Yiren Digital Reports Third Quarter 2025 Financial Results

Core Insights - Yiren Digital Ltd. reported a stable quarter with total net revenue of RMB1,555.0 million (US$218.4 million), a 5% increase from the same period last year, driven primarily by the financial services business [4][12] - The company is focusing on adaptive risk management and business diversification, particularly in its online insurance segment, to navigate industry challenges [3][4] - The financial services revenue surged by 70% to RMB1,423.2 million (US$199.9 million), accounting for 92% of total net revenue, attributed to strong demand for small revolving loans [4][8] Financial Performance - Total net revenue for Q3 2025 was RMB1,555.0 million (US$218.4 million), up from RMB1,479.1 million in Q3 2024 [4] - Financial services revenue increased to RMB1,423.2 million (US$199.9 million), a 70% rise from RMB836.2 million in Q3 2024 [4] - Insurance brokerage revenue decreased by 2% to RMB84.2 million (US$11.8 million) due to lower commission rates [4] - Other business revenue fell significantly to RMB47.5 million (US$6.7 million) from RMB557.4 million in Q3 2024, following a strategic decision to wind down the "consumption and lifestyle" segment [4] Expenses and Costs - Sales and marketing expenses were RMB331.8 million (US$46.6 million), slightly down from RMB335.6 million in Q3 2024 [5] - Origination, servicing, and other operating costs decreased to RMB149.9 million (US$21.1 million) from RMB205.9 million in Q3 2024, primarily due to a 27% reduction in origination and service expenses [5] - Research and development expenses dropped to RMB91.5 million (US$12.9 million) from RMB150.8 million in Q3 2024, attributed to a one-off system development project [6] - General and administrative expenses increased to RMB104.4 million (US$14.7 million) from RMB80.1 million in Q3 2024, mainly due to higher personnel costs [7] Loan Facilitation and Insurance Metrics - Total loans facilitated reached RMB20.2 billion (US$2.8 billion), a 51% increase from RMB13.4 billion in Q3 2024 [8] - The cumulative number of borrowers served increased by 21% year-over-year to 14,006,873 as of September 30, 2025 [8] - Gross written premiums for insurance in Q3 2025 were RMB1,148.0 million (US$161.3 million), a 35% increase from the previous quarter but a 15% decrease from Q3 2024 [8] Profitability and Cash Flow - Net income for Q3 2025 was RMB317.6 million (US$44.6 million), down from RMB355.4 million in Q3 2024, primarily due to increased provisions and declining fee rates [12] - Adjusted EBITDA was RMB236.8 million (US$33.3 million), a decrease from RMB380.9 million in Q3 2024 [13] - Net cash used in operating activities was RMB5.5 million (US$0.8 million), compared to RMB50.4 million generated in Q3 2024 [14] Business Outlook - The company projects total revenue for Q4 2025 to be between RMB1.4 billion and RMB1.6 billion, driven by loan growth and market penetration [17]