The Nasdaq-listed loan facilitation giant Jiayin Group Inc. (JFIN) reported a net loss of RMB 61.7 million for the first quarter of 2026, compared with a net profit of RMB 539.5 million in the same period last year, marking a decline of over RMB 600 million and the company's first Q1 loss in recent years. This swing to a year-over-year loss was primarily driven by a nearly 70% drop in loan facilitation service revenue.
Furthermore, following a near 90% year-over-year plunge in cash and cash equivalents at the end of 2025, this metric saw a further decrease by the end of March 2026, raising widespread concerns about the company's operational health.
Key Financial Metrics Show Decline
Financial reports indicate that in Q1 2026, Jiayin Group Inc. facilitated approximately RMB 19.3 billion in loan transactions, a 45.8% year-over-year decrease. Total operating revenue was RMB 756.7 million, down 57.4% year-over-year. Loan facilitation service revenue, a major contributor to the decline, fell 68.9% to RMB 460.1 million, which the company attributed to reduced transaction volume and service fee adjustments.
During the same period, the average loan size was RMB 7,111, an 11.0% decrease year-over-year. The repeat borrowing ratio reached 76.3%, up 4.4 percentage points from 71.9% a year earlier. Regarding asset quality, the delinquency rate for loans overdue by more than 90 days stood at 2.25% as of March 31, 2026, an increase of 1.12 percentage points from 1.13% a year ago.
Review of Previous Year's Performance
Looking back at 2025, Jiayin Group Inc.'s performance was strong in the first half but weakened significantly in the latter part, with Q4 net profit plummeting over 60% year-over-year. For the full year 2025, the company achieved net revenue of RMB 6.222 billion, up 7.3% year-over-year, and net profit of RMB 1.536 billion, an increase of 45.4%. Total facilitated loan volume for the year was RMB 129 billion, growing 28%.
However, in the fourth quarter alone, facilitated loans amounted to RMB 24.2 billion, down 12.6% year-over-year. Net revenue was RMB 1.090 billion, a decrease of approximately 22%, while net profit was only RMB 101 million, a sharp decline of about 63% year-over-year and 73.17% sequentially. Earnings per share also fell by roughly 62%.
The industry faced widespread profit compression following the implementation of new loan facilitation regulations in Q4 2025. For instance, Weixin Financial reported a full-year 2025 net loss of RMB 560 million, turning from a profit to a loss, with total revenue declining slightly by 1.5%.
Liquidity and Capital Management
Of particular note, at the end of 2025, Jiayin Group Inc.'s cash and cash equivalents balance was a mere RMB 61.8 million, a nearly 90% contraction from RMB 540 million at the end of 2024. In contrast, peer company Xiaoying Technology held cash of RMB 987 million at year-end, nearly 15 times that of Jiayin.
By March 31, 2026, Jiayin Group Inc.'s cash and cash equivalents had decreased further to RMB 43.4 million. Reportedly, to alleviate liquidity pressure, the company secured a RMB 600 million loan in late 2025 using its recently acquired Shanghai Lujiazui Fund Tower as collateral, with an interest rate of 3.5%, higher than the prevailing market rate of 2.5%–2.7%.
It is noteworthy that despite the tight cash flow situation, the company maintained a high dividend payout ratio and continued its share repurchase program. The annual dividend payout ratio was raised to 30% of after-tax net profit, and the share buyback program, with an upper limit of $80 million, has already utilized $30.4 million. The Q1 report shows the company has extended its current repurchase plan to June 12, 2027, with approximately $49.6 million remaining under the authorization.
Company Background and Overseas Expansion
Jiayin Group Inc. was founded on June 18, 2011, by its founder and legal representative, Yan Dinggui, with a registered capital of RMB 50 million. Headquartered in Shanghai, China, the company is dedicated to connecting consumers with financial institutions within consumption scenarios using technologies like big data, cloud computing, and artificial intelligence. It successfully listed on the NASDAQ in the United States on May 10, 2019.
Overseas operations have been a bright spot in the company's recent performance. In 2025, the scale of its Indonesian business grew approximately 187% year-over-year, with registered users increasing about 119%. Its Mexican business saw full-year loan disbursement growth of around 105% and registered user growth of about 110%, becoming a new growth engine.
Entering Q1 2026, the company deepened cooperation with local funding partners in Indonesia, achieving a 20% sequential increase and a doubling year-over-year in quarterly loan disbursement volume. During the same period, loan disbursement in Mexico grew 35% sequentially and showed rapid growth compared to the same period last year.
Chairman Yan Dinggui stated that given the continued uncertainty in the market environment, the company maintains a prudent stance. It will continue to ensure steady and sustainable operations through robust management, leveraging operational depth to build resilience, and striving to construct a moat for long-term development through lean operational capabilities.
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