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Yiren Digital Reports First Quarter 2026 Results

Yiren Digital Ltd. (NYSE: YRD), a prominent player in the fintech sector operating across China and global markets, has unveiled its unaudited financial results for the first quarter ended March 31, 2026. This quarter has marked a turning point for the company, showcasing both challenges and areas of growth amid evolving market conditions.

Loan Facilitation Performance

In the first quarter of 2026, Yiren Digital facilitated loans totaling RMB 8.9 billion (approximately US$1.3 billion), a significant drop of 26% from RMB 12.0 billion in the last quarter of 2025. Year-on-year, the figure represents a staggering 42% decrease compared to RMB 15.2 billion reported in the same quarter last year. The declining loan facilitation volume aligns with the company’s strategic focus on risk-adjusted growth under the current regulatory framework.

The number of borrowers served also fell to 531,500, which is a decrease of 28% from 742,444 in the previous quarter, and a reduction of 61% compared to the same period last year. However, a noteworthy detail is that repeat borrowers accounted for 78% of the total loans facilitated, indicating a retained customer base despite the overall decline in new borrowers. As of March 31, 2026, the cumulative number of borrowers served reached 14,518,023, witnessing a growth of 2% from December 2025.

Despite these challenges, the average loan size increased by 5% to RMB 11,991 compared to the previous quarter and rose a remarkable 67% year-over-year. Furthermore, the balance of performing loans decreased to RMB 21.6 billion as the company recalibrated its loan portfolio in light of market behaviors.

Growth in Insurance Brokerage

On a brighter note, Yiren Digital noted significant growth in its insurance brokerage sector. During the first quarter, the number of insurance clients surged by 49%, reaching 397,854 compared to 267,730 in the previous quarter, demonstrating a 413% year-over-year increase from 77,541 clients in Q1 2025. This impressive growth can predominantly be attributed to the ongoing expansion of the company’s internet distribution business, which has shown consistent momentum since mid-2025.

New insurance policies increased to 999,575, reflecting a 21% increase from 824,225 in the last quarter and a staggering 135% increase compared to 425,044 in the same period last year. As of March 31, 2026, the cumulative number of insurance clients climbed to 2,357,951, showcasing the efficacy and success of the company’s pivot towards enhancing distribution capabilities and capitalizing on digital platforms.

Financial Breakdown

Yiren Digital’s total net revenue for the first quarter of 2026 was RMB 915.1 million (US$132.7 million), registering a 41% decline from RMB 1,554.5 million compared to the same period of 2025. Earnings from the credit solution segment made up the majority of this revenue, accounting for RMB 795.7 million. However, it also saw a shrinkage of 39% from the same period last year.

Interestingly, revenue from the insurance brokerage business displayed resilience, rising to RMB 87.2 million, a 22% increase year-over-year. This growth in insurance segments illustrates Yiren Digital's strong shift toward diversified revenue streams, integrating traditional financial services with innovative digital solutions.

Strategic Developments

Looking ahead, Yiren Digital is committed to its 'All-in-AI' strategy, targeting deeper integration of AI across its operations. The rollout of new AI-enhanced platforms like MagiCube signifies the company’s dedication to advancing operational efficiency and enhancing customer engagement.

Mr. Ning Tang, CEO of Yiren Digital, emphasized, "We maintained a disciplined approach in our credit solutions while cultivating robust growth in our insurance brokerage business, diversifying revenue channels. Our advances in AI integration are set to unlock significant future growth."

Conclusion

As Yiren Digital navigates through current financial hurdles, its strategic focus on high-tech integration and expanding its insurance offerings suggests a robust roadmap aimed at overcoming market challenges and achieving long-term growth. Through disciplined financial practices and innovative solutions, the company seeks to re-establish its footing as a leader in the fintech landscape.