Jiayin Group Inc. (NASDAQ: JFIN) Q2 2025 Earnings | 08/20/2025

Jiayin Group reported a record-breaking quarter with exceptionally strong growth across all key financial metrics. The company is capitalizing on supportive Chinese government policies aimed at boosting consumption and expanding financial support for the sector.

Key Financial Highlights:

• Record Loan Facilitation Volume: RMB 37.1 billion, a 54.6% increase year-over-year (YoY).

• Strong Profit Growth: Non-GAAP income from operations was RMB 738 million (+182% YoY). Net income was RMB 519 million (+117.8% YoY).

• Improved Margins: The net income margin significantly improved to 27.5%, up from 16.1% a year ago, driven by economies of scale and a favorable revenue mix.

• Revenue Mix Optimization: Revenue from higher-margin loan facilitation services grew to 85% of total revenue (up from 64% in Q2 2024), while lower-margin guarantee service revenue shrunk to less than 7% (down from ~29%).

Operational & Strategic Highlights:

• Strong Institutional Partnerships: The company maintains deep cooperation with 70 financial institutions, with 58 more in negotiation. It is exploring new joint-operation projects with partners.

• Focus on Repeat Borrowers: The share of loan volume from repeat borrowers increased to 75.6%, indicating strong customer stickiness and lower acquisition costs.

• Advanced Risk Management: The 90-day+ delinquency ratio remained stable at a low 1.12%. Investments in AI and a multimodal anti-fraud system successfully blocked hundreds of thousands of malicious applications.

• AI and Technology Investments: The company is deeply integrating AI across its operations, launching data intelligence assistants and proprietary models. This has led to significant cost reductions (e.g., an 80% drop in AI-generated conversation costs) and efficiency gains.

• Overseas Expansion: Operations in Indonesia and Mexico showed robust growth, with loan disbursements in Indonesia surging over 200% YoY.

Capital Allocation & Shareholder Returns:
Jiayin Group is committed to returning value to shareholders:

• Dividends: Distributed an annual cash dividend of $0.80 per ADS in July, a 60% increase from the previous year.

• Share Repurchases: In August, the board authorized an additional $50 million for share repurchases, bringing the total program to $80 million.

Outlook and Guidance:
Management provided guidance for Q3 2025, demonstrating confidence despite upcoming regulatory changes:

• Q3 2025 Loan Facilitation Volume Guidance: RMB 32 billion to RMB 34 billion.

• Q3 2025 Non-GAAP Income from Operations Guidance: RMB 490 million to RMB 560 million.

• Full-Year 2025 Loan Facilitation Guidance: Maintained at RMB 1,370 billion to RMB 1,420 billion.

Addressing New Regulations:
A key theme of the call was the upcoming implementation of new loan facilitation regulations in China. Management acknowledged that the industry is awaiting further clarity (expected in Q4) and that some financial partners have become more cautious. However, they view the regulations as a long-term positive that will foster a healthier, more compliant industry. The company is preparing multiple product and cooperation model contingency plans and believes its core technological and risk management capabilities will be a significant competitive advantage under the new regulatory framework.