Yiren Digital Reports Second Quarter 2026 Unaudited Financial Results
BEIJING , Sept. 30, 2026 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
Later-stage delinquency rates continued to improve with 31–60 day and 61–90 day delinquency rates declining to 2.0% and 2.4% as of June 30, 2026, respectively, from 2.7% and 3.2% as of March 31, 2026.
Repeat borrowers accounted for 82% of total loans facilitated, compared with 78% in the first quarter of 2026 and 77% in the same period of 2025, reflecting the Company's continued focus on serving established borrowers.
Insurance client growth remained strong, with the number of clients increasing 281% year over year and new policies increasing 177% year over year.
Insurance brokerage revenue increased 16% year over year.
AI deployment continued to generate measurable efficiency gains across key operating functions, including lower human handling rates in asset recovery and higher autonomous resolution rates in customer operations.
On July 2, 2026, the Company's board of directors authorized a new share repurchase program of up to US$20.0 million over the following 12 months.
Second Quarter 2026 Operational Results
Credit Solution Business
Total loans facilitated in the second quarter of 2026 were RMB6.3 billion (US$0.9 billion), representing a decrease of 29% compared to RMB8.9 billion in the first quarter of 2026, and a decrease of 69% compared to RMB20.3 billion in the same period of 2025.
Average loan size was RMB11,610 during the second quarter of 2026, a decrease of 3% from RMB11,991 in the first quarter of 2026, and an increase of 57% from RMB7,398 in the same period of 2025.
Number of borrowers served in the second quarter of 2026 was 424,489, representing a decrease of 20% compared to 531,500 in the first quarter of 2026, and a decrease of 74% compared to 1,637,912 in the same period of 2025.
Repeat borrowers' loan amount [1] accounted for 82% of total loans facilitated in the second quarter of 2026, compared to 78% in the first quarter of 2026 and 77% in the same period of 2025.
Cumulative number of borrowers served reached 14,667,379 as of June 30, 2026, representing an increase of 1% from 14,518,023 as of March 31, 2026, and an increase of 8% from 13,536,838 as of June 30, 2025.
Outstanding balance of performing loans facilitated was RMB15.1 billion (US$2.2 billion) as of June 30, 2026, representing a decrease of 30% from RMB21.6 billion as of March 31, 2026, and a decrease of 52% from RMB31.2 billion as of June 30, 2025.
Insurance Brokerage Business
Number of insurance clients during the second quarter of 2026 was 452,962, representing an increase of 14% from 397,854 in the first quarter of 2026, and a 281% year-over-year increase from 118,747 in the same period of 2025.
Cumulative number of insurance clients was 2,712,793 as of June 30, 2026, representing an increase of 15% from 2,357,951 as of March 31, 2026, and a 61% year-over-year increase from 1,681,888 as of June 30, 2025.
Number of new insurance policies in the second quarter of 2026 was 918,150, representing a decrease of 8% from 999,575 in the first quarter of 2026, and a 177% year-over-year increase from 331,281 in the same period of 2025.
Gross written premiums were RMB838.9 million (US$123.6 million), representing an increase of 2% from RMB823.0 million in the first quarter of 2026 and a decrease of 1% from RMB850.1 million in the same period of 2025. First-year premiums were RMB532.9 million (US$78.5 million) in the second quarter of 2026, compared with RMB536.3 million in the first quarter of 2026 and RMB440.4 million in the same period of 2025. Renewal premiums were RMB305.9 million (US$45.1 million) in the second quarter of 2026, compared with RMB286.7 million in the first quarter of 2026 and RMB409.7 million in the same period of 2025.
Recent Developments
All-in-AI Strategic Updates
Enterprise AI Deployment and Operating Efficiency: The Company continued to advance its enterprise AI operating model, supported by its proprietary Zhiyu and Yizhi large language models, MagiCube 2.0 multi-agent platform, XuanJi workflow execution and ZhiNao orchestration capabilities. AI deployment is increasingly translating into measurable efficiency gains and higher levels of automation across core operating functions. As disclosed in the Company's 2025 ESG Report, which was published in July 2026, the autonomous resolution rate of text-based agents in customer operations increased from approximately 60% to nearly 80%, while automated quality inspection covered more than two million service records daily.
AI-Enabled Risk Management: The Company continued to expand the application of AI across risk management and borrower fraud detection. As disclosed in the Company's 2025 ESG Report, its Hawkeye fraud detection system and DiTing multimodal verification engine helped avoid approximately RMB165 million (US$23 million) in potential fraud -related losses during 2025, demonstrating the potential for AI capabilities to enhance risk identification and operational efficiency.
AI Application-Layer Expansion: In July 2026, the Company entered into a warrant agreement with a private AI-native company focused on immersive AI entertainment and emotional wellness, marking the fourth AI company with which Yiren Digital has entered into a warrant agreement. The transaction reflects the Company's disciplined approach to selectively expanding its AI application-layer portfolio and developing new growth opportunities beyond its core financial services businesses.
Share Repurchase Program
On July 2, 2026, the Company's board of directors authorized a new share repurchase program, under which the Company may repurchase up to 10% of its total issued and outstanding ordinary shares and/or American depositary shares ("ADSs") for an aggregate amount of up to US$20.0 million over the following 12 months. The timing and amount of any repurchases will be subject to market conditions and other applicable factors.
2025 ESG Report
In July 2026, the Company published its 2025 Environmental, Social and Governance Report, its third annual ESG report, prepared with reference to the GRI Standards and benchmarked against the United Nations Sustainable Development Goals. During 2025, the Company facilitated RMB19.5 billion of unsecured credit to more than 596,500 small business owners, established a three-tier ESG governance structure led by the Board's ESG Committee, and reduced total greenhouse gas emissions by 6% year over year.
"During the second quarter of 2026, we maintained a disciplined approach to our credit solution business, prioritizing portfolio quality and risk-adjusted returns while moderating near-term loan facilitation volume. Under this approach, we saw an improvement in later-stage delinquency rates and a higher contribution from repeat borrowers. We continue to refine our service model to leverage our AI innovation to deliver our services that are less capital intensive and more technology focused," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "At the same time, our insurance client base continued to expand, and our All-in-AI strategy generated measurable efficiency gains across asset recovery, customer operations and risk management. Looking ahead, we remain focused on strengthening our core operations, advancing our AI-native capabilities and building a more diversified growth platform."
"Our operating performance improved in the second quarter. However, our results were also affected by the impairment and adjustments related to legacy receivables and contract assets," said Mr. William Hui, Chief Financial Officer of Yiren Digital. "Net loss nevertheless narrowed by 9% sequentially compared with the first quarter of 2026, primarily reflecting an improved credit environment, greater efficiency in credit analysis and reduced reliance on the risk-taking model."
Second Quarter 2026 Financial Results
Total net revenue in the second quarter of 2026 was RMB890.0 million (US$131.2 million), representing a decrease of 3% from RMB915.1 million in the first quarter of 2026 and a decrease of 46% from RMB1,652.1 million in the same period of 2025.
Within this, revenue from the credit solution business was RMB777.6 million (US$114.6 million), representing a decrease of 2% from RMB795.7 million in the first quarter of 2026 and a decrease of 48% from RMB1,489.6 million in the same period of 2025.
Revenue from the credit solution business accounted for 87% of total net revenue in the second quarter of 2026. The year-over-year decrease primarily reflected lower loan facilitation volume amid the industry's implementation of revised regulatory requirements for online loan facilitation. The revised framework introduced lower borrower all-in financing cost limits and more stringent funding-partner requirements relating to pricing and risk-adjusted returns. Against this backdrop, the Company moderated loan facilitation activity and increasingly concentrated originations among established repeat borrowers.
Revenue from the insurance brokerage business was RMB67.3 million (US$9.9 million), representing a decrease of 23% from RMB87.2 million in the first quarter of 2026 and an increase of 16% from RMB58.1 million in the same period of 2025. The year-over-year increase was primarily driven by the continued expansion of the Company's internet distribution business, which maintained strong momentum, together with steady growth in its traditional insurance operations. The sequential decrease mainly reflected lower estimated renewal rates for certain internet insurance products and the resulting adjustment to revenue from the existing portfolio.
Revenue from other businesses was RMB45.0 million (US$6.6 million), representing an increase of 40% from RMB32.2 million in the first quarter of 2026 and a decrease of 57% from RMB104.4 million in the same period of 2025. The year-over-year decrease mainly reflected the continued scaling down of the e-commerce business.
Sales and marketing expenses in the second quarter of 2026 were RMB126.9 million (US$18.7 million), representing an increase of 12% from RMB113.6 million in the first quarter of 2026 and a decrease of 63% from RMB345.2 million in the same period of 2025. The year-over-year decrease was primarily attributable to lower customer acquisition spending for the credit solution business as loan facilitation volume declined and the repeat-borrower mix increased. The sequential increase mainly reflected higher internet-based promotion service fees for customer acquisition in the internet insurance business.
Origination, servicing and other operating costs in the second quarter of 2026 were RMB189.6 million (US$27.9 million), representing a decrease of 4% from RMB197.6 million in the first quarter of 2026 and an increase of 18% from RMB160.9 million in the same period of 2025. The sequential decrease primarily reflected lower credit solution operating costs as loan facilitation volume and the outstanding loan balance declined. The year-over-year increase was mainly attributable to higher collection costs resulting from strengthened collection efforts, as well as higher operating costs associated with increased new business volume in the traditional insurance business.
Research and development expenses in the second quarter of 2026 were RMB113.1 million (US$16.7 million), representing an increase of 4% from RMB108.9 million in the first quarter of 2026 and an increase of 5% from RMB107.7 million in the same period of 2025. The modest increases reflected continued investment in AI-related research and development, including personnel and engineering capabilities.
General and administrative expenses in the second quarter of 2026 were RMB75.8 million (US$11.2 million), representing an increase of 8% from RMB70.5 million in the first quarter of 2026 and a decrease of 4% from RMB78.9 million in the same period of 2025.
Allowance for contract assets, receivables and others in the second quarter of 2026 was RMB502.8 million (US$74.1 million), compared with RMB176.4 million in the first quarter of 2026 and RMB214.7 million in the same period of 2025. The increase primarily reflected a provision for credit loss recognized on certain related-party loan receivables following a reassessment of their recoverability, as well as higher expected credit loss allowances on longer aging accounts receivable. These increases were partially offset by lower credit losses on financing and guarantee receivables.
Provision for contingent liabilities in the second quarter of 2026 was RMB233.3 million (US$34.4 million), representing a decrease of 63% from RMB632.2 million in the first quarter of 2026 and a decrease of 40% from RMB385.7 million in the same period of 2025. The decrease primarily reflected lower loan facilitation volume under the risk-taking model, which reduced expected future guarantee payouts, as well as a net reversal of provisions associated with the existing loan portfolio following updated credit assessments. The quarter-to-quarter decrease was further supported by lower expected net charge-off rates for newly originated loans.
Fair value adjustments loss in the second quarter of 2026 was RMB97.8 million (US$14.4 million), compared with a loss of RMB89.0 million in the first quarter of 2026 and a gain of RMB28.0 million in the same period of 2025. The fair value loss was primarily attributable to declines in the market value of the Company's digital assets and related investments, partially offset by fair value gains on trust investments.
Income tax expense in the second quarter of 2026 was RMB25.1 million (US$3.7 million).
Net loss for the second quarter of 2026, due to the foregoing, was RMB449.6 million (US$66.3 million), compared with a net loss of RMB494.7 million in the first quarter of 2026 and net income of RMB357.5 million in the same period of 2025.
Adjusted EBITDA [2] (non-GAAP) in the second quarter of 2026 was a loss of RMB340.7 million (US$50.2 million), compared with a loss of RMB336.8 million in the first quarter of 2026 and a gain of RMB351.4 million in the same period of 2025.
Basic and diluted loss per ADS in the second quarter of 2026 were both RMB5.1068 (US$0.7526), compared with basic and diluted loss per ADS of RMB5.6420 in the first quarter of 2026; and basic and diluted income per ADS of RMB4.1356 and RMB4.1072, respectively, in the same period of 2025.
Net cash used in operating activities in the second quarter of 2026 was RMB1,029.1 million (US$151.7 million), compared with RMB655.6 million used in the first quarter of 2026 and RMB411.2 million generated in the same period of 2025. The higher net operating cash outflow primarily reflected lower service fee collections amid reduced business volume, increased prepayments for collection, system support and marketing services, and continued indemnity payments under risk-taking model.
Net cash provided by investing activities in the second quarter of 2026 was RMB454.0 million (US$66.9 million), compared with RMB24.8 million used in the first quarter of 2026 and RMB752.2 million used in the same period of 2025. The change was primarily attributable to repayments from trust lending arrangements and proceeds from redemptions of funds and wealth management products, partially offset by new trust lending and other investment outflows.
Net cash used in financing activities in the second quarter of 2026 was RMB469.9 million (US$69.3 million), compared with RMB345.6 million used in the first quarter of 2026 and RMB447.6 million provided in the same period of 2025. The net financing cash outflow primarily reflected distributions of principal upon the liquidation of certain trust plans.
As of June 30, 2026, cash and cash equivalents were RMB1,696.7 million (US$250.1 million), compared with RMB2,453.1 million as of March 31, 2026. As of June 30, 2026, financial investments were RMB252.0 million (US$37.1 million), compared with RMB507.5 million as of March 31, 2026. The decrease in cash and cash equivalents primarily reflected net cash used in operating and financing activities, partially offset by net cash provided by investing activities. The decline in financial investments mainly reflected redemptions of funds and wealth management products and negative fair value movements.
As of June 30, 2026, delinquency rates [3] for loans that were past due for 1-30 days, 31-60 days and 61-90 days were 2.5%, 2.0% and 2.4%, respectively, compared with 2.5%, 2.7% and 3.2%, respectively, as of March 31, 2026.
Dividend Policy
The Board is evaluating a range of capital-allocation initiatives, including cash dividend payments and/or the recently announced share repurchase program, with a view to enhancing long-term shareholder value while maintaining a disciplined balance sheet and adequate financial flexibility.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA as a supplemental measure to review and assess operating performance. We believe such non-GAAP measure provides useful information about our core operating results, enhances the overall understanding of our past performance and prospects and allows for greater visibility with respect to key metrics used by our management in our financial and operational decision making. The presentation of non-GAAP financial measure 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 measure has limitations as analytical tools. Other companies, including peer companies in the industry, may calculate the non-GAAP measure differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measure 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. The Company's non-GAAP financial measure excludes share-based compensation expenses, depreciation and amortization expenses, interest income and investment income, net, fair value adjustments related to digital assets and financial investments, and income tax benefit / (expense).
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 RMB6.7851 to US$1.00, the effective noon buying rate on June 30, 2026, 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 September 30, 2026 (or 8:00 p.m. Beijing/Hong Kong Time on September 30, 2026).
Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10211298/104ad33bf36
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
[1] "Repeat borrowers' loan amount" refers to the proportion of total loan facilitation and origination volume through the Yixianghua platform in a given period that is generated by borrowers who have previously completed at least one successful drawdown during that period.
[2] "Adjusted EBITDA" is a non-GAAP financial measure. For more information, please see the final section and table captioned "Reconciliation of Adjusted EBITDA" at the end of this press release.
[3] "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. A performing loan is one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.
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. These forward-looking statements can be identified by terminology such as "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend," "ought to," "plan," "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. This press release contains 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 statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident," and similar expressions. Forward-looking statements are based on management's current expectations, assumptions, and assessments of current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are outside the control of the Company, and which could cause actual results to differ materially from those expressed or implied in such statements. Actual results may differ materially from those expressed or implied in forward-looking statements due to a variety of factors and other risks described in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no, and expressly disclaims any, obligation to update or revise any forward-looking statements, whether 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 company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. Following the regulatory filing of its in-house developed Large Language Model Zhiyu and the significant enhancement of its MagiCube Agent platform, Yiren Digital is establishing a new growth engine to accelerate its evolution into an AI-native, multi-industry operating platform extending beyond traditional financial services. For more information, please visit https://ir.yiren.com .
For further information:
Investor Relations, Email: ir@yiren.com
Piacente Financial Communications, Email: yrd@thepiacentegroup.com
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of
December 31, 2025
March 31, 2026
June 30, 2026
June 30, 2026
RMB
RMB
RMB
USD
Cash and cash equivalents
3,348,126
2,453,140
1,696,719
250,065
Restricted cash
522,708
383,363
85,183
12,554
Accounts receivable
826,141
911,368
900,116
132,661
Guarantee receivable
832,905
868,827
769,228
113,370
Contract assets, net
619,291
305,106
137,000
20,191
Contract cost
4,287
2,149
1,429
211
Prepaid expenses and other assets
1,776,019
1,756,162
2,217,743
326,855
Loans at fair value
342,895
156,134
47,406
6,987
Financing receivables
909,182
938,958
773,807
114,045
Amounts due from related parties
2,974,080
3,429,417
2,005,406
295,560
Financial investments
483,700
507,528
251,962
37,135
Equity investments
11,528
23,455
23,005
3,390
Property, equipment and software, net
50,403
84,630
81,787
12,054
Digital Assets
391,267
287,228
225,413
33,222
Deferred tax assets
325,094
361,981
334,818
49,346
Right-of-use assets
37,329
33,891
29,989
4,420
Total assets
13,454,955
12,503,337
9,581,011
1,412,066
Accounts payable
79,630
93,759
61,289
9,033
Amounts due to related parties
44,179
14,982
36,491
5,378
Guarantee liabilities-stand ready
989,701
1,025,763
917,803
135,267
Guarantee liabilities-contingent
1,300,097
1,172,209
815,618
120,207
Deferred revenue
227
150
107
16
Payable to investors of consolidated ABFE
1,294,792
941,068
470,067
69,279
Accrued expenses and other liabilities
404,680
406,222
351,173
51,757
Deferred tax liabilities
29,854
34,197
32,595
4,804
Lease liabilities
39,758
35,289
33,252
4,901
Total liabilities
4,182,918
3,723,639
2,718,395
400,642
Ordinary shares
133
134
133
20
Additional paid-in capital
5,239,550
5,242,914
5,251,402
773,961
Treasury stock
(170,686)
(170,686)
(170,686)
(25,156)
Accumulated other comprehensive income
(2,517)
(17,369)
(36,659)
(5,403)
Retained earnings
4,205,557
3,710,721
3,257,264
480,061
Prepayment of acquisition costs to a related party under common control *
-
-
(1,450,000)
(213,704)
Total Yiren Digital Ltd shareholders' equity
9,272,037
8,765,714
6,851,454
1,009,779
Non-controlling interests
-
13,984
11,162
1,645
Total equity
9,272,037
8,779,698
6,862,616
1,011,424
Total liabilities and equity
13,454,955
12,503,337
9,581,011
1,412,066
* This balance represents the prepaid acquisition consideration made to a related party under common control for the Company's proposed acquisition and was reclassified from amounts due from related parties to equity account because there is uncertainty on the completion of the acquisition as well as the net assets of the acquisition target upon completion. The Company targets to close the acquisition during 2026, subject to regulatory approval.
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 Six Months Ended
June 30, 2025
March 31, 2026
June 30, 2026
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2026
RMB
RMB
RMB
USD
RMB
RMB
USD
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)
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from/(used in) operating activities
411,224
(655,588)
(1,029,107)
(151,672)
889,874
(1,684,695)
(248,293)
Net cash used in/(provided by) investing activities
(752,200)
(24,764)
454,017
66,914
(897,790)
429,253
63,264
Net cash provided by/(used in) financing activities
447,588
(345,590)
(469,907)
(69,256)
367,012
(815,497)
(120,190)
Effect of foreign exchange rate changes
(9,412)
(8,389)
(9,604)
(1,415)
(7,045)
(17,993)
(2,652)
Net increase/(decrease) in cash, cash equivalents and restricted cash
97,200
(1,034,331)
(1,054,601)
(155,429)
352,051
(2,088,932)
(307,871)
Cash, cash equivalents and restricted cash, beginning of period
4,356,408
3,870,834
2,836,503
418,048
4,101,557
3,870,834
570,490
Cash, cash equivalents and restricted cash, end of period
4,453,608
2,836,503
1,781,902
262,619
4,453,608
1,781,902
262,619
* 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.
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 Six Months Ended
June 30, 2025
March 31, 2026
June 30, 2026
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2026
RMB
RMB
RMB
USD
RMB
RMB
USD
Operating Highlights
Amount of loans facilitated
20,347,799
8,910,760
6,302,596
928,888
35,585,722
15,213,356
2,242,171
Number of borrowers
1,637,912
531,500
424,489
424,489
2,466,710
832,248
832,248
Remaining principal of performing loans
31,220,078
21,603,502
15,107,343
2,226,547
31,220,078
15,107,343
2,226,547
Cumulative number of insurance clients
1,681,888
2,357,951
2,712,793
2,712,793
1,681,888
2,712,793
2,712,793
Number of insurance clients
118,747
397,854
452,962
452,962
187,833
789,960
789,960
Gross written premiums
850,080
822,991
838,859
123,633
1,651,878
1,661,850
244,926
First year premium
440,353
536,332
532,946
78,547
852,850
1,069,278
157,592
Renewal premium
409,727
286,659
305,913
45,086
799,028
592,572
87,334
Segment Information
Credit solution business:
Revenue
1,489,587
795,746
777,638
114,610
2,784,067
1,573,384
231,888
Sales and marketing expenses
332,405
80,760
82,462
12,154
593,308
163,222
24,056
Origination, servicing and other operating costs
105,617
140,143
116,554
17,178
246,240
256,697
37,832
Allowance for contract assets, receivables and others
216,260
174,866
502,956
74,127
368,372
677,822
99,899
Provision for contingent liabilities
385,674
632,219
233,289
34,382
796,437
865,508
127,560
Insurance brokerage business:
Revenue
58,137
87,160
67,296
9,918
129,597
154,456
22,764
Sales and marketing expenses
2,731
2,388
20,922
3,083
5,526
23,310
3,435
Origination, servicing and other operating costs
52,683
54,475
69,044
10,176
134,123
123,519
18,205
Allowance for contract assets, receivables and others
564
(117)
107
16
(14)
(10)
(1)
Others:
Revenue
104,376
32,234
45,045
6,639
292,962
77,279
11,389
Sales and marketing expenses
10,030
30,421
23,479
3,460
23,284
53,900
7,944
Origination, servicing and other operating costs
2,559
2,934
4,010
591
5,234
6,944
1,023
Allowance for contract assets, receivables and others
45
188
107
16
(1,949)
295
43
Reconciliation of Adjusted EBITDA
Net income/(loss)
357,540
(494,714)
(449,615)
(66,265)
605,046
(944,329)
(139,177)
Interest income and investment income, net
(24,598)
(13,816)
(24,727)
(3,644)
(48,804)
(38,543)
(5,681)
Income tax expense/(benefit)
63,877
37,024
25,058
3,693
90,223
62,082
9,150
Depreciation and amortization
2,643
3,561
3,711
547
4,940
7,272
1,072
Share-based compensation
6,932
2,071
1,821
269
9,119
3,892
574
Fair value adjustments related to digital assets and financial investments
(54,979)
129,059
103,064
15,190
15,845
232,123
34,210
Adjusted EBITDA
351,415
(336,815)
(340,688)
(50,210)
676,369
(677,503)
(99,852)
Adjusted EBITDA margin
21.3 %
-36.8 %
-38.3 %
-38.3 %
21.1 %
-37.5 %
-37.5 %
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 %
December 31, 2025
3.4 %
3.0 %
2.8 %
March 31, 2026
2.5 %
2.7 %
3.2 %
June 30, 2026
2.5 %
2.0 %
2.4 %
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 %
6.6 %
6.5 %
2024Q2
0.6 %
2.4 %
4.0 %
5.1 %
5.8 %
6.1 %
6.1 %
6.0 %
5.9 %
5.8 %
5.8 %
2024Q3
0.5 %
2.2 %
3.7 %
4.7 %
5.4 %
5.8 %
5.8 %
5.7 %
5.7 %
5.5 %
2024Q4
0.6 %
2.2 %
3.8 %
4.9 %
5.9 %
6.4 %
6.4 %
6.3 %
6.0 %
2025Q1
0.6 %
2.3 %
4.2 %
6.0 %
7.2 %
7.8 %
7.4 %
2025Q2
0.8 %
3.5 %
6.6 %
8.9 %
10.0 %
9.4 %
2025Q3
1.1 %
4.8 %
8.0 %
10.0 %
2025Q4
1.1 %
4.3 %
7.6 %
2026Q1
0.7 %
*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.