YRD Reports Q1 2026 Results

Yiren Digital (NYSE: YRD ) reported first-quarter financial results on Thursday. The transcript from the company's first-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

The full earnings call is available at Summary Yiren Digital reported a 41% year-over-year decrease in total net revenue for Q1 2026, but only a 4% sequential decrease, reflecting stabilization in credit risk. The company's AI integration across all major business functions has improved operating efficiency, reduced customer acquisition costs, and enhanced credit performance, with a repeat borrowing ratio of 78%. Yiren Digital's Internet insurance strategy saw a 38% quarter-over-quarter growth in revenue, issuing nearly 1 million new policies and indicating strong momentum despite industry-wide pressure.

The company's AI strategy is centered around building an ecosystem with three pillars: fintech platform, AI infrastructure, and AI applications, aiming to diversify growth and enhance competitive advantages. Operational improvements and cost optimization led to a significant reduction in adjusted EBITDA loss, narrowing to 337 million RMB from 1 billion in the previous quarter. AI-driven efficiency improvements resulted in a 45% decrease in sales and marketing expenses, and a 22% year-over-year increase in insurance revenue.

Yiren Digital is actively investing in AI-native startups, with strategic incubation and performance-linked warrant agreements to strengthen its ecosystem and align with growth opportunities. Looking ahead, the company remains cautiously optimistic about 2026, expecting continued improvement in asset quality, growth in Internet insurance, and benefits from AI-driven automation and efficiencies. Full Transcript OPERATOR Good day and welcome to the Yiren Digital first quarter 2026 earnings conference call. S.

Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and factors that could cause actual results to differ materially from those contained in any such statements. S. Securities and Exchange Commission.

We do not undertake any obligation to update any forward-looking statements as required under relevant 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 the US GAAP. For information about those non-GAAP financial measures and the reconciliations to GAAP measures, please refer to the Company's earnings press release.

As a reminder, this conference is being recorded. An 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. Tong, for opening remarks.

YiRen Yuan, CEO Everyone and thank you for joining us. The positive trends we discussed last quarter continued to build in the first quarter, marking another important step forward in our transformation. We entered the year with stronger fundamentals in our traditional businesses while making meaningful progress toward our long-term vision of building an AI-native multi-industry operating platform anchored by our established fintech businesses. Operationally, our credit solution business continued to recover as industry credit conditions improved following a year of challenging regulatory tightening and credit normalization.

Through disciplined risk management, AI-powered operations, operational improvements, and a continued focus on higher quality customers, we delivered healthier asset quality, stronger operating efficiency, and improved profitability. At the same time, we accelerated the execution of our all-in AI strategy. Over the past year, we have integrated AI into every major business function including marketing, customer acquisition, underwriting, risk management, collection, and customer service. Today, AI is no longer just a tool for improving productivity; it's becoming a deeper part of how we operate our business.

More importantly, we are expanding these AI capabilities beyond our own operations through internal incubation and strategic investments in AI-native startups. We are building an ecosystem that combines our fintech infrastructure, proprietary AI platform, computing resources, and engineering capability with innovative AI applications across high-growth industries. What makes this strategy different is that our AI capabilities were developed inside real financial services businesses.

This gives us practical experience, large-scale data, and the real business scenarios that can support future expansion into new industries, creating multiple new growth engines while reinforcing the competitive advantages of our existing businesses. Let me begin with our Credit solutions segment. Following a period of regulatory tightening and industry-wide credit normalization, we saw a meaningful improvement in credit quality during the first quarter. This created a healthier operating environment and supported margin expansion.

It also builds on the early signs of stabilization we shared last quarter and our AI capability in risk management to give us more confidence that the credit cycle is improving. Our repeat borrowing ratio reached a record 78% of loan volume compared with 74% in the same period last year and 77% in the fo