Yiren Digital(US:YRD) Prnewswireยท2025-08-21 10:37Core Viewpoint - Yiren Digital Ltd. reported a strong recovery in its financial performance for the second quarter of 2025, driven by AI-powered strategies and a focus on financial services, despite a decline in its insurance brokerage business. Financial Services Business - Gross written premiums in Q2 2025 were RMB850.1 million (US$118.7 million), a 6% increase from RMB801.8 million in Q1 2025 but a 20% decrease from RMB1,060.9 million in Q2 2024, attributed to a recovery in sales post-regulatory changes [2][4] - Revenue from the financial services business was RMB1,489.6 million (US$207.9 million), a 75% increase from RMB851.0 million in Q2 2024, driven by demand for small revolving loan products [4][28] - The financial services revenue accounted for 90% of total net revenue in Q2 2025 [4] Operational Highlights - Total net revenue for Q2 2025 was RMB1,652.1 million (US$230.6 million), a 10% increase from RMB1,496.5 million in Q2 2024 [4] - The company reported a return to profitability growth after five consecutive quarters of decline, with robust revenue and profit expansion in technology and international operations [3][4] Expenses and Costs - Sales and marketing expenses increased to RMB345.2 million (US$48.2 million) in Q2 2025 from RMB285.1 million in Q2 2024, due to higher loan facilitation volume [5] - Research and development expenses rose to RMB107.7 million (US$15.0 million) in Q2 2025, reflecting increased AI spending and capital investment in technology [7] - General and administrative expenses were RMB78.9 million (US$11.0 million), up from RMB68.7 million in Q2 2024, primarily due to higher personnel costs [8] Profitability Metrics - Net income for Q2 2025 was RMB357.5 million (US$49.9 million), down from RMB409.5 million in Q2 2024, mainly due to upfront provisions required by accounting principles [10] - Adjusted EBITDA for Q2 2025 was RMB351.4 million (US$49.1 million), compared to RMB484.7 million in Q2 2024 [11] Cash Flow and Financing - Net cash generated from operating activities was RMB411.2 million (US$57.4 million) in Q2 2025, compared to RMB368.9 million in Q2 2024 [12] - Net cash used in investing activities was RMB752.2 million (US$105.0 million) in Q2 2025, up from RMB536.9 million in Q2 2024 [12] - Net cash provided by financing activities was RMB447.6 million (US$62.5 million) in Q2 2025, compared to RMB125.9 million used in financing activities in Q2 2024 [13] Business Outlook - The company projects total revenue for Q3 2025 to be between RMB1.4 billion and RMB1.6 billion, driven by loan growth in domestic and international markets [19]