Jiayin Group Q1 2026 Earnings Report

Jiayin Group EPS Results

• Actual EPS: -$0.16
• Consensus EPS: $0.17
• Beat/Miss: Missed by -$0.33
• One Year Ago EPS: N/A

Jiayin Group Revenue Results

• Actual Revenue: $109.75 million
• Expected Revenue: $53.40 million
• Beat/Miss: Beat by +$56.35 million
• YoY Revenue Growth: N/A

Jiayin Group Announcement Details

• Quarter: Q1 2026
• Date: 6/23/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, June 23, 2026
• Conference Call Time: 8:00AM ET

Jiayin Group (NASDAQ:JFIN) Inc. (NASDAQ: JFIN) is a China-based fintech company that operates an online consumer finance platform. The company uses technology and data analytics to connect individual borrowers seeking personal loans with financial institutions and other funding partners.

Its platform supports the consumer lending process through services that may include borrower acquisition, credit assessment, risk management, loan facilitation and post-loan servicing. Jiayin focuses primarily on serving China’s retail consumer finance market, including borrowers who may have limited access to traditional banking services.

Founded in 2011, Jiayin Group has evolved alongside China’s online lending industry and became a publicly traded company on the Nasdaq in 2019. Its business is principally conducted in China, where it works with borrowers, financial institutions and other partners through its digital platform.

Jiayin Group Q1 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Jiayin reported a Q1 2026 net loss of CNY 61.7 million as transaction volume fell 45.8% year over year to CNY 19.3 billion and revenue declined 57.4% to CNY 756.7 million.
• Neutral Sentiment: Management said the weak results were driven by a broader industry adjustment after new rate-cap regulations, which materially reduced loan supply and pressured both growth and profitability.
• Positive Sentiment: The company said it is deepening engagement with its existing borrower base, with repeat borrowing contributing 76.3% of transaction volume, up 4.4 percentage points from a year ago.
• Positive Sentiment: Jiayin highlighted growth in its newer business lines, including tech empowerment transaction volume of CNY 1.52 billion, up 67.6% sequentially, and continued momentum in auto-backed loans and overseas markets.
• Positive Sentiment: Risk trends improved through March to May, with new-borrower credit metrics down to last year’s low levels and risk on newly facilitated existing-borrower loans about 25% to 30% below peak, while the company also emphasized expanded AI-driven efficiency and fraud prevention.

Presentation

[Operator]

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Jiayin Group's First Quarter 2026 Earnings Conference Call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. Instructions will follow up [audio distortion] today's call. If you have any objections, you may disconnect at this time.

[Operator]

I will now turn the call over to Mr. Sam Lee from Investor Relations of Jiayin Group. Please proceed.

[Sam Lee, Investor Relations at Jiayin Group]

Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Jiayin Group's financial results for the first quarter of 2026. We released our earnings results earlier today. The press release is available on the company's website, as well as from Newswire Services. On the call with me today are Mr. Yan Dinggui, Chief Executive Officer, Mr. Fan Chunlin, Chief Financial Officer, and Ms. Qi Dan, Chief Risk Officer. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. Such, the company's actual results may be materially different from the expectations expressed today.

[Sam Lee, Investor Relations at Jiayin Group]

Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement, except as required under applicable law. This call includes discussion of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP financial measures to GAAP financial measures. Please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese or Renminbi.

[Sam Lee, Investor Relations at Jiayin Group]

With that, let me now turn the call over to our CEO, Mr. Yan Dinggui. Mr. Yan will deliver his remarks in Chinese. I will follow up with corresponding English translations. Please go ahead, Mr. Yan.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Hello, everyone. Thank you for joining our first quarter 2026 earnings conference call.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

During the first quarter of 2026, the consumer lending industry remained in an adjustment phase. The recovery in credit demand continued at a relatively gradual pace. The industry as a whole remained under pressure. Against this backdrop, we focused on refining the operations of our high-quality existing borrower base and the structural enhancement of our business model. During the quarter, we achieved transaction volume of RMB 19.3 billion, representing a year-over-year decrease of 45.8%. Revenue was impacted by industry cyclicality and volume contraction, while temporary cost pressures persisted during the period. As a result, we recorded a net loss of approximately RMB 61.7 million for the quarter.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

This quarter, we concentrated on the refined management and engagement of our high-quality existing borrower base. Through cross analysis of user risk scores and platform behavioral insights, we segmented our existing borrowers into groups and implemented differentiated engagement strategies and operating strategies tailored on each group's credit profile and borrowing intent. Repeat borrowing contribution accounted for 76.3% of transaction volume during the quarter, representing an increase of 4.4 percentage points from the same period last year. These highly engaged users not only contributed to stable repeat borrowing demand, but also validated the initial effectiveness of our strategy to deepen engagement with existing borrowers.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

The 90+ day delinquency ratio was 2.25% as of the end of the first quarter, increasing sequentially. For higher risk borrower segments, we continue to tighten underwriting criteria and credit limit controls to facilitate an orderly run-off of portfolio risk exposure. For high-quality borrowers, we further analyze borrower needs and work closely with our operations team to refine borrower management and engagement strategies with a focus on improving retention. Meanwhile, we are embedding AI capabilities into our operations to drive the productization of risk management and continuously refining and developing reusable standardized solutions.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

On the business development front, we continue to execute the overall strategy established in the previous quarter and advance our structural upgrade through three key initiatives. The first initiative is the enhancement of our joint operations and tech empowerment model. During the quarter, we actively expanded our technology empowerment services for financial institutions. Under this model, the company acts as a technology and operations service provider, deeply integrating into the entire lending process of partner banks. We provide comprehensive solutions covering borrower engagement and operations, technology services, and risk modeling capabilities.

[Sam Lee, Investor Relations at Jiayin Group]

Leveraging our advanced data technologies and extensive operational experience, we empower our partners throughout the credit lifecycle. In the first quarter, the transaction volume generated through our technology empowerment business reached RMB 1.52 billion, representing a sequential increase of approximately 67.6%. This business represents a natural extension of the technology service capabilities we have accumulated over many years, enabling us to deepen our collaboration with financial institutions. It also represents an important innovation initiative in the current operating environment.

[Sam Lee, Investor Relations at Jiayin Group]

We remain optimistic about the long-term value of this model and expect its scale to continue expanding in the future.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

The second initiative is the development of a diversified product portfolio, including auto-backed loans and digital intelligent microloans, which enables us to serve specific scenarios and borrower segments. For our auto-backed loan business, the version 3.0 system launched earlier this year has achieved end-to-end fully digitalized operations. We remain focused on borrower engagement and operations, risk empowerment, and matching, while specialized partners handle post-loan servicing and vehicle disposal. This collaborative model allows us to concentrate resources on our core strengths while creating complementary advantages with upstream and downstream partners.

[Sam Lee, Investor Relations at Jiayin Group]

Since the beginning of this year, the auto-backed loan business has maintained strong growth momentum, with overall user conversion rates ranking among the highest in the market under a full online operating model. The continued expansion of our diversified product portfolio helps us reach differentiated borrower groups while providing funding partners with broader asset options.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

The third initiative is our international business. In Indonesia, loan volume increased by 20% quarter-over-quarter and more than doubled year-over-year in the first quarter. By deepening cooperation with local funding partners, we continue to expand our presence in the market. In Mexico, while currently small in scale, growth has been even faster. Our local partner loan volume increased by 35% sequentially during the first quarter and also delivered strong year-over-year growth.

[Sam Lee, Investor Relations at Jiayin Group]

During the reporting period, revenue scale from overseas markets continued to increase. We will continue to execute our globalization strategy, leveraging strategic investments as an entry point to explore our advanced technology capabilities and operational expertise, and steadily build this segment into a growth engine for the company's future development.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

In artificial intelligence, we continue to execute against a clear strategic roadmap by integrating AI technologies into our Fintech ecosystem and accelerating the evolution of our technology service capabilities. In intelligent engineering, the feature iteration cycle for our risk management models has been reduced from several days to less than one hour, enabling strategies to respond rapidly to changes in market conditions. This capability has also become a core technology offering provided to our institutional partners. For R&D acceleration, AI agents now generate approximately 30% of all AI-assisted code, improving development efficiency by around 20%, and further strengthening the engineering foundation for large-scale AI deployment.

[Sam Lee, Investor Relations at Jiayin Group]

In service assistance, our proprietary models have been fully deployed across customer service operations. Intent recognition accuracy improved from 78% to 93%, significantly enhancing service efficiency while reducing model inference costs by 90%. In addition, in workplace intelligence, we have completed enterprise-grade security enhancements for OpenCloud and deployed our proprietary AI agent, Jiayin Cloud, across a wide range of daily work scenarios. These initiatives are gradually reshaping the way our organization operates, enabling AI to serve as a collaborative partner for every employee and continuously unlocking productivity gains. AI is steadily evolving from a supporting tool into an intrinsic driver of operational efficiency across the company.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

We have always regarded security and responsibility as the lifeline of our business. Leveraging the advantages of multimodal AI technologies, we continue to strengthen the protection of user interests. During the first quarter, we identified and blocked approximately 290,000 fraudulent borrowers and intercepted 113,000 malicious applications associated with organized fraud activities. We continue to advance our risk management strategy from a reactive defense model towards proactive prevention and preemptive interception. In particular, we have achieved substantial progress in multimodal large language model applications, including voiceprint recognition, image recognition technologies.

[Sam Lee, Investor Relations at Jiayin Group]

By integrating voiceprint analysis, graph algorithms, clustering technologies, and other advanced techniques, we are transforming our anti-fraud framework from traditional structured, rule-based detection into a comprehensive prevention and control system built upon multimodal perception, graph analytics, and scalable engineering implementation. To date, our multimodal anti-fraud system has identified approximately 5 million suspicious audio and video samples associated with fraudulent and illicit activities, with an accuracy rate exceeding 90%.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Turning to shareholder returns. We have extended our current share repurchase program through June 12th, 2027, with approximately $49.6 million remaining available under the program. We will continue to evaluate market conditions and our operational performance and comprehensively evaluate and implement various shareholder return initiatives.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Given the continuing uncertainty in the macroeconomic environment, we remain prudent in our outlook. We currently expect transaction volume for the second quarter of 2026 to be between RMB 9.5 billion and RMB 10.5 billion. Looking ahead, we will continue to prioritize disciplined operations and sustainable development through deeper operational experience and enhanced organization resilience. We aim to build a durable competitive moat.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

With that, I will now turn the call over to our CFO, Mr. Fan Chunlin. Please go ahead.

[Chunlin Fan, CFO at Jiayin Group]

Thank you, Mr. Yan, and hello everyone. Thank you for joining our call today. I will now review our financial highlights for the quarter. Please note that all numbers will be in RMB and all percentage changes refer to year-over-year comparisons unless otherwise noted. As Mr. Yan noted earlier, we remained disciplined in our execution during the first quarter and delivered the transaction volume in line with our previous guidance. Transaction volume was RMB 19.3 billion, representing a decrease of 45.8% from the same period of 2025. Our net revenue was RMB 756.7 million, representing a decrease of 57.4% from the same period of 2025.

[Chunlin Fan, CFO at Jiayin Group]

Moving on to costs. Facilitation and servicing expense was RMB 331.6 million, representing a decrease of 1.3% from the same period of 2025. Allowance for uncollectible receivables, counterassets, prepaid expenses and other current assets and others was RMB 1.1 million, compared with RMB 17.5 million for the same period of 2025, primarily due to the decrease in allowance for overseas contingent guarantees. Sales and marketing expense were RMB 340.1 million, representing a decrease of 49.6% from the same period of 2025, primarily due to decreased borrow acquisition expenses.

[Chunlin Fan, CFO at Jiayin Group]

General and administrative expense was RMB 44.1 million, representing a decrease of 16.5% from the same period of 2025, primarily due to decreased professional service fees. R&D expense was RMB 109.8 million, representing an increase of 24.6% from the same period of 2025, primarily driven by an increase in technology infrastructure expenses and employee costs. Non-GAAP loss from operation was RMB 70.1 million, compared with RMB 606.6 million non-GAAP income from operation in the same period of 2025. Consequently, our net loss for the first quarter was RMB 61.7 million, compared with RMB 539.5 million net income in the same period of 2025.

[Chunlin Fan, CFO at Jiayin Group]

Our basic and diluted net loss per share were both RMB 0.29, compared with RMB 2.63 basic and diluted net income per share in the first quarter of 2025. Basic and diluted net loss per ADS were both RMB 1.16, compared with RMB 10.12 basic and diluted net income per ADS in the first quarter of 2025. Each ADS represents four Class A ordinary shares of the company. We ended this quarter with RMB 43.4 million in cash and cash equivalents compared with RMB 61.8 million at the end of the previous quarter.

[Chunlin Fan, CFO at Jiayin Group]

With that, we can open the call for questions. Ms. Qi, our Chief Risk Officer, and I will answer questions. Operator, please proceed.

[Operator]

Thank you. If you would like to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. Thank you. We will now begin with our first question. This is from Jihao Li from CSC. Please go ahead.

[Jerry Lee, Analyst at China Securities]

[Non-English content] Okay. Hello Management, I'm Jerry Lee from China Securities. We have seen the company reported a net loss of almost RMB 62 million for the first quarter. It is fourth quarterly loss since listing. What are the primary drivers behind this performance? Any operational adjustments to improve profitabilities moving forward? Thank you.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Hi, Jerry, I'm the CEO Yan Dinggui. I will answer your question. On the loss of RMB 61.7 million, ever since the new regulation came out last year and implemented in October, where the lower rate cap was enforced from October to June, the overall market loan volume has reduced by RMB 500 billion. Due to this significant lowering of the loan volume, there has been a liquidity crunch from the borrower side.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Ever since the new regulation and the liquidity crunch on the borrower side, since the implementation on October 1st, we've tried many methods and to be highly efficient to resolve the credit risk brought on by the after effects of the implementation.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Ever since Chinese New Year, we'd had a very difficult adjustment period combined with no cost reduction actions last year. There's a faster decrease in loan volume than the decrease in cost reduction, so that explains most of the difference in the loss.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Ever since Q2, we've implemented a lot of cost control and reduction. The cash flow will be better next quarter. From the volume and revenue perspective, we've balanced out our cash flow and revenue and expenses. We're better equipped to have better cash flow and better liquidity for the upcoming quarter.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

That's my response to your question.

[Operator]

Thank you. We will now take our next question. This is from Hua Rong from Jinyu Asset. Please go ahead.

[Hua Rong, Analyst at Jinyu Asset]

[Non-English content] Hello management, could you provide some color on the risk trends through the first quarter and into April and May? Are we seeing an improvement in the risk metrics? Thank you.

[Dinggui Yan, CEO at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

I would like to welcome Ms. Qi Dan, our new Chief Risk Officer, to answer this question. She's from Tencent WeBank, and she used to be in risk management over there. I'd like to welcome her to answer this question.

[Dan Qi, Chief Risk Officer at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

The deterioration in asset quality caused by the rise in credit risk last year has been improving. Credit risk among the new borrowers peaked in September last year, while the risk associated with new loans facilitated to existing borrowers peaked in November. Since then, both have trended downward and shown steady improvement.

[Dan Qi, Chief Risk Officer at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

For new borrowers, since Q4 of last year, we proactively really adjusted our borrower acquisition mix and the channel mix and optimized our risk models while really controlling the overall volume of new borrower acquisition. As a result, the new borrower credit performance has continued to improve. By March and April of this year, the new borrower metrics has already declined to the lowest levels recorded during the entire last year.

[Dan Qi, Chief Risk Officer at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

With respect to the newly facilitated loans for existing borrowers, the risk levels continued to decline throughout the first quarter. By April and May, the risk metrics has really fallen by approximately 25%-30% from their peak levels, returning to levels seen in May and June of last year. From a risk management perspective, we really tightened our borrower selection criteria by focusing on borrowers with stronger financial and repayment capabilities as well as more stable asset and credit profiles.

[Sam Lee, Investor Relations at Jiayin Group]

At the same time, for the higher risk borrowers, such as those with elevated leverage, significant multi-borrowing exposure, greater liquidity stress or weaker asset profiles, for those borrowers, we have proactively shortened the loan tenures and reduced credit limits. By making these adjustments to the borrowing emission standards, credit limits and loan terms, we have really actively optimized our asset mix.

[Sam Lee, Investor Relations at Jiayin Group]

While this has resulted in a more measured pace of business growth, it has significantly improved the overall quality of our operations.

[Dan Qi, Chief Risk Officer at Jiayin Group]

[Non-English content]

[Sam Lee, Investor Relations at Jiayin Group]

Yeah, that's my answer to your question.

[Hua Rong, Analyst at Jinyu Asset]

[Non-English content]

[Operator]

Thank you. Seeing no more questions, I will return the call to Sam for closing remarks. Please go ahead.

[Sam Lee, Investor Relations at Jiayin Group]

Thank you, Operator. Thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

[Operator]

Thank you all again. This concludes the call. You may now disconnect.

Participants

Executives

• Chunlin Fan, CFO
• Dan Qi, Chief Risk Officer
• Dinggui Yan, CEO
• Sam Lee, Investor Relations

Analysts

• Hua Rong, Analyst at Jinyu Asset
• Jerry Lee, Analyst at China Securities