Yiren Digital (YRD) investor relations material

Executive summary

• Advanced transformation into an AI-native, multi-industry platform, deploying AI across financial and non-financial sectors, and leveraging established fintech operations.

• AI integration improved asset quality, operating efficiency, and profitability, with deepened deployment in credit and insurance.

• Strategic investments and incubation of AI-native startups in fintech, education, entertainment, and research productivity, with options for increased ownership.

• Total net revenue for Q1 2026 was RMB915.1 million, down 41% year-over-year and 4% sequentially from Q4 2025.

• Net loss for Q1 2026 was RMB494.7 million, improved from Q4 2025, but down from net income in Q1 2025.

Financial highlights

• Credit solutions revenue was RMB795.7 million, down 4% quarter-over-quarter and 39% year-over-year.

• Insurance brokerage revenue reached RMB87.2 million, up 4% sequentially and 22% year-over-year.

• Adjusted EBITDA loss narrowed to RMB336.8 million from RMB1,028.5 million in Q4 2025.

• Sales and marketing expenses dropped 59% year-over-year to RMB113.6 million.

• Cash and cash equivalents stood at RMB2,453.1 million as of March 31, 2026.

Outlook and guidance

• Asset quality improvements and AI-driven automation expected to support lower provisioning and improved profitability in H2 2026.

• Internet insurance momentum anticipated to continue as digital adoption rises.

• Launch of Yixiaobao, an AI-enabled insurance solution, expected in 2H26.

• Board to review semi-annual dividend policy after Q2 2026.

• Cautiously optimistic outlook for the remainder of 2026, with a more diversified earnings profile.