from 74% in the same period of 2025. The cost decline was further supported by improved marketing efficiency driven by AI-assisted precision marketing initiatives.

Origination, servicing and other operating costs in the first quarter of 2026 were RMB197.6 million (US$28.6 million), compared to RMB250.9 million in the fourth quarter of 2025 and RMB224.7 million in the same period of 2025. The cost decrease was primarily attributable to continued operational cost optimization within the insurance brokerage business, driven by the ongoing transition toward more efficient digital distribution channels and a reduced reliance on traditional distribution operations.

Research and development expenses in the first quarter of 2026 were RMB108.9 million (US$15.8 million), compared to RMB121.4 million in the fourth quarter of 2025 and RMB86.0 million in the same period of 2025. The year-over-year increase in R&D expenses was mainly due to increased recruitment of senior AI R&D talent to support the execution of the 2026 All-in-AI strategy.

General and administrative expenses in the first quarter of 2026 were RMB70.5 million (US$10.2 million), compared to RMB43.0 million in the fourth quarter of 2025 and RMB95.8 million in the same period of 2025. The year-over-year decrease was primarily due to enhanced overall corporate efficiency.

Allowance for contract assets, receivables and others in the first quarter of 2026 was RMB176.4 million (US$25.6 million), compared to RMB302.8 million in the fourth quarter of 2025 and RMB152.8 million in the same period of 2025. The year-over-year increase was primarily driven by higher credit loss provisions recognized on accounts receivable, financing receivables and guarantee receivables, partially offset by reduced credit loss provisions on contract assets amid scaled-back loan facilitation activities. The quarter-over-quarter decline mainly reflected stabilized credit performance in the first quarter of 2026, together with no material portfolio revaluation adjustments recorded in the current period—such adjustments had been recorded in the fourth quarter of 2025 from updated expected loss assumptions.

Provision for contingent liabilities in the first quarter of 2026 was RMB632.2 million (US$91.7 million), compared to RMB1,110.1 million in the fourth quarter of 2025 and RMB410.8 million in the same period of 2025. The year-over-year increase was primarily attributable to higher loan volume under the risk-taking model [2] and increased expected loss provisions for newly originated loans. The quarter-over-quarter decline mainly reflected a stabilized asset risk level and no material portfolio revaluation adjustments recorded.

Fair value adjustments loss in the first quarter of 2026 was RMB89.0 million (US$12.9 million), compared to RMB62.0 million in the fourth quarter of 2025 and RMB58.4 million in the same period of 2025. The increase in fair value loss is attributable to fair value adjustment in crypto assets reflecting change in market value of the digital assets.

Income tax expense in the first quarter of 2026 was RMB37.0 million (US$5.4 million).

Net loss for the first quarter of 2026 was RMB494.7 million (US$71.7 million), compared to a net loss of RMB868.2 million in the fourth quarter of 2025 and a net income of RMB247.5 million in the same period of 2025. The year-over-year change was mainly attributable to reduced credit solution business scale, reflecting lower overall loan origination volume, lower service fee rates under the new regulatory framework and higher credit-related costs. The quarter-over-quarter improvement primarily reflects a stabilized risk level and no material portfolio revaluation adjustments recorded with the risk-taking model. The improvement was further supported by improved asset quality, higher revenue contribution from the insurance brokerage business through internet distribution channels, and continued operational efficiency gains driven by AI-enabled cost optimization.

Adjusted EBITDA [3] (non-GAAP) in the first quarter of 2026 was a loss of RMB336.8 million (US$48.8 million), compared to a loss of RMB1,028.5 million in the fourth quarter of 2025 and a gain of RMB325.0 million in the same period of 2025.

Basic and diluted loss per ADS in the first quarter of 2026 were both RMB5.6420 (US$0.8180), compared to basic and diluted loss per ADS of both RMB9.9624 in the fourth quarter of 2025; and basic and diluted income per ADS of RMB2.8646 and RMB2.8460, respectively, in the same period of 2025.

Net cash used in operating activities in the first quarter of 2026 was RMB655.6 million (US$95.0 million), compared to RMB180.8 million used in operating activities in the fourth quarter of 2025, and to RMB478.7 million generated from operating activities in the same period of 2025. The higher net operating cash outflow for the period is primarily attributable to prepayments of operating costs and expenses, longer collection terms for operating receivables and higher indemnity disbursements under the risk-taking model.

Net cash used in investing activities in the first quarter of 2026 was RMB24.8 million (US$3.6 million), compared to RMB29.2 million provided by investing activities in the fourth quarter of 2025 and RMB145.6 million used in investing activities in the same period of 2025.

Net cash used in financing activities in the first quarter of 2026 was RMB345.6 million (US$50.1 million), compared to RMB234.1 million in the fourth quarter of 2025 and RMB80.6 million in the same period of 2025.

As of March 31, 2026, cash and cash equivalents were RMB2,453.1 million (US$355.6 million), compared to RMB3,348.1 million as of December 31, 2025. As of March 31, 2026, the balance of financial investments was RMB507.5 million (US$73.6 million), compared to RMB483.7 million as of December 31, 2025.

As of March 31, 2026, delinquency rates [4] for loans that were past due for 1-30 days, 31-60 days and 61-90 days were 2.5%, 2.7% and 3.2%, respectively, compared to 3.4%, 3.0% and 2.8%, respectively, as of December 31, 2025.

Recent Updates

The Company issued a statement in May regarding media reports relating to certain financial products offered by affiliates of the Company's controlling shareholder. Those matters are unrelated to the Company. Management is monitoring the situation closely and will make further disclosures as required under applicable laws, regulations, and listing standards.

Dividend Policy

Under the Company's semi-annual dividend policy, the Board will review operating results and evaluate the Company's cash dividend policy for the first half of 2026 following the conclusion of the second quarter.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8980 to US$1.00, the effective noon buying rate on March 31, 2026, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on June 25, 2026 (or 8:00 p.m. Beijing/Hong Kong Time on June 25, 2026).

Participants who wish to join the call should register online in advance of the conference at:

https://dpregister.com/sreg/10209861/10439ec2351.

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at:

https://ir.yiren.com.

[1] "Repeat borrowers' loan amount" refers to the proportion of total loan facilitation and origination volume through Yixianghua platform in a given period that is generated by borrowers who have previously completed at least one successful drawdown during that period.

[2] "The risk-taking model" refers to the framework in which Yiren Digital assumes the credit risk for the loans facilitated on its platform.

[3] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

[4] "Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland China are not included in the calculation. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend," "ought to," "plan," "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident," and similar expressions. Forward-looking statements are based on management's current expectations, assumptions, and assessments of current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are outside the control of the Company, and which could cause actual results to differ materially from those expressed or implied in such statements. Actual results may differ materially from those expressed or implied in forward-looking statements due to a variety of factors and other risks described in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no, and expressly disclaims any, obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is a leading fintech company specializing in digital consumer lending, insurance, and financial technology innovation across China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. Following the regulatory filing of its in-house developed Large Language Model Zhiyu, and the significant enhancement of its MagiCube Agent platform, Yiren Digital is establishing a new growth engine to accelerate its evolution into an AI-native, multi-industry operating platform extending beyond traditional financial services. For more information, please visit https://ir.yiren.com.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except for share, per share and per ADS data, and percentages)

For the Three Months Ended

March 31,

2025

March 31,

2026

March 31,

2026

RMB

USD

Net revenue:

Loan facilitation services

742,394

(3,909)

(567)

Post-origination services

1,744

(41)

(6)

Guarantee services

318,397

519,155

75,262

Financing services

41,887

66,145

9,589

Insurance brokerage services

71,460

87,160

12,636

Electronic commerce services

184,074

921

133

Network and marketing services *

124,358

145,697

21,122

Technology services *

68,590

98,129

14,226

Others *

1,622

1,883

273

Total net revenue

1,554,526

915,140

132,668

Operating costs and expenses:

Sales and marketing

276,952

113,569

16,464

Origination,servicing and other operating costs

224,738

197,552

28,639

Research and development

85,954

108,933

15,792

General and administrative

95,837

70,504

10,221

Allowance for contract assets, receivables and others

152,805

176,424

25,576

Provision for contingent liabilities

410,763

632,219

91,653

Total operating costs and expenses

1,247,049

1,299,201

188,345

Other income/(loss):

Investment income

1,281

1,318

191

Interest income

22,925

12,498

1,812

Fair value adjustments loss

(58,376)

(89,036)

(12,908)

Others, net

674

1,591

231

Total other loss

(33,496)

(73,629)

(10,674)

Income/(loss) before provision for income taxes

273,981

(457,690)

(66,351)

Share of results of equity investees

(129)

Income tax expense

26,346

37,024

5,368

Net income/(loss)

247,506

(494,714)

(71,719)

Net loss attributable to non-controlling interests

1,173

171

Net income/(loss) attributable to ordinary shareholders

of the Company

247,506

(493,541)

(71,548)

Weighted-average number of ordinary shares used in

computing basic net income/(loss) per share

172,800,275

174,951,573

Basic net income/(loss) per share attributable to

ordinary shareholders of the Company

1.4323

(2.8210)

(0.4090)

Basic diluted net income/(loss) per ADS

attributable to ordinary shareholders of the

Company

2.8646

(5.6420)

(0.8180)

Weighted-average number of ordinary shares used in

computing diluted net income/(loss) per share

173,935,749

174,951,573

Diluted net income/(loss) per share attributable to

ordinary shareholders of the Company

1.4230

(2.8210)

(0.4090)

Diluted net income/(loss) per ADS attributable to

ordinary shareholders of the Company

2.8460

(5.6420)

(0.8180)

Unaudited Condensed Consolidated Cash Flow Data

Net cash generated from/(used in) operating activities

478,650

(655,588)

(95,040)

Net cash used in investing activities

(145,590)

(24,764)

(3,590)

Net cash used in financing activities

(80,576)

(345,590)

(50,100)

Effect of foreign exchange rate changes

2,367

(8,389)

(1,216)

Net increase/(decrease) in cash, cash equivalents and

restricted cash

254,851

(1,034,331)

(149,946)

Cash, cash equivalents and restricted cash, beginning of

period

4,101,557

3,870,834

561,153

Cash, cash equivalents and restricted cash, end of

period

4,356,408

2,836,503

411,207

* Given the Company's diversified revenue streams, Network and marketing services and Technology services are now

separately presented from Other revenue, with the remaining balance classified as Others. Comparative figures for the prior

period have been restated.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31,

2025

March 31,

2026

March 31,

2026

RMB

USD

Cash and cash equivalents

3,348,126

2,453,140

355,631

Restricted cash

522,708

383,363

55,576

Accounts receivable

826,141

911,368

132,121

Guarantee receivable

832,905

868,827

125,953

Contract assets, net

619,291

305,106

44,231

Contract cost

4,287

2,149

312

Prepaid expenses and other assets

1,776,019

1,756,162

254,590

Loans at fair value

342,895

156,134

22,635

Financing receivables

909,182

938,958

136,120

Amounts due from related parties*

2,974,080

3,429,417

497,161

Financial investments

483,700

507,528

73,576

Equity investments

11,528

23,455

3,400

Property, equipment and software, net

50,403

84,630

12,269

Digital Assets

391,267

287,228

41,639

Deferred tax assets

325,094

361,981

52,476

Right-of-use assets

37,329

33,891

4,913

Total assets

13,454,955

12,503,337

1,812,603

Accounts payable

79,630

93,759

13,592

Amounts due to related parties

44,179

14,982

2,172

Guarantee liabilities-stand ready

989,701

1,025,763

148,704

Guarantee liabilities-contingent

1,300,097

1,172,209

169,935

Deferred revenue

227

150

Payable to investors of consolidated ABFE

1,294,792

941,068

136,426

Accrued expenses and other liabilities

404,680

406,222

58,890

Deferred tax liabilities

29,854

34,197

4,957

Lease liabilities

39,758

35,289

5,116

Total liabilities

4,182,918

3,723,639

539,814

Ordinary shares

133

134

Additional paid-in capital

5,239,550

5,242,914

760,063

Treasury stock

(170,686)

(24,744)

Accumulated other comprehensive income

(2,517)

(17,369)

(2,518)

Retained earnings

4,205,557

3,710,721

537,942

Total Yiren Digital Ltd shareholders' equity

9,272,037

8,765,714

1,270,762

Non-controlling interests

13,984

2,027

Total equity

9,272,037

8,779,698

1,272,789

Total liabilities and equity

13,454,955

12,503,337

1,812,603

* The Company has outstanding related party balances due from our controlling shareholder and its affiliates. These

balances are currently performing in accordance with their contractual terms. Should our controlling shareholder fail to

satisfy its payment obligations in the future, we may be required to adjust the carrying value of such related receivables

accordingly.

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients

and percentages)

For the Three Months Ended

March 31,

2025

March 31,

2026

March 31,

2026

RMB

USD

Operating Highlights

Amount of loans facilitated

15,237,923

8,910,760

1,291,789

Number of borrowers

1,375,406

531,500

Remaining principal of performing loans

27,458,292

21,603,502

3,131,850

Cumulative number of insurance clients

1,590,394

2,357,951

Number of insurance clients

77,541

397,854

Gross written premiums

801,798

822,991

119,309

First year premium

412,497

536,332

77,752

Renewal premium

389,301

286,659

41,557

Segment Information

Credit solution business:

Revenue

1,294,480

795,746

115,359

Sales and marketing expenses

260,903

80,760

11,708

Origination, servicing and other operating costs

140,623

140,143

20,317

Allowance for contract assets, receivables and others

152,112

174,866

25,350

Provision for contingent liabilities

410,763

632,219

91,653

Insurance brokerage business:

Revenue

71,460

87,160

12,636

Sales and marketing expenses

2,795

2,388

346

Origination, servicing and other operating costs

81,440

54,475

7,897

Allowance for contract assets, receivables and others

(578)

(117)

(17)

Others:

Revenue

188,586

32,234

4,673

Sales and marketing expenses

13,254

30,421

4,410

Origination, servicing and other operating costs

2,675

2,934

425

Allowance for contract assets, receivables and others

(1,994)

188

Reconciliation of Adjusted EBITDA

Net income/(loss)

247,506

(494,714)

(71,719)

Interest income and investment income, net

(24,206)

(13,816)

(2,003)

Income tax expense

26,346

37,024

5,368

Depreciation and amortization

2,297

3,561

516

Share-based compensation

2,187

2,071

300

Fair value adjustments related to digital assets and

financial investments

70,824

129,059

18,710

Adjusted EBITDA

324,954

(336,815)

(48,828)

Adjusted EBITDA margin

20.9 %

-36.8 %

Delinquency Rates

1-30 days

31-60 days

61-90 days

December 31, 2022

1.7 %

1.2 %

1.1 %

December 31, 2023

2.0 %

1.4 %

1.2 %

December 31, 2024

1.6 %

1.2 %

1.1 %

December 31, 2025

3.4 %

3.0 %

2.8 %

March 31, 2026

2.5 %

2.7 %

3.2 %

90+ Days Delinquency Rates by Vintage*

Loan

Issued Period

Month on Book

2022Q1

0.6 %

2.0 %

3.1 %

3.9 %

4.5 %

4.7 %

4.6 %

4.5 %

4.4 %

2022Q2

0.5 %

1.7 %

2.9 %

3.7 %

4.2 %

4.4 %

4.3 %

4.2 %

4.1 %

2022Q3

0.5 %

2.1 %

3.4 %

4.2 %

4.7 %

5.0 %

4.9 %

4.8 %

4.7 %

2022Q4

0.7 %

2.5 %

3.8 %

4.8 %

5.5 %

5.8 %

5.7 %

5.6 %

5.5 %

5.4 %

2023Q1

0.5 %

2.3 %

3.9 %

5.0 %

5.8 %

6.1 %

6.0 %

5.9 %

5.8 %

5.7 %

5.6 %

2023Q2

0.6 %

2.8 %

4.7 %

6.1 %

6.8 %

7.1 %

7.0 %

6.9 %

6.8 %

6.7 %

6.6 %

2023Q3

0.8 %

3.5 %

5.6 %

7.0 %

7.7 %

7.9 %

7.7 %

7.6 %

7.5 %

2023Q4

0.7 %

3.4 %

5.6 %

6.8 %

7.4 %

7.6 %

7.4 %

7.3 %

7.2 %

2024Q1

0.6 %

3.0 %

4.8 %

5.9 %

6.6 %

6.8 %

6.7 %

6.6 %

6.5 %

2024Q2

0.6 %

2.4 %

4.0 %

5.1 %

5.8 %

6.1 %

6.0 %

5.9 %

6.0 %

2024Q3

0.5 %

2.2 %

3.7 %

4.7 %

5.4 %

5.8 %

5.7 %

5.5 %

2024Q4

0.6 %

2.2 %

3.8 %

4.9 %

5.9 %

6.4 %

6.3 %

2025Q1

0.6 %

2.3 %

4.2 %

6.0 %

7.2 %

6.9 %

2025Q2

0.8 %

3.5 %

6.6 %

8.3 %

2025Q3

1.1 %

4.8 %

8.0 %

2025Q4

1.2 %

*The 90+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are more than 90 days past due, as a percentage of the total loans facilitated during that same period. Loans originating outside mainland China are excluded from the calculation.

SOURCE Yiren Digital