Yiren Digital (YRD) Q2 2026 Earnings Report

The call conveyed a cautiously positive outlook centered on improved credit quality, strong insurance customer and policy growth, measurable AI operating gains, initial technology revenue traction, and a planned transition toward a more diversified and asset-light business model. However, these developments were accompanied by substantial year-over-year revenue declines, lower lending volumes, a large receivables allowance, a net loss, increased operating cash use, and a lower cash balance. The highlights outweighed the lowlights because management reported improving credit performance, approximately breakeven adjusted operating income, expanding AI commercialization, and continued progress on its transformation.

In the second half of this year, Yiren Digital will continue improving product matching, digital customer acquisition, ongoing engagement, and service efficiency across insurance; integrate online and offline channels to expand its customer base and improve retention and revenue quality; protect asset quality while transitioning credit solutions toward a technology-driven and asset-light borrower referral model; and expand AI deployment across customer acquisition, service, risk management, asset recovery, compliance, and internal decision-making, with technology services expected to play a bigger role in diversifying revenue. Management reported loans facilitated of RMB 6.3 billion, performing loans of RMB 15.1 billion, repeat borrowers at 82%, delinquency rates of 2.0%, 2.4%, and 2.5%, approximately 453,000 insurance clients, 918,000 new policies, and gross written premiums of approximately RMB 839 million; AI automation included a human handling rate declining from 45.0%-24.9%, autonomous text-agent resolution increasing from approximately 60% to nearly 80%, and automated quality inspection covering more than 2 million service records each day. The board authorized repurchases of up to 10% of total issue and outstanding ordinary shares and ADSs for an aggregated amount of up to $20 million over the following 12 months, while, assuming Ethereum prices remain at or above this level through the end of the third quarter, management would expect to recognize a substantial fair value gains in the third quarter.