Beijing, September 30th / PRNewswire / -- Yiren Digital Ltd (New York Stock Exchange ticker: YRD) ("Yiren Digital" or "the Company") today announced its unaudited financial results for the second quarter ending June 30, 2026. Yiren Digital is a company focused on fintech and artificial intelligence innovation, with operations covering multiple industries in China and global markets.

Highlights of the Second Quarter of 2026

• The late payment rates continued to improve in the later period. As of June 30, 2026, the late payment rates for 31–60 days and 61–90 days had dropped to 2.0% and 2.4%, respectively, compared to 2.7% and 3.2% on March 31, 2026.
• Repetitive borrowers accounted for 82% of the total loan amount facilitated, which is higher than 78% in the first quarter of 2026 and 77% during the same period in 2025, reflecting the company's continued focus on serving mature borrowers.
• Insurance customer growth remained strong, with the number of customers increasing by 281% year-on-year, and the number of new policies increasing by 177% year-on-year.
• Insurance brokerage income increased by 16% year-on-year.
• AI continues to bring measurable improvements in efficiency to key operational functions, including a reduction in the manual processing rate in asset recovery and an increase in the self-resolution rate in customer operations.
• On July 2, 2026, the company's board of directors authorized a new stock repurchase plan, with a maximum repurchase amount of up to 20 million US dollars over the next 12 months.

Operational Data for the Second Quarter of 2026

Credit Solutions Business

• In the second quarter of 2026, the total amount of loans facilitated amounted to 6.3 billion yuan (900 million US dollars), which is a decrease of 29% compared to 8.9 billion yuan in the first quarter of 2026 and a decrease of 69% compared to 20.3 billion yuan during the same period in 2025.
• In the second quarter of 2026, the average loan amount was 11,610 yuan, which is a decrease of 3% compared to 11,991 yuan in the first quarter of 2026, and an increase of 57% compared to 7,398 yuan during the same period in 2025.
• In the second quarter of 2026, the number of service borrowers was 424,489, which is a 20% decrease compared to 531,500 in the first quarter of 2026 and a 74% decrease compared to 1,637,912 during the same period in 2025.
• Repetitive borrowers' loan amounts [1] accounted for 82% of the total loans facilitated in the second quarter of 2026, which is higher than 78% in the first quarter of 2026 and 77% during the same period in 2025.
• As of June 30, 2026, the cumulative number of borrowers served has reached 14,667,379, an increase of 1% compared to 14,518,023 on March 31, 2026, and an increase of 8% compared to 13,536,838 on June 30, 2025.
• As of June 30, 2026, the outstanding balance of loans that have been successfully repaid amounted to 15.1 billion yuan (2.2 billion US dollars), which represents a 30% decrease from 21.6 billion yuan on March 31, 2026, and a 52% decrease from 31.2 billion yuan on June 30, 2025.

Insurance brokerage business

• In the second quarter of 2026, the number of insurance customers was 452,962, which represents a 14% increase from 397,854 in the first quarter of 2026 and a 281% increase from 118,747 during the same period in 2025.
• As of June 30, 2026, the cumulative number of insured customers reached 2,712,793, an increase of 15% compared to 2,357,951 on March 31, 2026, and a growth of 61% compared to 1,681,888 on June 30, 2025.
• In the second quarter of 2026, the number of new insurance policies reached 918,150, which is an 8% decrease compared to 999,575 in the first quarter of 2026 and a 177% increase compared to 331,281 in the same period of 2025.
• The total premium amount for new business was 838.9 million yuan (123.6 million US dollars), which represents a 2% increase from 823.0 million yuan in the first quarter of 2026 and a 1% decrease from 850.1 million yuan during the same period in 2025. The premium amount for the first half of 2026 was 532.9 million yuan, slightly lower than 536.3 million yuan in the first quarter of 2026 but still an increase from 440.4 million yuan in the same period of 2025. Renewal premiums amounted to 305.9 million yuan, up from 286.7 million yuan in the first quarter of 2026 and down from 409.7 million yuan in the same period of 2025.

Recent Progress

Full-stack AI Strategy Update

• Enterprise AI Deployment and Operational Efficiency:The company continues to advance its AI business model, leveraging its self-developed Zhiyu and Yizhi large language models, the MagiCube 2.0 multi-agent platform, XuanJi workflow execution capabilities, and ZhiNao scheduling abilities. The implementation of AI is increasingly translating into measurable efficiency improvements and brings a higher level of automation to core operational functions. According to the company's ESG report for 2025 released in July 2026, the autonomous resolution rate of text-based agents in customer operations has increased from about 60% to nearly 80%, with automated quality inspection covering over 2 million service records daily.
• AI Empowering Risk Management:The company continues to expand the application of AI in risk management and borrower fraud identification. According to the 2025 ESG report, its Hawkeye fraud detection system and DiTing multimodal verification engine helped avoid potential fraud-related losses of approximately 165 million yuan (23 million US dollars) in 2025, demonstrating that AI capabilities contribute to enhancing risk identification and operational efficiency.
• AI Application Layer Extensions:In July 2026, the company signed an option agreement with a private AI startup focused on immersive AI entertainment and emotional health. This is the fourth AI company option agreement that Yiren Digital has signed. This transaction reflects the company's prudent approach to selectively expanding its AI application layer investment portfolio and developing new growth opportunities beyond core financial services.

Stock Repurchase Plan

• On July 2, 2026, the company's board of directors authorized a new stock repurchase plan. The company may repurchase up to 10% of the total number of its issued and outstanding common shares and/or American Depository Receipts (“ADS”) within the next 12 months, with a maximum repurchase amount of $20 million. The timing and amount of the repurchases will depend on market conditions and other applicable factors.

2025 ESG Report

• In July 2026, the company released its 2025 Environment, Social, and Governance (ESG) Report, which marks its third annual ESG report. The report adheres to the GRI standards and aligns with the United Nations Sustainable Development Goals. In 2025, the company facilitated 19.5 billion yuan in unsecured credit for over 596,500 small business owners, established a three-tier governance structure led by the Board of Directors' ESG committee, and achieved a 6% reduction in total greenhouse gas emissions compared to the previous year.

Yiren Digital Chairman and CEO Ning Tang stated: "In the second quarter of 2026, we maintained a prudent approach to our credit solutions business. While slowing down the growth of loan volumes in the short term, we prioritized asset quality and risk-adjusted returns. Under this strategy, we observed an improvement in the late-payment rate, as well as an increased contribution from repeat borrowers. We will continue to optimize our service model and leverage AI innovations to provide services that are less capital-intensive and more technology-driven."

At the same time, our insurance customer base continues to expand, and our full-stack AI strategy has brought measurable improvements in asset recovery, customer operations, and risk management. Looking ahead, we will continue to focus on strengthening our core business, advancing the construction of AI native capabilities, and creating a more diversified growth platform.

Yiren Digital Chief Financial Officer William Hui stated: "The company's operational performance improved in the second quarter. However, the results were also affected by impairments and adjustments related to historical accounts receivable and contract assets."

Nevertheless, the net loss narrowed by 9% compared to the first quarter of 2026, mainly reflecting an improvement in the credit environment, enhanced efficiency in credit analysis, and a reduced reliance on risk-taking patterns.

Financial Performance for the Second Quarter of 2026

In the second quarter of 2026, the total net revenue was 890 million yuan (131.2 million US dollars), which represents a 3% decrease compared to 915.1 million yuan in the first quarter of 2026, and a 46% decline compared to 1.6521 billion yuan during the same period in 2025.

Among them, the revenue from credit solutions business was 777.6 million yuan (114.6 million US dollars), a decrease of 2% compared to 795.7 million yuan in the first quarter of 2026, and a decrease of 48% compared to 1.4896 billion yuan during the same period in 2025.

In the second quarter of 2026, credit solution business revenue accounted for 87% of total net revenue. The year-over-year decline was mainly due to the reduction in loan volume following the implementation of revised online lending matchmaking regulatory requirements by the industry. The revised framework introduced lower upper limits on borrowers' comprehensive financing costs, as well as stricter requirements for funding partners regarding pricing and risk-adjusted returns. Against this backdrop, the company slowed down its lending matchmaking activities and focused increasingly on mature, recurring borrowers.

The income from insurance brokerage business amounted to 67.3 million RMB (9.9 million USD), a decrease of 23% compared to 87.2 million RMB in the first quarter of 2026, but an increase of 16% compared to 58.1 million RMB during the same period in 2025. The year-on-year growth was mainly due to the continuous expansion and strong momentum of the company's internet distribution business, as well as the steady growth of traditional insurance business. The quarter-on-quarter decline is mainly reflected in the lower estimated renewal rates for some internet insurance products, and the subsequent adjustments to the existing portfolio income as a result.

Other business revenues amounted to 45 million yuan (6.6 million US dollars), a 40% increase from 32.2 million yuan in the first quarter of 2026, and a 57% decrease from 104.4 million yuan during the same period in 2025. The year-on-year decline mainly reflects the continuous contraction of the e-commerce business.

In the second quarter of 2026, sales and marketing expenses amounted to 126.9 million yuan (18.7 million US dollars), which represents a 12% increase from 113.6 million yuan in the first quarter of 2026 and a 63% decrease compared to 345.2 million yuan during the same period in 2025. The year-over-year decline is mainly attributed to the reduction in customer acquisition expenditures for the credit solutions business, as the volume of loans facilitated decreased and the proportion of repeat borrowers increased. The quarter-over-quarter increase reflects mainly the rise in internet promotion service fees required for customer acquisition in the internet insurance business.

In the second quarter of 2026, the costs associated with matchmaking, services, and other operations amounted to 189.6 million yuan (27.9 million US dollars), which represents a 4% decrease from 197.6 million yuan in the first quarter of 2026 and a 18% increase from 160.9 million yuan during the same period in 2025. The sequential decline is mainly due to the reduction in operational costs for credit solutions as the volume of facilitated loans and the outstanding loan balance decreased. The year-over-year increase is primarily attributed to higher collection costs resulting from intensified collection efforts, as well as higher operational costs stemming from the increase in new business volume in the traditional insurance business.

In the second quarter of 2026, research and development expenses amounted to 113.1 million yuan (16.7 million US dollars), representing a 4% increase from 108.9 million yuan in the first quarter of 2026 and a 5% increase from 107.7 million yuan during the same period in 2025. This slight increase reflects the company's continued investment in research and development related to AI, including the construction of personnel and engineering capabilities.

General and administrative expenses for the second quarter of 2026 amounted to 75.8 million RMB (11.2 million USD), representing an 8% increase from 70.5 million RMB in the first quarter of 2026 and a 4% decrease from 78.9 million RMB during the same period in 2025.

In the second quarter of 2026, provisions for impairment of contract assets, accounts receivable, and other items amounted to 502.8 million yuan (74.1 million US dollars), compared to 176.4 million yuan in the first quarter of 2026 and 214.7 million yuan during the same period in 2025. The increase mainly reflects the recognition of credit loss provisions after re-evaluating the collectibility of certain related-party loans and accounts receivable, as well as the provision for higher expected credit losses on accounts receivable with longer aging periods. The aforementioned increase was offset by lower credit losses on financing and guaranteed receivables.

In the second quarter of 2026, the provision for contingent liabilities amounted to RMB 233.3 million (US$ 34.4 million), which represents a 63% decrease from RMB 632.2 million in the first quarter of 2026 and a 40% decline from RMB 385.7 million during the same period in 2025. The reduction is mainly due to a lower loan volume under the risk-taking model, which in turn led to a decrease in expected future guarantee payments, as well as a net reversal of provisions related to the existing loan portfolio after an updated credit assessment. The quarter-on-quarter decrease was also aided by a lower projected net write-off rate for newly issued loans.

In the second quarter of 2026, there was a fair value change loss of RMB 97.8 million (US$ 14.4 million), compared to a loss of RMB 89 million in the first quarter of 2026 and a gain of RMB 28 million during the same period in 2025. The fair value loss was mainly attributed to the decline in the market value of the company's digital assets and related investments, which was partially offset by the fair value gains from trust investments.

The income tax expense for the second quarter of 2026 was 25.1 million RMB (3.7 million US dollars).

Therefore, the net loss for the second quarter of 2026 was 449.6 million yuan (66.3 million US dollars), while the net loss for the first quarter of 2026 was 494.7 million yuan, and the net profit for the same period in 2025 was 357.5 million yuan.

In the second quarter of 2026, after adjustments, EBITDA [2] (not GAAP) reported a loss of 340.7 million yuan (50.2 million US dollars), compared to a loss of 336.8 million yuan in the first quarter of 2026. In the same period of 2025, there was a profit of 351.4 million yuan.

In the second quarter of 2026, both basic and diluted losses per share of ADS were 5.1068 RMB (0.7526 USD), whereas in the first quarter of 2026, both basic and diluted losses per share of ADS were 5.6420 RMB; for the same period in 2025, the basic and diluted earnings per share of ADS were 4.1356 RMB and 4.1072 RMB respectively.

In the second quarter of 2026, the net cash used for operating activities was 1.0291 billion yuan (151.7 million US dollars), compared to 655.6 million yuan in the first quarter of 2026, and 411.2 million yuan in the same period of 2025. The increase in net cash outflow from operations is mainly reflected in the reduction of service fee collections due to a decline in business volume, increased prepayments for collection, system support, and marketing services, as well as ongoing payments for compensation under the risk-taking model.

In the second quarter of 2026, investment activities generated a net cash flow of 454 million yuan (66.9 million US dollars), whereas in the first quarter of 2026 there was a net outflow of 24.8 million yuan, and during the same period in 2025, there was a net outflow of 752.2 million yuan. The change is mainly attributed to the repayment of trust loans and proceeds from the redemption of funds and wealth management products, which were partially offset by new trust loans and other investment outflows.

In the second quarter of 2026, the net cash used for financing activities was 469.9 million yuan (69.3 million US dollars), whereas in the first quarter of 2026 there was a net outflow of 345.6 million yuan. In the same period of 2025, there was a net inflow of 447.6 million yuan. The net outflow of financing cash mainly reflects the repayment of principal during the liquidation of some trust plans.

As of June 30, 2026, cash and cash equivalents amounted to RMB 1.6967 billion (US$ 250.1 million), compared to RMB 2.4531 billion as of March 31, 2026. As of June 30, 2026, financial investments totaled RMB 252 million (US$ 37.1 million), whereas they were RMB 507.5 million on March 31, 2026. The decrease in cash and cash equivalents mainly reflects net cash outflows from operating and financing activities, which was partially offset by net cash inflows from investing activities. The decline in financial investments is primarily due to redemptions of funds and wealth management products, as well as negative changes in fair value.

As of June 30, 2026, the overdue rates for loans that are 1-30 days overdue, 31-60 days overdue, and 61-90 days overdue were [3] 2.5%, 2.0%, and 2.4%, respectively, whereas as of March 31, 2026, these rates were 2.5%, 2.7%, and 3.2%, respectively.

Dividend Policy

The board of directors is evaluating a range of capital allocation measures, including cash dividends and/or the recently announced share repurchase plan, with the aim of enhancing the long-term value for shareholders while maintaining a prudent balance sheet and sufficient financial flexibility.

Non-GAAP financial indicators

When evaluating its business, the company considers and utilizes several non-GAAP financial indicators, such as adjusted EBITDA, as supplementary measures to assess and review operational performance. The company believes that these non-GAAP indicators provide useful information regarding core operating results, enhance the overall understanding of past performance and prospects, and increase the visibility of key indicators used by management in financial and operational decision-making. Non-GAAP financial indicators should not be viewed in isolation, nor can they replace the financial information prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States (“U.S GAAP”). Non-GAAP financial indicators have their limitations as analytical tools. Other companies, including those in the same industry, may calculate these indicators in different ways, which may reduce their usefulness as comparative measures. To compensate for these limitations, the company adjusts the non-GAAP financial indicators to align them with the most relevant U.S GAAP performance indicators, and these adjustments should be taken into consideration when evaluating performance. For more information, please refer to the section “Operational Highlights and Adjustment of GAAP and Non-GAAP Indicators” at the end of this press release. The company’s non-GAAP financial indicators do not include stock-based incentive expenses, depreciation and amortization expenses, net interest income and investment income, fair value adjustments related to digital assets and financial investments, nor income/(expenses) from income tax.

Exchange Rate Conversion

In this announcement, some amounts in Renminbi (RMB) are converted into US dollars using a specified exchange rate for the convenience of readers. Unless otherwise indicated, all conversions from RMB to US dollars are calculated at a rate of 1 US dollar to 6.7851 RMB. This exchange rate is the effective buying rate as of noon on June 30, 2026, as listed in the statistical announcement by the Federal Reserve Board of the United States H.10.

Teleconference

Yiren Digital Management will hold a performance conference call at 8:00 a.m. Eastern Time on September 30, 2026 (8:00 p.m. Beijing Time/Hong Kong Time on September 30).

Investors who wish to participate in the teleconference are requested to register online in advance:

https :// dpregister.com / sreg /10211298/104ad33bf36

After completing the registration, participants will receive information on how to join the teleconference.

In addition, the live broadcast and replay of the teleconference will be available on the following websites:

https :// ir.yiren.com

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. Forward-looking statements can be identified by the use of phrases such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “hope”, “going”, “forward”, “intend”, “plan”, “project”, “potential”, “seek”, “may”, “might”, “can”, “could”, “will”, “would”, “shall”, “should”, “is”, “likely”, “to”, and their negative forms. This press release also contains forward-looking statements as defined under Section 21E of the Securities Exchange Act of 1934 as amended and the U.S. Private Securities Litigation Reform Act of 1995. Such statements can be identified by similar phrases such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates”, “target”, “confident”, etc. Forward-looking statements are based on management’s current expectations, assumptions, and assessments of the current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are beyond the company’s control and may result in significant differences between actual results and those expressed or implied in such statements. Due to various factors described in the company’s filings with the U.S. Securities and Exchange Commission and other risks, actual results may differ significantly from those expressed or implied in the forward-looking statements. All forward-looking statements are as of the date of this press release.Except as required by applicable laws, the company does not assume, and explicitly declares not to assume, any obligation to update or revise any forward-looking statements due to new information, future events, or other reasons.

About Yiren Digital

Yiren Digital Ltd is a leading fintech and artificial intelligence innovation company, with its business covering multiple industries in China and global markets. The company utilizes advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand the reach of inclusive finance. With the completion of regulatory filings for its self-developed large language model Zhiyu and the significant upgrade of the MagiCube Agent platform, Yiren Digital is establishing new growth engines, accelerating its evolution towards a AI native, multi-industry operation platform that surpasses traditional financial services. For more information, please visit https :// ir.yiren.com.

For more information, please contact: Investor Relations, email: [ email protected ]; Piacente Financial Communications, email: [ email protected ]