Jiayin Group (NASDAQ:JFIN) outlined the impact of China’s evolving regulatory environment and industry risk volatility on its fourth-quarter results, while emphasizing efforts to prioritize asset quality, refine risk controls, and build longer-term growth drivers including artificial intelligence initiatives and overseas expansion.
Full-year results highlighted resilience amid tighter conditions
Chief Executive Officer Yan Dinggui said 2025 was a “pivotal year for the industry,” characterized by “deepening regulation and standardized development.” Despite a tightening external environment, Yan said the company maintained steady progress.
- Loan facilitation volume: RMB 129 billion, up approximately 28% year over year
- Revenue: RMB 6.22 billion, up approximately 7.3%
- Net income: RMB 1.54 billion, up approximately 45.4%
Yan also said the company maintained partnerships with 79 financial institutions, with 53 additional institutions “currently in negotiations,” as it worked with funding partners to adjust to the regulatory landscape.
Q4: Volume, revenue, and profit fell as company pivoted toward asset quality
Chief Financial Officer Fan Chunlin said that amid “liquidity tightening and heightened risk volatility following the new regulatory implementation,” the company “proactively pivoted to prioritize asset quality over expansion.”
In the fourth quarter of 2025, Fan reported:
- Loan facilitation volume: RMB 24.2 billion, down 12.6% year over year
- Net revenue: RMB 1,090.2 million, down 22.4%
- Non-GAAP income from operations: RMB 120.4 million, down from RMB 402.4 million
- Net income: RMB 100.6 million, down from RMB 275.5 million
- Basic and diluted EPS: RMB 0.49, down from RMB 1.30
- Basic and diluted net income per ADS: RMB 1.96, down from RMB 5.20 (each ADS represents four Class A ordinary shares)
On expenses, the company reported facilitation and servicing expense of CNY 328.2 million (down 3.3%), sales and marketing expense of CNY 498.7 million (down 3.6%), general and administrative expense of CNY 66.8 million (up 24.4%), and R&D expense of RMB 121.9 million (up 21.4%).
Fan also noted a reversal of credit losses of CNY 20.1 million, compared with an allowance for credit losses of CNY 1.2 million in the prior-year period, which he attributed primarily to a “write-back of allowance for overseas contingent guarantees arising from lower expected loss rates.”
The company ended the quarter with CNY 61.8 million in cash and cash equivalents, compared with CNY 124.2 million as of Sept. 30, 2025.
Risk trends: tighter acquisition and underwriting as volatility peaked in early Q4
Management discussed the risk cycle following regulatory changes and how it influenced borrower acquisition and underwriting. Sam Lee, Jiayin’s Investor Relations officer, said risk trends were closely tied to regulation and described a sharper and more prolonged rise in risk compared with prior cycles, particularly in the “first 4–6 weeks leading up to the peak.”
Lee said that for new borrowers, the market’s risk “reached its peak around late September and to early October,” remained elevated through November, and began declining in December. In response, the company “proactively adjusted” channel mix, “tighten[ed]” standards in new borrower models and strategies, and controlled the absolute volume of new borrower acquisition.
On repeat borrowers, Lee said risk for incremental assets “peaked in November and then gradually declined starting in December.” He said the company took a “more selective and disciplined approach,” focusing approvals on higher-quality borrowers and applying more stringent underwriting and credit limit management for customers with “multiple outstanding debts,” “weaker asset profiles,” and “limited financing capacity,” especially among “near-prime or marginal borrowers.”
According to Lee, internal analysis indicated the company’s measures improved risk metrics by approximately 25%–30% amid an industry-wide risk cycle.
Separately, Yan said repeat borrowing contributed 79.4% of loan facilitation volume, up 6.7 percentage points from the prior year, as the company used a more flexible credit limit management system and “targeted reactivation strategies” for existing borrowers. Yan also said Jiayin added approximately 407,000 new borrowers in the quarter, a year-over-year decline, reflecting a moderated acquisition pace.
As of the end of the fourth quarter, Yan said the 90+ day delinquency ratio was 2.03%. Entering 2026, he said forward-looking risk indicators were showing “positive trends,” citing “precise identification and isolation of tail risks” and optimization of the existing asset portfolio.
Guidance: Q1 2026 facilitation volume expected to decline further
Given “ongoing uncertainty in the macro environment,” Yan said the company expects first-quarter 2026 loan facilitation volume to be between RMB 18.5 billion and RMB 19.5 billion.
In the Q&A, Lee added that since the second quarter of 2025—particularly after formal implementation of new regulations—industry liquidity tightened and risk levels increased. He said that after reaching a “historical quarterly peak” of RMB 37.1 billion in Q2, Jiayin scaled back in Q3 and Q4, with Q4 volume falling to RMB 24.2 billion. Lee said Q4 net margin declined to 9.2%, compared with a 24.7% net margin for the full year, reflecting “short-term pressure on profitability due to declining pricing, volatility and risk metrics and diseconomies of scale resulting from rapid volume contraction.”
Lee said the company expects the new regulatory framework to raise industry entry barriers and increase market concentration, and that it is beginning to see “early signs of stabilization and improvement in asset quality.” He said Jiayin would maintain flexibility and review targets quarterly as the sector transitions under the new rules.
AI, new products, overseas expansion, and shareholder returns
Yan said the company made progress in 2025 on “multimodal anti-fraud, AI-powered agents, and data intelligence,” and described a 2026 upgrade to its “4+2 strategy,” reorganizing efforts into production and non-production tracks. He said the production track would focus on borrower acquisition, risk management, and marketing, including deeper use of multimodal technologies such as “voice print, knowledge graph and anti-fraud,” and AI-powered content generation and review. The non-production track is aimed at operational efficiency, with initiatives including advancing AI programming toward “autonomous coding” and upgrading internal intelligent workplace systems.
On new business expansion, Yan said Jiayin expanded into auto-backed loans and “digital intelligent micro loans,” and pursued partnership model innovation through joint operations with “leading traffic ecosystems.” He said the company launched 21 projects during the year, with business scale growing month by month.
Internationally, Yan said 2025 facilitation volume in Indonesia increased approximately 187% year over year, while registered users rose about 119%. He said Mexico accelerated significantly in the fourth quarter, and for the full year Mexico loan facilitation volume rose about 105% and registered users about 110%.
In response to an analyst question, Lee said the company views international business as a “key growth pillar” and expects the momentum in Indonesia and Mexico to continue. He said the company is looking for “another year of doubling in scale” in 2026 and expects both markets to move toward “profitability,” while continuing localization and expanding partnerships with local and international financial institutions. Lee added that Jiayin has been laying groundwork to enter new markets and expects to share more progress later in 2026.
On shareholder returns, Yan said the company distributed $41.1 million in cash dividends in 2025, an increase of more than 50% year over year. He also said that in August the company increased the total quota of its share repurchase program to “no less than $80 million,” and that it had repurchased nearly 4.6 million ADS worth approximately $30.4 million to date.
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.
