Yiren Digital Ltd. (YRD) AI Stock Analysis
YRD AI stock analysis summary
AI ResearchYiren Digital Ltd. (YRD) is an online consumer finance marketplace based in Beijing that connects borrowers with investors in China. Over the trailing twelve months, revenue fell to $4.32B with a profit margin of -34.5% and a quarterly revenue decline of 46.1%. Despite recent operational pressure, the company holds $1.75B in net cash against a market capitalization of $66.0M as of October 16, 2026.
- Market cap
- $66.0M
- Revenue (TTM)
- $4.32B
- P/E
- — fwd 7.1x
- 1Y return
- -86.9% S&P 500 16.8%
- Avg. target
- $2.03 169.2% vs last close
Bull case
- Yiren Digital maintains a strong liquidity cushion with $1.75B in net cash as of June 30, 2026, compared to a market capitalization of $66.0M.
- The company trades at a forward P/E ratio of 7.1x, below the US-listed Financial Services peer median of 10.8x.
- Analyst coverage implies significant potential appreciation, with a mean price target of $2.03 versus the last close of $0.75.
Bear case
- Revenue contracted 46.1% year-over-year in the latest quarter ending June 30, 2026, with trailing twelve-month profit margins dropping to -34.5%.
- Net income contracted significantly from $1.58B in FY2024 to $39.4M in FY2025, with EPS dropping to -$2.45 over the trailing twelve months.
- The stock has experienced severe price weakness, falling 86.9% over the past year and trading 62.8% below its 200-day moving average.
What Yiren Digital does
Yiren Digital Ltd., formerly Yirendai Ltd., operates an online consumer finance marketplace primarily in the People's Republic of China. Established in 2012 and headquartered in Beijing, the company facilitates unsecured and secured consumer loans, including financial leasing, auto-secured, and property-secured loans. It also provides post-origination services such as cash processing, collection, and SMS support. Through its platform, Yiren Digital distributes financial products such as short-term cash management, mutual funds, insurance, and stock products, alongside financing lease services, insurance brokerage, and IT support. The company operates as a subsidiary of Creditease Holdings (Cayman) Limited.
Growth and profitability
Yiren Digital delivered a 5-year revenue compound annual growth rate of 7.1% from FY2020 to FY2025. Annual revenue grew from $4.48B in FY2021 to a peak of $5.81B in FY2024 before contracting 4.0% to $5.57B in FY2025. Net income dropped sharply in FY2025 to $39.4M, representing a net margin of 0.7%, compared to $1.58B in FY2024. Over the trailing twelve months ending June 30, 2026, revenue stood at $4.32B with an operating margin of -13.3% and diluted earnings per share of -$2.45. In the latest quarter, quarterly revenue dropped 46.1% year-over-year, and quarterly earnings decreased 10.2%.
Balance sheet and cash flow
As of June 30, 2026, Yiren Digital held $1.78B in cash and short-term investments alongside total debt of $33.3M, yielding a net cash position of $1.75B. Total assets reached $9.58B against shareholders' equity of $6.85B. The balance sheet carries a current ratio of 13.88 and a debt-to-equity ratio of 0.00. In FY2025, operating cash flow was $703.6M and free cash flow reached $677.9M. Capital expenditures were $25.7M, share buybacks totaled $223,000, and dividends paid reached $273.1M.
Valuation and performance
Yiren Digital has a market capitalization of $66.0M and an enterprise value of -$273.4M. The stock trades at a forward price-to-earnings ratio of 7.1x, below the 10.8x median of its US-listed Financial Services peers. Its price-to-book ratio is 0.1x, while its price-to-sales ratio stands at 0.0x compared to the peer median of 3.2x. Over the past year, the stock fell 86.9%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, the stock dropped 74.0% versus an 83.0% return for the benchmark.
What analysts expect
Analysts maintain a mean price target of $2.03 for Yiren Digital, which represents an upside of 169.2% compared to the last close of $0.75 on October 16, 2026. Over the last four quarters, the company recorded 1 earnings beat.
Key risks and what to watch
- Quarterly revenue fell 46.1% year-over-year in the quarter ended June 30, 2026, reflecting weakening top-line momentum.
- Trailing twelve-month operating margin stands at -13.3%, reflecting ongoing operational losses.
- Earnings visibility is volatile, with the company beating earnings estimates in only 1 of the last 4 quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this YRD AI stock analysis
This page is an AI-written research summary of Yiren Digital Ltd. (YRD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: YRD income statement, YRD balance sheet, YRD key metrics, YRD chart. See the YRD stock overview for the latest quote and news.
YRD AI stock analysis FAQ
What is Yiren Digital's net cash position?
As of June 30, 2026, Yiren Digital held $1.78B in cash and short-term investments and $33.3M in total debt, resulting in a net cash position of $1.75B.
What are analysts' price targets for YRD stock?
The mean analyst price target is $2.03, which is 169.2% above the closing price of $0.75 on October 16, 2026.
How has YRD performed relative to the broader market?
YRD declined 86.9% over the trailing one-year period and 74.0% over five years, compared to gains of 16.8% and 83.0% for the S&P 500 (SPY), respectively.
How profitable is Yiren Digital?
Over the trailing twelve months, Yiren Digital reported a net profit margin of -34.5%, an operating margin of -13.3%, and diluted EPS of -$2.45.