Yiren Digital Ltd.
- Open
- 1.24
- Day high
- 1.28
- Day low
- 1.21
- Prev close
- 1.25
- Volume
- 49K
- Mkt cap
- $111M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.1
- P/S
- 0.1
- Yield
- —
- Per share
- —
Yiren Digital Ltd. (YRD) is a Financial Services company listed on NYSE. The stock is down 80% over the past year.
Yiren Digital Ltd. (YRD) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
YRD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 25, 2026 | $0.38 | $-0.82 | -316.0% | — | — |
| Mar 19, 2026 | — | $-1.44 | — | $135M | — |
| Nov 25, 2025 | — | $0.51 | — | $218M | — |
| Aug 21, 2025 | — | $0.57 | — | $234M | — |
| Jun 12, 2025 | — | $0.39 | — | $213M | — |
| Mar 20, 2025 | — | $0.52 | — | $199M | — |
| Nov 20, 2024 | — | $0.58 | — | $211M | — |
| Aug 20, 2024 | — | $0.65 | — | $206M | — |
| Jun 21, 2024 | — | $0.76 | — | $191M | — |
| Mar 21, 2024 | — | $0.91 | — | $180M | — |
| Nov 21, 2023 | — | $0.85 | — | $179M | — |
| Aug 17, 2023 | — | $0.81 | — | $183M | — |
Yiren Digital Ltd. company profile
Overview
Yiren Digital Ltd. (NYSE:YRD) is a Chinese fintech company that operates as an online consumer finance marketplace connecting borrowers and investors in China. Founded in 2012 and headquartered in Beijing, the company went public on the New York Stock Exchange in December 2015. Originally known as Yirendai Ltd., the company rebranded to Yiren Digital in September 2019 to reflect its strategic pivot toward artificial intelligence and digital transformation. Yiren Digital is a subsidiary of Creditease Holdings (Cayman) Limited and has evolved from a peer-to-peer lending platform into a comprehensive financial services provider offering loan facilitation, insurance brokerage, and wealth management services.
Business
Yiren Digital operates in China's consumer finance and fintech sector, providing a digital marketplace that connects borrowers seeking loans with institutional funding partners. The company has three primary business segments that generate revenue: Financial Services (Primary Revenue Driver - approximately 80% of total revenue): This segment facilitates consumer loans through an online platform where borrowers can access unsecured personal loans, secured loans (including auto and property-backed financing), and small business loans. The company's flagship product is "Yi Xiang Hua," a small revolving credit product that allows customers to borrow repeatedly up to approved credit limits. Unlike traditional banks, Yiren Digital acts as an intermediary, using technology and data analytics to assess creditworthiness and match borrowers with funding partners including banks, consumer finance companies, and other financial institutions. Insurance Brokerage (approximately 15% of total revenue): The company distributes insurance products including life insurance, property insurance, and various specialty coverage through both online and offline channels. Yiren Digital partners with over 100 insurance companies to offer more than 800 different insurance products to customers. The company operates 40+ offline branches nationwide and employs professional agents, with 10% holding membership in the Million Dollar Round Table (MDRT), a prestigious association for insurance professionals. Consumption and Lifestyle Services (approximately 5% of total revenue): This segment provides online marketplace services for consumer goods and lifestyle products, generating revenue through transaction fees and commissions. The platform facilitates e-commerce transactions and offers various consumer services, though this remains the smallest revenue contributor. The company has also begun international expansion, particularly in Southeast Asia (Philippines) and Latin America (Mexico), targeting younger demographics in emerging markets with similar credit needs and digital adoption patterns as China.
Revenue model
Yiren Digital operates a multi-faceted business model that generates revenue through several streams. In its core financial services business, the company earns loan facilitation fees from borrowers when loans are originated, typically ranging from 2-8% of the loan amount depending on risk assessment and loan terms. Additionally, the company collects post-origination service fees for ongoing loan servicing, including payment processing, customer service, and collection activities throughout the loan lifecycle. The insurance brokerage segment generates revenue through commission fees paid by insurance companies, typically ranging from 10-40% of premium payments depending on the product type. Life insurance products generally offer higher commission rates but have longer sales cycles, while property insurance provides lower but more predictable commissions with annual renewals. The consumption and lifestyle services segment operates on a transaction fee model, earning commissions from merchants and service providers for facilitating sales through the platform. Several factors influence the company's profit margins. Positive margin drivers include the company's increasing focus on repeat customers (60% of loans now come from repeat borrowers), which reduces customer acquisition costs, and the deployment of AI technology across operations, which has reduced operational expenses and improved risk assessment accuracy. The company's shift toward higher-margin revolving credit products and improved funding partnerships have also reduced funding costs by 64 basis points. Margin pressure factors include China's evolving regulatory environment for consumer finance, which can impact lending volumes and fee structures. Economic downturns affect credit quality and increase collection costs, while intense competition from traditional banks, other fintech companies, and big tech platforms like Ant Financial pressures customer acquisition costs and pricing. Additionally, the company's significant investments in AI development and international expansion create near-term cost pressures that may not immediately translate to revenue growth.
Competitive moat
Yiren Digital's competitive moat is moderate but developing, primarily built around its proprietary technology platform and data analytics capabilities rather than traditional regulatory barriers or network effects. The company's strongest defensive position comes from its AI and data science capabilities, having developed six proprietary AI systems for customer acquisition, risk assessment, collections, and customer service. With over 50 AI and data science professionals and significant R&D investments (RMB 412 million in 2024, with RMB 200 million allocated to AI), the company has created sophisticated risk models that achieve 93% accuracy in fraud detection and handle 81% of day-one overdue cases through AI automation. The company's customer data and relationships provide some competitive advantage, particularly with its 60% repeat borrower rate indicating customer loyalty and reduced acquisition costs. The established partnerships with nearly 20 funding institutions and over 100 insurance companies create operational efficiencies and diversified revenue streams that newer entrants would find difficult to replicate quickly. However, Yiren Digital faces significant competitive threats from multiple directions. Large technology companies like Ant Financial (Alipay) and Tencent have superior scale, data resources, and customer reach. Traditional banks are rapidly digitizing their operations and may eventually disintermediate fintech platforms. The regulatory environment in China remains unpredictable, with authorities periodically tightening oversight of consumer lending and fintech operations, which could erode competitive positioning. The company's international expansion represents both an opportunity to build new moats in less competitive markets and a risk of spreading resources too thin. While the Philippines operations have achieved profitability, replicating success across multiple emerging markets requires substantial capital and management attention. Overall, Yiren Digital's moat is narrow but potentially deepening through AI capabilities, though the company remains vulnerable to larger competitors and regulatory changes.
Risks & safety
Yiren Digital demonstrates a strong margin of safety from a financial stability perspective, though valuation metrics suggest limited downside protection at current prices. Financial Strength: • Cash position: RMB 523 million (approximately $72 million USD) with minimal debt • Debt-to-equity ratio: 0.004 (virtually debt-free) • Current ratio: 5.6x indicating strong liquidity • Positive free cash flow: RMB 193 million in 2024 • No meaningful solvency risk given strong balance sheet Valuation Metrics: • Price-to-earnings ratio: 0.96x (extremely low) • Price-to-book ratio: 0.16x (trading below book value) • Enterprise value to EBITDA: -0.46x (negative due to net cash position) • Graham number suggests intrinsic value around RMB 213 vs current price around RMB 45 Other Considerations: • Chinese ADR discount due to geopolitical risks and potential delisting concerns • Regulatory uncertainty in Chinese fintech sector • Currency exposure for USD-based investors • Concentrated geographic exposure to China (though international expansion underway)
Recent development
Over the past few years, Yiren Digital has undergone a significant strategic transformation centered around artificial intelligence integration and international expansion. The company has invested heavily in AI capabilities, developing six proprietary AI systems that now handle customer acquisition, risk assessment, collections, and customer service operations. This AI-first approach has enabled the company to process 400,000 daily telemarketing calls through AI robots and achieve 93% accuracy in fraud detection models. The company has also pivoted toward higher-quality customer segments and repeat borrowers, with 60% of current loan volume coming from existing customers. This "quality over quantity" strategy has improved risk metrics, with the FPD 30-plus delinquency rate declining by 32 basis points and overall collection efficiency improving significantly. International expansion represents another key strategic development, with operations launched in the Philippines achieving profitability and plans for expansion into Mexico and other Latin American markets. The overseas business generated RMB 32-63 million in quarterly loan volumes and is expected to contribute 3-5% of financial services revenue. The company has also diversified its revenue streams by expanding insurance brokerage operations to over 800 products from 100+ insurers and developing consumption and lifestyle services. Additionally, management has initiated shareholder-friendly capital allocation policies, including a new dividend policy (minimum 10% of net income distributed semi-annually) and ongoing share buyback programs, representing a shift from pure growth reinvestment to balanced capital returns.
YRD company profile · for informational purposes only — not investment advice.
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