Jiayin Group NASDAQ: JFIN reported sharply lower second-quarter results as tighter industry liquidity and its own business restructuring reduced transaction volume, while the company expanded overseas operations and continued investing in technology and artificial intelligence capabilities.
Chief Executive Officer Dinggui Yan said the outstanding balance of short-term household consumer loans in China declined by about RMB190 billion during the second quarter from the end of the first quarter, citing statistics from the People’s Bank of China. He said institutional funding partners had become more cautious as regulatory compliance requirements took effect and following isolated industry events.
“Against this backdrop, the company proactively adapted to changes in the industry and accelerated the strategic adjustments of our business structure,” Yan said through an English translation provided during the call.
Quarterly Financial Results
Transaction volume totaled RMB9.5 billion in the second quarter, down 74.4% from the same period in 2025. Chief Financial Officer Chunlin Fan said the figure was in line with the company’s previous guidance.
Net revenue fell 50.9% year over year to RMB636.9 million. Jiayin recorded a net loss of RMB183.6 million, compared with net income of RMB519.1 million in the prior-year quarter. The company’s non-GAAP loss from operations was RMB225.7 million, compared with non-GAAP income from operations of RMB737.6 million a year earlier.
- Facilitation and servicing expense rose 92.7% to RMB549.3 million, primarily because of an increase in the average outstanding loan balance for which the company provided guarantee services.
- Allowance for uncollectible receivables, contract assets, prepaid expenses and other current assets rose to RMB51.3 million from RMB32.5 million, also primarily due to increased guarantee services.
- Sales and marketing expense declined 68.8% to RMB221.8 million, reflecting lower borrower acquisition and commission expenses.
- General and administrative expense decreased 39.5% to RMB66.9 million, while research and development expense declined 13.1% to RMB94.2 million. Fan attributed both declines primarily to lower share-based compensation.
Basic and diluted net loss per share was RMB0.89, compared with basic and diluted net income per share of RMB2.46 a year earlier. Basic and diluted net loss per American depositary share was RMB3.56, compared with income per ADS of RMB9.84 in the second quarter of 2025. Each ADS represents four Class A ordinary shares.
Risk Management and International Expansion
Yan said the company reduced risk exposure amid industry-wide liquidity tightening and focused on higher-quality borrowers. Jiayin also increased collection efforts, with its 30-day collection rate improving sequentially. Its 90-plus-day delinquency rate was 2.21% at the end of the quarter, stable from the prior quarter.
The company said its overseas operations remained central to its strategic transformation. Business volume at its Indonesian partner increased 58% year over year and 10% sequentially in the second quarter. Jiayin said it improved customer-acquisition cost efficiency through an upgraded risk framework and more refined borrower segmentation, while expanding its network of local financial-institution partners.
In Mexico, business volume rose 36% sequentially, with continued improvements in borrower acquisition efficiency and asset quality, according to management. Yan said the company had upgraded its overseas strategy and execution team and intends to deepen its presence in Southeast Asia while prudently researching potential expansion into East Africa and Central Asia.
Technology and AI Initiatives
Management said Jiayin is seeking to transition from a loan facilitation service provider toward a broader technology service provider. Its proprietary Fuxi platform completed development work across infrastructure, risk-management and core operational capabilities during the quarter, covering key processes throughout the credit lifecycle.
The company said its credit-assessment modeling capability has been deployed at scale, reducing model optimization cycles from three to five days to hours. Yan said the platform’s AUC and KS risk-identification metrics outperformed human benchmarks.
Jiayin also said AI has been integrated into core operating processes, including customer service and loan application intake. Certain functions have fully replaced human agents, according to management. The company’s proprietary risk-strategy assistance agent, which combines large language models and traditional machine learning, improved risk-strategy iteration efficiency by more than tenfold and increased accuracy in key scenarios by more than 20%, Yan said.
On anti-fraud efforts, Jiayin said it had blocked a cumulative 176,000 malicious applications and identified and intercepted more than 264,000 high-risk repeat fraud applications as of the end of June.
Capital Position and Outlook
Jiayin ended the quarter with RMB504 million in cash and cash equivalents, up from RMB43.4 million at the end of the prior quarter. Yan said the cash balance provides a financial buffer as the company navigates the industry cycle and pursues its transformation.
Given macroeconomic uncertainty and the company’s strategic priorities, management said it will not issue third-quarter guidance and will suspend its dividend for the current fiscal year. The company said it plans to preserve flexibility in capital allocation and operating pace while directing internal resources toward risk mitigation and business transformation.
About Jiayin Group (NASDAQ:JFIN)
Jiayin Group NASDAQ: JFIN is a China-based, technology-driven consumer finance marketplace that connects individual borrowers with institutional lenders. The company's online platform leverages proprietary credit scoring models, big data analytics and AI‐powered risk management tools to streamline the loan application, approval and disbursement processes. By integrating end-to-end services—including borrower acquisition, credit assessment, loan servicing and collection—Jiayin Group provides a comprehensive fintech solution for unsecured personal loans.
Through its platform, Jiayin Group offers financial institutions access to an underserved segment of the consumer credit market, particularly in third- and fourth‐tier cities across China.
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