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Yiren Digital
(NYSE:YRD)
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Rating:61Neutral
Price Target:
$1.50
▼(-65.99% Downside)
Action:Reiterated
Date:07/04/26
The score is driven primarily by solid financial durability (very low leverage and positive cash generation) but tempered by a sharp profitability deterioration in 2025 and weakening cash-flow momentum. Technicals remain broadly bearish (below key longer-term moving averages and negative MACD). The latest earnings call adds some support via improving credit metrics, cost efficiency, and strong liquidity, but ongoing losses and a large YoY revenue decline keep overall conviction moderate.
Positive Factors
Conservative capital structure
Extremely low leverage (debt/equity ~0.4%) provides durable financial flexibility to absorb credit cycles, fund selective AI and insurance initiatives, support operations and execute opportunistic buybacks without heavy external financing, strengthening resilience over months.
Negative Factors
Steep revenue contraction
A sharp revenue decline (Q1 2026 -41% YoY; loans facilitated down markedly) reflects portfolio resizing and regulatory headwinds that reduce scale. Lower top-line volume erodes operating leverage, hinders margin recovery and makes sustainable profit restoration more difficult over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative capital structure
Extremely low leverage (debt/equity ~0.4%) provides durable financial flexibility to absorb credit cycles, fund selective AI and insurance initiatives, support operations and execute opportunistic buybacks without heavy external financing, strengthening resilience over months.
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
$125.77M
Dividend Yield10.37%
Average Volume (3M)141.33K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-13.83%
EPS Growth-154.13%
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-24.92
Enterprise Value/Revenue-0.55
Enterprise Value/Gross Profit-0.63
Enterprise Value/Ebitda-13.30
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., a subsidiary of Creditease Holdings (Cayman) Limited, operates as a leading online consumer finance marketplace connecting borrowers and investors across the People's Republic of China. Founded in Beijing in 2012 and previously...
How the Company Makes Money
null...
Yiren Digital Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call conveyed meaningful operational progress: credit metrics and asset quality showed clear improvement, provisions and allowances declined, losses narrowed, marketing and operating costs were materially reduced, and the internet insurance business and AI ecosystem demonstrated early traction. However, the company still faces a significant year-over-year revenue decline (-41% YoY), ongoing net losses and negative adjusted EBITDA, and some uncertainty around the timing and capital needs of larger AI infrastructure initiatives. The narrative is of a company in transition with improving underlying fundamentals but remaining near-term profitability and revenue challenges.Positive Updates
Improving Credit Quality and Customer Loyalty
Repeat borrowing ratio reached a record 78% (vs. 74% YoY and 77% in Q4 2025). FPD30+ rate improved to 0.76% (from 1.16% in the prior-year comparable period). Early-stage delinquency buckets improved meaningfully: 1–30 days at 2.5%, 31–60 days at 2.7%, and 61–90 days at 3.2%. Asset recovery rate increased for the first time in five quarters, reflecting healthier asset quality and the benefits of AI-driven risk management.
Negative Updates
Material Year‑over‑Year Revenue Decline
Total net revenue for Q1 2026 was RMB 915.1 million, down 41% year-over-year, although only down 4% sequentially from RMB 957.6 million in Q4 2025. The steep YoY decline reflects the prior year portfolio resizing and industry credit normalization.
Read all updates
Q1-2026 Updates
Positive
Negative
Improving Credit Quality and Customer Loyalty
Repeat borrowing ratio reached a record 78% (vs. 74% YoY and 77% in Q4 2025). FPD30+ rate improved to 0.76% (from 1.16% in the prior-year comparable period). Early-stage delinquency buckets improved meaningfully: 1–30 days at 2.5%, 31–60 days at 2.7%, and 61–90 days at 3.2%. Asset recovery rate increased for the first time in five quarters, reflecting healthier asset quality and the benefits of AI-driven risk management.
Read all positive updates
Company Guidance
Management offered cautious optimism for 2026, guiding that improving credit trends should drive lower provisioning and continued margin recovery, pointing to concrete improvements—allowance for credit assets fell to CNY176.4m (from CNY302.8m), provisions for contingent liabilities declined to CNY632.2m (from CNY1.11b), adjusted EBITDA loss narrowed to CNY337m (from CNY1.0b), net loss improved to CNY494.7m (from CNY868.2m), and FPD30+ eased to 0.76% (from 1.16%)—and said these trends (repeat-borrower ratio 78%; delinquencies: 1–30d 2.5%, 31–60d 2.7%, 61–90d 3.2%) should support lower provisions in coming quarters; they also expect continued internet insurance momentum (insurance revenue CNY87.2m, +4% QoQ and +22% YoY; internet insurance now 29% of insurance revenue; internet insurance revenue +38% QoQ; nearly 1m new policies in Q4 2026; ~400k clients, +4.1x YoY), AI-driven efficiency gains to compound (CAC as % of revenue down >50% YoY; sales & marketing CNY113.6m, −45% QoQ; origination/servicing costs CNY197.6m; R&D CNY108.9m, +27% YoY), and sufficient liquidity (cash CNY2.45b, restricted cash CNY383.4m, financial investments CNY507.5m; total ~CNY3.3b) while maintaining disciplined capital allocation, selective AI investments (9+ startups, warrants with 4) and further updates as initiatives mature.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 | 13.45B | 12.98B | 10.28B | 8.54B | 7.74B |
| Cash, Cash Equivalents and Short-Term Investments | 3.35B | 4.27B | 6.31B | 5.24B | 3.04B |
| Total Debt | 48.85M | 40.77M | 23.65M | 803.13M | 1.10B |
| Total Liabilities | 4.18B | 3.44B | 2.19B | 2.51B | 2.92B |
| Stockholders Equity | 9.27B | 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
Neutral
4.41
Price Trends
1.57
Negative
2.22
Negative
3.56
Negative
Market Momentum
-0.13
Negative
57.04
Neutral
37.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YRD, the sentiment is Neutral. The current price of 4.41 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.57, and above the 200-day MA of 3.56, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 37.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.14B | 3.43 | 5.33% | 5.20% | 0.84% | -12.02% | |
80 Outperform | $1.94B | 1.24 | 20.88% | 7.30% | 5.63% | -16.83% | |
76 Outperform | $321.38M | 1.52 | 12.17% | 8.86% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $125.77M | -0.42 | 0.54% | 10.37% | -13.83% | -154.13% | |
| ― | $2.33B | -1.99 | -2.37% | ― | ― | ― |
* Financial Sector Average
YRD
Yiren Digital
1.44
-4.41
-75.37%
FINV
FinVolution Group
4.83
-4.46
-48.01%
LX
Lexinfintech Holdings
1.91
-4.78
-71.45%
QFIN
Qifu Technology
15.46
-24.19
-61.01%
LU
Lufax Holding
1.40
-1.39
-49.82%
Yiren Digital Corporate Events
Yiren Digital Launches US$20 Million Share Repurchase Program
Jul 2, 2026
On July 2, 2026, Yiren Digital announced that its board had authorized a new share repurchase program of up to US$20 million, allowing the company to buy back up to 10% of its issued and outstanding ordinary shares and ADSs over the subsequent 12 ...
Yiren Digital Posts Weaker Q1 2026 Credit Volumes but Surging Insurance and AI Investments
Jun 26, 2026
Yiren Digital reported unaudited results for the first quarter ended March 31, 2026, showing a sharp contraction in its core credit solution business alongside rapid growth in insurance brokerage. Total loans facilitated fell 26% quarter-on-quarte...
Yiren Digital CEO Ning Tang Boosts Beneficial Ownership to 82% After Shareholder Restructuring
Jun 8, 2026
On June 5, 2026, a restructuring of CreditEase Holdings (Cayman) Limited, the controlling shareholder of Yiren Digital, transferred full ownership of that entity to Executive Chairman and CEO Ning Tang. As a result, Tang’s indirect beneficia...
Yiren Digital Names Marcum Asia as New Independent Auditor
Jun 1, 2026
On June 1, 2026, Beijing-based Yiren Digital Ltd., listed on the NYSE under the ticker YRD, appointed Marcum Asia CPAs LLP as its new independent registered public accounting firm, effective immediately. Marcum Asia has been engaged to audit and r...
Yiren Digital Distances Operations From Media Reports on Controlling Shareholder Affiliates
May 27, 2026
On May 26, 2026, Yiren Digital issued a statement addressing recent media reports about certain financial products offered by affiliates of its controlling shareholder. The company emphasized that it is an independent, NYSE-listed entity with sepa...
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.