Yiren Digital Ltd. (YRD) Q2 2026 Financial Results
QuoteReporter
Yiren Digital (YRD) Q2 2026: Revenue Decline, Loss Narrows — Cautiously Optimistic
Yiren Digital Ltd. (NYSE: YRD) reported its second quarter 2026 financial results, revealing total net revenue of RMB890.0 million (US$131.2 million), a decrease of 3% from RMB915.1 million in the first quarter of 2026 and a significant decline of 46% from RMB1,652.1 million in the same period of 2025. This performance reflects ongoing challenges in the credit solutions sector, but the narrowing of net loss by 9% sequentially indicates some operational improvements.
Despite the disappointing revenue figures, the quarter can be viewed as cautiously optimistic for shareholders. The company has shown resilience in its credit solutions business by focusing on repeat borrowers, which accounted for 82% of total loans facilitated, up from 78% in the previous quarter. This strategic shift may help stabilize revenue streams moving forward.
Key Financial Metrics:
- Total Net Revenue: RMB890.0 million (US$131.2 million), down 3% QoQ and 46% YoY.
- Revenue from Credit Solutions: RMB777.6 million (US$114.6 million), down 2% QoQ and 48% YoY.
- Revenue from Insurance Brokerage: RMB67.3 million (US$9.9 million), down 23% QoQ but up 16% YoY.
- Net Loss: RMB449.6 million (US$66.3 million), improved from a net loss of RMB494.7 million in Q1 2026 and a net income of RMB357.5 million in Q2 2025.
- Basic and Diluted Loss per ADS: RMB5.1068 (US$0.7526), compared to RMB5.6420 in Q1 2026 and earnings of RMB4.1356 in Q2 2025.
- Cash and Cash Equivalents: RMB1,696.7 million (US$250.1 million), down from RMB2,453.1 million as of March 31, 2026.
Operational Highlights:
- Total Loans Facilitated: RMB6.3 billion (US$0.9 billion), down 29% QoQ and 69% YoY.
- Average Loan Size: RMB11,610, down 3% QoQ but up 57% YoY.
- Number of Borrowers Served: 424,489, down 20% QoQ and 74% YoY.
- Cumulative Number of Borrowers: 14,667,379, up 1% QoQ and 8% YoY.
- Outstanding Balance of Performing Loans: RMB15.1 billion (US$2.2 billion), down 30% QoQ and 52% YoY.
Strategic Developments:
Yiren Digital's board of directors has authorized a new share repurchase program of up to US$20.0 million over the next 12 months, signaling confidence in the company's long-term value. The company is also focusing on enhancing its AI capabilities, which have shown measurable efficiency gains across operations, particularly in asset recovery and customer operations.
Guidance and Future Outlook:
The company is evaluating a range of capital-allocation initiatives, including potential cash dividend payments, as part of its strategy to enhance long-term shareholder value. The focus on repeat borrowers and the expansion of its insurance client base, which grew by 281% year-over-year, are positive indicators for future revenue stability.
Conclusion:
While Yiren Digital's Q2 2026 results reflect significant challenges, particularly in loan facilitation, the narrowing of net losses and strategic focus on repeat borrowers and AI deployment provide a cautiously optimistic outlook. Investors should watch for improvements in loan facilitation volumes and the impact of the new share repurchase program in the upcoming quarters.
Income Statement
Currency: RMB (in thousands)
| 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 |
|---|---|---|---|---|---|---|---|---|
| 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) |
Balance Sheet
Currency: RMB (in thousands)
