Exhibit 99.1
Yiren Digital Reports Fourth Quarter and Fiscal
Year 2025 Financial Results
BEIJING, March 19, 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 fourth quarter and 2025 fiscal year ended December 31, 2025.
Fourth Quarter and Fiscal Year 2025 Operational
Highlights
Credit Solution Business (formerly known as
Financial Services Business)
| ● | Total loans facilitated in the fourth quarter
of 2025 was RMB12.0 billion (US$1.7 billion), representing a decrease of 40% compared to RMB20.2 billion in the third quarter of 2025
and a decrease of 22% compared to RMB15.4 billion in the same period of 2024. Total loans facilitated for the 2025 full year reached RMB67.8
billion (US$9.7 billion), representing an increase of 26% from RMB53.6 billion in 2024. |
| ● | Number of borrowers served in the fourth quarter of 2025 was 742,444, representing a decrease of 44% compared
to 1,335,978 in the third quarter of 2025 and a decrease of 52% compared to 1,560,789 in the same period of 2024. The decrease was due
to the strategic tightening of the credit policy amid ongoing industry-wide fluctuations in credit risk. |
| · | Repeat
borrowers’ loan amount1 accounted for 77% of the total volume of loans facilitated
in the fourth quarter of 2025, in line with the third quarter of 2025. Repeat borrowers’ loan amount percentage was 76% for the
2025 full year, compared to 59% in 2024. |
| ● | Cumulative number of borrowers served reached 14,295,499 as of December 31, 2025, representing an increase
of 2% from 14,006,873 as of September 30, 2025, and an increase of 16% compared to 12,350,400 as of December 31, 2024. |
| ● | Outstanding balance of performing loans facilitated
was RMB28.6 billion (US$4.1 billion) as of December 31, 2025, representing a decrease of 17% from RMB34.2 billion as of September 30,
2025, and an increase of 15% compared to RMB24.8 billion as of December 31, 2024. |
| 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. |
Insurance Brokerage Business
| ● | Gross written premiums in the fourth quarter of 2025 were RMB860.1 million (US$123.0 million), representing
a decrease of 25% from RMB1,148.0 million in the third quarter of 2025 and a decrease of 22% compared to RMB1,100.3 million in the same
period of 2024. The decline was primarily due to reduced gross written premiums from broker channels, partially offset by the continued
strong growth of the internet insurance distribution business. |
| ● | Cumulative number of insurance clients was 2,035,550 as of December 31, 2025, representing an increase
of 10% from 1,853,435 as of September 30, 2025, and an increase of 33% from 1,532,119 as of December 31, 2024. |
| ● | Number of new insurance policies in the fourth quarter of 2025 was 824,225, representing a 16% increase
from 710,079 in the third quarter of 2025, and a 68% increase from 490,409 in the same period of 2024. This was primarily driven by the
rapid expansion of internet distribution channels throughout 2025. |
“Our early efforts to
strengthen credit standards and proactively build financial buffers ahead of the industry downturn have allowed us to navigate a challenging
market environment while maintaining stable operations,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.
“The AI-driven risk management system we built over the past two years is delivering measurable results, sharpening our credit decision-making
capabilities and reinforcing our operational resilience in China’s evolving credit market. These same AI capabilities are enabling us
to scale our internet insurance distribution business, which sustained strong growth momentum in 2025 and meaningfully expanded our addressable
market. Our strategic focus in 2026 is to deepen our AI-driven operating model and accelerate the transformation of our two core business
segments into purpose-built frameworks that serve institutional and individual clients and generate more commercial opportunities from
the AI technologies we have developed over the past few years.”
“Fiscal 2025 was a period of elevated credit
risk across the consumer lending industry, and we met this environment with disciplined risk management and proactive balance sheet stewardship.
We tightened our credit policy early and accumulated cash reserves to ensure we navigated the cycle with excess financial strength. Our
internet insurance distribution business delivered strong momentum throughout the year, emerging as a meaningful contributor to revenue
diversification and a proof point of our ability to scale new business lines,” Mr. William Hui, Chief Financial Officer of Yiren
Digital, commented.
Fourth Quarter 2025 Financial Results
Total net revenue in the fourth quarter
of 2025 was RMB957.6 million (US$136.9 million), representing a decrease of 34% from RMB1,452.2 million in the fourth quarter of 2024.
Within this, revenue from credit solution business
was RMB832.7 million (US$119.1 million), representing a decrease of 21% from RMB1,047.8 million in the same period of 2024. The decrease
was mainly attributed to a decline in service fee rate under the new regulatory framework and a proactive, strategic scale-back on the
loan facilitation volume of credit solution business amid heightened market risks. Revenue from credit solution business accounted for
87% of total net revenue in the fourth quarter.
Revenue from insurance brokerage business
was RMB83.8 million (US$12.0 million) in the fourth quarter of 2025, representing a decrease of 21% from RMB106.4 million in the fourth
quarter of 2024 due to structural compression in service fee rate in recent years. The internet distribution sub-segment has demonstrated
strong growth momentum since mid-2025 and its contribution to total brokerage revenue is increasing significantly in the fourth quarter
of 2025 to 22%.
Revenue from other business was RMB41.1
million (US$5.9 million), compared with RMB298.0 million in the same period of 2024. The decrease was mainly attributable to the continued
decline in sales through the e-commerce business.
Sales and marketing expenses in the fourth
quarter of 2025 were RMB206.1 million (US$29.5 million), a decrease of 31% compared to RMB298.5 million in the same period of 2024. This
change was mainly attributable to a scale-down in facilitated loan volume in the fourth quarter of 2025, and a higher contribution from
repeat borrowers through Yixianghua platform, which increased to 77%, compared with 65% in the same period last year, and a decrease in
new customer acquisition costs as the result of AI-assisted precision marketing.
Origination, servicing and other operating
costs in the fourth quarter of 2025 were RMB250.9 million (US$35.9 million), representing a 27% increase from RMB197.2 million in
the same period of 2024. The increase reflects a strategic decision to raise asset recovery commissions to incentivize stronger recovery
performance amid a challenging credit environment. These incremental recovery costs were partially offset by meaningful savings from the
accelerated deployment of AI agents and automation across the collection and customer service workflows, as well as disciplined cost management
across broader operations.
Research and development expenses in the
fourth quarter of 2025 were RMB121.4 million (US$17.4 million), a decrease of 26% compared to RMB164.7 million in the same period of 2024,
and an increase of 33% from RMB91.5 million in the third quarter of 2025. The year-over-year decrease in R&D expenses was mainly due
to a high base resulting from a one-off development expense in the AI credit system in the second half of 2024. With that build largely
complete, the deeper integration of AI automation tools across the credit analytic workflows in 2025 delivered measurable efficiency gains
and a more optimized cost structure. R&D expenses increased in the fourth quarter compared to the third quarter due to increased investment
in senior AI R&D talent to support the execution of the 2026 AI roadmap.
General and administrative expenses in
the fourth quarter of 2025 were RMB44.3 million (US$6.3 million), representing a modest increase of 5%, compared to RMB42.2 million in
the same period of 2024 and a decrease of 58% from RMB104.4 million in the third quarter of 2025. As Yiren Digital continues to invest
in talent and implement organizational restructuring to strengthen its operational capabilities, these expenses may have some seasonal
fluctuation.
Allowance for contract assets, receivables
and others in the fourth quarter of 2025 was RMB295.8 million (US$42.3 million), compared to RMB203.1 million in the same period of
2024. The increase was driven by higher receivables from guarantee services and financing services, fueled by rising expected loss rates
amid an industry-level higher risk profile of assets.
Provision for
contingent liabilities in the fourth quarter of 2025 was RMB1,110.1 million (US$158.7 million), compared to RMB250.7 million in the
same period of 2024. The increase was primarily driven by the overall growth in loan volume originated under the risk-taking model 2,
coupled with a higher-risk asset profile.
Fair value adjustments gain/(loss) in the
fourth quarter of 2025 was a loss of RMB84.9 million (US$12.1 million), compared to a gain of RMB16.9 million in the same period of 2024,
and a gain of RMB161.3 million in the third quarter of 2025. The decrease primarily resulted from fair value changes in crypto assets,
reflecting the overall decline in digital asset prices during the fourth quarter of 2025.
Income tax benefit in the fourth quarter
of 2025 was RMB245.3 million (US$35.1 million).
Net loss for the fourth quarter of 2025
was RMB882.2 million (US$126.1 million), compared to a net income of RMB331.4 million in the same period in 2024. The loss primarily resulted
from substantial upfront provisions recognized in the quarter for risk-taking model assets in the credit solution business — required
by accounting standards for the expanding loan volume under the risk-taking model — along with a higher-risk asset profile and lower
fee rates in the loan facilitation business under the new regulations. The short-term impact of accounting standards on earnings should
normalize as the risk-taking loan balance stabilizes.
Adjusted EBITDA3 (non-GAAP)
in the fourth quarter of 2025 was a loss of RMB1,022.8 million (US$146.3 million), compared to a gain of RMB319.5 million in the same
period of 2024 and a gain of RMB236.8 million in the third quarter of 2025.
Basic and diluted loss per ADS in the
fourth quarter of 2025 were RMB10.1230 (US$1.4476) and RMB10.0650 (US$1.4392), respectively, compared to basic and diluted income
per ADS of RMB3.8378 and RMB3.8156, respectively, in the same period of 2024.
Net cash used in operating activities in
the fourth quarter of 2025 was RMB197.6 million (US$28.3 million), compared to RMB373.0 million generated from operating activities in
the same period of 2024.
Net cash provided by investing activities
in the fourth quarter of 2025 was RMB50.8 million (US$7.3 million), compared to RMB32.9 million used in investing activities in the same
period of 2024.
| 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. |
Net cash used in financing activities in
the fourth quarter of 2025 was RMB234.1 million (US$33.5 million), compared to RMB114.3 million in the same period of 2024.
As of December 31, 2025, cash and cash equivalents
were RMB3,348.1 million (US$478.8 million), compared to RMB3,841.3 million as of December 31, 2024. As of December 31, 2025, the balance
of financial investments was RMB483.7 million (US$69.2 million), compared to RMB437.2 million as of December 31, 2024.
Delinquency rates4. As of
December 31, 2025, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 3.4%, 3.0% and 2.8%,
respectively, compared to 2.7%, 1.7% and 1.4%, respectively, as of September 30, 2025.
Fiscal Year 2025 Financial Results
Total net revenue in 2025 was RMB5,719.2
million (US$817.8 million), representing a decrease of 1% from RMB5,805.9 million in 2024.
By segment, revenue from credit solution
business was RMB5,040.0 million (US$720.7 million), representing an increase of 45% from RMB3,473.1 million in 2024. The increase
was primarily attributable to increased guarantee services revenue from overall growth in loan volume originated under the risk-taking
model in 2025, as well as to increased revenue from marketing services and technical support services.
Revenue from insurance brokerage business
was RMB297.6 million (US$42.6 million) in 2025, representing a decrease of 27% from RMB408.4 million in 2024. The decline reflects structural
compression in brokerage commission rates and tightened market conditions under enhanced regulatory oversight in recent years. However,
the internet distribution channel has demonstrated strong growth momentum in 2025 and accounted for 14% of revenue in this segment for
the whole year result.
Revenue from other business was RMB381.6
million (US$54.6 million), compared with the revenue of RMB1,924.4 million in 2024. The decrease was mainly attributable to a continued
decline in sales from the e-commerce business.
| 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. |
Sales and marketing expenses in 2025 were
RMB1,159.9 million (US$165.9 million), a 3% decrease compared to RMB1,196.4 million in 2024, while total loan facilitation increased by
26% in 2025, reflecting improved customer acquisition efficiency. The decline in sales and marketing expenses was mainly attributable
to a higher contribution from repeat borrowers through the Yixianghua platform, which increased to 76% in 2025, compared with 59% in 2024.
The increasing application of Artificial Intelligence Generated Content (“AIGC”) and AI agents in tele-sales also contributed
to the decrease in this expense.
Origination, servicing and other operating
costs in 2025 were RMB786.4 million (US$112.5 million), representing an 11% decrease from RMB883.0 million in 2024. This decrease
was primarily driven by cost savings from decreased insurance brokerage business along with the broader use of AI agents to automate
customer service, and enhanced cost discipline in overall operations.
Research and development expenses in 2025
were RMB406.6 million (US$58.1 million), representing a decrease of 1% compared to RMB411.9 million in 2024. R&D expenses were well-balanced
in 2025 as the AI credit system completed a major upgrade at the end of 2024, which created cost savings, offset by an increase in AI
talent for future AI initiatives.
General and administrative expenses in
2025 were RMB323.4 million (US$46.2 million), representing an increase of 18% compared to RMB274.7 million in 2024, primarily driven by
the continuous investment in professionals and specialized talent to support business diversification and strengthen risk management,
alongside organizational restructuring initiatives.
Allowance for contract assets,
receivables and others in 2025 was RMB892.7 million (US$127.6 million), compared to RMB523.6 million in 2024. The increase was
driven by increased loan facilitation volume in 2025 compared to the prior year, which resulted in higher receivables and a
corresponding increase in the allowance.
Provision for contingent liabilities
in 2025 was RMB2,366.3 million (US$338.4 million), compared to RMB869.3 million in 2024. The increase was primarily driven by the overall
growth in loan volume originated under the risk-taking model in 2025, coupled with a higher-risk asset profile.
Fair value adjustments gain in 2025 was
RMB46.1 million (US$6.6 million) compared to RMB107.5 million in 2024. The decrease was mainly attributable to fair value changes in crypto
assets, reflecting weaker digital asset prices in the fourth quarter of 2025.
Income tax benefit in 2025 was RMB99.0
million (US$14.2 million), compared to an income tax expense of RMB279.2 million in 2024.
Net income in 2025 was RMB40.5 million
(US$5.8 million), compared to RMB1,582.3 million in 2024. The decrease primarily resulted from increasing allowance of contract assets
and receivables due to more loan facilitation volume during the period, plus substantial upfront provisions recognized for the risk-taking
model assets in the fourth quarter of 2025 required by accounting standards, along with a higher-risk asset profile and lower fee rates
in the loan facilitation business under new regulations. The short-term impact of accounting standards on earnings should normalize as
the risk-taking loan balance stabilizes.
Adjusted EBITDA (non-GAAP) in 2025 was
a loss of RMB109.6 million (US$15.7 million), compared to a gain of RMB1,776.2 million in 2024.
Basic and diluted income per ADS in 2025
were RMB0.4670 (US$0.0668) and RMB0.4640 (US$0.0664), respectively, compared to RMB18.2654 and RMB18.1132, respectively,
in 2024.
Net cash generated from operating activities
in 2025 was RMB686.7 million (US$98.2 million), compared to RMB1,424.1 million in 2024.
Net cash used in investing activities in
2025 was RMB1,554.6 million (US$222.3 million), compared to RMB3,113.1 million in 2024.
Net cash provided by financing activities
in 2025 was RMB662.6 million (US$94.8 million), compared to RMB277.2 million used in financing activities in 2024.
Dividend Policy
Under the Company’s semi-annual dividend policy,
the Board has determined to temporarily suspend the Company’s cash dividend for the second half of 2025. This decision reflects
the Company’s current capital priorities, including maintaining appropriate reserves to support potential credit fluctuations in
its lending business and funding investments in technology development. The Board periodically reviews the Company’s capital requirements,
financial condition and results of operations when considering future dividend declarations.
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 RMB6.9931 to US$1.00, the effective noon buying rate on December 31, 2025, 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 March 19, 2026 (or 8:00 p.m. Beijing/Hong Kong Time on March 19, 2026).
Participants who wish to join the call should
register online in advance of the conference at:
https://dpregister.com/sreg/10207200/1036f9b7260.
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.
Safe Harbor Statement
This press release contains forward-looking statements.
These statements constitute “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 forward-looking statements can
be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates,” “target,” “confident” and similar statements.
Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that
involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren
Digital’s control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ
materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties
as to Yiren Digital’s ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products
and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service
industry in China, general economic conditions in China, and Yiren Digital’s ability to meet the standards necessary to maintain
the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE’s continued
listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital’s filings
with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release,
and Yiren Digital does not undertake any obligation to update any forward-looking statement 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. With the successful filing of the in-house developed Large Language Model Zhiyu, the substantial upgrade
of its Magicube Agent platform, Yiren Digital is establishing a new growth engine to position itself as an AI-powered next-generation
fintech leader. For more information, please visit https://ir.yiren.com.
For further information:
Media Inquiry
Email: pr@creditease.cn
Investor Relations
Email: ir@yiren.com
Piacente Financial Communications
Email: yrd@thepiacentegroup.com
SOURCE Yiren Digital
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 Year Ended | |
| | |
December 31,
2024 | | |
September 30,
2025 | | |
December 31,
2025 | | |
December 31,
2025 | | |
December 31,
2024 | | |
December 31,
2025 | | |
December 31,
2025 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Net revenue: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Loan facilitation services | |
| 748,663 | | |
| 611,859 | | |
| 5,734 | | |
| 820 | | |
| 2,721,389 | | |
| 2,234,571 | | |
| 319,539 | |
| Post-origination services | |
| 1,474 | | |
| 2,617 | | |
| (7,569 | ) | |
| (1,082 | ) | |
| 5,957 | | |
| 7,255 | | |
| 1,038 | |
| Guarantee services | |
| 206,766 | | |
| 458,363 | | |
| 612,283 | | |
| 87,555 | | |
| 429,299 | | |
| 1,705,985 | | |
| 243,953 | |
| Financing services | |
| 31,551 | | |
| 67,850 | | |
| 67,541 | | |
| 9,658 | | |
| 93,239 | | |
| 243,099 | | |
| 34,763 | |
| Insurance brokerage services | |
| 106,387 | | |
| 84,228 | | |
| 83,768 | | |
| 11,979 | | |
| 408,369 | | |
| 297,593 | | |
| 42,555 | |
| Electronic commerce services | |
| 292,678 | | |
| 32,555 | | |
| 14,405 | | |
| 2,060 | | |
| 1,865,621 | | |
| 324,996 | | |
| 46,474 | |
| Network and marketing services* | |
| 61,804 | | |
| 222,032 | | |
| 151,619 | | |
| 21,681 | | |
| 241,114 | | |
| 636,277 | | |
| 90,986 | |
| Technology services* | |
| 1,470 | | |
| 70,646 | | |
| 26,555 | | |
| 3,797 | | |
| 33,570 | | |
| 256,323 | | |
| 36,654 | |
| Others* | |
| 1,400 | | |
| 4,814 | | |
| 3,294 | | |
| 471 | | |
| 7,343 | | |
| 13,121 | | |
| 1,876 | |
| Total net revenue | |
| 1,452,193 | | |
| 1,554,964 | | |
| 957,630 | | |
| 136,939 | | |
| 5,805,901 | | |
| 5,719,220 | | |
| 817,838 | |
| Operating costs and expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Sales and marketing | |
| 298,458 | | |
| 331,758 | | |
| 206,058 | | |
| 29,466 | | |
| 1,196,429 | | |
| 1,159,934 | | |
| 165,868 | |
| Origination,servicing and other operating costs | |
| 197,232 | | |
| 149,911 | | |
| 250,878 | | |
| 35,875 | | |
| 882,957 | | |
| 786,386 | | |
| 112,452 | |
| Research and development | |
| 164,703 | | |
| 91,514 | | |
| 121,406 | | |
| 17,361 | | |
| 411,876 | | |
| 406,567 | | |
| 58,138 | |
| General and administrative | |
| 42,232 | | |
| 104,420 | | |
| 44,250 | | |
| 6,328 | | |
| 274,673 | | |
| 323,369 | | |
| 46,241 | |
| Allowance for contract assets, receivables and others | |
| 203,090 | | |
| 229,355 | | |
| 295,798 | | |
| 42,298 | | |
| 523,622 | | |
| 892,656 | | |
| 127,648 | |
| Provision for contingent liabilities | |
| 250,691 | | |
| 459,783 | | |
| 1,110,124 | | |
| 158,746 | | |
| 869,280 | | |
| 2,366,344 | | |
| 338,383 | |
| Total operating costs and expenses | |
| 1,156,406 | | |
| 1,366,741 | | |
| 2,028,514 | | |
| 290,074 | | |
| 4,158,837 | | |
| 5,935,256 | | |
| 848,730 | |
| Other income/(loss): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investment income | |
| 7,356 | | |
| 3,791 | | |
| 1,047 | | |
| 150 | | |
| 19,168 | | |
| 9,055 | | |
| 1,295 | |
| Interest income | |
| 23,863 | | |
| 19,704 | | |
| 14,473 | | |
| 2,070 | | |
| 86,309 | | |
| 78,764 | | |
| 11,263 | |
| Fair value adjustments gain/(loss) | |
| 16,935 | | |
| 161,328 | | |
| (84,917 | ) | |
| (12,143 | ) | |
| 107,532 | | |
| 46,053 | | |
| 6,585 | |
| Others, net | |
| (1,353 | ) | |
| 644 | | |
| 12,821 | | |
| 1,833 | | |
| 1,848 | | |
| 28,223 | | |
| 4,036 | |
| Total other income/(loss) | |
| 46,801 | | |
| 185,467 | | |
| (56,576 | ) | |
| (8,090 | ) | |
| 214,857 | | |
| 162,095 | | |
| 23,179 | |
| Income/(loss) before provision for income taxes | |
| 342,588 | | |
| 373,690 | | |
| (1,127,460 | ) | |
| (161,225 | ) | |
| 1,861,921 | | |
| (53,941 | ) | |
| (7,713 | ) |
| Share of results of equity investees | |
| (440 | ) | |
| - | | |
| - | | |
| - | | |
| (440 | ) | |
| (4,560 | ) | |
| (652 | ) |
| Income tax expense/(benefit) | |
| 10,702 | | |
| 56,053 | | |
| (245,303 | ) | |
| (35,078 | ) | |
| 279,182 | | |
| (99,027 | ) | |
| (14,160 | ) |
| Net income/(loss) | |
| 331,446 | | |
| 317,637 | | |
| (882,157 | ) | |
| (126,147 | ) | |
| 1,582,299 | | |
| 40,526 | | |
| 5,795 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding, basic | |
| 172,723,644 | | |
| 174,179,898 | | |
| 174,286,897 | | |
| 174,286,897 | | |
| 173,256,348 | | |
| 173,575,410 | | |
| 173,575,410 | |
| Basic income/(loss) per share | |
| 1.9189 | | |
| 1.8236 | | |
| (5.0615 | ) | |
| (0.7238 | ) | |
| 9.1327 | | |
| 0.2335 | | |
| 0.0334 | |
| Basic income/(loss) per ADS | |
| 3.8378 | | |
| 3.6472 | | |
| (10.1230 | ) | |
| (1.4476 | ) | |
| 18.2654 | | |
| 0.4670 | | |
| 0.0668 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding, diluted | |
| 173,727,886 | | |
| 175,153,288 | | |
| 175,292,459 | | |
| 175,292,459 | | |
| 174,711,569 | | |
| 174,684,691 | | |
| 174,684,691 | |
| Diluted income/(loss) per share | |
| 1.9078 | | |
| 1.8135 | | |
| (5.0325 | ) | |
| (0.7196 | ) | |
| 9.0566 | | |
| 0.2320 | | |
| 0.0332 | |
| Diluted income/(loss) per ADS | |
| 3.8156 | | |
| 3.6270 | | |
| (10.0650 | ) | |
| (1.4392 | ) | |
| 18.1132 | | |
| 0.4640 | | |
| 0.0664 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Unaudited Condensed Consolidated Cash Flow Data | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net cash generated from/(used in) operating activities | |
| 373,038 | | |
| (5,484 | ) | |
| (197,645 | ) | |
| (28,263 | ) | |
| 1,424,082 | | |
| 686,745 | | |
| 98,203 | |
| Net cash (used in)/provided by investing activities | |
| (32,948 | ) | |
| (707,599 | ) | |
| 50,800 | | |
| 7,264 | | |
| (3,113,115 | ) | |
| (1,554,589 | ) | |
| (222,303 | ) |
| Net cash (used in)/provided by financing activities | |
| (114,341 | ) | |
| 529,732 | | |
| (234,140 | ) | |
| (33,482 | ) | |
| (277,226 | ) | |
| 662,604 | | |
| 94,751 | |
| Effect of foreign exchange rate changes | |
| 15,020 | | |
| (10,449 | ) | |
| (7,989 | ) | |
| (1,142 | ) | |
| 9,212 | | |
| (25,483 | ) | |
| (3,644 | ) |
| Net increase/(decrease) in cash, cash equivalents and restricted cash | |
| 240,769 | | |
| (193,800 | ) | |
| (388,974 | ) | |
| (55,623 | ) | |
| (1,957,047 | ) | |
| (230,723 | ) | |
| (32,993 | ) |
| Cash, cash equivalents and restricted cash, beginning of period | |
| 3,860,788 | | |
| 4,453,608 | | |
| 4,259,808 | | |
| 609,145 | | |
| 6,058,604 | | |
| 4,101,557 | | |
| 586,515 | |
| Cash, cash equivalents and restricted cash, end of period | |
| 4,101,557 | | |
| 4,259,808 | | |
| 3,870,834 | | |
| 553,522 | | |
| 4,101,557 | | |
| 3,870,834 | | |
| 553,522 | |
| * | 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,
2024 | | |
September 30,
2025 | | |
December 31,
2025 | | |
December 31,
2025 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | |
| | |
| | |
| | |
| | |
| |
| Cash and cash equivalents | |
| 3,841,284 | | |
| 3,864,891 | | |
| 3,348,126 | | |
| 478,776 | |
| Restricted cash | |
| 260,273 | | |
| 394,917 | | |
| 522,708 | | |
| 74,746 | |
| Accounts receivable | |
| 566,541 | | |
| 796,551 | | |
| 753,463 | | |
| 107,744 | |
| Guarantee receivable | |
| 474,132 | | |
| 715,996 | | |
| 832,905 | | |
| 119,104 | |
| Contract assets, net | |
| 1,008,920 | | |
| 1,227,236 | | |
| 619,291 | | |
| 88,557 | |
| Contract cost | |
| 294 | | |
| 6,936 | | |
| 4,287 | | |
| 613 | |
| Prepaid expenses and other assets | |
| 2,361,585 | | |
| 2,672,111 | | |
| 1,848,697 | | |
| 264,360 | |
| Loans at fair value | |
| 421,922 | | |
| 473,570 | | |
| 342,895 | | |
| 49,033 | |
| Financing receivables | |
| 17,515 | | |
| 1,061,080 | | |
| 909,182 | | |
| 130,011 | |
| Amounts due from related parties | |
| 3,387,952 | | |
| 3,101,835 | | |
| 2,974,080 | | |
| 425,288 | |
| Financial investments | |
| 437,203 | | |
| 498,766 | | |
| 483,700 | | |
| 69,168 | |
| Equity investments | |
| 9,239 | | |
| 4,633 | | |
| 11,528 | | |
| 1,649 | |
| Property, equipment and software, net | |
| 78,678 | | |
| 84,867 | | |
| 50,403 | | |
| 7,208 | |
| Crypto assets | |
| - | | |
| 333,530 | | |
| 391,267 | | |
| 55,950 | |
| Deferred tax assets | |
| 77,463 | | |
| 173,182 | | |
| 325,094 | | |
| 46,488 | |
| Right-of-use assets | |
| 39,695 | | |
| 40,257 | | |
| 37,329 | | |
| 5,338 | |
| Total assets | |
| 12,982,696 | | |
| 15,450,358 | | |
| 13,454,955 | | |
| 1,924,033 | |
| Accounts payable | |
| 43,167 | | |
| 50,401 | | |
| 79,630 | | |
| 11,387 | |
| Amounts due to related parties | |
| 129,629 | | |
| 51,826 | | |
| 44,179 | | |
| 6,317 | |
| Guarantee liabilities-stand ready | |
| 606,886 | | |
| 929,970 | | |
| 989,701 | | |
| 141,525 | |
| Guarantee liabilities-contingent | |
| 578,797 | | |
| 874,717 | | |
| 1,300,097 | | |
| 185,911 | |
| Deferred revenue | |
| 9,479 | | |
| 335 | | |
| 227 | | |
| 33 | |
| Payable to investors at fair value | |
| 368,022 | | |
| 1,392,631 | | |
| 1,294,792 | | |
| 185,153 | |
| Accrued expenses and other liabilities | |
| 1,622,050 | | |
| 1,656,601 | | |
| 404,680 | | |
| 57,869 | |
| Deferred tax liabilities | |
| 41,471 | | |
| 108,404 | | |
| 30,619 | | |
| 4,379 | |
| Lease liabilities | |
| 40,765 | | |
| 42,596 | | |
| 39,758 | | |
| 5,685 | |
| Total liabilities | |
| 3,440,266 | | |
| 5,107,481 | | |
| 4,183,683 | | |
| 598,259 | |
| Ordinary shares | |
| 132 | | |
| 133 | | |
| 133 | | |
| 19 | |
| Additional paid-in capital | |
| 5,198,457 | | |
| 5,229,667 | | |
| 5,239,550 | | |
| 749,246 | |
| Treasury stock | |
| (170,463 | ) | |
| (170,686 | ) | |
| (170,686 | ) | |
| (24,408 | ) |
| Accumulated other comprehensive income | |
| 79,268 | | |
| 70,603 | | |
| 10,722 | | |
| 1,533 | |
| Retained earnings | |
| 4,435,036 | | |
| 5,213,160 | | |
| 4,191,553 | | |
| 599,384 | |
| Total equity | |
| 9,542,430 | | |
| 10,342,877 | | |
| 9,271,272 | | |
| 1,325,774 | |
| Total liabilities and equity | |
| 12,982,696 | | |
| 15,450,358 | | |
| 13,454,955 | | |
| 1,924,033 | |
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 Year Ended | |
| | |
December 31,
2024 | | |
September 30,
2025 | | |
December 31,
2025 | | |
December 31,
2025 | | |
December 31,
2024 | | |
December 31,
2025 | | |
December 31,
2025 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | | |
RMB | | |
RMB | | |
USD | |
| Operating
Highlights | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Amount
of loans facilitated | |
| 15,352,533 | | |
| 20,166,545 | | |
| 12,038,386 | | |
| 1,721,466 | | |
| 53,591,593 | | |
| 67,790,653 | | |
| 9,693,935 | |
| Number
of borrowers | |
| 1,560,789 | | |
| 1,335,978 | | |
| 742,444 | | |
| 742,444 | | |
| 4,187,502 | | |
| 3,513,192 | | |
| 3,513,192 | |
| Remaining
principal of performing loans | |
| 24,755,199 | | |
| 34,235,130 | | |
| 28,574,962 | | |
| 4,086,165 | | |
| 24,755,199 | | |
| 28,574,962 | | |
| 4,086,165 | |
| Cumulative
number of insurance clients | |
| 1,532,119 | | |
| 1,853,435 | | |
| 2,035,550 | | |
| 2,035,550 | | |
| 1,532,119 | | |
| 2,035,550 | | |
| 2,035,550 | |
| Number
of insurance clients | |
| 83,786 | | |
| 229,353 | | |
| 267,730 | | |
| 267,730 | | |
| 296,842 | | |
| 589,756 | | |
| 589,756 | |
| Gross
written premiums | |
| 1,100,262 | | |
| 1,147,966 | | |
| 860,106 | | |
| 122,994 | | |
| 4,424,889 | | |
| 3,659,950 | | |
| 523,366 | |
| First
year premium | |
| 475,285 | | |
| 443,189 | | |
| 469,498 | | |
| 67,138 | | |
| 2,078,190 | | |
| 1,765,537 | | |
| 252,469 | |
| Renewal
premium | |
| 624,977 | | |
| 704,777 | | |
| 390,608 | | |
| 55,856 | | |
| 2,346,699 | | |
| 1,894,413 | | |
| 270,897 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment
Information | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Credit
solution business: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| 1,047,768 | | |
| 1,423,231 | | |
| 832,728 | | |
| 119,078 | | |
| 3,473,109 | | |
| 5,040,026 | | |
| 720,714 | |
| Sales
and marketing expenses | |
| 290,253 | | |
| 322,184 | | |
| 156,400 | | |
| 22,365 | | |
| 1,102,737 | | |
| 1,071,892 | | |
| 153,279 | |
| Origination,
servicing and other operating costs | |
| 123,585 | | |
| 87,322 | | |
| 182,160 | | |
| 26,049 | | |
| 442,312 | | |
| 515,722 | | |
| 73,747 | |
| Allowance
for contract assets, receivables and others | |
| 200,755 | | |
| 226,267 | | |
| 296,962 | | |
| 42,465 | | |
| 519,895 | | |
| 891,601 | | |
| 127,497 | |
| Provision
for contingent liabilities | |
| 250,691 | | |
| 459,783 | | |
| 1,110,124 | | |
| 158,746 | | |
| 869,280 | | |
| 2,366,344 | | |
| 338,383 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Insurance
brokerage business: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| 106,387 | | |
| 84,228 | | |
| 83,768 | | |
| 11,979 | | |
| 408,369 | | |
| 297,593 | | |
| 42,555 | |
| Sales
and marketing expenses | |
| 2,333 | | |
| 2,077 | | |
| 1,639 | | |
| 234 | | |
| 13,706 | | |
| 9,242 | | |
| 1,321 | |
| Origination,
servicing and other operating costs | |
| 69,518 | | |
| 61,142 | | |
| 65,651 | | |
| 9,388 | | |
| 407,225 | | |
| 260,916 | | |
| 37,311 | |
| Allowance
for contract assets, receivables and others | |
| 241 | | |
| 677 | | |
| (1,242 | ) | |
| (178 | ) | |
| (663 | ) | |
| (579 | ) | |
| (83 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Others: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| 298,038 | | |
| 47,505 | | |
| 41,134 | | |
| 5,882 | | |
| 1,924,423 | | |
| 381,601 | | |
| 54,569 | |
| Sales
and marketing expenses | |
| 5,872 | | |
| 7,497 | | |
| 48,019 | | |
| 6,867 | | |
| 79,986 | | |
| 78,800 | | |
| 11,268 | |
| Origination,
servicing and other operating costs | |
| 4,129 | | |
| 1,447 | | |
| 3,067 | | |
| 438 | | |
| 33,420 | | |
| 9,748 | | |
| 1,394 | |
| Allowance
for contract assets, receivables and others | |
| (756 | ) | |
| 34 | | |
| (1 | ) | |
| - | | |
| 908 | | |
| (1,916 | ) | |
| (274 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Reconciliation
of Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net
income/(loss) | |
| 331,446 | | |
| 317,637 | | |
| (882,157 | ) | |
| (126,147 | ) | |
| 1,582,299 | | |
| 40,526 | | |
| 5,795 | |
| Interest income and investment income, net | |
| (31,219 | ) | |
| (23,495 | ) | |
| (15,520 | ) | |
| (2,220 | ) | |
| (105,477 | ) | |
| (87,819 | ) | |
| (12,558 | ) |
| Income tax expense/(benefit) | |
| 10,702 | | |
| 56,053 | | |
| (245,303 | ) | |
| (35,078 | ) | |
| 279,182 | | |
| (99,027 | ) | |
| (14,160 | ) |
| Depreciation
and amortization | |
| 2,574 | | |
| 3,252 | | |
| 4,758 | | |
| 681 | | |
| 8,893 | | |
| 12,950 | | |
| 1,852 | |
| Share-based
compensation | |
| 350 | | |
| 14,439 | | |
| 6,662 | | |
| 953 | | |
| 16,928 | | |
| 30,220 | | |
| 4,321 | |
| Fair
value adjustments related to crypto assets and financial investment | |
| 5,663 | | |
| (131,101 | ) | |
| 108,777 | | |
| 15,555 | | |
| (5,623 | ) | |
| (6,479 | ) | |
| (927 | ) |
| Adjusted
EBITDA | |
| 319,516 | | |
| 236,785 | | |
| (1,022,783 | ) | |
| (146,256 | ) | |
| 1,776,202 | | |
| (109,629 | ) | |
| (15,677 | ) |
| Adjusted
EBITDA margin | |
| 22.0 | % | |
| 15.2 | % | |
| -106.8 | % | |
| -106.8 | % | |
| 30.6 | % | |
| -1.9 | % | |
| -1.9 | % |
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 | % |
| March 31, 2025 | |
| 1.6 | % | |
| 1.2 | % | |
| 1.2 | % |
| June 30, 2025 | |
| 1.7 | % | |
| 1.1 | % | |
| 1.0 | % |
| September 30, 2025 | |
| 2.7 | % | |
| 1.7 | % | |
| 1.4 | % |
| December 31, 2025 | |
| 3.4 | % | |
| 3.0 | % | |
| 2.8 | % |
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 | % | |
| 6.7 | % | |
| | |
| 2024Q2 | |
| 0.6 | % | |
| 2.4 | % | |
| 4.0 | % | |
| 5.1 | % | |
| 5.8 | % | |
| 6.1 | % | |
| 6.1 | % | |
| 6.0 | % | |
| 6.1 | % | |
| | | |
| | |
| 2024Q3 | |
| 0.5 | % | |
| 2.2 | % | |
| 3.7 | % | |
| 4.7 | % | |
| 5.4 | % | |
| 5.8 | % | |
| 5.7 | % | |
| | | |
| | | |
| | | |
| | |
| 2024Q4 | |
| 0.6 | % | |
| 2.2 | % | |
| 3.8 | % | |
| 4.9 | % | |
| 5.9 | % | |
| 6.1 | % | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2025Q1 | |
| 0.6 | % | |
| 2.3 | % | |
| 4.2 | % | |
| 5.5 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2025Q2 | |
| 0.8 | % | |
| 3.5 | % | |
| 5.5 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2025Q3 | |
| 1.0 | % | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| * | 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. |
