Yiren Digital Ltd. Sponsored Adr (YRD)
NYSE:YRD
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Yiren Digital
(NYSE:YRD)
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Rating:62Neutral
Price Target:
$2.00
▼(-54.65% Downside)
Action:Downgraded
Date:05/04/26
The score reflects strong financial flexibility from a very low-leverage balance sheet and supportive earnings-call signals around improving credit metrics and scaling non-lending businesses, partially offset by a pronounced 2025 profitability step-down and clearly bearish technical trend. The very high dividend yield helps valuation, but negative P/E and GAAP volatility limit confidence.
Positive Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.4%) and sizable equity provide durable financial flexibility to absorb credit stress, support funding substitutions and invest in strategic initiatives. This balance sheet conservatism underpins resilience through multi-quarter credit cycles and funds growth projects without straining liquidity.
Negative Factors
Sharp profitability deterioration
A collapse in reported net margin from prior-year levels signals structural pressure on returns. Even with high gross margins, the bottom-line decline reflects higher provisions, cost pressures and recognition timing issues; sustained margin rebuilding is required to restore ROE and long-term capital generation capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.4%) and sizable equity provide durable financial flexibility to absorb credit stress, support funding substitutions and invest in strategic initiatives. This balance sheet conservatism underpins resilience through multi-quarter credit cycles and funds growth projects without straining liquidity.
Read all positive factors
Yiren Digital Key Performance Indicators (KPIs)
Any
Volume of Loans Facilitated
Indicates the total amount of loans processed, reflecting the company's lending capacity and market demand for its financial products.
Indicates the total amount of loans processed, reflecting the company's lending capacity and market demand for its financial products.
Data provided by:
The Fly
The FlyYiren Digital (YRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.81M
Dividend Yield10.37%
Average Volume (3M)141.33K
Price to Earnings (P/E)28.5
Beta (1Y)1.27
Revenue Growth-1.41%
EPS Growth-98.13%
CountryUS
Employees949
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-9.34
Shares Outstanding86,934,540
10 Day Avg. Volume116,201
30 Day Avg. Volume141,334
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.12
Price to Sales (P/S)0.20
P/FCF Ratio1.66
Enterprise Value/Market Cap-15.51
Enterprise Value/Revenue-0.47
Enterprise Value/Gross Profit-0.55
Enterprise Value/Ebitda-11.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Yiren Digital Business Overview & Revenue Model
Company Description
Yiren Digital Ltd., through its subsidiaries, operates as an online consumer finance marketplace that connects borrowers and investors in the People's Republic of China. It provides loan facilitation services; and post-origination services, such a...
How the Company Makes Money
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Yiren Digital Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The call highlighted meaningful strategic progress: robust AI innovation and platform development (LLM filing, Magicube), measurable AI-driven cost savings and efficiency gains, rapid growth in internet insurance, full-year loan facilitation growth (+26% YoY), improved unit economics and a solid cash position (RMB 3.3 billion). At the same time, the company faced near-term headwinds: Q4 loan originations materially contracted, delinquency rates peaked during the year, large upfront accounting provisions tied to an increased risk-taking model produced a sizable Q4 GAAP loss (RMB 882 million) and insurance brokerage traditional channels declined. Management emphasized that credit-leading indicators are improving, AI and internet insurance are scaling, and non-GAAP profitability remained strong (approx. RMB 834 million for 2025), but accounting timing issues and the recent credit cycle pressures create near-term volatility.Positive Updates
AI Platform and Product Milestones
Completed regulatory filing of proprietary LLM 'Zhiyu' and launched Magicube multi-agent platform (Oct 2025), positioning the company as an AI-native operator and enabling large-scale agent deployment across sales, risk, capital planning, compliance and customer service.
Negative Updates
Quarterly Loan Origination Contraction
Loan originations in Q4 2025 were RMB 12.0 billion, moderated by 22% YoY and 40% QoQ as the company prioritized credit quality amid a difficult credit environment.
Read all updates
Q4-2025 Updates
Positive
Negative
AI Platform and Product Milestones
Completed regulatory filing of proprietary LLM 'Zhiyu' and launched Magicube multi-agent platform (Oct 2025), positioning the company as an AI-native operator and enabling large-scale agent deployment across sales, risk, capital planning, compliance and customer service.
Read all positive updates
Company Guidance
Management guided that in 2026 the company expects non‑lending businesses—particularly Internet insurance and technology‑driven services—to be the primary revenue drivers while core credit performance improves sequentially as the credit cycle eases; supporting metrics cited include Q4 loan originations of RMB 12.0 billion (down 22% YoY, 40% QoQ) and full‑year 2025 loan facilitation of RMB 67.8 billion (up 26% YoY), repeat borrowing ~76–77%, and average loan ticket size rising to RMB 11,500 in Q4. They pointed to early signs of recovery in asset quality—FPD30/DPD30 peaked in October and fell ~38% from October to January with February delinquencies ~38% below the peak—while Q4 delinquency rates were 1–30 days 3.4%, 31–60 days 3.0% and 61–90 days 2.8%. Management also highlighted accelerating Internet insurance momentum (Q4 gross written premium RMB 50 million, +95% QoQ; Q4 annualized premium RMB 267 million, +36% QoQ; Internet insurance = 22% of Q4 insurance revenue, 14% for FY), growing tech revenues, and material AI impact (direct net cost savings ≈ RMB 80 million in 2025 plus ~RMB 180 million fraud avoidance, AIGC response time cut from 1.2s to <0.6s, IVR cost per call down 84% to RMB 0.15). They cautioned that near‑term GAAP results are affected by accounting timing (Q4 GAAP net loss RMB 882 million; FY GAAP net income RMB 14.5 million; FY non‑GAAP net income ≈ RMB 834 million) and higher provisions (Q4 provisions for contingent liabilities RMB 1.1 billion, +343%) tied to a nearly doubled risk‑taking asset base, while balance sheet and funding remain solid (cash RMB 3.3 billion, 29 institutional funding partners).Yiren Digital Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
88
Very Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.57B | 5.81B | 4.90B | 3.43B | 4.48B |
| Gross Profit | 4.78B | 4.92B | 3.92B | 2.66B | 3.72B |
| EBITDA | -44.31M | 1.68B | 2.60B | 1.52B | 1.33B |
| Net Income | 39.42M | 1.58B | 2.08B | 1.19B | 1.03B |
Balance Sheet | |||||
| Total Assets | 13.46B | 12.98B | 10.28B | 8.54B | 7.74B |
| Cash, Cash Equivalents and Short-Term Investments | 3.87B | 4.27B | 6.31B | 5.24B | 3.04B |
| Total Debt | 39.78M | 40.77M | 23.65M | 803.13M | 1.10B |
| Total Liabilities | 4.19B | 3.44B | 2.19B | 2.51B | 2.92B |
| Stockholders Equity | 9.28B | 9.54B | 8.09B | 6.03B | 4.82B |
Cash Flow | |||||
| Free Cash Flow | 677.88M | 1.41B | 2.17B | 1.85B | 148.79M |
| Operating Cash Flow | 703.62M | 1.42B | 2.17B | 1.85B | 158.19M |
| Investing Cash Flow | -1.58B | -3.11B | 100.05M | 52.56M | -346.51M |
| Financing Cash Flow | 662.60M | -277.23M | -569.28M | -489.12M | 427.45M |
Yiren Digital Technical Analysis
Negative
4.41
Price Trends
2.16
Negative
3.03
Negative
4.22
Negative
Market Momentum
-0.06
Negative
41.31
Neutral
34.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YRD, the sentiment is Negative. The current price of 4.41 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 2.16, and above the 200-day MA of 4.22, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YRD.
Yiren Digital Risk Analysis
Yiren Digital disclosed 99 risk factors in its most recent earnings report. Yiren Digital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We may be unsuccessful in expanding and operating our business internationally, which could adversely affect our results of operations. Q4, 2023
Yiren Digital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.17B | 5.42 | 15.80% | 5.20% | 4.05% | 8.52% | |
73 Outperform | $1.56B | 2.17 | 24.99% | 7.30% | 11.94% | 5.49% | |
72 Outperform | $329.98M | 4.55 | 14.37% | 8.86% | -7.69% | 48.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $173.81M | 28.48 | 0.54% | 10.37% | -1.41% | -98.13% | |
| ― | $2.33B | ― | -2.37% | ― | ― | ― |
* Financial Sector Average
YRD
Yiren Digital
1.92
-4.15
-68.37%
FINV
FinVolution Group
4.88
-3.27
-40.11%
LX
Lexinfintech Holdings
1.93
-6.18
-76.21%
QFIN
Qifu Technology
12.75
-27.25
-68.13%
LU
Lufax Holding
1.78
-1.27
-41.64%
Yiren Digital Corporate Events
Yiren Digital Posts Weaker Q4 2025 but Highlights Full-Year Loan Growth and AI-Driven Shift
Mar 20, 2026
Yiren Digital reported unaudited financial results on March 19, 2026 for the fourth quarter and fiscal year ended December 31, 2025, showing a sharp fourth-quarter slowdown but full-year growth in lending volumes. Total loans facilitated fell 40% ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.