Q2 FY2026
Filed Sep 30, 2026Yiren Digital reported lower credit-solution volume and revenue, a RMB449.6 million net loss and RMB1,029.1 million of operating cash outflow, while later-stage delinquency rates improved and insurance brokerage revenue grew year over year.
Total net revenue fell 46% year over year, the company moved from net income to a RMB449.6 million net loss, and operating cash outflow widened to RMB1,029.1 million. Lower contingent-liability provisions and improved later-stage delinquency rates were offset by a RMB502.8 million allowance for contract assets, receivables and others.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2026 total net revenueGAAP | RMB890.0 million (US$131.2 million) | decrease of 3% | decrease of 46% |
| Q2 2026 loan facilitation services revenueGAAP | RMB 31.12M | – | – |
| Q2 2026 post-origination services revenueGAAP | RMB 814K | – | – |
| Q2 2026 guarantee services revenueGAAP | RMB 493.8M | – | – |
| Q2 2026 financing services revenueGAAP | RMB 68.14M | – | – |
| Q2 2026 electronic commerce services revenueGAAP | RMB 1.91M | – | – |
| Q2 2026 network and marketing services revenueGAAP | RMB 122.6M | – | – |
| Q2 2026 technology services revenueGAAP | RMB 95.90M | – | – |
| Q2 2026 other revenueGAAP | RMB 8.37M | – | – |
| Q2 2026 sales and marketing expensesGAAP | RMB126.9 million (US$18.7 million) | increase of 12% | decrease of 63% |
| Q2 2026 origination, servicing and other operating costsGAAP | RMB189.6 million (US$27.9 million) | decrease of 4% | increase of 18% |
| Q2 2026 research and development expensesGAAP | RMB113.1 million (US$16.7 million) | increase of 4% | increase of 5% |
| Q2 2026 general and administrative expensesGAAP | RMB75.8 million (US$11.2 million) | increase of 8% | decrease of 4% |
| Q2 2026 allowance for contract assets, receivables and othersGAAP | RMB502.8 million (US$74.1 million) | – | – |
| Q2 2026 provision for contingent liabilitiesGAAP | RMB233.3 million (US$34.4 million) | decrease of 63% | decrease of 40% |
| Q2 2026 total operating costs and expensesGAAP | RMB 1.24B | – | – |
| Q2 2026 investment incomeGAAP | RMB 12.42M | – | – |
| Q2 2026 interest incomeGAAP | RMB 12.31M | – | – |
| Q2 2026 fair value adjustments lossGAAP | RMB97.8 million (US$14.4 million) | – | – |
| Q2 2026 income tax expenseGAAP | RMB25.1 million (US$3.7 million) | – | – |
| Q2 2026 net lossGAAP | RMB449.6 million (US$66.3 million) | narrowed by 9% | – |
| Q2 2026 net loss attributable to ordinary shareholders of the CompanyGAAP | RMB 446.8M | – | – |
| Q2 2026 basic loss per ADS attributable to ordinary shareholders of the CompanyGAAP | RMB5.1068 (US$0.7526) | – | – |
| Q2 2026 diluted loss per ADS attributable to ordinary shareholders of the CompanyGAAP | RMB5.1068 (US$0.7526) | – | – |
| Q2 2026 adjusted EBITDAnon-GAAP | loss of RMB340.7 million (US$50.2 million) | – | – |
| Q2 2026 adjusted EBITDA marginnon-GAAP | -38.3% | – | – |
| Q2 2026 net cash used in operating activitiesGAAP | RMB1,029.1 million (US$151.7 million) | – | – |
| Q2 2026 net cash provided by investing activitiesGAAP | RMB454.0 million (US$66.9 million) | – | – |
| Q2 2026 net cash used in financing activitiesGAAP | RMB469.9 million (US$69.3 million) | – | – |
| Q2 2026 total loans facilitatedother | RMB6.3 billion (US$0.9 billion) | decrease of 29% | decrease of 69% |
| Q2 2026 average loan sizeother | RMB 11.61M | decrease of 3% | increase of 57% |
| Q2 2026 number of borrowers servedother | 424,489 | decrease of 20% | decrease of 74% |
| Q2 2026 repeat borrowers’ loan amountother | 82% of total loans facilitated | – | – |
| Outstanding balance of performing loans as of June 30, 2026other | RMB15.1 billion (US$2.2 billion) | decrease of 30% | decrease of 52% |
| Cumulative number of borrowers served as of June 30, 2026other | 14,667,379 | increase of 1% | increase of 8% |
| Q2 2026 insurance clientsother | 452,962 | increase of 14% | increase of 281% |
| Cumulative insurance clients as of June 30, 2026other | 2,712,793 | increase of 15% | increase of 61% |
| Q2 2026 new insurance policiesother | 918,150 | decrease of 8% | increase of 177% |
| Q2 2026 gross written premiumsother | RMB838.9 million (US$123.6 million) | increase of 2% | decrease of 1% |
| Q2 2026 first-year premiumsother | RMB532.9 million (US$78.5 million) | – | – |
| Q2 2026 renewal premiumsother | RMB305.9 million (US$45.1 million) | – | – |
| 1-30 day delinquency rate as of June 30, 2026other | 2.5% | – | – |
| 31-60 day delinquency rate as of June 30, 2026other | 2.0% | – | – |
| 61-90 day delinquency rate as of June 30, 2026other | 2.4% | – | – |
| Six months ended June 30, 2026 total net revenueGAAP | RMB 1.81B | – | – |
| Six months ended June 30, 2026 total operating costs and expensesGAAP | RMB 2.54B | – | – |
| Six months ended June 30, 2026 net lossGAAP | RMB 944.3M | – | – |
| Six months ended June 30, 2026 diluted net loss per ADS attributable to ordinary shareholders of the CompanyGAAP | RMB10.7488 (US$1.5842) | – | – |
| Six months ended June 30, 2026 adjusted EBITDAnon-GAAP | −RMB 677.5M | – | – |
| Six months ended June 30, 2026 net cash used in operating activitiesGAAP | RMB 1.68B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Credit solution businessThe year-over-year decrease primarily reflected lower loan facilitation volume amid revised regulatory requirements for online loan facilitation. The Company moderated loan facilitation activity and increasingly concentrated originations among established repeat borrowers. | RMB777.6 million (US$114.6 million) | decrease of 2% | decrease of 48% |
| Insurance brokerage businessYear-over-year growth was driven by expansion of the internet distribution business and steady growth in traditional insurance operations. The sequential decrease reflected lower estimated renewal rates for certain internet insurance products and the resulting adjustment to revenue from the existing portfolio. | RMB67.3 million (US$9.9 million) | decrease of 23% | increase of 16% |
| Other businessesThe year-over-year decrease mainly reflected the continued scaling down of the e-commerce business. | RMB45.0 million (US$6.6 million) | increase of 40% | decrease of 57% |
Capital returns
- On July 2, 2026, the board of directors authorized a share repurchase program of up to 10% of total issued and outstanding ordinary shares and/or ADSs for an aggregate amount of up to US$20.0 million over the following 12 months.
- The Board is evaluating cash dividend payments and/or the recently announced share repurchase program.
What drove it
- Credit solution business revenue accounted for 87% of total net revenue in the second quarter of 2026.
- The company cited lower borrower all-in financing cost limits and more stringent funding-partner requirements relating to pricing and risk-adjusted returns under the revised online loan facilitation framework.
- Repeat borrowers’ loan amount accounted for 82% of total loans facilitated, compared with 78% in the first quarter of 2026 and 77% in the same period of 2025.
- Insurance client growth and new policy growth were 281% and 177% year over year, respectively.
- The autonomous resolution rate of text-based agents in customer operations increased from approximately 60% to nearly 80%, and automated quality inspection covered more than two million service records daily.
- The Hawkeye fraud detection system and DiTing multimodal verification engine helped avoid approximately RMB165 million (US$23 million) in potential fraud-related losses during 2025.
Concerns
- Total loans facilitated decreased 69% year over year and 29% sequentially, while the outstanding balance of performing loans facilitated decreased 52% year over year and 30% sequentially.
- Allowance for contract assets, receivables and others increased to RMB502.8 million from RMB176.4 million in the first quarter of 2026, driven by a provision for credit loss on certain related-party loan receivables and higher expected credit loss allowances on longer aging accounts receivable.
- The company reported a RMB97.8 million fair value adjustments loss, attributable primarily to declines in the market value of digital assets and related investments.
- Insurance brokerage revenue decreased 23% sequentially due to lower estimated renewal rates for certain internet insurance products and the resulting existing-portfolio revenue adjustment.
- Cash and cash equivalents decreased to RMB1,696.7 million from RMB2,453.1 million as of March 31, 2026.
What to watch
- Loan facilitation volume and the effect of revised online loan facilitation requirements on credit solution revenue.
- Collection of related-party loan receivables and expected credit loss allowances on longer aging accounts receivable.
- Whether lower expected net charge-off rates for newly originated loans and updated credit assessments continue to reduce contingent-liability provisions.
- Insurance renewal rates for internet insurance products and conversion of strong client and policy growth into revenue.
- Operating cash flow, prepayments for collection, system support and marketing services, and indemnity payments under the risk-taking model.
- Execution of the US$20.0 million share repurchase program and the proposed acquisition targeted to close during 2026, subject to regulatory approval.
Balance sheet and cash flow
- Cash and cash equivalents were RMB1,696.7 million (US$250.1 million) as of June 30, 2026, compared with RMB2,453.1 million as of March 31, 2026.
- Financial investments were RMB252.0 million (US$37.1 million) as of June 30, 2026, compared with RMB507.5 million as of March 31, 2026.
- Total assets were RMB9,581,011 thousand as of June 30, 2026, compared with RMB12,503,337 thousand as of March 31, 2026.
- Total liabilities were RMB2,718,395 thousand as of June 30, 2026, compared with RMB3,723,639 thousand as of March 31, 2026.
- Total equity was RMB6,862,616 thousand as of June 30, 2026, compared with RMB8,779,698 thousand as of March 31, 2026.
- Prepayment of acquisition costs to a related party under common control was RMB(1,450,000) thousand as of June 30, 2026.
- Net cash used in operating activities was RMB1,029.1 million (US$151.7 million), reflecting lower service fee collections, increased prepayments for collection, system support and marketing services, and continued indemnity payments under the risk-taking model.
- Net cash provided by investing activities was RMB454.0 million (US$66.9 million), primarily attributable to repayments from trust lending arrangements and proceeds from redemptions of funds and wealth management products.
- Net cash used in financing activities was RMB469.9 million (US$69.3 million), primarily reflecting distributions of principal upon the liquidation of certain trust plans.
Analysis
Yiren Digital's second-quarter results show a substantially smaller credit business under a more restrictive operating approach. Total net revenue was RMB890.0 million, down 46% year over year and 3% sequentially. Credit solution revenue fell 48% year over year to RMB777.6 million, alongside a 69% decline in loans facilitated and a 52% decline in the outstanding balance of performing loans facilitated. The company attributed the contraction to revised online loan facilitation requirements and its decision to prioritize portfolio quality and risk-adjusted returns.
The portfolio mix and delinquency data improved in areas management emphasized. Repeat borrowers accounted for 82% of total loans facilitated, above 78% in the first quarter and 77% a year earlier. The 31-60 day delinquency rate improved to 2.0% from 2.7% at March 31, 2026, and the 61-90 day rate improved to 2.4% from 3.2%. Provision for contingent liabilities declined 63% sequentially to RMB233.3 million, which the company linked to lower risk-taking-model volume, updated credit assessments, and lower expected net charge-off rates on newly originated loans.
Those credit improvements did not prevent a large loss because receivable and contract-asset impairments increased sharply. Allowance for contract assets, receivables and others rose to RMB502.8 million from RMB176.4 million in the preceding quarter, reflecting a credit-loss provision on certain related-party loan receivables and higher expected credit loss allowances on longer aging accounts receivable. The company also recorded a RMB97.8 million fair value adjustments loss. Net loss was RMB449.6 million, following a RMB494.7 million net loss in the first quarter and net income of RMB357.5 million a year earlier. Adjusted EBITDA was a RMB340.7 million loss and its margin was -38.3%.
Insurance produced a contrasting operating picture. Insurance brokerage revenue increased 16% year over year to RMB67.3 million, while insurance clients increased 281% and new insurance policies increased 177%. However, segment revenue declined 23% sequentially because of lower estimated renewal rates for certain internet insurance products and the related existing-portfolio revenue adjustment. Gross written premiums were RMB838.9 million, up 2% sequentially but down 1% year over year.
Cash flow and liquidity require attention. Operating cash outflow was RMB1,029.1 million, compared with RMB655.6 million used in the first quarter and RMB411.2 million generated a year earlier. Cash and cash equivalents declined to RMB1,696.7 million from RMB2,453.1 million at March 31, 2026, while financial investments declined to RMB252.0 million from RMB507.5 million. Investing activities supplied RMB454.0 million of cash, but financing activities used RMB469.9 million. The board authorized a repurchase program of up to US$20.0 million, while management gave no financial outlook.
Management, verbatim
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.
Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital
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.
Mr. William Hui, Chief Financial Officer of Yiren Digital
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook and prior-guidance comparison
- Gross margin
- Operating income or loss
- Free cash flow
- Debt balances
- Tax rate
- Declared cash dividend
- Year-over-year comparison for June 30, 2026 delinquency rates
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.