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Yiren Digital's Third Quarter 2025 Financial Results: A Closer Look

On November 25, 2025, Yiren Digital Ltd. (NYSE: YRD), a prominent fintech company focused on digital consumer lending and financial technology innovations in China and Southeast Asia, revealed its third-quarter financial results for 2025. In the context of fluctuating industry dynamics and credit risks, the company reported significant operational highlights and ongoing strategies to navigate this challenging environment.

Operational Highlights

Yiren Digital's financial services business saw notable growth this quarter. They facilitated loans amounting to RMB 20.2 billion (approximately US$ 2.8 billion), marking a 51% increase compared to the same quarter in 2024, while remaining consistent with Q2 2025's figures of RMB 20.3 billion. The cumulative number of borrowers reached 14 million, a 3% increase from June 30, 2025. However, there was an 11% decline in the number of borrowers served from the previous year, attributed to tighter credit policies adopted during a period of heightened industry risk.

The company’s outstanding balance of performing loans stood at RMB 34.2 billion (approximately US$ 4.8 billion), reflecting a 10% increase from the prior quarter, and a 50% growth from Q3 2024. This underscores a successful yet cautious approach in loan facilitation and risk management.

Insurance Brokerage Developments

In the realm of insurance, Yiren Digital reported gross written premiums of RMB 1,148 million (around US$ 161 million), a 35% increase from Q2 2025, although it exhibited a 15% drop from Q3 2024's figures. This divergence was credited largely to growth in the internet insurance segment, which showed promising development with an annualized premium rise of 204% compared to the previous quarter.

Yiren Digital’s Chairman and CEO, Mr. Ning Tang, commented on the company’s performance, highlighting that the financial stability achieved amidst industry-wide challenges exemplifies their adaptive risk management and business diversification. This includes significant advancements in their online insurance business and ongoing efforts in integrating agentic AI capabilities to enhance operational efficiencies.

Financial Performance Overview

For the third quarter, Yiren Digital reported total net revenues of RMB 1,555 million (approximately US$ 218.4 million), reflecting a 5% rise year-on-year. Revenue from financial services amounted to RMB 1,423 million (around US$ 199.9 million), representing an impressive 70% increase from the same period last year, driven by sustained demand for their small revolving loan products.

Despite the growth, net income for Q3 2025 was reported at RMB 317.6 million (approximately US$ 44.6 million), down from RMB 355.4 million in Q3 of 2024. This reduction was largely due to upfront provisions necessitated by accounting standards linked to the increasing loan volume under the newly adapted 'risk-taking model.'

The adjusted EBITDA stood at RMB 236.8 million (approximately US$ 33.3 million), down significantly from RMB 380.9 million in Q3 2024, indicating the pressures from margin declines stemming from regulatory shifts and the evolving competitive landscape.

Looking Ahead

Looking into the future, Yiren Digital anticipates fourth-quarter revenues to range between RMB 1.4 billion and RMB 1.6 billion, with expected growth fueled by domestic and international market penetration and strategic targeting of new customer segments. This outlook serves as a reflection of the company's confidence in managing risks and capitalizing on emerging opportunities despite ongoing market turbulence.

With a healthy cash position of RMB 4.3 billion, Yiren Digital continues to invest in the future of fintech innovations, leveraging advances in technology to enhance customer engagement and operational efficiencies.

In summary, Yiren Digital’s Q3 2025 financial results depict a period of resilience and adaptation, exemplifying the company’s commitment to navigate the evolving financial landscape while striving to improve its operational performance amid challenges.