Yiren Digital Reports First Quarter 2025 Financial Results

Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), an AI-powered platform providing a comprehensive suite of financial and lifestyle services in Asia, today announced its unaudited financial results for the quarter ended March 31, 2025.

First Quarter 2025 Operational Highlights

Financial Services Business

— Total loans facilitated in the first quarter of 2025 reached RMB15.2 billion (US$2.1 billion), representing a slight decrease of 1% from RMB15.4 billion in the fourth quarter of 2024 and compared to RMB11.9 billion in the same period of 2024.

— Cumulative number of borrowers served reached 12,909,436 as of March 31, 2025, representing an increase of 5% from 12,350,400 as of December 31, 2024, and compared to 9,978,280 as of March 31, 2024.

— Number of borrowers served in the first quarter of 2025 was 1,375,406, representing a decrease of 12% from 1,560,789 in the fourth quarter of 2024 and compared to 1,352,200 in the same period of 2024. The decline was due to our strategic shift towards increasing the repeat borrowing rate among existing high-quality borrowers, combined with the traditionally slow season in the credit business during this period.

— Outstanding balance of performing loans facilitated reached RMB27.5 billion (US$3.8 billion) as of March 31, 2025, representing an increase of 11% from RMB24.8 billion as of December 31, 2024 and compared to RMB20.2 billion as of March 31, 2024.

Insurance Brokerage Business

— Cumulative number of insurance clients served reached 1,590,394 as of March 31, 2025, representing an increase of 4% from 1,532,119 as of December 31, 2024, and compared to 1,343,660 as of March 31, 2024.

— Number of insurance clients served in the first quarter of 2025 was 77,541, representing a decrease of 7% from 83,786 in the fourth quarter of 2024, and compared to 73,687 in the same period of 2024. The decrease was due to an industry-wide downturn in new sales impacted by regulatory tightening.

— Gross written premiums in the first quarter of 2025 were RMB801.8 million (US$110.5 million), representing a decrease of 27% from RMB1,100.3 million in the fourth quarter of 2024 and compared to RMB912.4 million in the same period of 2024. The decline was attributed to an industry-wide downturn in new sales impacted by regulatory tightening.

“We are pleased to report another solid and healthy quarter, reflecting the strength of our technology transformation strategy, which focuses on sustainable growth, operational efficiency, technology innovation and international expansion.” said Mr. Ning Tang, Chairman and Chief Executive Officer.

“Our core business benefits from domestic economic stimulus policies that boost consumption and expand credit access, creating sector-wide opportunities. Through our strategic focus on attracting and serving high-quality borrowers, combined with ongoing integration of advanced technology across our platform, we are well-positioned to capitalize on these favorable conditions and confident in maintaining our growth momentum through 2025.”

“In the first quarter of this year, our total revenue reached RMB1.6 billion, up 13% year-over-year.” Mr.Yuning Feng, Chief Financial Officer commented. “On our balance sheet, our cash and cash equivalents remained strong at RMB4.0 billion as of March 31, 2025, underscoring our financial flexibility and positioning us to capitalize our strategic opportunities.”

First Quarter 2025 Financial Results

Total net revenue in the first quarter of 2025 was RMB1,554.5 million (US$214.2 million), representing an increase of 13% from RMB1,378.1 million in the first quarter of 2024. Particularly, in the first quarter of 2025, revenue from financial services business was RMB1,174.6 million (US$161.9 million), representing an increase of 59% from RMB738.1 million in the same period of 2024. The increase was attributed to the persistent and growing demand for our small revolving loan products. Revenue from insurance brokerage business was RMB71.5 million (US$9.8 million), representing a decrease of 43% from RMB124.9 million in the first quarter of 2024. The decrease was primarily driven by a decline in life insurance sales, attributed to regulatory-mandated product adjustments, along with an industry-wide reduction in commission fee rates due to the implementation of more stringent regulatory standards on rates and terms. Revenue from consumption and lifestyle business and others was RMB308.5 million (US$42.5 million), representing a decrease of 40% from RMB515.0 million in the first quarter of 2024. The decrease was mainly attributed to the high product penetration rate following sustained prior growth, resulting in fewer new sales opportunities. The Company is currently conducting a strategic review to evaluate and optimize our positioning for sustainable long-term growth in alignment with our corporate strategic priorities.

Sales and marketing expensesin the first quarter of 2025 were RMB277.0 million (US$38.2 million), which remains stable compared to RMB277.2 million in the same period of 2024.

Origination, servicing and other operating costsin the first quarter of 2025 were RMB224.7 million (US$31.0 million), which remains stable compared to RMB233.3 million in the same period of 2024.

Research and development expensesin the first quarter of 2025 were RMB86.0 million (US$11.8 million), compared to RMB40.5 million in the same period of 2024. The increase reflects our strategic acceleration of artificial intelligence investments, positioning us to capture emerging market opportunities and drive long-term competitive advantage.

General and administrative expensesin the first quarter of 2025 were RMB95.8 million (US$13.2 million), compared to RMB83.7 million in the same period of 2024. The increase was primarily due to higher incentive bonuses and increased employee benefit expenses.

Allowance for contract assets, receivables and othersin the first quarter of 2025 was RMB152.8 million (US$21.1 million), compared to RMB102.3 million in the same period of 2024. The increase reflects the growing volume of loans facilitated on our platform as well as our cautious approach to risk management.

Provision for contingentliabilitiesin the first quarter of 2025 was RMB410.8 million (US$56.6 million), compared to RMB67.3 million in the same period of 2024. The increase was mainly attributed to a higher volume of loans facilitated under our risk-taking model[1].

Income tax expensein the first quarter of 2025 was RMB26.3 million (US$3.6 million).

Net income in the first quarter of 2025 was RMB247.5 million (US$34.1 million), as compared to RMB485.9 million in the same period in 2024. The decrease was primarily due to the growing loan volume facilitated under our risk-taking model, resulting in substantial upfront provisions required by the current accounting principles. Moreover, declining sales in the insurance brokerage business and the consumption and lifestyle segments, increased R&D costs, and an unrealized loss from fair value adjustments on invested assets further contributed to the overall reduction in profitability.

Adjusted EBITDA[2](non-GAAP)in the first quarter of 2025 was RMB325.0 million (US$44.8 million), compared to RMB591.1 million in the same period of 2024.

Basic and diluted income per ADSin the first quarter of 2025 were RMB2.9 (US$0.4) and RMB2.8 (US$0.4) respectively, compared to a basic income per ADS of RMB5.6 and a diluted income per ADS of RMB5.5 in the same period of 2024.

Net cash generated from operating activitiesin the first quarter of 2025 was RMB478.7 million (US$66.0 million), compared to RMB631.7 million in the same period of 2024.

Net cash used in investing activitiesin the first quarter of 2025 was RMB145.6 million (US$20.1 million), compared to RMB683.7 million in the same period of 2024.

Net cash used in financing activitiesin the first quarter of 2025 was RMB80.6 million (US$11.1 million), compared to RMB14.8 million in the same period of 2024.

As of March 31, 2025, cash and cash equivalents were RMB4,043.6 million (US$557.2 million), compared to RMB3,841.3 million as of December 31, 2024. As of March 31, 2025, the balance of financial investment was RMB404.1 million (US$55.7 million), compared to RMB437.2 million as of December 31, 2024.

Delinquency rates[3]. As of March 31, 2025, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 1.6%, 1.2% and 1.2%, respectively, compared to 1.6%, 1.2% and 1.1%, respectively, as of December 31, 2024.

[1] The risk-taking model refers to the framework in which the company assumes the credit risk for the loans facilitated on our platform.[2] “Adjusted EBITDA” is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of “Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures” and the table captioned “Reconciliations of Adjusted EBITDA” set forth 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. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.

Recent Development

1) Management Change

Mr. Yuning Feng, current CFO of Yiren Digital will resign due to personal reasons, and Mr. Ka Chun William Huihas been appointed as the new CFO by the board of directors, effective on June 30, 2025.

Mr. Hui brings nearly two decades of experience in investment banking and capital markets. He joined CreditEase, Yiren Digital's parent company, in 2017, focusing on global investment and capital market operation. Prior to that, he held several key roles at leading financial institutions, includingPrincipal of Private Equity at China Minsheng Bank International,Deputy General Manager at CITIC International Asset Management, and positions at New World Development's Family Office, Deutsche Bank (Hong Kong), and IBM (Canada). Mr. Hui holds a bachelor's degree in computer engineering and an MBA, both from the University of Toronto.

“On behalf of the Board, we are delighted to welcome William to join the Company. We look forward to his expertise and professionalism further strengthening our organization. We would also like to express our sincere gratitude to Yuning for his dedication and wish him every success in his future endeavors,” said Mr. Ning Tang, Chairman and CEO of Yiren Digital.

2) Share Incentive Plan

To promote the success and enhance the value of Yiren Digital, on June 6, 2025, the Company's board of directors (the “Board”) approved the 2025 Share Incentive Plan (the “2025 Plan”), which became effective on the same day. The maximum aggregate number of shares of the Company which may be issued pursuant to all awards under the 2025 Plan shall be 18,560,000 ordinary shares, par value US$0.0001 per share, of the Company.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the second quarter of 2025 to be between RMB1.6 billion toRMB1.7 billion, with a healthy net profit margin, driven by loan growth from domestic market and international markets, further market penetration into new customer segment.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures 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 measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures 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.

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 RMB7.2567 to US$1.00, the effective noon buying rate on March 31, 2025, 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 June 12, 2025 (or 8:00 p.m. Beijing/Hong Kong Time on June 12, 2025).

Participants who wish to join the call should register online in advance of the conference at: https://dpregister.com/sreg/10200245/ff3e415b7a

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://event.choruscall.com/mediaframe/webcast.html?webcastid=ZoyvDsQv

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “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 forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in Asia. Our mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. We support clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.

Unaudited Condensed Consolidated Statements of Operations(in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended March 31, March 31, March 31, 2024 2025 2025 RMB RMB USDNet revenue:Loan facilitation services 676,295 742,394 102,305Post-origination services 1,772 1,744 240Guarantee services 16,853 318,397 43,876Financing services 10,666 41,887 5,772Insurance brokerage services 124,926 71,460 9,847Electronic commerce services 502,936 184,074 25,366Others 44,636 194,570 26,813Total net revenue 1,378,084 1,554,526 214,219Operating costs and expenses:Sales and marketing 277,223 276,952 38,164Origination,servicing and other operating costs 233,270 224,738 30,970Research and development 40,521 85,954 11,845General and administrative 83,674 95,837 13,207Allowance for contract assets, receivables and others 102,334 152,805 21,057Provision for contingent liabilities 67,258 410,763 56,605Total operating costs and expenses 804,280 1,247,049 171,848Other income/(expenses):Interest income, net 27,713 24,206 3,336Fair value adjustments gain/(loss) 15,468 (58,376) (8,044)Others, net 677 674 93Total other income/(expenses) 43,858 (33,496) (4,615)Income before provision for income taxes 617,662 273,981 37,756Share of results of equity investees – (129) (18)Income tax expense 131,779 26,346 3,631Net income 485,883 247,506 34,107Weighted average number of ordinary shares outstanding, 174,282,443 172,800,275 172,800,275basicBasic income per share 2.7879 1.4323 0.1974Basic income per ADS 5.5758 2.8646 0.3948Weighted average number of ordinary shares outstanding, 176,202,571 173,935,749 173,935,749dilutedDiluted income per share 2.7575 1.4230 0.1961Diluted income per ADS 5.5150 2.8460 0.3922Unaudited Condensed Consolidated Cash Flow DataNet cash generated from operating activities 631,743 478,650 65,960Net cash used in investing activities (683,697) (145,590) (20,063)Net cash used in financing activities (14,774) (80,576) (11,104)Effect of foreign exchange rate changes 1,340 2,367 326Net (decrease)/increase in cash, cash equivalents and (65,388) 254,851 35,119restricted cashCash, cash equivalents and restricted cash, beginning of 6,058,604 4,101,557 565,210periodCash, cash equivalents and restricted cash, end of period 5,993,216 4,356,408 600,329Unaudited Condensed Consolidated Balance Sheets(in thousands) As of December31, March 31, March 31, 2024 2025 2025 RMB RMB USDCash and cash equivalents 3,841,284 4,043,590 557,222Restricted cash 260,273 312,818 43,107Accounts receivable 566,541 583,542 80,414Guarantee receivable 474,132 620,241 85,472Contract assets, net 1,008,920 1,114,576 153,593Contract cost 294 425 59Prepaid expenses and other assets 2,361,585 2,299,149 316,831Loans at fair value 421,922 314,790 43,379Financing receivables 17,515 22,040 3,037Amounts due from related parties 3,387,952 3,284,281 452,586Financial investments 437,203 404,059 55,681Equity investments 9,239 9,110 1,255Property, equipment and software, net 78,678 78,358 10,798Crypto assets – 148,062 20,403Deferred tax assets 77,463 1 -Right-of-use assets 39,695 38,917 5,363Total assets 12,982,696 13,273,959 1,829,200Accounts payable 43,167 79,882 11,008Amounts due to related parties 129,629 99,616 13,727Guarantee liabilities-stand ready 606,886 809,726 111,583Guarantee liabilities-contingent 578,797 756,699 104,276Deferred revenue 9,479 482 66Payable to investors at fair value 368,022 287,500 39,619Accrued expenses and other liabilities 1,622,050 1,393,592 192,042Deferred tax liabilities 41,471 54,897 7,565Lease liabilities 40,765 37,808 5,210Total liabilities 3,440,266 3,520,202 485,096Ordinary shares 132 132 18Additional paid-in capital 5,198,457 5,201,567 716,795Treasury stock (170,463) (170,463) (23,490)Accumulated other comprehensive 79,268 40,903 5,637incomeRetained earnings 4,435,036 4,681,618 645,144Total equity 9,542,430 9,753,757 1,344,104Total liabilities and equity 12,982,696 13,273,959 1,829,200Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures(in thousands, except for number of borrowers, number of insurance clients, cumulative numberof insurance clients and percentages) For the Three Months Ended March 31, March 31, March 31, 2024 2025 2025 RMB RMB USDOperating HighlightsAmount of loans facilitated 11,910,367 15,237,923 2,099,842Number of borrowers 1,352,200 1,375,406 1,375,406Remaining principal of performing loans 20,156,161 27,458,292 3,783,854Cumulative number of insurance clients 1,343,660 1,590,394 1,590,394Number of insurance clients 73,687 77,541 77,541Gross written premiums 912,431 801,798 110,491First year premium 514,141 412,497 56,844Renewal premium 398,290 389,301 53,647Segment InformationFinancial services business:Revenue 738,117 1,174,577 161,861Sales and marketing expenses 251,922 260,903 35,953Origination, servicing and other operatingcosts 85,787 140,623 19,378Allowance for contract assets, receivables andothers 101,127 152,112 20,962Provision for contingent liabilities 67,258 410,763 56,605Insurance brokerage business:Revenue 124,926 71,460 9,847Sales and marketing expenses 3,565 2,795 385Origination, servicing and other operatingcosts 136,883 81,440 11,223Allowance for contract assets, receivables andothers 1,012 (578) (80)Consumption & lifestyle business and others:Revenue 515,041 308,489 42,511Sales and marketing expenses 21,736 13,254 1,826Origination, servicing and other operatingcosts 10,600 2,675 369Allowance for contract assets, receivables andothers 9 (1,994) (275)Reconciliation of Adjusted EBITDANet income 485,883 247,506 34,107Interest income, net (27,713) (24,206) (3,336)Income tax expense 131,779 26,346 3,631Depreciation and amortization 1,892 2,297 317Share-based compensation 1,207 2,187 301Fair value adjustments related to crypto assets (1,933) 70,824 9,760and financial investment *Adjusted EBITDA 591,115 324,954 44,780Adjusted EBITDA margin 42.9% 20.9% 20.9%*Due to the expansion of asset categories in which the Company has invested and the significantfluctuations in their fair value changes, adjustments for fair value changes relating tocrypto assetsand financial investments are hereby incorporated, and historical periods have been restated toenhance investors' comprehension of the Company's financial statements.Delinquency Rates 1-30 days 31-60 days 61-90 daysDecember 31, 2020 1.3% 0.7% 0.6%December 31, 2021 2.0% 1.5% 1.2%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%March 31, 2025 1.6% 1.2% 1.2% 30+ Days Delinquency Rates By Vintage*Loan Month on BookIssuedPeriod 2 4 6 8 10 12 14 16 18 20 22 242020Q1 0.8% 2.0% 3.4% 4.5% 5.4% 5.9% 6.5% 6.8% 7.1% 7.5% 8.1% 8.5%2020Q2 0.6% 2.0% 3.3% 4.5% 5.3% 6.0% 6.4% 6.9% 7.4% 8.0% 8.6% 8.8%2020Q3 1.3% 2.8% 4.3% 5.4% 6.3% 6.9% 7.5% 8.2% 8.9% 9.3% 9.5% 9.5%2020Q4 0.3% 1.4% 2.4% 3.4% 4.3% 5.4% 6.4% 7.3% 7.7% 8.0% 8.2% 8.3%2021Q1 0.5% 1.8% 3.0% 4.2% 5.3% 6.3% 7.1% 7.3% 7.5% 7.7% 7.8% 7.9%2021Q2 0.5% 2.1% 3.8% 5.5% 6.8% 7.5% 7.7% 7.9% 8.1% 8.3% 8.2% 8.2%2021Q3 0.6% 2.5% 4.2% 5.4% 6.1% 6.5% 6.7% 6.9% 6.9% 6.9% 6.9% 6.8%2021Q4 0.8% 2.7% 4.1% 4.9% 5.4% 5.8% 5.8% 5.8% 5.7% 5.6% 5.6% 5.5%2022Q1 0.7% 2.1% 3.2% 4.0% 4.6% 4.8% 4.7% 4.6% 4.6% 4.5% 4.5% 4.4%2022Q2 0.5% 1.8% 2.9% 3.8% 4.3% 4.5% 4.4% 4.3% 4.3% 4.2% 4.2% 4.1%2022Q3 0.6% 2.2% 3.5% 4.3% 4.8% 5.0% 5.0% 4.9% 4.9% 4.8% 4.7% 4.7%2022Q4 0.7% 2.5% 3.9% 4.9% 5.6% 5.9% 5.8% 5.8% 5.7% 5.6% 5.5% 5.4%2023Q1 0.6% 2.4% 4.0% 5.2% 5.9% 6.2% 6.1% 6.0% 5.9% 5.8% 5.7% 5.7%2023Q2 0.7% 3.0% 4.9% 6.3% 7.0% 7.3% 7.2% 7.0% 6.9% 6.8% 6.6%2023Q3 0.9% 3.7% 5.8% 7.1% 7.9% 8.1% 8.0% 7.9% 7.7% 7.5%2023Q4 0.8% 3.6% 5.8% 7.0% 7.6% 7.8% 7.7% 7.6%2024Q1 0.7% 3.2% 5.0% 6.1% 6.7% 7.0% 7.2%2024Q2 0.6% 2.5% 4.2% 5.3% 6.1%2024Q3 0.6% 2.3% 3.8% 4.8%2024Q4 0.7% 2.4%2025Q1 0.6%*The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified periodthat are more than 30 days past due, as a percentage of the total loans facilitated during that same period. Loans originatingoutside mainland China are excluded from the calculation.

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