Yiren Digital Ltd.

Q1 2026 total net revenue was RMB 915.1 million, down 41% year over year and down 4% sequentially from RMB 957.6 million in Q4 2025. Credit solutions revenue was RMB 795.7 million, down 4% quarter over quarter. Insurance revenue was RMB 87.2 million, up 4% sequentially and 22% year over year. Adjusted EBITDA loss narrowed to CNY 337 million from a loss of CNY 1 billion in Q4 2025. Net loss improved to CNY 494.7 million from CNY 868.2 million last quarter. The allowance for credit assets, receivables, and others fell to RMB 176.4 million from RMB 302.8 million, and provisions for contingent liabilities declined to CNY 632.2 million from CNY 1.11 billion. Cash and cash equivalents were CNY 2.45 billion, restricted cash was CNY 383.4 million, and financial investments were CNY 507.5 million, for total liquidity of approximately CNY 3.3 billion. For outlook, management said asset quality improved through April and May, which should support lower provisioning in coming quarters, and it expects continued momentum in internet insurance.

Ning Tang framed the quarter as evidence that the company’s transformation is gaining traction, citing improving fundamentals in the legacy fintech business and faster progress toward an AI-native operating platform. He said AI is now embedded across marketing, underwriting, risk, collections, and customer service, and emphasized that the company is moving from AI-assisted productivity toward more autonomous execution with MagiCube 2.0. His tone was confident and strategic, but still disciplined, repeatedly stressing prudent capital allocation and that the AI expansion is in the early stages.

William Hui said the quarter reflected the benefits of credit normalization, more disciplined underwriting, and AI-driven cost optimization. He pointed to lower provisions, including the allowance for credit assets, receivables, and others falling to RMB 176.4 million from RMB 302.8 million, and contingent liability provisions dropping to CNY 632.2 million from CNY 1.11 billion. He also highlighted operating leverage, with sales and marketing down 45% sequentially to CNY 113.6 million, origination/servicing/other operating costs down to CNY 197.6 million, and R&D at CNY 108.9 million as the company continues investing in AI; he ended by emphasizing a strong balance sheet with approximately CNY 3.3 billion in total liquidity and a cautious outlook.

There was no Q&A session on the call due to time constraints. As a result, no analyst concerns or follow-up answers were addressed live. The closest thing to Q&A was management’s outlook commentary, which said credit quality improved through April and May, internet insurance should keep growing, and AI investments will continue, but that the company remains cautious and disciplined.