Yiren Digital pivots to risk-first model as Q4 credit tightening impacts revenue

Yiren Digital (NYSE:YRD) announced its unaudited financial results for the fourth quarter and full fiscal year ended December 31, 2025, revealing a significant shift in operational strategy toward capital preservation and risk mitigation.

The company reported full-year net revenue of RMB 5,719.2 million, a slight 1% decrease from 2024, and maintained a narrow full-year net income of RMB 40.5 million.

The fourth quarter, however, reflected a more challenging environment as the company purposefully slowed its growth engine.

Net revenue for Q4 fell 34% year-over-year to RMB 957.6 million, resulting in a net loss of RMB 882.2 million for the period.

This loss was primarily driven by a material increase in provisions for contract assets and receivables, as well as a strategic 40% sequential reduction in loan facilitation volume, which totaled RMB 12 billion for the quarter.

Despite the quarterly contraction, Yiren Digital’s full-year loan facilitation reached RMB 67.8 billion, a 26% increase over 2024, demonstrating strong demand earlier in the fiscal year.

Yiren Digital enters 2026 with a robust liquidity position, reporting RMB 3,348.1 million in cash and equivalents as of December 31, 2025.