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NEW YORK - Yiren Digital Ltd. (NYSE:YRD) reported first quarter 2025 results that showed revenue growth but a decline in profits on Thursday.
The company’s stock was down 0.81% in pre-market trading following the release.
The Chinese fintech company posted revenue of RMB1.55 billion ($214.2 million) for the quarter, up 13% year-over-year. However, net income fell to RMB247.5 million ($34.1 million), compared to RMB485.9 million in the same period last year.
Diluted earnings per ADS came in at RMB2.85 ($0.39), down from RMB5.52 in Q1 2024.
The company attributed the profit decline to higher provisions for loans facilitated under its risk-taking model, as well as decreased sales in its insurance brokerage and lifestyle segments. Increased R&D costs and unrealized losses on investments also impacted the bottom line.
"We are pleased to report another solid and healthy quarter, reflecting the strength of our technology transformation strategy," said Ning Tang, Chairman and CEO of Yiren Digital. He noted the company is benefiting from domestic economic stimulus policies boosting consumption and credit access.
For the second quarter, Yiren Digital expects revenue between RMB1.6 billion and RMB1.7 billion.
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