YRD

Image source: The Motley Fool. Sept. 30, 2026 - Director of Investor Relations - Stephanie Nan - Founder, Chairman, and Chief Executive Officer - Ning Tang - Chief Financial Officer - William Hui Operator: Good day, and welcome to the Yiren Digital Second Quarter 2026 Earnings Conference Call. Please note that this event is being recorded. I would now like to turn the conference over to Ms. Stephanie Nan, Director of Investor Relations of Yiren Digital. Please go ahead, ma'am. Stephanie Nan: Thank you, Rachel. Good morning and good evening, everyone. Today's call features presentations by our Founder, Chairman, and CEO, Mr. Ning Tang, and our CFO, Mr. William Hui. Before we begin, we'd like to remind you that discussions during this call contain forward-looking statements made under the Safe Harbor provision of U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and factors that can cause actual results to differ materially from those contained in any such statement. For the information regarding such risks, uncertainties, or factors is included in the company's filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statement, except as required under applicable law. During the call, we will be referring to certain non-GAAP financial measures and supplemental measures to review and assess the company's operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For information about these non-GAAP financial measures and the reconciliation of GAAP measures, please refer to our earnings press release. As a reminder, this conference is being recorded, and investor presentation and the webcast replay of this conference call will be available on Yiren Digital's IR website. I will now turn the call over to the company's CEO, Mr. Tang, for opening remarks. Ning Tang: Thank you, Stephanie. Hi, everyone. Thank you all for joining us. The second quarter was a demanding period for Yiren Digital, but it also marked the meaningful progress in our transformation. We are encouraged to see broad improvement in the credit environment, with credit conditions recovering more quickly than we had anticipated. At the same time, we are using this period of recovery to accelerate an important transition in our business model. Across our lending and insurance businesses, we are moving towards a more technology-driven asset-light revenue model that relies increasingly on AI, digital distribution, and our ability to deliver higher value services to customers and partners. This transformation is about more than improving our existing business. We are building the foundation for broader technology and AI ecosystem that can apply our AI capabilities across new industries and diversify our sources of revenue over time. During this quarter, we made progress in three areas that are particularly important to this strategy. First, we continue to improve credit quality. Second, we further invested in technology and talent across our insurance platform to support long-term growth. Third, we increased the application of AI across our operations. These developments and our ongoing initiatives are helping us build a more resilient, technology-driven, and diversified business. Looking at each of our businesses in more detail. In the credit solution business, we facilitated RMB 6.3 billion in loans in the second quarter. While this was down 29% quarter-over-quarter, the outstanding balance of performing loans declined 30% to RMB 15.1 billion. As I mentioned, the credit environment has improved substantially. We are taking this opportunity to further evolve our lending model. Rather than returning to the previous scale of our risk-taking business, we are increasingly focused on an asset-light and a referral model. Our AI capabilities are an important enabler of this transition. Our customer acquisition and precision marketing platform allow us to identify and match customer demand more efficiently and direct the qualified traffic to our lending partners. More importantly, the same customer acquisition capabilities can also support other financial services, creating opportunities to increase the value of our customer relationships beyond lending. This shift allows us to focus more on our technology and customer acquisition capabilities while reducing our reliance on capital and the credit cycle. Turning to the operating results. Repeat borrowers accounted for a record of 82% of total loans facilitation volume. Compared with 78% in the first quarter and 77% in the same period last year. The 31-60 day delinquency rate declined to 2.0% from 2.7%. The 61-90 day rate declined to 2.4% from 3.2%, while the one to 30 day rate remained stable at 2.5%. These trends reflect the broader recovery in credit conditions together with our combined focus on acquiring and serving higher quality borrowers in a more efficient manner. Turning to our insurance brokerage business. We continue to expand both the scale and the reach of the platform. The number of insurance clients increased 14% from the fourth quarter and 281% year-over-year to approximately 453,000. We issued more than 918,000 new policies, up 177% year-over-year, while gross written premiums increased 2% sequentially to approximately RMB 839 million. The insurance brokerage revenue increased 16% year-over-year, supported by the continued expansion of Internet insurance distribution and the steady growth in traditional insurance operations, particularly in new business. On a sequential quarter basis, revenue was affected by lower than estimated renewal rates. However, this was offset by stronger new policy production across both traditional and digital channels, demonstrating the value of our omni-channel strategy. The rapid expansion of our client base and policy issuance also gives us a larger customer base from which to build recurring engagement. The next phase of our strategy is to translate this customer reach into stronger retention, renewal, and revenue quality. In the second half of this year, we will continue to improve product matching, digital customer acquisition, ongoing engagement, and service efficiency across the insurance platform. We are also encouraged by the diversification of revenue streams within our insurance segment. Besides the traditional commission-based revenue, we are beginning to generate revenue from our technology and consulting services provided to our insurance partners. Now, let me turn to AI, which is increasingly becoming an integral part of how Yiren Digital operates. Over the past several years, we have built proprietary AI models, our Magicube multi-agent platform, and specialized capabilities across customer acquisition, customer service, risk management, asset recovery, and internal operations. At this stage of our AI transformation, the most important measure is not the number of tools we have launched. It's whether these technologies are producing measurable improvements in real business processes. We are seeing that impact across multiple areas. We have also started generating external commercial traction, including initial sales of our customer acquisition and the precision marketing technology and consulting services to insurance partners. For asset recovery, the level of automation reached a record high with the human handling rate declining from 45.0%-24.9%. In customer operations, the autonomous resolution rate of text-based agents increased from approximately 60% to nearly 80%. Automated quality inspection now covers more than 2 million service records each day. These applications reduce repetitive work, improve consistency, and allow our employees to focus their time and expertise on situations that require human judgment. AI is also strengthening risk diversification and control. As disclosed in our 2025 ESG report, which was published in July 2026, our Hawkeye fraud detection system and the DiTing multimodel verification engine helped the company avoid approximately RMB 165 million in potential losses associated with borrower fraud during 2025. While this is an operation risk indicator rather than a financial metric, it demonstrates the practical value of our AI capabilities in strengthening risk identification and operational control. During the second half, we will continue to expand AI deployment across customer acquisition, service, risk management, asset recovery, compliance, and internal decision-making. Our approach remains focused on practical applications with clear objectives, measurable performance indicators, appropriate accountability, and human oversight. As these systems become more capable, we will also continue strengthening data governance, model monitoring, and security controls. The next stage of our strategy is to expand the capabilities and experience we have developed internally into AI-native opportunities beyond the financial services. We believe our established businesses give us real operating scenarios, engineering capabilities, data, proprietary know-how, and risk management experience. We can then combine these capabilities with external innovation through select partnerships, investments, and where appropriate, potential acquisitions. Over the past several quarters, we have used this approach to identify and support a number of AI-native companies across different application areas, including education, entertainment, and other emerging sectors. Through our technology capabilities, AI expertise, and value-added support, which includes AI infrastructure, engineering resources, business development, and corporate governance, we seek to provide these companies with more than capital. Our goal is to help promising AI businesses accelerate product development, commercialization, and market expansion while creating strategic connectivity with our broader platform. During the period between May and July, we identified four high-potential AI-native companies that we believe have differentiated product and attractive application potential. We have entered into warrant agreements with the founders of these companies that provide us with the option, subject to specified terms and milestones, to acquire a controlling stake at pre-agreed exercise prices. The AI application companies with which we have entered into warrant agreements are primarily focused on education and entertainment use cases. We believe that as the AI industry continues to evolve beyond the current focus on infrastructure and computing investment, AI applications will become an increasingly important area of value creation. Education and entertainment are among the areas where we see particularly strong potential for AI to deliver more personalized, engaging, and differentiated experiences to users. By combining AI with proprietary content, user data, and domain-specific applications, these companies have the potential to develop new ways of delivering value to consumers and create scalable AI-native businesses. This is consistent with our broader strategy of building an AI ecosystem that extends beyond infrastructure into applications with direct user engagement and commercial potential. These relationships did not begin with the warrant agreements. We began working with these four companies in 2024 when they were still at an early stage of development and had limited or virtually no revenue. Since then, we have provided early-stage support beyond capital, including assistance with strategy, team development, technology, product definition, distribution, and risk management. Through years of closely working together, we have established a deep trust with these entrepreneurial partners who have chosen to explore a deeper, more strategic relationship with us. We believe this approach can create a pipeline of long-term strategic partnerships and, where appropriate, deeper ownership relationships that have the potential to broaden Yiren Digital's capabilities and its revenue mix over time. These are not isolated minority investments. They form part of a consistent strategy that we are executing with discipline. We believe the warrant and acquisition strategy provides a disciplined and capital-efficient way to build our AI application portfolio. It allows us to establish strategic relationships and participate in the potential development of these companies today while preserving the flexibility to increase our ownership as the companies mature and demonstrate further commercial progress. Earlier this week, we served a notice to exercise our warrant to acquire a controlling stake in one of the AI-native companies we previously backed through a warrant agreement. The company is an interactive entertainment platform focused on AI-powered, user-generated role-playing content and digital character experiences. The platform enables users to create and interact with AI characters through immersive content supported by proprietary image, video, and voice creation tools. At the same time, its creator-driven model helps generate a scalable and engaging content ecosystem. The platform has accumulated approximately 3.8 million users, including more than 120,000 paying users. It has established a strong presence in several Southeast Asian markets, where it is positioned among the leading AI entertainment platforms, and has expanded its user acquisition efforts across multiple international markets, including Vietnam, Thailand, the Philippines, Taiwan, Hong Kong, South Korea, Japan, the U.S., Canada, and Brazil. We believe this combination of AI-native content creation, user-generated content, and international distribution provides an opportunity to expand our AI ecosystem into consumer entertainment. The target company has demonstrated strong growth and is already operating profitably. Leveraging the high volume, high-quality data generated through its customer engagement, the company is also developing a proprietary vertical large language model designed to enhance customer experience and improve operational efficiency and margin. Subject to the completion of the transaction, we believe the company will become a meaningful contributor to our revenue base over time, with the potential for its contribution to increase as the business continues to scale globally. The completion of the warrant exercise is subject to the execution of definitive agreements. We expect to continue selectively exploring similar opportunities. Our goal is not simply to build a portfolio of individual AI investments, but to develop an ecosystem where our technology infrastructure, fintech capabilities, and AI-native applications complement one another and create additional opportunities for distribution, commercialization, and innovation. The areas we are exploring span multiple application layers, including financial services, education, entertainment, and other consumer and enterprise applications. We believe this ecosystem approach gives us the flexibility to participate in the AI value chain while maintaining disciplined capital allocation. Importantly, each investment will continue to be evaluated on its own strategic rationale, commercial potential, capital requirements, and risk profile. Capital discipline remains central to everything we do. In July, the board authorized a $20 million share repurchase program. We will evaluate repurchases together with the liquidity required for customer obligations, credit volatility, normal operations, internal AI development, and selected strategic opportunities. As we enter the second half of 2026, our priorities are clear. In credit solutions, we will protect asset quality while further transitioning toward a technology-driven and asset-light borrower referral model. We believe our AI-powered customer acquisition capabilities can help us deliver higher quality traffic and better matching for lending partners while reducing our reliance on capital-intensive lending. In insurance, we will continue to integrate our online and offline channels to expand our customer base and improve retention and revenue quality. Across the company, we will continue to deepen the application of AI throughout our existing operations while selectively expanding our AI ecosystem through partnerships, incubation, and strategic investments. We are in a pivotal stage of our transformation. Our established fintech businesses provide the operating foundation and the real-world application scenarios, while our AI capabilities are increasingly becoming the technology layer connecting these businesses and enabling new applications. By applying these capabilities and expanding them across a broader range of financial and non-financial industries, we are creating a more diversified growth platform with lower capital intensity and less exposure to the credit cycle. The AI ecosystem we are creating is still in its early stage, and we will continue to approach it with discipline. Some initiatives will require time to develop, and we will evaluate future investments and work exercises based on their individual performance, strategic fit, and the capital requirement. This disciplined approach is important as we build new sources of growth while preserving the strength and the flexibility of our core business. We remain focused on disciplined execution and building sustainable long-term value for our shareholders. Before I close, I want to thank our employees for their commitment and adaptability during a demanding period. I also want to thank our customers, partners, and shareholders for their continued trust. With that, I'll now pass the call to William, who will provide more details on our financial performance. William Hui: Thank you, Ning. Before I review our financial performance for the second quarter, I would like to point you to our IR website for our earning release and quarterly IR pack for your reference and additional details. Let me reiterate what Ning just said. This year has been a transformation year for us. We took necessary measures to strengthen our revenue quality and preserve financial flexibility while continuing to invest in digital insurance and AI capabilities. We are now beginning to see these investments translate into technology-related revenue streams. At the same time, our lending business has stabilized as credit conditions have improved, which has resulted in lower provisions for contingent liabilities and contributed to our net loss narrowing by 9% sequentially in the second quarter. Excluding the allowance for the long-aged legacy receivables and related party loan receivable, adjusted operating income turned around to approximately breakeven this quarter. Overall, we believe these developments demonstrate that we are making steady progress toward a more diversified, technology-driven, and financially resilient business model. I will now walk through our revenue mix, operating expenses, credit cost and earnings, and cash flow and capital allocation. On the revenue side, the total net revenue was RMB 890 million, down 3% quarter-over-quarter, and down 46% year-over-year. Loans facilitated during the quarters were RMB 6.3 billion, down 29% quarter-over-quarter, while outstanding balance of performing loans declined 30% to RMB 15.1 billion over the same period. The year-over-year decrease in credit solution revenue primarily reflected lower loan facilitation volume as the industry implemented the new regulatory requirements for online loan facilitation imposed last year. Despite an improving overall credit environment, we maintain a conservative approach to credit risk management by moderating loan facilitation activity and increasingly focusing facilitated loan volume on established repeat borrowers. On a sequential basis, the impact of lower loan facilitation volume was partially offset by guarantee services revenue recognized over the terms of underlying loan originated in the prior periods. Beyond near-term volume management, we are advancing the transitions from capital-intensive risk-taking model toward a more asset-light technology-led operating model. Over time, we expect greater contributions from technology-enabled borrower acquisitions, loan facilitations, and related technology service revenue, with lower reliance on guarantee-related exposure under the old risk-taking model. The pace of these transitions will depend on funding partners' demand, regulatory requirements, and our executions. Turning to insurance, the number of insurance clients increased 14% quarter-over-quarter to approximately 453,000. While gross written premiums increased 2% to RMB 838.9 million. Insurance brokerage revenue was RMB 67.3 million, down 23% compared to the first quarter, but up 16% year-over-year. The year-over-year increase in insurance brokerage revenue was supported by the continued expansion of internet insurance distributions and steady growth in traditional insurance operations. The quarterly decrease mainly reflected lower renewal rates for certain internet insurance products, and an adjustment to commission revenues from the existing portfolios. However, we are encouraged to see growth in new business from both traditional and digital lines. The growth from our technology revenue is encouraging. Our technology service revenues increased by 5.9% compared to the second quarter of 2025, but declined modestly by 2.3% quarter-over-quarter. The year-on-year growth reflects the increasing contributions from technology services within the non-lending business. While technology services in the lending business are undergoing a transition to the new business model. As this transition progresses, we expect technology services to play a bigger role in diversifying our revenue base and supporting the evolution of our business model. Revenue from other businesses was RMB 45 million, up 40% compared to the previous quarter, primarily due to higher consulting, network, and marketing services revenue. On a year-over-year basis, revenue declined 57%, mainly reflecting the termination of the e-commerce business in 2025. As for our operating expenses and investment in AI, sales and marketing expenses were RMB 126.9 million, up 12% from the first quarter, but down 63% year-over-year. The year-over-year decrease primarily reflected lower customer acquisition costs for the credit solution business as loan facilitation volume declined and the repeat borrower percentage increased. The quarterly increase mainly reflected higher internet-based marketing costs for new customers in the internet insurance business as it grew to the next phase beyond leveraging the existing user traffic. Origination servicing and other operating costs were RMB 189.6 million, down 4% quarter-to-quarter and up 18% year-over-year. The quarterly decrease primarily reflected lower credit solution operating costs as the loan facilitation volume and the outstanding loan balance moderated. 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 from the traditional insurance business. Research and development expenses were RMB 113.1 million, up 4% sequentially and 5% year-over-year, reflecting our continued investment in AI-related personnel and engineering capabilities. We are focusing these investments on practical applications with measurable operating value, clear accountability, and appropriate governance. Turning to our credit costs and earnings, provisions for contingent liabilities declined 63% compared to the first quarter and declined 40% year-over-year to RMB 233.3 million. The decrease primarily reflected lower than expected net charge-off rate on newly originated loans as the credit performance improved. Lower loan facilitation volume under guarantee arrangement also contributed to decrease in the contingent liabilities. Allowance for contract assets receivable and others was RMB 502.8 million, compared with RMB 176.4 million in the first quarter and RMB 214.7 million in the same period last year. The increase mainly reflected a higher provision for credit loss related to aging receivable balances and certain related party loan receivables following a reassessment of their recoverability. These increases were partially offset by lower credit losses on financing and guarantee receivables, reflecting lower loan origination volume and lower than expected net charge-off rate on newly originated loans as credit quality improved. The allowance for these receivables is a non-cash charge based on our current assessment of recoverability. We are strengthening collection efforts, closely monitoring the relevant counterparties, and updating our assumption as additional information becomes available. Fair value adjustment loss was RMB 97.8 million, compared with RMB 89 million in the first quarter, primarily due to a fair value loss in Ethereum as of June 30th, 2026. As you may know, Ethereum prices have recovered substantially beginning in August. Assuming the price remains at or above at this level through the end of the third quarter, we would expect to recognize a substantial fair value gains in the third quarter, significantly offsetting the fair value loss this quarter. Net loss narrowed by 9% compared to the first quarter to RMB 449.6 million, primarily reflecting the lower provisions for contingent liabilities. This benefit was partially offset by higher allowances for credit loss related to contract assets, receivables, and others. Excluding the allowance related to contract assets, receivables and others, our operating income was approximately breakeven. Compared with net income of RMB 357.5 million in the same period last year, the change to net losses mainly reflected lower credit solution revenue, higher allowance, and a fair value loss instead of a gain, partially offset by lower sales and marketing expenses on a year-over-year basis and a lower provisions for contingent liabilities. Looking into cash flow, balance sheet, and capital allocation. Net cash used in operating activities was RMB 1.03 billion, compared with RMB 655.6 million in the first quarter. The increase primarily reflected lower service fee collection due to reduced business volumes, increased prepayment for collections, system support and marketing services, and continued indemnity payment from the existing loan under the risk-taking model. As of June 30th, 2026, the cash and cash equivalents were RMB 1.7 billion, compared with the CNY 2.45 billion as of March 31st, 2026. Financial investments were RMB 252 million, compared with RMB 507.5 million at the end of the first quarter. Our first priority remains maintaining sufficient liquidity to meet customer obligations, manage credit volatilities, and support normal operations. We will also continue to fund internal AI developments and selectively evaluate M&A opportunities through exercising warrant agreements in any of the contracted companies that meets our financial, strategic, and governance standards. In July, the board authorized a share repurchase program under which the company may repurchase up to 10% of its total issue and outstanding ordinary shares and ADSs for an aggregated amount of up to $20 million over the following 12 months. We will continue to explore various ways to create value and reward our shareholders. Looking ahead, our near-term priorities is to stabilize the core business while preserving financial flexibilities. In credit solutions, we will continue to transform our loan facilitation models to leverage our existing customer base. Technologies and lending expertise to advance our transition toward a more asset-light, technology-led operating model. In our insurance, our focus is to convert more existing clients and drive more policy growth through improved product matching, renewal management, and digital distributions. Across the company, we will continue to grow our technology revenues by investing in AI applications that deliver measurable improvement in operating efficiencies, risk control, and customer services while evaluating external opportunities under disciplined financial and governance standards. We remain focused on disciplined execution as we advance Yiren Digital's transformation. Thank you. This concludes our prepared remarks. Operator? Operator: There will be no Q&A session on today's call. If you have any further questions, please contact Yiren Digital's investor relations team or Piacente's Financial Communications. This concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Yiren Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Yiren Digital wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,403,292!* That performance is why people listen. 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Yiren Digital (YRD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Stock Preachers News Commentary NEW YORK, Oct. 1, 2026 /PRNewswire/ -- Stocks closed out a choppy week on the back foot, with the Dow shedding nearly 2% and small caps underperforming as the Russell 2000 fell more than 1% on the week. The 10-year Treasury yield ticked up 6 basis points even as the VIX stayed contained near 17. Against that backdrop, a wave of earnings reports landed, giving traders fresh evidence on how margins and demand are holding up heading into the final quarter. Active Companies from around the markets with current developments this week include: McCormick & Company, Incorporated (NYSE: MKC), Conagra Brands, Inc. (NYSE: CAG), Recon Technology, Ltd (Nasdaq: RCON), Yiren Digital Ltd. (NYSE: YRD), and RedHill Biopharma Ltd. (Nasdaq: RDHL). The major averages all finished the week lower. The Dow Jones Industrial Average closed at 50,826.17, down 1.93% on the week, while the S&P 500 slipped 1.25% to 7,646.79 and the Nasdaq Composite eased 0.90% to 26,825.83. The Russell 2000 underperformed the large caps on a four-session week, down 1.16% to 2,804.63, with its RSI14 at 32 signaling the small-cap gauge is flirting with oversold territory. Volatility ticked higher but remained subdued. The VIX closed at 16.96, up 0.89 points on the week and within its 15.62 to 17.59 range, while the Nasdaq-100 volatility gauge (VXN) climbed 2.11 points to 22.98. The 10-year Treasury yield rose 6 basis points on the week to 5.24%, even after a 5 basis point pullback on the day, adding pressure to rate-sensitive corners of the market. Commodities were mixed. Gold held near $4,191.20 an ounce, up 0.55% on the week, while silver slipped 0.65% to $60.83. WTI crude eased 0.49% on the week to $92.15 a barrel despite a 1.91% daily pop, and natural gas fell 1.23% on the week to $2.96. Copper dipped 0.41% to $6.54 a pound, and the euro slid 1.34% against the dollar to 1.12. The full report maps out key support and resistance levels for each index, tracks sentiment across the week's earnings slate, and previews the data and events traders are watching next week. CONTINUED... Read the full Roadmap report, "A Choppy Week Leaves the Tape Looking for Footing," at: https://stockpreachers.com/articles/a-choppy-week-leaves-the-tape-looking-for-footing/ In other industry developments and happenings in the market this week include: McCormick & Company, Incorporated (NYSE: MKC) McCormick reported third quarter net sales up 17.4%, including a 0.9% favorable currency impact, with organic sales growth of 1.9%. Gross profit margin expanded 190 basis points versus the prior year, while adjusted gross profit margin expanded 180 basis points. Adjusted operating income rose to $359 million from $294 million a year earlier, and adjusted earnings per share was $0.86 versus $0.85 in the year-ago period. Chairman, President, and CEO Brendan M. Foley said, "Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment. We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins." The company reaffirmed its fiscal 2026 outlook for net sales growth, adjusted operating income and adjusted earnings per share, and said it remains confident in the strategic benefits of its proposed combination with Unilever Foods, having made substantial progress on integration planning. Read the release. Conagra Brands, Inc. (NYSE: CAG) Conagra reported first quarter fiscal 2027 net sales down 1.4%, with organic net sales down 1.1%. Reported operating margin was 10.3% while adjusted operating margin was 11.5%. Reported diluted earnings per share rose 5.9% to $0.36, and adjusted earnings per share increased 5.1% to $0.41. The company reaffirmed fiscal 2027 guidance of organic net sales change between negative 3% and negative 1%, adjusted operating margin of 10.0% to 10.5%, and adjusted earnings per share between $1.40 and $1.50. Read the release. Recon Technology, Ltd (Nasdaq: RCON) Recon Technology reported fiscal year 2026 total revenue of RMB109.9 million ($16.2 million), up 65.8% from RMB66.3 million a year earlier. Gross margin improved to 33.2% from 23.0%, while net loss narrowed to RMB31.6 million ($4.7 million) from RMB43.7 million ($6.4 million) in the prior year. Founder and CEO Shenping Yin said, "Fiscal 2026 marked a significant turning point for Recon. Revenue increased by 65.8% to RMB109.9 million, and gross margin was lifted to 33.2%... The primary growth driver was our strategic expansion into overseas oilfield projects." The company also marked the commencement of operations at its waste plastic chemical recycling plant in Weifang, Shandong Province, designed to process 40,000 tons of low-value waste plastics per year with an expected output of 30,000 tons of pyrolysis oil and 6,000 tons of carbon residue. Read the release. Yiren Digital Ltd. (NYSE: YRD) Yiren Digital reported second quarter 2026 total loans facilitated of RMB6.3 billion, down 29% from RMB8.9 billion in the first quarter and down 69% year over year. Repeat borrowers accounted for 82% of total loans facilitated, up from 78% in the prior quarter, while 31-60 day and 61-90 day delinquency rates declined to 2.0% and 2.4% respectively. Insurance client growth remained strong, with insurance clients up 281% year over year and new policies up 177% year over year. Insurance brokerage revenue increased 16% year over year. On July 2, 2026, the company's board authorized a new share repurchase program of up to $20.0 million over the following 12 months. Read the release. RedHill Biopharma Ltd. (Nasdaq: RDHL) RedHill Biopharma reported it has acquired exclusive global and U.S. commercialization rights to Rebyota and Clenpiq for a $12 million upfront cash payment, funded by $18 million received upfront from its Talicia divestment. The two GI brands generated approximately $37.5 million in 2025 net sales under Ferring Pharmaceuticals, with Rebyota alone contributing approximately $16.9 million in U.S. net sales in 2025. Chief Executive Officer Dror Ben-Asher said, "We have executed on two major transactions that unlock significant value and fuel our capacity for growth... This improves our liquidity position and provides us with control to drive increased revenues, identify additional complementary revenue-generating products and support ongoing development of our assets." The company also divested its 70% stake in Talicia for $18 million upfront, plus up to $35 million in potential worldwide net sales milestone payments, while continuing development of its oncology and Crohn's disease pipeline. Read the release. Article Source: https://stockpreachers.com/articles/a-choppy-week-leaves-the-tape-looking-for-footing/ CONTACT: Stock Preachers [email protected] DISCLAIMER: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a market commentary and is not a paid advertisement. This article is being distributed by Stock Preachers, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. 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- Interested in Yirendai Ltd.? Here are five stocks we like better. - Yiren Digital narrowed its Q2 net loss by 9% sequentially to RMB449.6 million, helped by lower provisions and improving credit metrics, although revenue fell 46% year over year to RMB890 million. - The company is shifting away from capital-intensive lending toward an asset-light, AI-driven referral and technology model. Loan facilitation and performing-loan balances declined, while delinquency rates improved and automation expanded across customer service, risk management and collections. - Insurance customers and new policy issuance grew strongly, but weaker renewals reduced sequential brokerage revenue. Meanwhile, cash fell to RMB1.7 billion, even as the board authorized a $20 million share repurchase program and management pursued potential AI-related acquisitions. Yirendai (NYSE:YRD), which operates as Yiren Digital, reported a narrower sequential net loss in the second quarter of 2026 as lower provisions for contingent liabilities reflected improving credit conditions. Management said the company is accelerating a shift away from capital-intensive lending and toward an asset-light model centered on technology, borrower referrals, digital insurance distribution and artificial intelligence services. Net loss narrowed 9% from the first quarter to RMB449.6 million, according to CFO William Hui. The result included RMB502.8 million in allowances for contract assets, receivables and other items, largely tied to aging receivables and certain related-party loan receivables following a reassessment of recoverability. Excluding those allowances, Hui said adjusted operating income was approximately breakeven. → Akamai's Anthropic Deal Puts $5.5 Billion Behind Its Edge AI Pivot Total net revenue was RMB890 million, down 3% sequentially and 46% from a year earlier. The company facilitated RMB6.3 billion in loans during the quarter, down 29% from the first quarter, while the outstanding balance of performing loans fell 30% to RMB15.1 billion. Founder, Chairman and CEO Ning Tang said Yiren Digital does not intend to return to the previous scale of its risk-taking lending business despite an improvement in the credit environment. Instead, the company is emphasizing an asset-light referral model that uses AI-powered customer acquisition and precision marketing to match qualified borrowers with lending partners. → AST SpaceMobile's New Securities Lawsuit Adds Fuel to an Already Volatile Stock "This shift allows us to focus more on our technology and customer acquisition capabilities while reducing our reliance on capital and the credit cycle," Tang said. The company reported improved delinquency measures. Its 31- to 60-day delinquency rate declined to 2.0% from 2.7% in the first quarter, while the 61- to 90-day rate fell to 2.4% from 3.2%. The 1- to 30-day delinquency rate was stable at 2.5%. Repeat borrowers accounted for 82% of loan facilitation volume, compared with 78% in the prior quarter and 77% a year earlier. → Why 3 Struggling Stocks Are Suddenly Spending Big on Buybacks Provisions for contingent liabilities declined 63% sequentially and 40% year over year to RMB233.3 million. Hui attributed the reduction to lower-than-expected net charge-off rates on newly originated loans and lower volumes of loans originated under guarantee arrangements. Yiren Digital's insurance brokerage business expanded its customer base during the quarter. Insurance clients increased 14% sequentially and 281% year over year to approximately 453,000. The company issued more than 918,000 new policies, an increase of 177% from a year earlier, while gross written premiums rose 2% sequentially to approximately RMB839 million. Insurance brokerage revenue totaled RMB67.3 million, up 16% from a year earlier but down 23% from the first quarter. Management said the sequential decline reflected lower-than-expected renewal rates for certain internet insurance products and adjustments to commission revenue from existing portfolios. The company said stronger new policy production across traditional and digital channels partially offset the renewal pressure. Tang said the next phase of the insurance strategy will focus on improving retention, renewals, product matching, digital customer acquisition and service efficiency. The company is also beginning to generate technology and consulting revenue from services provided to insurance partners, supplementing traditional commission-based income. Research and development expense increased 4% from the first quarter and 5% from a year earlier to RMB113.1 million, reflecting investment in AI personnel and engineering capabilities. Tang said the company has deployed proprietary AI models and its Magic Cube multi-agent platform across customer acquisition, customer service, risk management, asset recovery and internal operations. The company said automation in asset recovery reached a record level, with the human handling rate declining to 24.9% from 45.0%. The autonomous resolution rate for text-based customer-service agents increased from about 60% to nearly 80%, while automated quality inspection covered more than 2 million service records per day. Yiren Digital also cited its 2025 ESG report, published in July 2026, which stated that its HawkEye fraud detection system and Beijing multi-model verification engine helped avoid about RMB165 million in potential borrower-fraud losses during 2025. Tang characterized that figure as an operational risk indicator rather than a financial metric. Technology service revenue rose 5.9% from the second quarter of 2025, though it declined 2.3% sequentially. Revenue from other businesses increased 40% from the prior quarter to RMB45 million, driven by higher consulting, network and marketing services revenue. That category was down 57% from a year earlier, primarily because the company terminated its e-commerce business in 2025. Management said it identified four AI-native companies between May and July and entered warrant agreements with their founders. The agreements provide options, subject to specified terms and milestones, to acquire controlling stakes at pre-agreed exercise prices. The companies are primarily focused on education and entertainment applications. Earlier in the week, Yiren Digital delivered notice to exercise a warrant to acquire a controlling stake in one previously backed AI entertainment company, subject to definitive agreements. Tang described the target as an interactive entertainment platform for AI-powered user-generated role-playing content and digital-character experiences. According to Tang, the platform had approximately 3.8 million users, including more than 120,000 paying users, and operated profitably. It has expanded user-acquisition efforts across Southeast Asia and other international markets. Management said it expects the business could become a meaningful revenue contributor over time if the transaction is completed. Hui said the company will evaluate warrant exercises and other acquisition opportunities based on financial, strategic and governance standards while maintaining liquidity for customer obligations, credit volatility and normal operations. Net cash used in operating activities was RMB1.03 billion, compared with RMB655.6 million in the first quarter. The company attributed the increase to lower service-fee collections from reduced business volumes, increased prepayments for collection, system-support and marketing services, and continued indemnity payments related to legacy risk-taking loans. Cash and cash equivalents totaled RMB1.7 billion as of June 30, down from RMB2.45 billion at March 31. Financial investments declined to RMB252 million from RMB507.5 million over the same period. In July, the board authorized a share repurchase program of up to $20 million over 12 months, covering up to 10% of the company's total issued and outstanding ordinary shares and American depositary shares. Management said repurchases will be evaluated alongside liquidity needs, internal AI investment and selected strategic opportunities. The company held no question-and-answer session following its prepared remarks. Yirendai Limited, now known as Yiren Digital Ltd. (NYSE:YRD), is a China-based financial technology company that provides technology-enabled financial services. The company originally operated as an online consumer lending marketplace, using digital platforms and data-driven tools to connect borrowers with funding sources. Over time, Yiren Digital expanded its offerings beyond loan facilitation to include wealth management, insurance brokerage and related financial services. Its platforms are designed to serve individual consumers, investors and small-business customers in China, with services intended to support borrowing, investing and broader financial planning needs. Yirendai was established in 2012 as part of CreditEase, a Chinese financial services group, and completed its initial public offering on the New York Stock Exchange in 2015. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yirendai Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Yiren Digital Ltd. (NYSE:YRD) shares rose 6.11% in pre-market trading on Wednesday after the financial technology company reported a narrower second-quarter net loss compared with the previous quarter, alongside lower revenue and improved delinquency rates. For the quarter ended June 30, 2026, Yiren Digital reported a net loss of RMB449.6 million, equivalent to RMB5.11 per ADS, compared with a net loss of RMB494.7 million in the first quarter of 2026. Revenue declined 46% year on year to RMB890.0 million, or US$131.2 million, from RMB1.65 billion in the second quarter of 2025. The company attributed the revenue decline to lower loan facilitation volumes as it adopted what it described as a more disciplined approach following revised regulatory requirements. Revenue from Yiren Digital's credit solution business declined 48% year on year to RMB777.6 million during the second quarter. The business accounted for approximately 87% of the company's total quarterly revenue. Total loans facilitated fell 69% year on year to RMB6.3 billion as the company reduced near-term loan facilitation activity. "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," Chairman and Chief Executive Officer Ning Tang said. The supplied information also references repeat borrowers but does not provide a complete figure or comparison for this metric. Yiren Digital reported lower later-stage delinquency rates compared with the previous quarter. The 31-to-60-day delinquency rate declined to 2.0% from 2.7% in the first quarter, while the 61-to-90-day delinquency rate decreased to 2.4% from 3.2%. The changes came as Yiren Digital focused on portfolio quality and risk-adjusted returns while reducing loan facilitation volumes. Insurance brokerage revenue increased 16% year on year to RMB67.3 million during the second quarter. On a sequential basis, however, insurance brokerage revenue declined 23% from the first quarter. The increase compared with the previous year contrasted with the decline in Yiren Digital's larger credit solution business during the quarter. Yiren Digital reported an adjusted EBITDA loss of RMB340.7 million for the second quarter of 2026. That compared with adjusted EBITDA of RMB351.4 million in the second quarter of 2025. The company therefore recorded declines in both revenue and adjusted EBITDA compared with the prior-year period, while its net loss narrowed sequentially from the first quarter of 2026. Yiren Digital's board authorised a new share repurchase programme on July 2, 2026. Under the programme, the company may repurchase up to US$20.0 million of its shares over the following 12 months. The authorisation was announced alongside a period in which the company has reduced loan facilitation activity while focusing on credit portfolio metrics and operating efficiency. Yiren Digital stock price

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: [email protected] Piacente Financial Communications, Email: [email protected] 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...

This article first appeared on GuruFocus. Release Date: September 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Credit quality improved with 31-60 day delinquency rate declining to 2.0% from 2.7% and 61-90 day rate declining to 2.4% from 3.2%. - Repeat borrowers accounted for a record 82% of total loan facilitation volume, up from 78% in Q1 and 77% a year ago. - Insurance business expanded with clients up 14% QoQ and 281% YoY to ~453,000, and new policies up 177% YoY. - AI deployment yielded measurable results: asset recovery automation reached record high with human handling rate down to 24.9%, and autonomous resolution rate for tech-based agents rose to nearly 80%. - Net loss narrowed by 9% sequentially to RMB449.6 million, and adjusted operating income turned around to approximately breakeven excluding legacy receivables allowance. - Board authorized a $20 million share repurchase program, reflecting confidence in value creation. - Total net revenue declined 46% YoY to RMB890 million, and loans facilitated dropped 29% QoQ to RMB6.3 billion. - Credit Solutions revenue fell sharply due to lower loan volume and regulatory changes, with outstanding performing loan balance down 30% QoQ to RMB15.1 billion. - Insurance brokerage revenue decreased 23% QoQ to RMB67.3 million due to lower renewal rates and commission adjustments. - Net loss of RMB449.6 million was reported, compared to net income of RMB357.5 million in the same period last year. - Allowance for contract assets receivable and others surged to RMB502.8 million from RMB176.4 million in Q1, mainly due to higher provisions for aging receivables and related party loans. - Net cash used in operating activities increased to RMB1.03 billion from RMB655.6 million in Q1, and cash and cash equivalents declined to RMB1.7 billion from RMB2.45 billion at the end of Q1. - Warning! GuruFocus has detected 6 Warning Signs with YRD. - Is YRD fairly valued? Test your thesis with our free DCF calculator. Q: There will be no Q&A session on today's call. If you have any further questions, please contact Yiren Digital's Investor Relations team or Piacente Financial Communications. This concludes today's conference call. Thank you for your participation. You may now disconnect. A: The transcript provided does not contain a Q&A session. The earnings call consisted solely of prepared remarks from management, followed by the operator's closing statement. As a result, no question-and-answer pairs were available to extract or summarize. Below is a summary of the key highlights from the prepared remarks delivered by CEO Ning Tang and CFO William Hui. Q: What were the key financial results for Yiren Digital in the second quarter of 2026? A: CFO William Hui reported that total net revenue was RMB890 million, down 3% quarter-over-quarter and down 46% year-over-year. Loans facilitated during the quarter were RMB6.3 billion, down 29% quarter-over-quarter, while the outstanding balance of performing loans declined 30% to RMB15.1 billion. Net loss narrowed by 9% sequentially to RMB449.6 million, primarily reflecting lower provisions for contingent liabilities. Excluding the allowance for long-aged legacy receivables and related party loan receivables, adjusted operating income turned around to approximately breakeven this quarter. Q: How is Yiren Digital transforming its Credit Solutions business model? A: CEO Ning Tang explained that the company is accelerating a transition toward a more technology-driven, asset-light revenue model that relies increasingly on AI, digital distribution and higher-value services. Rather than returning to the previous scale of its risk-taking business, Yiren Digital is increasingly focused on an asset-light referral model, using its AI-powered customer acquisition and precision marketing platform to identify and match customer demand more efficiently and direct qualified traffic to lending partners. This shift allows the company to focus more on technology and customer acquisition capabilities while reducing reliance on capital and the credit cycle. Q: What progress was made in credit quality during the second quarter? A: CEO Ning Tang reported broad improvement in the credit environment, with credit conditions recovering more quickly than anticipated. Repeat borrowers accounted for a record 82% of total loan facilitation volume, compared with 78% in the first quarter and 77% in the same period last year. The 31- to 60-day delinquency rate declined to 2.0% from 2.7%, and the 61- to 90-day rate declined to 2.4% from 3.2%, while the 1- to 30-day rate remained stable at 2.5%. These trends reflect the broader recovery in credit conditions together with the company's focus on acquiring and serving higher-quality borrowers. Q: How did the Insurance Brokerage business perform in the second quarter? A: CEO Ning Tang reported that the number of insurance clients increased 14% from the first quarter and 281% year-over-year to approximately 453,000. The company issued more than 918,000 new policies, up 177% year-over-year, while gross written premiums increased 2% sequentially to approximately RMB839 million. Insurance brokerage revenue increased 16% year-over-year, supported by continued expansion of Internet insurance distribution and steady growth in traditional insurance operations. On a sequential basis, revenue was affected by lower-than-estimated renewal rates, but this was offset by stronger new policy production across both traditional and digital channels. Q: What is the status of Yiren Digital's AI transformation and its measurable impact? A: CEO Ning Tang stated that AI is increasingly becoming integral to how Yiren Digital operates, with proprietary AI models, the MagiCube multi-agent platform and specialized capabilities across customer acquisition, customer service, risk management, asset recovery and internal operations. In asset recovery, the level of automation reached a record high, with the human handling rate declining from 45.0% to 24.9%. In customer operations, the autonomous resolution rate of tech-based agents increased from approximately 60% to nearly 80%, and automated quality inspection now covers more than 2 million service records each day. The Hawkeye fraud detection system and DiTing multimodal verification engine helped the company avoid approximately RMB165 million in potential losses associated with borrower fraud during 2025. Q: What is Yiren Digital's strategy for expanding into AI-native opportunities beyond financial services? A: CEO Ning Tang explained that the next stage of the strategy is to expand internally developed capabilities into AI-native opportunities beyond financial services, including education, entertainment and other emerging sectors. Between May and July 2026, the company identified four high-potential AI-native companies and entered into warrant agreements with their founders that provide the option, subject to specified terms and milestones, to acquire a controlling stake at pre-agreed exercise prices. The company began working with these four companies in 2024 when they were at an early stage, providing support beyond capital including strategy, team development, technology, product definition, distribution and risk management. Q: What is the recent development regarding the exercise of a warrant to acquire a controlling stake in an AI-native company? A: CEO Ning Tang announced that earlier in the week, Yiren Digital served a notice to exercise its warrant to acquire a controlling stake in one of the AI-native companies it previously backed. The company is an interactive entertainment platform focused on AI-powered user-generated role-playing content and digital character experiences. The platform has accumulated approximately 3.8 million users, including more than 120,000 paying users, and has established a strong presence in several Southeast Asian markets, with user acquisition efforts expanded across Vietnam, Thailand, the Philippines, Taiwan, Hong Kong, South Korea, Japan, the US, Canada and Brazil. The target company has demonstrated strong growth and is already operating profitably. Completion of the warrant exercise is subject to the execution of definitive agreements. Q: What were the key operating expenses and investment trends in the second quarter? A: CFO William Hui reported that sales and marketing expenses were RMB126.9 million, up 12% from the first quarter but down 63% year-over-year, with the year-over-year decrease primarily reflecting lower customer acquisition costs for the Credit Solutions business. Origination, servicing and other operating costs were RMB189.6 million, down 4% quarter-over-quarter and up 18% year-over-year. Research and development expenses were RMB113.1 million, up 4% sequentially and 5% year-over-year, reflecting continued investment in AI-related personnel and engineering capabilities. Q: What drove the change in provisions and allowances during the second quarter? For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Release Date: June 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yiren Digital Ltd (NYSE:YRD) reported a meaningful improvement in credit quality during the first quarter, supporting margin expansion and healthier operating environment. The company's AI-powered precision marketing improved acquisition efficiency, reducing customer acquisition costs by more than 50% year-over-year. Revenue from the Internet Insurance business grew by 38% quarter-over-quarter, marking growth in the insurance segment for the first time since regulatory reforms. Yiren Digital Ltd (NYSE:YRD) has integrated AI into every major business function, enhancing operational efficiency and profitability. The company is building an AI ecosystem through strategic investments and internal incubation, positioning itself for future growth across multiple industries. Total net revenue for the first quarter decreased by 41% year-over-year, reflecting the impact of the industry's credit normalization. The company reported a net loss of RMB494.7 million, although this was an improvement from the previous quarter. Provisions for contingent liabilities remained high at RMB632.2 million, despite a reduction from the previous quarter. The allowance for credit assets receivables was RMB176.4 million, indicating ongoing challenges in credit asset management. Despite improvements, the company's earnings profile is still in transition, with fintech remaining the core business amidst diversification efforts. Warning! GuruFocus has detected 4 Warning Sign with YRD. Is YRD fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of Yiren Digital's performance in the first quarter of 2026? A: Ning Tang, CEO, highlighted that the first quarter marked an important step in the company's transformation, with improvements in credit quality and operational efficiency. The company is focusing on integrating AI into its operations and expanding its AI ecosystem, which includes fintech infrastructure and strategic investments in AI-native startups. Q: How has the credit solution segment performed, and what are the key metrics? A: Ning Tang, CEO, reported a meaningful improvement in credit quality, with a record 78% repeat borrowing ratio and a decline in the FPD30+ rate to 0.76%. The company has seen improved asset recovery rates and reduced customer acquisition costs due to AI-powered precision marketing. Q: What progress has been made in the Internet Insurance business? A: Ning Tang, CEO, stated that the Internet Insurance business grew by 38% quarter-over-quarter, with nearly 1 million new insurance policies issued. The number of insurance clients increased significantly, demonstrating the stability and growth potential of the Internet Insurance model. Q: Can you elaborate on the AI strategy and ecosystem development? A: Ning Tang, CEO, explained that the company is building an AI ecosystem centered around fintech, AI infrastructure, and AI applications. This includes the launch of MagicCube 2.0, which enhances AI governance and enables autonomous AI execution, and strategic investments in AI-native startups in education and entertainment sectors. Q: What are the financial highlights for the first quarter of 2026? A: Ka Chun William Hui, CFO, reported total net revenue of RMB915.1 million, a 41% decrease year-over-year but only a 4% decrease sequentially. The company saw a significant reduction in credit-related provisions and improved operating efficiency, leading to a narrowed adjusted EBITDA loss of RMB337 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, March 19, 2026 at 8 a.m. ET Founder, Chairman, and Chief Executive Officer — Ning Tang Chief Financial Officer — Ka Hui Ning Tang: Thank you, Keyao. Good day, everyone, and thank you all for joining us. In 2025, we celebrated 10-year anniversary of our listing on the New York Stock Exchange. Together, we have reached many milestones. We made a breakthrough in our AI innovation where we completed regulatory filing of our own large language model, Zhiyu. In the second half of the year, we released our first multi-agent platform, Magicube. With support of these AI tools, we incubated our Internet insurance business, which has achieved strong growth quarter -- strong growth quarter-after-quarter in 2025. 2025 was also a year that demanded the best of us and our team delivered. Heightened credit regulations and industry-wide deterioration in credit quality created significant pressure across our business. Yet we navigated these headwinds with discipline and operational resilience. Equally important, we enter 2026 with growing confidence. Our next-generation fintech platform is gaining meaningful traction and validating the strategic investments we've made. I'm deeply grateful to our entire team for their dedication and resolve through one of the most challenging periods in our recent history. The rapid advancement of AI is fundamentally reshaping the industries we operate in, and we believe we are uniquely positioned to lead that transformation. Our years of deep vertical expertise in credit facilitation and insurance brokerage, combined with the AI infrastructure and agent technologies we've purposefully built give us a differentiated foundation to reimagine our business ecosystem, accelerating growth and unlocking new avenues of innovation. Amid these challenges, we made meaningful progress on the 2 strategic priorities that will define Yiren Digital's next chapter, the continued scaling of Internet insurance distribution as our second core growth engine and the accelerating integration of AI capabilities across our business operations. Both are delivering results and both give us confidence in the trajectory ahead. For years, we have applied our proprietary AI capabilities to continuously analyze our platform data, systematically searching for where our next growth opportunity lies. That process of disciplined discovery led us to a clear and compelling insight. Our users demonstrated strong validated demand for online insurance products, demand that was underserved and ripe for a technology-driven solution. In the third quarter of 2025, gross written premiums generated through our Internet insurance distribution business surged by 206% quarter-over-quarter. This strong momentum continued in the fourth quarter with another 95% quarter-over-quarter growth and the revenue contribution to the segment had reached 22% in the fourth quarter. 2025 was also a landmark year in the comprehensive build-out of our AI infrastructure, where we closed the gaps and reached significant milestones. Following the regulatory filing of Zhiyu, our proprietary large language model in April, we launched Magicube in October, our internally developed agent integration platform purpose-built for enterprise scale AI deployment. Magicube is the connective infrastructure that enables large-scale coordinated deployment of multi-agents across every critical function of our credit lending business from sales and risk management to capital planning, compliance and customer service. With Magicube in place, we have laid the foundation to automate processes with AI-driven agents throughout our operations. A transformation that we believe will fundamentally redefine how Yiren Digital operates and competes in the marketplace. The depth of our AI integration is best reflected in its financial impact. In 2025, AI-driven optimizations generated cost savings exceeding RMB 80 million, driven by the deployment of AIGC for marketing and AI-assisted outbound customer service, capabilities that have structurally reduced our dependence on both external vendors and internal headcount and better cost and capital efficiency. The operational impact of our AI deployment is best illustrated through concrete examples. Response times for our real-time AIGC-powered customer service [indiscernible] generation were cut by more than half from 1.2 seconds to under 0.6 seconds, delivering measurably smoother customer interactions at scale. In a particularly compelling demonstration of our internal AI capabilities, our R&D team rebuilt our IVR system entirely in-house, decreasing our dependence on an external vendor and reducing the cost per call by 84% from RMB 0.95 to RMB 0.15. Meanwhile, our AI-powered intelligent routing 2.0 system brought a step change in productivity to our fund management team, replacing legacy Excel-based workflows with an intelligent natural language interface driven by our 2 proprietary AI agents, YiQ agent and ZhuQue bot, fundamentally modernizing how our team operates day-to-day. These technological advancements are not just improving how we operate, they are redefining who we are. Our AI-enabled capabilities across intelligent marketing, smart capital management and advanced risk control have strengthened our ability to deliver technology solutions to the broader credit industry. Revenue from technology-driven services, including networking, marketing and technical support has grown significantly year-over-year, validating the commercial potential of our AI capabilities beyond our core business. We are now accelerating this growth to transform the company from a fintech platform into an AI-native company for multiple industries. Finally, I'd like to review the performance of our credit solutions business against the market backdrop in 2025. In the fourth quarter, we facilitated RMB 12.0 billion in loan originations, moderated by 22% year-over-year and 40% quarter-over-quarter. The moderation reflected our financial discipline when credit environment was difficult. We focused on higher quality credit during the quarter, which led to reduction in loan facilitation activities. For the full year, however, total loan facilitation reached RMB 67.8 billion, up by 26% from RMB 53.6 billion in 2024. As of December 31, 2025, the cumulative number of borrowers we have served exceeded RMB 14.3 million, representing a 16% increase from approximately RMB 12.4 million at the end of 2024. During 2025, we strengthened our customer analytics and operational management with a particular focus on maximizing the lifetime value of high-quality repeat borrowers. At the same time, we maintained a prudent approach toward new customer acquisition. Through enhanced data analytics and more refined customer segmentation, we prioritized the management and engagement of high-quality existing borrowers. As a result, our repeat borrowing volume remained high at 77% in the fourth quarter of 2025 compared to 65% in the same period of 2024. Meanwhile, the average loan ticket size on our lending platform increased from RMB 8,000 in the fourth quarter to RMB 11,500 in the fourth quarter of 2025. These operational strategies allowed us to effectively control customer acquisition costs while retaining higher-quality borrowers with deeper credit insights and stronger brand trust. The quality from the legacy assets came under pressure in the fourth quarter with the delinquency rate reaching a cyclical high in October. Our 1- to 30-day delinquency rate for fourth quarter reached 3.4%. The 31- to 60-day rate was 3.0% and the 61- to 90-day rate stood at 2.8%. These levels are in line with industry trends and the macroeconomic environment. During 2025, assets under the risk-taking model nearly doubled, which contributed to an increase in our guaranteed service revenue as a result of changing credit requirements by our partners. Encouragingly, our lending -- our leading risk indicators are beginning to turn. Our first payment default rate FPD30 for loan delinquency over 30 days has been on a declining trend since October 2025, recently approaching the levels observed in the first half year of 2025. We believe these are early but meaningful signals that the credit cycle is gradually turning, and we expect a broader easing of the credit environment to support continued improvement in both industry conditions and our own asset quality metrics, giving us well-funded confidence in our ability to deliver disciplined and stable operations in 2026. On the institutional funding side, we secured wide list status with 29 institutional funding partners as of the end of 2025, and this number continues to grow in the new year, reflecting recognition of our risk management capability and financial discipline by our partners as well as less competition in the market and the new regulatory framework. As the industry digests the impact of the new regulations and the market consolidates, we are confident that leading highly compliant players like us will benefit. In overseas markets, we expect to gradually expand our operations in the existing Philippines and Indonesian markets while maintaining prudent financial discipline and a clear focus on profitability. We look forward to showing more results in the coming quarters. As mentioned earlier, our traditional insurance brokerage business, which is predominantly anchored in a traditional sales network has found new direction of growth. Amid the regulatory headwind on commission rate and the macroeconomic challenges in the fourth quarter, gross written premiums of our insurance brokerage business reached RMB 860.1 million, down 22% year-over-year, while full year premiums reached RMB 3.7 billion, a 17% decline from 2024. However, the composition of the revenue and the premium has changed significantly as contribution from Internet insurance business increased rapidly in the past few quarters, largely filling up the gap from the traditional line. Our Internet insurance business has delivered a meaningful expansion in both customer base and policy volumes, reinforcing our conviction that Internet insurance represents a sustainable and scalable second growth engine for Yiren Digital. For the insurance brokerage business as a whole, at the end of 2025, we had served over 2 million insurance clients, up 33% from 1.53 million at the end of 2024. New policies issued reached 2.3 million, a 25% increase from 1.8 million in 2024. As Internet insurance continues to contribute more to our total brokerage revenue in 2026 and serves as a low-cost customer acquisition channel for the entire platform, we are confident that our insurance business will successfully turn to both growth and profitability. To summarize, 2025 was a year that demanded resilience and revealed opportunity. We navigated one of the most challenging credit environments in recent history while simultaneously advancing our transformation into a next-generation fintech driven by AI. The explosive global growth of AI is reshaping customer -- consumer credit, insurance and industries far beyond, and we intend to be at the forefront of that transformation, not merely a participant in it. We are actively building towards that future, incubating AI native business models, developing technology-driven revenue streams from our credit solutions and reshaping our insurance brokerage business by fully integrating our online and offline capabilities as the cornerstone of long-term growth. Encouragingly, leading indicators increasingly signal that the worst of the credit stress cycle is behind us and our core lending business is embracing recovery with renewed momentum. As we enter 2026, we are optimistic about the recovery of our core business. We are confident in our strategy and commitment from the team that delivered through one of the most demanding years. Our AI foundation has been laid, and we continue building it. With that, I will now pass it over to William, who will provide more details on the financials for this quarter and the full year. Ka Hui: Thank you, Ning. Hello, everyone. I will be walking you through our financial performance for the fourth quarter and full year 2025. Please refer to our earnings release and IR deck for further details, both available on our website. This quarter reflects continued progress across several of our key strategic priorities. First, our investment in AI are beginning to translate into tangible outcomes. We achieved direct net cost savings of approximately RMB 80 million, driven by improvements in areas such as high sales conversion, customer service automation and risk management efficiency. This figure excludes other business benefits from AI such as avoidance of fraud losses, savings from staff training and other indirect cost savings because of AI. In addition, our proprietary AI technology is beginning to generate revenue in new business within the credit solutions and Internet insurance segment. Second, our Internet insurance business continues to gain momentum. During the quarter, we recorded gross written premiums of RMB 50 million, representing 95% quarter-over-quarter growth. The annualized premium reached RMB 267 million in the fourth quarter, representing 36% growth quarter-over-quarter, up from a negligible amount in the fourth quarter of 2024. The revenue accounted for 22% of the revenue from our entire insurance segment in the fourth quarter of 2025. We expect this revenue contribution to continue to grow and take a bigger revenue share in 2026. For the credit solutions business, 2025 was a unique year. We began with a very good growth momentum, seeing a 43% growth in loan facilitation volume in the first half of 2025. However, we subsequently faced a downward trend in the credit cycle alongside with regulatory changes. In the second half of 2025, we shift our strategic priority to credit quality over loan growth, resulting in a 22% year-over-year contraction in our loan volume. Having said that, we are seeing early signs of turnaround in our credit cycle. Key credit metrics have improved. The 30 days first payment delinquency or FPD rate peaked in October 2025 and began to stabilize and trend down in November 2025. Figures for December 2025 and January 2026 have improved more than expected. The delinquency rate in February was 38% below the peak, which is already back to the May 2025 level when credit quality began to deteriorate. However, as a reminder, there is typically a lag of 1 or 2 quarters before these improvements are fully reflected in our financial results. Overall, we remain focused on maintaining strong balance sheet with cash positions of RMB 3.3 billion, while continuing to invest in AI capabilities and high-growth opportunities. We believe this balanced approach positions us well for sustainable long-term growth. Turning to the key financial figures for the fourth quarter and full year of 2025. Total revenue for the full year 2025 was RMB 5.72 billion, representing 1.5% decrease from 2024. The decrease was a result of prioritizing credit quality over loan growth in the second half of the year as we tightened our credit policy in response to a challenging credit environment. Full year loan facilitation volume was RMB 67.8 billion, representing 26% growth comparing to the full year of 2024. This growth was driven by strong performance in the first 3 quarters partially offset by a contraction in loan volume during the fourth quarter of 2025. Our guarantee services also saw significant growth with revenue reaching RMB 612 million in the fourth quarter of 2025, up nearly 196% year-over-year as we shift more loan origination to a risk-taking model during the year. Regarding credit quality, our 31 to 60 days and 61 to 90 days delinquency rates reached 3% and 2.8%, respectively, in the fourth quarter, while the 1 to 30 days delinquency rate reached 3.4% in the fourth quarter of 2025. This reflects the higher risk environment and in response, we have tightened our credit policies. Our upgraded AI-driven risk management system is enabling us to more frequently and effectively assess and mitigate risk across our portfolio. Looking at the same metrics on a monthly basis, the delinquency rate peaked in October and gradually decreased in December 2025. For instance, the 1 to 30 days FPD rate decreased by 38% from October 2025 to January 2026. For the customer acquisitions, our AI models have enhanced our ability to understand customer behavior and execute more effective precision marketing strategies to drive higher sales conversion. As a result, customer acquisition cost as a percentage of total loan facilitation volume declined by 80 basis points to a record low in the fourth quarter compared to the same period in 2024. In the insurance brokerage segment, our gross written premium decreased by 22% year-over-year to RMB 860 million in the fourth quarter of 2025, and the full year gross premium was down by 17% year-over-year. The decrease was due to premium from the traditional channel which decreased by RMB 290 million. That decrease was partially offset by RMB 50 million increase from the insurance -- from the Internet insurance. For the fourth quarter of 2025, revenue from the overall insurance brokerage segment was RMB 84 million compared to RMB 106 million in the same period of 2024. The Internet insurance revenue contributions accounts for 22% of the total segment revenue in the fourth quarter and 14% for the full year of 2025. It has become a significant part of the business. The integration of our online and offline channel, combined with our AI-driven sales and servicing capabilities, enhance the overall customer experience while supporting more competitive customer acquisition cost structure for our traditional business. This integrated approach also creates opportunities for increased synergies across channels. We also recorded technology-driven marketing service revenue in the fourth quarter as we are transforming our organization into an AI solution platform company. We look forward to presenting you more details in the coming quarters as these services scale. On the expense side, sales and marketing expenses in the fourth quarter of 2025 decreased by 31% year-over-year to RMB 206 million. This is attributable to lower origination volume, lower acquisition cost for new customer driven by AI and an increase in our repeat borrower ratio to 76% through the year. The overall customer acquisition cost as a percentage of loan volume decreased by 80 basis points in the fourth quarter of 2025 compared to the same period of 2024. It was a record low, reflecting less competition in the market as some players exited the market following the new regulation and also our AI marketing strategy, which was driving a better customer acquisition efficiency. Research and development expenses decreased by 26% year-over-year to RMB 121 million in the fourth quarter of 2025. This was due to a high base effect from the expense of our credit analysis system development project in the second half of 2024. The full year R&D expenses were RMB 407 million, representing 1.3% decrease from 2024. With the innovative AI tools we are building more for less, we will continue to invest in talent and AI infrastructure to enhance the overall productivity of the R&D team. Origination, servicing and other operating costs increased by 27% year-over-year to RMB 251 million in the fourth quarter of 2025. This was driven by increased commission rates for asset recovery services to boost collection incentive during a challenging credit environment. Full year origination and servicing costs decreased by 11% to RMB 786 million, driven by decrease in insurance brokerage business costs, along with the increased AI automation as over 81% of our first payment delinquent cases are being handled by our AI agents. General and administrative expenses for the quarter increased by 4.8% year-over-year to RMB 44 million. We have imposed tighter cost control to lower the expenses further. The allowance for contract assets and receivable for the fourth quarter decreased by 46% year-over-year to RMB 296 million, driven by higher receivables from guaranteed services and financing services amid industry level higher risk profile of assets. Provisions for contingent liability this quarter increased by 343% year-over-year to RMB 1.1 billion, reflecting the growth in loan origination volume under the risk-taking model, which grew by 48% year-over-year. Under the current accounting standard, we are required to recognize provisions for contingent liability immediately upon loan origination under the risk-taking model, while the corresponding revenue is amortized over the loan period. The increasing proportion of the risk-taking model loan volume has -- will continue to have an accounting impact on our earnings in the coming quarters. As previously noted, accounting standards give rise to a timing mismatch that results in a near-term earning pressure when we taking model loan volume growth because standby guarantee liability is recorded on the balance sheet at loan inception. This liability will be amortized to become guaranteed service revenue over the guaranteed period in the future, where the provisions for the associated guarantee-related contingent liability and standby guarantee liabilities are recognized upfront in accordance with GAAP, resulting in timing mismatch for revenue and cost, this timing mismatch is expected to normalize when the loan balance under the risk-taking model stabilize when the amortized revenues from the legacy assets balance out the provisions from new loans. For the fourth quarter of 2025, GAAP net loss amounts to RMB 882 million, largely due to higher accounting provisions driven from the guarantee business, as mentioned. The moderation in performance of the traditional insurance business and RMB 109 million fair value loss on the crypto assets. For the full year of 2025, the GAAP net income was RMB 14.5 million. To match the revenue and contingent liability accrual after adjusting for revenue from the stand ready guarantee liabilities, our non-GAAP net income for the full year 2025 was about RMB 834 million. So regarding our cash flow, we recorded a net cash outflow from our operation of RMB 198 million in the fourth quarter of 2025, but our balance sheet remains strong with cash and cash equivalents of RMB 3.3 billion as of December 31, 2025. Looking ahead to 2026, our non-lending business will continue to drive our revenue growth, while our credit performance continued to improve on a sequential basis. As this is a conservative forecast as our delinquency figures are improving more than expected, we may revise our forecast during the year. Overall, we are optimistic about the business as the core business has shown signs of recovery. Our Internet business has become a significant growth contributor, and our AI platform engine is starting to deliver results. So that's the end of our presentation. Operator, back to you. Operator: [Operator Instructions] And our first question will come from [ Connie Gu ] with [indiscernible]. Unknown Analyst: And my question is about AI. You mentioned that internal AI transformation has brought significant cost savings to the company in 2025. So looking to the longer term, do you expect further cost savings or a broader potential for AI application scenarios? And when we compare in-house developed AI agents to the third-party ones, what are the specific advantages? And how do you view the security of the popular AI tools lately like open? Ning Tang: Thank you for your question regarding AI. And actually, let me, explain more, talk more about our AI strategy. And I think it's extremely important because we are, as I reported earlier on, redefining the company. Yes, previously, it's a fintech company utilizing technology to do better finance credit work to begin with. Then we included insurance. But in the future, it's going to be an AI agent, AI native company, not only for credit and insurance subsectors, but also for more financial services subsectors and a few select industries in the coming couple of years. So basically, it's going to be a different value proposition evolving from our past. Let me explain more. Yes. So when we first started to utilize AI. It was more like a tool for cost savings to do our existing processes better, cheaper. Yes, AI as a tool. That's like in like 2023, 2024, but from last year and even more so this year, you just mentioned the [ OpenClaw ], AI is now a colleague is now a person, yes, a worker. So that means we are going to do businesses differently. We're going to reengineer our business processes for credit and insurance existing businesses. And at the same time, because our technologies, our AI capabilities have been well tested, proven in this heavily regulated demanding super tight security standard industries, sectors, our AI capabilities, our agents can be utilized for other financial services needs, subsectors and going beyond financial services subsectors to more industries. So this is the strategy. This is the development process, yes. So going forward, we're going to do AI more and more for our credit, for our insurance businesses. But at the same time, we'll look for more subsectors in financial services and new verticals beyond financial services to leverage our AI capabilities, proven capabilities, yes. So this is the strategy we have. And my vision is after 1 year, 2 years, 3 years, Yiren Digital will be a different company. It's not totally away from our traditional businesses. They will do -- we will do like credit, we'll do insurance. These are great applications for AI. But at the same time, we're going to do more. Yes, there are better also subsectors for AI applications, agents and growth for us going forward. So this is the strategy we have in mind, and we are executing. Thank you. Ka Hui: Yes. Just to add to Ning's comment with the numbers, in 2025, we already achieved a cost saving of RMB 80 million, and that is on top -- and those are the direct -- just the direct costs, and that's on top of other indirect cost savings such as the avoidance of fraud losses, which was approximately RMB 180 million last year and also other costs like the staff training and office space and all that. So I think just to add on to Ning's comments, we are transforming the company from just being using the AI to save cost to using the AI to generate revenue. So the -- what AI will help us is it will reduce our time to market with the technologies and also the analytics that will help us to identify new business opportunities. Operator: The next question will come from [ Wang Yang ] with [indiscernible] Securities. Unknown Analyst: [Interpreted] Since the new loan facilitation regulation issued in October 2025, the industry has generally experienced a significant impact. Has the company seen any improvement in this effect so far? How do you expect the industry risk environment to evolve over the course of the year? Ka Hui: Okay. Thank you. Thank you for your questions. Based on our credit performance metrics, our risk level peak in the last October and now showing signs of recovery. The new industry regulation had a short-term impact on us, our funding partners and our peers. We believe the industry has already adapted to this short-term impact, position itself for better long-term development. Our January FPD30 and DPD30 metrics, which track 30 days delinquency rate have dropped by 38% to the level seen in May 2025 when this cycle began. When the new regulation took effect in October, our cost of capital -- sorry, since the new regulation took effect in October, our cost of capital has decreased by 93 basis points. Meanwhile, our customer acquisition cost as a percentage of loan volume continued to drop by another 0.8% to a record low now. So indicating after the new regulation, the competition is -- has been eased, and we view this as a positive signal. And our balance sheet remains solid, providing the financial strength to manage potential risk as these improvements continue to flow through the business. But overall, we remain confident in the long-term fundamentals of our business. We think the new business will make the industry healthier. Thank you. Operator: The next question will come from [ Yulong Yu ]. Unknown Analyst: [Interpreted] I have noticed that the company's Internet insurance distribution business has demonstrated strong breakout growth. Could you elaborate on the development targets and strategic priorities for this segment in the new year? Additionally, compared with traditional insurance distribution models, where do you see our key competitive advantages are? Ning Tang: Okay. Let me take the first crack and yes, William can add to it. The insurance -- internet insurance business market potential is very big. Yes. And you may well remember that our credit facilitation business actually was quite offline several years ago. And then we successfully moved it to online to, yes, digitally transform the business. That was absolutely necessary, the right thing to do, bring us growth opportunities. And the same is happening for our insurance brokerage business, but not exactly the same, let me explain. Well, more and more businesses are moving online, yes. So the online part will be bigger and bigger contribution to our insurance business, top line, bottom line. And the same is happening as the credit business going from offline to online. The difference is we will still have offline part, but that offline part is also going to be more and more kind of like the so-called offline and online, meaning our offline colleagues will do more and more online activities like live streaming, like WeChat, Douyin kind of applications. We'll do that more and more. So the offline part will be also more and more effective. And as you have seen, the online part, the purely online part is showing great potential, super fast growth. And that's also very promising. So going forward, the insurance brokerage business will have this, yes, high growing like online part and also a more efficient like offline part kind of being offline, online combined model. Yes. So this is the vision we have for our insurance business. And William, do you have anything to add? And by the way, I'd like to add something why like our online Internet insurance business is growing, yes, so fast, much faster than our credit business transforming from offline to online because pretty much all the tools have been built for the credit business, the analytics, the AI agents, capabilities, so on, have been built. So it's a much faster acceleration process. And the same logic goes for what I just mentioned, us moving to other like verticals, other industries, the same kind of AI infrastructure, the agent capabilities have been built. Of course, we need to add new kind of like vertical domain expertise. That's also essential. But to begin with, the technology platform capabilities have been built. So it's a much faster, much accelerated process. Thank you. Operator: And that will conclude our question-and-answer session. If you have any further questions, please connect to the IR team of the Yiren Digital or Piacente Financial Communications. 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