Yiren Digital Ltd. reported third‑quarter 2025 results with total net revenue of RMB 1,555.0 million (US$218.4 million), a 5% year‑over‑year increase from RMB 1,479.1 million in Q3 2024. Net income fell to RMB 317.6 million (US$44.6 million), down 12% from RMB 355.4 million in the same quarter last year, while earnings per ADS settled at RMB 3.65 (US$0.51) basic and RMB 3.63 (US$0.51) diluted, in line with analyst expectations.
The financial services segment, which accounts for 92% of total revenue, drove the majority of growth with revenue of RMB 1,423.2 million, up 70% YoY. Loan‑facilitation volume surged 51% to RMB 20.2 billion, but the number of borrowers served fell 11% to 1.34 million, reflecting a shift toward higher‑quality, repeat borrowers. The company’s insurance brokerage revenue declined 2% YoY, while the segment’s operating costs were cut by 42% through tighter expense controls.
Cost efficiency gains offset some of the revenue upside. Yiren Digital reported a 27% reduction in origination and servicing costs, and a 42% decline in insurance brokerage expenses, contributing to a net margin contraction from 22% to 20%. The margin squeeze was largely driven by higher upfront provisioning required under new loan‑facilitation regulations and a significant drop in fee rates for loan‑facilitation services, which eroded profitability despite the revenue growth.
Management highlighted the regulatory impact in its commentary. CEO Ning Tang said the company “delivered a stable and resilient quarter amid industry‑wide challenges” and emphasized that “our disciplined credit policy and enhanced risk‑management capability will position us well.” CFO William Hui added that “the disciplined credit policy, enhanced risk‑management capability, and effective risk‑revenue model will position us well.” The company’s focus on AI‑driven efficiencies and expansion into blockchain and internet insurance were cited as strategic pillars for future growth.
Guidance for Q4 2025 remains unchanged, with projected total revenue between RMB 1.4 billion and RMB 1.6 billion. The outlook signals management confidence in maintaining revenue levels while navigating regulatory headwinds. The company also reiterated its commitment to AI and blockchain as core growth engines, underscoring a long‑term strategy to diversify beyond core lending.
Pre‑market trading showed a modest 0.22% rise in Yiren Digital’s stock, reflecting a cautious investor response that balanced the company’s revenue growth and strong segment performance against the net income decline and margin compression. The market reaction was driven by the company meeting analyst expectations for both revenue and EPS, while concerns over profitability pressures tempered enthusiasm.
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