Yiren Digital Ltd. (NYSE: YRD)

Yiren Digital Ltd. is a leading AI-powered Fintech platform specializing in digital consumer lending, insurance, and financial technology innovation across China and global markets, leveraging advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion through its core operations in credit solution services, insurance brokerage, and related financial technology services.

The company generates revenue through three primary business segments. In the credit solution segment, Yiren Digital Ltd. operates an online marketplace connecting borrowers with institutional funding partners including commercial banks, internet banks, trusts, microloan companies, and consumer finance companies, charging loan facilitation service fees for technology-enabled borrower acquisition and post-origination service fees for loan management and collection while generating income from self-funded loans through financing service fees, credit guarantee services under risk-taking models, and revenue from referral arrangements, intelligent marketing, and technology services provided to third-party companies. The insurance brokerage segment, through its subsidiary Hexiang Insurance Brokers, sells insurance policies on behalf of insurance companies earning brokerage commissions as a percentage of premiums paid, offering a comprehensive portfolio of life, health, property, and casualty insurance products to retail and institutional clients via both traditional nationwide branches and internet-based distribution channels. The others segment encompasses electronic commerce services from consumption, lifestyle, and emerging technology services such as membership services, digital games, daily necessities, beauty products, and healthcare products though this revenue has declined due to strategic scale-back becoming immaterial by end of 2025 while also including early-stage revenue from intelligent marketing, referral arrangements, and technology services to corporate clients outside the core credit business such as data analytics and API solutions.

The company operates through the following segments: credit solution, insurance brokerage, and others.

• Credit solution: This segment provides services as an online marketplace connecting borrowers with institutional funding partners such as commercial banks, internet banks, trusts, microloan companies, and consumer finance companies, charging loan facilitation service fees for technology-enabled borrower acquisition and post-origination service fees for loan management and collection including payment reminders, payment collections, overdue monitoring, and lawsuit filing under certain circumstances while offering credit guarantee services through subsidiaries assuming part or all of credit risks for loans facilitated on the platform and generating revenue from referral arrangements, intelligent marketing, and from provision of existing technological capabilities related to credit solution services to third-party companies.

• Insurance brokerage: This segment through Hexiang Insurance Brokers, a VIE subsidiary, operates the insurance brokerage business selling insurance policies on behalf of insurance companies earning brokerage commissions determined as a percentage of premiums paid by the insured, including premiums paid upon renewals, having established a comprehensive and diversified product matrix encompassing life, health, insurance products such as critical illness, annuity, whole life, term life, endowment, and long-term and short-term health insurance, and property and casualty insurance products such as household property, corporate property, liability, auto, cargo, and accident insurance, selling to retail and institutional clients via 31 offline branches nationwide and over 1,000 insurance products from over 100 insurers as of December 31, 2025.

• Others: This segment primarily represents electronic commerce services revenue from consumption and lifestyle business segment which includes membership services, digital games, daily necessities, beauty products, and healthcare services though revenue from these non-financial products and services declined since the second quarter of 2024 due to strategic scale-back of product offerings becoming immaterial by end of 2025 with relevant entities focused on servicing remaining members until membership expires while also encompassing revenue from intelligent marketing, referral arrangements, and technology services to third-party corporate clients outside the core credit business such as data services and API access which remained at an early stage and were not material on a standalone basis as of December 31, 2025.

In the competitive landscape, Yiren Digital Ltd. holds a strong position in China's consumer finance marketplace benefiting from industry evolution where domestic regulations have increased entry barriers reducing national-level competitors while smaller platforms cease operations creating market share opportunities for established players the company faces regional competition in overseas expansion but maintains competitiveness through proprietary AI-driven credit scoring models that accurately assess borrower creditworthiness advanced risk management systems providing pre-loan fraud prevention during-loan monitoring and post-loan collections and proprietary technological capabilities including agentic AI platforms enabling precise underwriting and tailored financing solutions across the credit lifecycle.

The company serves a diverse customer base comprising approximately 14.3 million individual borrowers such as credit card holders with stable credit performance and small business owners generating recurring revenues through its credit solution platform as of December 31, 2025, retail and institutional clients purchasing insurance policies with Hexiang Insurance Brokers having cumulatively served 1,878,951 individual clients and 156,599 institutional clients as of December 31, 2025, and users of its historical consumption lifestyle services and emerging technology offerings including data analytics and API solutions for corporate clients.