Yiren Digital Powers Through Q1 2026 with Stronger Fundamentals, Improved Credit Quality, and AI-Driven Growth
Yiren Digital, a leading fintech company, has reported a strong first quarter of 2026, marked by improved credit quality, reduced customer acquisition costs, and the continued execution of its all-in-AI strategy. During the company's Q1 2026 earnings conference call, CEO Mr. Tang emphasized that the positive trends discussed in the previous quarter have continued to build, representing another important step forward in the company's transformation.
Operationally, Yiren Digital's credit solution business has shown significant recovery as industry credit conditions improved following a year of challenging regulatory tightening and credit normalization. Through disciplined risk management, AI-powered operational improvements, and a continued focus on higher-quality customers, the company delivered healthier asset quality, stronger operating efficiency, and improved profitability.
The company accelerated the execution of its all-in-AI strategy, integrating AI into every major business function, including marketing, customer acquisition, underwriting, risk management, collection, and customer service. Today, AI is no longer just a tool for improving productivity but has become a deeper part of how Yiren Digital operates its business.
One key highlight from the quarter was the significant improvement in credit quality, driven by a 50% reduction in customer acquisition costs as a percentage of revenue year-over-year. The company's repeat borrowing ratio reached a record 78% of loan volume, compared with 74% in the same period last year and 77% in the fourth quarter of 2025, reflecting the growing quality and loyalty of its customer base.
The credit performance also improved, with the FPD30+ rate declining to 0.76% in the first quarter of 2026 from 1.16% in the fourth quarter of last year. This demonstrates how Yiren Digital's investments in AI are generating tangible business value and improving operating efficiency, strengthening risk management, and financial performance.
Mr. Tang highlighted that the company is extending its AI capabilities beyond its own operations through internal incubation and strategic investments in AI-native startups. By combining its fintech infrastructure, proprietary AI platform, computing resources, and engineering capability with innovative AI applications across high-growth industries, Yiren Digital is building an ecosystem that creates multiple new growth engines while reinforcing the competitive advantages of its existing businesses.
The company's proactive credit tightening measures are working, as indicated by improved delinquency buckets and leading credit indicators. The 1-to-30-day rate improved to 2.5%, the 31-to-60-day rate improved to 2.7%, and the 61-to-90-day rate improved to 3.2%, with the early-stage buckets improving meaningfully from their fourth-quarter 2025 peaks.
Overall, Yiren Digital's strong performance in Q1 2026 reflects the company's ability to navigate a challenging regulatory environment while executing its AI-driven strategy and building a robust ecosystem that drives growth and profitability across multiple industries. As the company continues to power through these changes, investors should remain confident in its long-term vision and execution capabilities.
