Yiren Digital Reports Second Quarter 2026 Unaudited Financial Results

Lower loan volumes coincided with improved later-stage delinquency rates, while receivable allowances increased.

Rhea-AI Summary

Yiren Digital (YRD) reported a second-quarter 2026 net loss of RMB449.6 million, narrowing sequentially but reversing a year-earlier profit. Revenue fell 46% year over year to RMB890.0 million, while loans facilitated declined 69% to RMB6.3 billion. The loss compared with RMB494.7 million in the first quarter and net income of RMB357.5 million a year earlier. Allowances for contract assets, receivables and others rose to RMB502.8 million.

Later-stage delinquency rates improved, and repeat borrowers accounted for 82% of loan amounts. Insurance brokerage revenue increased 16% year over year but fell 23% sequentially. Operating cash outflow reached RMB1,029.1 million, versus RMB655.6 million in the first quarter. On July 2, 2026, the board authorized repurchases of up to US$20.0 million over the following 12 months, capped at 10% of outstanding ordinary shares and/or ADSs.

17 points · 1 major

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2 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Share repurchase authorization permits up to US$20.0 million over 12 months from July 2, 2026, capped at 10%. 23% of market cap
• Moderate point31–60 day delinquency fell to 2.0% at June 30, 2026, from 2.7% at March 31.
• Moderate point61–90 day delinquency fell to 2.4% at June 30, 2026, from 3.2% at March 31.
• Moderate pointRepeat-borrower loan share reached 82% in Q2 2026, versus 78% in Q1 and 77% a year earlier.
• Moderate pointQ2 contingent-liability provision fell 63% sequentially and 40% year over year to RMB233.3 million.

12 minor points

• Minor pointQ2 insurance brokerage revenue rose 16% year over year to RMB67.3 million, but fell 23% sequentially.
• Minor pointQ2 insurance clients increased 281% year over year and 14% sequentially to 452,962.
• Minor pointCumulative insurance clients reached 2,712,793 at June 30, up 61% year over year and 15% sequentially.
• Minor pointQ2 new insurance policies increased 177% year over year to 918,150, but declined 8% sequentially.
• Minor pointQ2 gross written premiums reached RMB838.9 million, up 2% sequentially but down 1% year over year.
• Minor pointQ2 first-year premiums reached RMB532.9 million, versus RMB536.3 million in Q1 and RMB440.4 million a year earlier.
• Minor pointCumulative borrowers reached 14,667,379 at June 30, up 1% sequentially and 8% year over year.
• Minor pointQ2 sales and marketing expenses fell 63% year over year to RMB126.9 million, but increased 12% sequentially.
• Minor pointQ2 general and administrative expenses fell 4% year over year to RMB75.8 million, but increased 8% sequentially.
• Minor pointQ2 investing cash inflow was RMB454.0 million, versus outflows of RMB24.8 million in Q1 and RMB752.2 million a year earlier.
• Minor pointCustomer-operation autonomous resolution increased from approximately 60% to nearly 80%, as disclosed in the 2025 ESG report.
• Minor pointAI application investment expanded through a July 2026 warrant agreement with a private AI-native entertainment and wellness company.

Negative

• Major pointQ2 net loss was RMB449.6 million, versus RMB494.7 million in Q1 and RMB357.5 million profit a year earlier.
• Major pointQ2 operating cash outflow reached RMB1,029.1 million, versus RMB655.6 million in Q1 and RMB411.2 million inflow a year earlier.
• Moderate pointQ2 net revenue fell 46% year over year and 3% sequentially to RMB890.0 million.
• Moderate pointQ2 loans facilitated fell 69% year over year and 29% sequentially to RMB6.3 billion.
• Moderate pointQ2 borrowers served fell 74% year over year and 20% sequentially to 424,489.
• Moderate pointPerforming loan balance fell to RMB15.1 billion at June 30, down 30% sequentially and 52% year over year.
• Moderate pointQ2 financing cash outflow was RMB469.9 million, versus RMB345.6 million in Q1 and RMB447.6 million inflow a year earlier.

10 minor points

• Minor pointQ2 credit solution revenue fell 48% year over year and 2% sequentially to RMB777.6 million.
• Minor pointQ2 other-business revenue fell 57% year over year to RMB45.0 million, despite increasing 40% sequentially.
• Minor pointQ2 receivable and contract-asset allowances rose to RMB502.8 million, versus RMB176.4 million in Q1 and RMB214.7 million a year earlier.
• Minor pointQ2 fair-value loss was RMB97.8 million, versus RMB89.0 million in Q1 and RMB28.0 million gain a year earlier.
• Minor pointQ2 adjusted EBITDA loss was RMB340.7 million, versus RMB336.8 million in Q1 and RMB351.4 million gain a year earlier.
• Minor pointQ2 basic and diluted loss per ADS was RMB5.1068, versus RMB5.6420 in Q1 and year-earlier earnings.
• Minor pointQ2 operating costs rose 18% year over year to RMB189.6 million, despite declining 4% sequentially.
• Minor pointQ2 research and development expenses rose 4% sequentially and 5% year over year to RMB113.1 million.
• Minor pointQ2 renewal premiums were RMB305.9 million, versus RMB286.7 million in Q1 and RMB409.7 million a year earlier.
• Minor pointQ2 income tax expense was RMB25.1 million.

News Explained

At June 30, 2026, Yiren Digital reported RMB1,696.7 million in cash and cash equivalents, versus RMB2,453.1 million at March 31, 2026; during the quarter, operating activities used RMB1,029.1 million in cash.

Key Figures

Total net revenue: RMB890.0 million Loans facilitated: RMB6.3 billion Net loss: RMB449.6 million +5 more

Total net revenue

RMB890.0 million

Q2 2026; down 46% year over year

Loans facilitated

RMB6.3 billion

Q2 2026; down 69% year over year

Net loss

RMB449.6 million

Q2 2026; compared with net income of RMB357.5 million in Q2 2025

Adjusted EBITDA

Loss of RMB340.7 million

Q2 2026; non-GAAP

Operating cash flow

RMB1,029.1 million used

Q2 2026; compared with RMB411.2 million generated in Q2 2025

Allowance for contract assets, receivables and others

RMB502.8 million

Q2 2026; compared with RMB214.7 million in Q2 2025

Later-stage delinquency rates

2.0% (31–60 days); 2.4% (61–90 days)

As of June 30, 2026; down from 2.7% and 3.2%, respectively, as of March 31, 2026

Share repurchase authorization

Up to US$20.0 million; up to 10% of shares

Authorized July 2, 2026, for the following 12 months

Previous Earnings Reports

2 past events · Latest: Jun 25

Same Type 2 events

1. Jun 25

   Quarterly earnings

   24h Move

   -2.6%

   Q1 2026 reported RMB915.1 million revenue and a RMB494.7 million net loss, providing the prior-quarter earnings baseline.

2. Aug 21

   Quarterly earnings

   24h Move

   +3.6%

   Q2 2025 reported RMB1,652.1 million revenue and RMB357.5 million net income, contrasting with current-year declines.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap, gross written premiums, american depositary shares

4 terms

adjusted ebitda financial

"Adjusted EBITDA [2] (non-GAAP) in the second quarter of 2026 was a loss"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"Adjusted EBITDA [2] (non-GAAP) in the second quarter of 2026"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

gross written premiums financial

"Gross written premiums were RMB838.9 million (US$123.6 million)"

Gross written premiums are the total amount of money an insurance company charges for all the policies it sells during a specific period, before subtracting any costs or claims. It's like the total sales a store makes from all its products before deducting expenses. This figure shows how much business the insurer is taking on and helps gauge its size and growth.

american depositary shares financial

"ordinary shares and/or American depositary shares ("ADSs")"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BEIJING, Sept. 30, 2026 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

• Later-stage delinquency rates continued to improve with 31–60 day and 61–90 day delinquency rates declining to 2.0% and 2.4% as of June 30, 2026, respectively, from 2.7% and 3.2% as of March 31, 2026.
• Repeat borrowers accounted for 82% of total loans facilitated, compared with 78% in the first quarter of 2026 and 77% in the same period of 2025, reflecting the Company's continued focus on serving established borrowers.
• Insurance client growth remained strong, with the number of clients increasing 281% year over year and new policies increasing 177% year over year.
• Insurance brokerage revenue increased 16% year over year.
• AI deployment continued to generate measurable efficiency gains across key operating functions, including lower human handling rates in asset recovery and higher autonomous resolution rates in customer operations.
• On July 2, 2026, the Company's board of directors authorized a new share repurchase program of up to US$20.0 million over the following 12 months.

Second Quarter 2026 Operational Results

Credit Solution Business

• Total loans facilitated in the second quarter of 2026 were RMB6.3 billion (US$0.9 billion), representing a decrease of 29% compared to RMB8.9 billion in the first quarter of 2026, and a decrease of 69% compared to RMB20.3 billion in the same period of 2025.
• Average loan size was RMB11,610 during the second quarter of 2026, a decrease of 3% from RMB11,991 in the first quarter of 2026, and an increase of 57% from RMB7,398 in the same period of 2025.
• Number of borrowers served in the second quarter of 2026 was 424,489, representing a decrease of 20% compared to 531,500 in the first quarter of 2026, and a decrease of 74% compared to 1,637,912 in the same period of 2025.
• Repeat borrowers' loan amount^[1] accounted for 82% of total loans facilitated in the second quarter of 2026, compared to 78% in the first quarter of 2026 and 77% in the same period of 2025.
• Cumulative number of borrowers served reached 14,667,379 as of June 30, 2026, representing an increase of 1% from 14,518,023 as of March 31, 2026, and an increase of 8% from 13,536,838 as of June 30, 2025.
• Outstanding balance of performing loans facilitated was RMB15.1 billion (US$2.2 billion) as of June 30, 2026, representing a decrease of 30% from RMB21.6 billion as of March 31, 2026, and a decrease of 52% from RMB31.2 billion as of June 30, 2025.

Insurance Brokerage Business

• Number of insurance clients during the second quarter of 2026 was 452,962, representing an increase of 14% from 397,854 in the first quarter of 2026, and a 281% year-over-year increase from 118,747 in the same period of 2025.
• Cumulative number of insurance clients was 2,712,793 as of June 30, 2026, representing an increase of 15% from 2,357,951 as of March 31, 2026, and a 61% year-over-year increase from 1,681,888 as of June 30, 2025.
• Number of new insurance policies in the second quarter of 2026 was 918,150, representing a decrease of 8% from 999,575 in the first quarter of 2026, and a 177% year-over-year increase from 331,281 in the same period of 2025.
• Gross written premiums were RMB838.9 million (US$123.6 million), representing an increase of 2% from RMB823.0 million in the first quarter of 2026 and a decrease of 1% from RMB850.1 million in the same period of 2025. First-year premiums were RMB532.9 million (US$78.5 million) in the second quarter of 2026, compared with RMB536.3 million in the first quarter of 2026 and RMB440.4 million in the same period of 2025. Renewal premiums were RMB305.9 million (US$45.1 million) in the second quarter of 2026, compared with RMB286.7 million in the first quarter of 2026 and RMB409.7 million in the same period of 2025.

Recent Developments

All-in-AI Strategic Updates

• Enterprise AI Deployment and Operating Efficiency: The Company continued to advance its enterprise AI operating model, supported by its proprietary Zhiyu and Yizhi large language models, MagiCube 2.0 multi-agent platform, XuanJi workflow execution and ZhiNao orchestration capabilities. AI deployment is increasingly translating into measurable efficiency gains and higher levels of automation across core operating functions. As disclosed in the Company's 2025 ESG Report, which was published in July 2026, the autonomous resolution rate of text-based agents in customer operations increased from approximately 60% to nearly 80%, while automated quality inspection covered more than two million service records daily.
• AI-Enabled Risk Management: The Company continued to expand the application of AI across risk management and borrower fraud detection. As disclosed in the Company's 2025 ESG Report, its Hawkeye fraud detection system and DiTing multimodal verification engine helped avoid approximately RMB165 million (US$23 million) in potential fraud-related losses during 2025, demonstrating the potential for AI capabilities to enhance risk identification and operational efficiency.
• AI Application-Layer Expansion: In July 2026, the Company entered into a warrant agreement with a private AI-native company focused on immersive AI entertainment and emotional wellness, marking the fourth AI company with which Yiren Digital has entered into a warrant agreement. The transaction reflects the Company's disciplined approach to selectively expanding its AI application-layer portfolio and developing new growth opportunities beyond its core financial services businesses.

Share Repurchase Program

• On July 2, 2026, the Company's board of directors authorized a new share repurchase program, under which the Company may repurchase up to 10% of its total issued and outstanding ordinary shares and/or American depositary shares ("ADSs") for an aggregate amount of up to US$20.0 million over the following 12 months. The timing and amount of any repurchases will be subject to market conditions and other applicable factors.

2025 ESG Report

• In July 2026, the Company published its 2025 Environmental, Social and Governance Report, its third annual ESG report, prepared with reference to the GRI Standards and benchmarked against the United Nations Sustainable Development Goals. During 2025, the Company facilitated RMB19.5 billion of unsecured credit to more than 596,500 small business owners, established a three-tier ESG governance structure led by the Board's ESG Committee, and reduced total greenhouse gas emissions by 6% year over year.

"During the second quarter of 2026, we maintained a disciplined approach to our credit solution business, prioritizing portfolio quality and risk-adjusted returns while moderating near-term loan facilitation volume. Under this approach, we saw an improvement in later-stage delinquency rates and a higher contribution from repeat borrowers. We continue to refine our service model to leverage our AI innovation to deliver our services that are less capital intensive and more technology focused," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "At the same time, our insurance client base continued to expand, and our All-in-AI strategy generated measurable efficiency gains across asset recovery, customer operations and risk management. Looking ahead, we remain focused on strengthening our core operations, advancing our AI-native capabilities and building a more diversified growth platform."

"Our operating performance improved in the second quarter. However, our results were also affected by the impairment and adjustments related to legacy receivables and contract assets," said Mr. William Hui, Chief Financial Officer of Yiren Digital. "Net loss nevertheless narrowed by 9% sequentially compared with the first quarter of 2026, primarily reflecting an improved credit environment, greater efficiency in credit analysis and reduced reliance on the risk-taking model."

Second Quarter 2026 Financial Results

Total net revenue in the second quarter of 2026 was RMB890.0 million (US$131.2 million), representing a decrease of 3% from RMB915.1 million in the first quarter of 2026 and a decrease of 46% from RMB1,652.1 million in the same period of 2025.

Within this, revenue from the credit solution business was RMB777.6 million (US$114.6 million), representing a decrease of 2% from RMB795.7 million in the first quarter of 2026 and a decrease of 48% from RMB1,489.6 million in the same period of 2025.

Revenue from the credit solution business accounted for 87% of total net revenue in the second quarter of 2026. The year-over-year decrease primarily reflected lower loan facilitation volume amid the industry's implementation of revised regulatory requirements for online loan facilitation. The revised framework introduced lower borrower all-in financing cost limits and more stringent funding-partner requirements relating to pricing and risk-adjusted returns. Against this backdrop, the Company moderated loan facilitation activity and increasingly concentrated originations among established repeat borrowers.

Revenue from the insurance brokerage business was RMB67.3 million (US$9.9 million), representing a decrease of 23% from RMB87.2 million in the first quarter of 2026 and an increase of 16% from RMB58.1 million in the same period of 2025. The year-over-year increase was primarily driven by the continued expansion of the Company's internet distribution business, which maintained strong momentum, together with steady growth in its traditional insurance operations. The sequential decrease mainly reflected lower estimated renewal rates for certain internet insurance products and the resulting adjustment to revenue from the existing portfolio.

Revenue from other businesses was RMB45.0 million (US$6.6 million), representing an increase of 40% from RMB32.2 million in the first quarter of 2026 and a decrease of 57% from RMB104.4 million in the same period of 2025. The year-over-year decrease mainly reflected the continued scaling down of the e-commerce business.

Sales and marketing expenses in the second quarter of 2026 were RMB126.9 million (US$18.7 million), representing an increase of 12% from RMB113.6 million in the first quarter of 2026 and a decrease of 63% from RMB345.2 million in the same period of 2025. The year-over-year decrease was primarily attributable to lower customer acquisition spending for the credit solution business as loan facilitation volume declined and the repeat-borrower mix increased. The sequential increase mainly reflected higher internet-based promotion service fees for customer acquisition in the internet insurance business.

Origination, servicing and other operating costs in the second quarter of 2026 were RMB189.6 million (US$27.9 million), representing a decrease of 4% from RMB197.6 million in the first quarter of 2026 and an increase of 18% from RMB160.9 million in the same period of 2025. The sequential decrease primarily reflected lower credit solution operating costs as loan facilitation volume and the outstanding loan balance declined. The year-over-year increase was mainly attributable to higher collection costs resulting from strengthened collection efforts, as well as higher operating costs associated with increased new business volume in the traditional insurance business.

Research and development expenses in the second quarter of 2026 were RMB113.1 million (US$16.7 million), representing an increase of 4% from RMB108.9 million in the first quarter of 2026 and an increase of 5% from RMB107.7 million in the same period of 2025. The modest increases reflected continued investment in AI-related research and development, including personnel and engineering capabilities.

General and administrative expenses in the second quarter of 2026 were RMB75.8 million (US$11.2 million), representing an increase of 8% from RMB70.5 million in the first quarter of 2026 and a decrease of 4% from RMB78.9 million in the same period of 2025.

Allowance for contract assets, receivables and others in the second quarter of 2026 was RMB502.8 million (US$74.1 million), compared with RMB176.4 million in the first quarter of 2026 and RMB214.7 million in the same period of 2025. The increase primarily reflected a provision for credit loss recognized on certain related-party loan receivables following a reassessment of their recoverability, as well as higher expected credit loss allowances on longer aging accounts receivable. These increases were partially offset by lower credit losses on financing and guarantee receivables.

Provision for contingent liabilities in the second quarter of 2026 was RMB233.3 million (US$34.4 million), representing a decrease of 63% from RMB632.2 million in the first quarter of 2026 and a decrease of 40% from RMB385.7 million in the same period of 2025. The decrease primarily reflected lower loan facilitation volume under the risk-taking model, which reduced expected future guarantee payouts, as well as a net reversal of provisions associated with the existing loan portfolio following updated credit assessments. The quarter-to-quarter decrease was further supported by lower expected net charge-off rates for newly originated loans.

Fair value adjustments loss in the second quarter of 2026 was RMB97.8 million (US$14.4 million), compared with a loss of RMB89.0 million in the first quarter of 2026 and a gain of RMB28.0 million in the same period of 2025. The fair value loss was primarily attributable to declines in the market value of the Company's digital assets and related investments, partially offset by fair value gains on trust investments.

Income tax expense in the second quarter of 2026 was RMB25.1 million (US$3.7 million).

Net loss for the second quarter of 2026, due to the foregoing, was RMB449.6 million (US$66.3 million), compared with a net loss of RMB494.7 million in the first quarter of 2026 and net income of RMB357.5 million in the same period of 2025.

Adjusted EBITDA ^[2] (non-GAAP) in the second quarter of 2026 was a loss of RMB340.7 million (US$50.2 million), compared with a loss of RMB336.8 million in the first quarter of 2026 and a gain of RMB351.4 million in the same period of 2025.

Basic and diluted loss per ADS in the second quarter of 2026 were both RMB5.1068 (US$0.7526), compared with basic and diluted loss per ADS of RMB5.6420 in the first quarter of 2026; and basic and diluted income per ADS of RMB4.1356 and RMB4.1072, respectively, in the same period of 2025.

Net cash used in operating activities in the second quarter of 2026 was RMB1,029.1 million (US$151.7 million), compared with RMB655.6 million used in the first quarter of 2026 and RMB411.2 million generated in the same period of 2025. The higher net operating cash outflow primarily reflected lower service fee collections amid reduced business volume, increased prepayments for collection, system support and marketing services, and continued indemnity payments under risk-taking model.

Net cash provided by investing activities in the second quarter of 2026 was RMB454.0 million (US$66.9 million), compared with RMB24.8 million used in the first quarter of 2026 and RMB752.2 million used in the same period of 2025. The change was primarily attributable to repayments from trust lending arrangements and proceeds from redemptions of funds and wealth management products, partially offset by new trust lending and other investment outflows.

Net cash used in financing activities in the second quarter of 2026 was RMB469.9 million (US$69.3 million), compared with RMB345.6 million used in the first quarter of 2026 and RMB447.6 million provided in the same period of 2025. The net financing cash outflow primarily reflected distributions of principal upon the liquidation of certain trust plans.

As of June 30, 2026, cash and cash equivalents were RMB1,696.7 million (US$250.1 million), compared with RMB2,453.1 million as of March 31, 2026. As of June 30, 2026, financial investments were RMB252.0 million (US$37.1 million), compared with RMB507.5 million as of March 31, 2026. The decrease in cash and cash equivalents primarily reflected net cash used in operating and financing activities, partially offset by net cash provided by investing activities. The decline in financial investments mainly reflected redemptions of funds and wealth management products and negative fair value movements.

As of June 30, 2026, delinquency rates ^[3] for loans that were past due for 1-30 days, 31-60 days and 61-90 days were 2.5%, 2.0% and 2.4%, respectively, compared with 2.5%, 2.7% and 3.2%, respectively, as of March 31, 2026.

Dividend Policy

The Board is evaluating a range of capital-allocation initiatives, including cash dividend payments and/or the recently announced share repurchase program, with a view to enhancing long-term shareholder value while maintaining a disciplined balance sheet and adequate financial flexibility.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA as a supplemental measure to review and assess operating performance. We believe such non-GAAP measure provides useful information about our core operating results, enhances the overall understanding of our past performance and prospects and allows for greater visibility with respect to key metrics used by our management in our financial and operational decision making. The presentation of non-GAAP financial measure 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 measure has limitations as analytical tools. Other companies, including peer companies in the industry, may calculate the non-GAAP measure differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measure 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. The Company's non-GAAP financial measure excludes share-based compensation expenses, depreciation and amortization expenses, interest income and investment income, net, fair value adjustments related to digital assets and financial investments, and income tax benefit / (expense).   

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 RMB6.7851 to US$1.00, the effective noon buying rate on June 30, 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 September 30, 2026 (or 8:00 p.m. Beijing/Hong Kong Time on September 30, 2026).

Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10211298/104ad33bf36

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 the Yixianghua platform in a given period that is generated by borrowers who have previously completed at least one successful drawdown during that period.

[2] "Adjusted EBITDA" is a non-GAAP financial measure. For more information, please see the final section and table captioned "Reconciliation of Adjusted EBITDA" at the end of this press release.

[3] "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. A performing loan is 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 company specializing in financial technology and artificial intelligence innovation across multiple industries in 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.

For further information:

Investor Relations, Email: ir@yiren.com

Piacente Financial Communications, Email: yrd@thepiacentegroup.com

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2025		March 31, 2026		June 30, 2026		June 30, 2026
	RMB		RMB		RMB		USD
Cash and cash equivalents	3,348,126		2,453,140		1,696,719		250,065
Restricted cash	522,708		383,363		85,183		12,554
Accounts receivable	826,141		911,368		900,116		132,661
Guarantee receivable	832,905		868,827		769,228		113,370
Contract assets, net	619,291		305,106		137,000		20,191
Contract cost	4,287		2,149		1,429		211
Prepaid expenses and other assets	1,776,019		1,756,162		2,217,743		326,855
Loans at fair value	342,895		156,134		47,406		6,987
Financing receivables	909,182		938,958		773,807		114,045
Amounts due from related parties	2,974,080		3,429,417		2,005,406		295,560
Financial investments	483,700		507,528		251,962		37,135
Equity investments	11,528		23,455		23,005		3,390
Property, equipment and software, net	50,403		84,630		81,787		12,054
Digital Assets	391,267		287,228		225,413		33,222
Deferred tax assets	325,094		361,981		334,818		49,346
Right-of-use assets	37,329		33,891		29,989		4,420
Total assets	13,454,955		12,503,337		9,581,011		1,412,066
Accounts payable	79,630		93,759		61,289		9,033
Amounts due to related parties	44,179		14,982		36,491		5,378
Guarantee liabilities-stand ready	989,701		1,025,763		917,803		135,267
Guarantee liabilities-contingent	1,300,097		1,172,209		815,618		120,207
Deferred revenue	227		150		107		16
Payable to investors of consolidated ABFE	1,294,792		941,068		470,067		69,279
Accrued expenses and other liabilities	404,680		406,222		351,173		51,757
Deferred tax liabilities	29,854		34,197		32,595		4,804
Lease liabilities	39,758		35,289		33,252		4,901
Total liabilities	4,182,918		3,723,639		2,718,395		400,642
Ordinary shares	133		134		133		20
Additional paid-in capital	5,239,550		5,242,914		5,251,402		773,961
Treasury stock	(170,686)		(170,686)		(170,686)		(25,156)
Accumulated other comprehensive income	(2,517)		(17,369)		(36,659)		(5,403)
Retained earnings	4,205,557		3,710,721		3,257,264		480,061
Prepayment of acquisition costs to a related party under common control *	-		-		(1,450,000)		(213,704)
Total Yiren Digital Ltd shareholders' equity	9,272,037		8,765,714		6,851,454		1,009,779
Non-controlling interests	-		13,984		11,162		1,645
Total equity	9,272,037		8,779,698		6,862,616		1,011,424
Total liabilities and equity	13,454,955		12,503,337		9,581,011		1,412,066
* This balance represents the prepaid acquisition consideration made to a related party under common control for the Company's proposed acquisition and was reclassified from amounts due from related parties to equity account because there is uncertainty on the completion of the acquisition as well as the net assets of the acquisition target upon completion. The Company targets to close the acquisition during 2026, subject to regulatory approval.

 

 

Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
	For the Three Months Ended								For the Six Months Ended
	June 30, 2025		March 31, 2026		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
	RMB		RMB		RMB		USD		RMB		RMB		USD
Net revenue:
Loan facilitation services	874,584		(3,909)		31,120		4,587		1,616,978		27,211		4,010
Post-origination services	10,463		(41)		814		120		12,207		773		114
Guarantee services	316,942		519,155		493,806		72,778		635,339		1,012,961		149,292
Financing services	65,821		66,145		68,136		10,042		107,708		134,281		19,790
Insurance brokerage services	58,137		87,160		67,296		9,918		129,597		154,456		22,764
Electronic commerce services	93,962		921		1,908		281		278,036		2,829		417
Network and marketing services *	138,268		145,697		122,633		18,074		262,626		268,330		39,547
Technology services *	90,532		98,129		95,896		14,133		159,122		194,025		28,596
Others *	3,391		1,883		8,370		1,234		5,013		10,253		1,511
Total net revenue	1,652,100		915,140		889,979		131,167		3,206,626		1,805,119		266,041
Operating costs and expenses:
Sales and marketing	345,166		113,569		126,863		18,697		622,118		240,432		35,435
Origination,servicing and other operating costs	160,859		197,552		189,608		27,945		385,597		387,160		57,060
Research and development	107,693		108,933		113,109		16,670		193,647		222,042		32,725
General and administrative	78,862		70,504		75,816		11,174		174,699		146,320		21,565
Allowance for contract assets, receivables and others	214,698		176,424		502,821		74,107		367,503		679,245		100,109
Provision for contingent liabilities	385,674		632,219		233,289		34,382		796,437		865,508		127,560
Total operating costs and expenses	1,292,952		1,299,201		1,241,506		182,975		2,540,001		2,540,707		374,454
Other income/(loss):
Investment income	2,245		1,318		12,417		1,830		4,217		13,735		2,024
Interest income	22,353		12,498		12,310		1,814		44,587		24,808		3,657
Fair value adjustments gain/(loss)	28,018		(89,036)		(97,815)		(14,416)		(30,358)		(186,851)		(27,538)
Others, net	14,084		1,591		429		63		14,758		2,020		298
Total other income/(loss)	66,700		(73,629)		(72,659)		(10,709)		33,204		(146,288)		(21,559)
Income/(loss) before provision for income taxes	425,848		(457,690)		(424,186)		(62,517)		699,829		(881,876)		(129,972)
Share of results of equity investees	(4,431)		-		(371)		(55)		(4,560)		(371)		(55)
Income tax expense/(benefit)	63,877		37,024		25,058		3,693		90,223		62,082		9,150
Net income/(loss)	357,540		(494,714)		(449,615)		(66,265)		605,046		(944,329)		(139,177)
Net loss/(income) attributable to non-controlling interests	-		1,173		2,823		416		-		3,996		589
Net income/(loss) attributable to ordinary shareholders of the Company	357,540		(493,541)		(446,792)		(65,849)		605,046		(940,333)		(138,588)
Weighted-average number of ordinary shares used in computing basic net income/(loss) per share	172,907,793		174,951,573		174,976,922		174,976,922		172,854,331		174,964,318		174,964,318
Basic net income/(loss) per share attributable to ordinary shareholders of the Company	2.0678		(2.8210)		(2.5534)		(0.3763)		3.5003		(5.3744)		(0.7921)
Basic diluted net income/(loss) per ADS attributable to ordinary shareholders of the Company	4.1356		(5.6420)		(5.1068)		(0.7526)		7.0006		(10.7488)		(1.5842)
Weighted-average number of ordinary shares used in computing diluted net income/(loss) per share	174,102,643		174,951,573		174,976,922		174,976,922		174,019,493		174,964,318		174,964,318
Diluted net income/(loss) per share attributable to ordinary shareholders of the Company	2.0536		(2.8210)		(2.5534)		(0.3763)		3.4769		(5.3744)		(0.7921)
Diluted net income/(loss) per ADS attributable to ordinary shareholders of the Company	4.1072		(5.6420)		(5.1068)		(0.7526)		6.9538		(10.7488)		(1.5842)
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from/(used in) operating activities	411,224		(655,588)		(1,029,107)		(151,672)		889,874		(1,684,695)		(248,293)
Net cash used in/(provided by) investing activities	(752,200)		(24,764)		454,017		66,914		(897,790)		429,253		63,264
Net cash provided by/(used in) financing activities	447,588		(345,590)		(469,907)		(69,256)		367,012		(815,497)		(120,190)
Effect of foreign exchange rate changes	(9,412)		(8,389)		(9,604)		(1,415)		(7,045)		(17,993)		(2,652)
Net increase/(decrease) in cash, cash equivalents and restricted cash	97,200		(1,034,331)		(1,054,601)		(155,429)		352,051		(2,088,932)		(307,871)
Cash, cash equivalents and restricted cash, beginning of period	4,356,408		3,870,834		2,836,503		418,048		4,101,557		3,870,834		570,490
Cash, cash equivalents and restricted cash, end of period	4,453,608		2,836,503		1,781,902		262,619		4,453,608		1,781,902		262,619
* 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.

 

 

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								For the Six Months Ended
		June 30, 2025		March 31, 2026		June 30, 2026		June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2026
		RMB		RMB		RMB		USD		RMB		RMB		USD
Operating Highlights
Amount of loans facilitated		20,347,799		8,910,760		6,302,596		928,888		35,585,722		15,213,356		2,242,171
Number of borrowers		1,637,912		531,500		424,489		424,489		2,466,710		832,248		832,248
Remaining principal of performing loans		31,220,078		21,603,502		15,107,343		2,226,547		31,220,078		15,107,343		2,226,547
Cumulative number of insurance clients		1,681,888		2,357,951		2,712,793		2,712,793		1,681,888		2,712,793		2,712,793
Number of insurance clients		118,747		397,854		452,962		452,962		187,833		789,960		789,960
Gross written premiums		850,080		822,991		838,859		123,633		1,651,878		1,661,850		244,926
First year premium		440,353		536,332		532,946		78,547		852,850		1,069,278		157,592
Renewal premium		409,727		286,659		305,913		45,086		799,028		592,572		87,334
Segment Information
Credit solution business:
Revenue		1,489,587		795,746		777,638		114,610		2,784,067		1,573,384		231,888
Sales and marketing expenses		332,405		80,760		82,462		12,154		593,308		163,222		24,056
Origination, servicing and other operating costs		105,617		140,143		116,554		17,178		246,240		256,697		37,832
Allowance for contract assets, receivables and others		216,260		174,866		502,956		74,127		368,372		677,822		99,899
Provision for contingent liabilities		385,674		632,219		233,289		34,382		796,437		865,508		127,560
Insurance brokerage business:
Revenue		58,137		87,160		67,296		9,918		129,597		154,456		22,764
Sales and marketing expenses		2,731		2,388		20,922		3,083		5,526		23,310		3,435
Origination, servicing and other operating costs		52,683		54,475		69,044		10,176		134,123		123,519		18,205
Allowance for contract assets, receivables and others		564		(117)		107		16		(14)		(10)		(1)
Others:
Revenue		104,376		32,234		45,045		6,639		292,962		77,279		11,389
Sales and marketing expenses		10,030		30,421		23,479		3,460		23,284		53,900		7,944
Origination, servicing and other operating costs		2,559		2,934		4,010		591		5,234		6,944		1,023
Allowance for contract assets, receivables and others		45		188		107		16		(1,949)		295		43
Reconciliation of Adjusted EBITDA
Net income/(loss)		357,540		(494,714)		(449,615)		(66,265)		605,046		(944,329)		(139,177)
Interest income and investment income, net		(24,598)		(13,816)		(24,727)		(3,644)		(48,804)		(38,543)		(5,681)
Income tax expense/(benefit)		63,877		37,024		25,058		3,693		90,223		62,082		9,150
Depreciation and amortization		2,643		3,561		3,711		547		4,940		7,272		1,072
Share-based compensation		6,932		2,071		1,821		269		9,119		3,892		574
Fair value adjustments related to digital assets and financial investments		(54,979)		129,059		103,064		15,190		15,845		232,123		34,210
Adjusted EBITDA		351,415		(336,815)		(340,688)		(50,210)		676,369		(677,503)		(99,852)
Adjusted EBITDA margin		21.3 %		-36.8 %		-38.3 %		-38.3 %		21.1 %		-37.5 %		-37.5 %

 

 

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 %
June 30, 2026		2.5 %		2.0 %		2.4 %

 

 

		90+ Days Delinquency Rates by Vintage
Loan Issued Period		Month on Book
		4	6	8	10	12	14	16	18	20	22	24
2022Q1		0.6 %	2.0 %	3.1 %	3.9 %	4.5 %	4.7 %	4.6 %	4.6 %	4.5 %	4.5 %	4.4 %
2022Q2		0.5 %	1.7 %	2.9 %	3.7 %	4.2 %	4.4 %	4.3 %	4.3 %	4.2 %	4.2 %	4.1 %
2022Q3		0.5 %	2.1 %	3.4 %	4.2 %	4.7 %	5.0 %	4.9 %	4.9 %	4.8 %	4.7 %	4.7 %
2022Q4		0.7 %	2.5 %	3.8 %	4.8 %	5.5 %	5.8 %	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 %	7.9 %	7.7 %	7.6 %	7.5 %	7.5 %
2023Q4		0.7 %	3.4 %	5.6 %	6.8 %	7.4 %	7.6 %	7.6 %	7.4 %	7.3 %	7.3 %	7.2 %
2024Q1		0.6 %	3.0 %	4.8 %	5.9 %	6.6 %	6.8 %	6.8 %	6.7 %	6.6 %	6.6 %	6.5 %
2024Q2		0.6 %	2.4 %	4.0 %	5.1 %	5.8 %	6.1 %	6.1 %	6.0 %	5.9 %	5.8 %	5.8 %
2024Q3		0.5 %	2.2 %	3.7 %	4.7 %	5.4 %	5.8 %	5.8 %	5.7 %	5.7 %	5.5 %
2024Q4		0.6 %	2.2 %	3.8 %	4.9 %	5.9 %	6.4 %	6.4 %	6.3 %	6.0 %
2025Q1		0.6 %	2.3 %	4.2 %	6.0 %	7.2 %	7.8 %	7.4 %
2025Q2		0.8 %	3.5 %	6.6 %	8.9 %	10.0 %	9.4 %
2025Q3		1.1 %	4.8 %	8.0 %	10.0 %
2025Q4		1.1 %	4.3 %	7.6 %
2026Q1		0.7 %
*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.

 

View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-second-quarter-2026-unaudited-financial-results-302893719.html

SOURCE Yiren Digital Ltd.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Yiren Digital's second-quarter 2026 revenue and net loss?

Yiren Digital reported RMB890.0 million in revenue and a RMB449.6 million net loss for the quarter ended June 30, 2026. Revenue declined 46% year over year and 3% sequentially. The net loss compared with RMB494.7 million in the first quarter and net income of RMB357.5 million a year earlier.

How much did Yiren Digital authorize for its new share repurchase program?

The board authorized repurchases of up to US$20.0 million over the 12 months following July 2, 2026. The program permits purchases of up to 10% of total issued and outstanding ordinary shares and/or American depositary shares. Timing and amounts depend on market conditions and other applicable factors.

Why did Yiren Digital's second-quarter 2026 credit solution revenue decline?

Yiren Digital attributed the year-over-year decline primarily to lower loan facilitation volume amid revised online lending requirements. These introduced lower borrower all-in financing cost limits and stricter funding-partner requirements for pricing and risk-adjusted returns. The company moderated loan facilitation and concentrated originations increasingly among established repeat borrowers.

Why did Yiren Digital's second-quarter 2026 receivable allowances increase?

The increase primarily reflected a credit-loss provision on certain related-party loan receivables following a reassessment of recoverability, together with higher expected credit-loss allowances on older accounts receivable. Lower credit losses on financing and guarantee receivables partially offset these increases.

Why did Yiren Digital's insurance brokerage revenue fall sequentially in second-quarter 2026?

Yiren Digital attributed the sequential decline primarily to lower estimated renewal rates for certain internet insurance products and the resulting adjustment to revenue from the existing portfolio. Insurance brokerage revenue fell 23% from the first quarter to RMB67.3 million, while remaining 16% above the year-earlier quarter.