Yiren Digital (YRD) shares got a nice boost Thursday after the company announced it would buy back up to $20 million of its own stock. That's a vote of confidence from management, especially when the stock is hovering near its 52-week low.
The board authorized the repurchase of up to 10% of Yiren's total issued and outstanding ordinary shares and American depositary shares over the next 12 months. The company can buy shares in the open market, through private deals, block trades, or other legal methods — including Rule 10b5-1 trading plans, which let insiders set up automatic buybacks even when they might have material information.
Timing and size will depend on market conditions, the stock's trading price, volume, and other factors. The board will review the program periodically and may adjust terms. Yiren plans to fund the buybacks with its existing cash, so no need to borrow or raise capital.
The buyback announcement comes on the heels of a tough first quarter. Yiren reported a net loss of 494.7 million Chinese yuan ($71.7 million) for Q1 2026, compared to net income of 247.5 million yuan a year earlier. Total net revenue fell 41% year over year to 915.1 million yuan ($132.7 million), as weaker credit solution activity and higher credit-related costs weighed on results. Credit solution revenue dropped 39% to 795.7 million yuan, and the company facilitated 8.9 billion yuan in loans during the quarter — down 42% from a year ago.
But there's a bright spot: insurance. Insurance brokerage revenue rose 22% to 87.2 million yuan, driven by growth in internet distribution. The number of insurance clients surged 413% to 397,854, while new insurance policies increased 135% to 999,575. So while the core lending business is struggling, the insurance side is picking up steam.
Yiren also said it's pushing ahead with its "All-in-AI" strategy, upgrading its MagiCube platform and making seed investments in three AI application companies. That's a long-term bet, but it shows the company is thinking beyond just lending.
As for the stock, YRD shares were up 21.42% at $1.09 at the time of publication Thursday. That's a nice pop, but the stock is still near its 52-week low of $0.82. The buyback might help support the price, but investors will be watching to see if the fundamentals can turn around.
