Jiayin Technology's compliance controversy continues to escalate, stock price under pressure, business model questioned

The Economic Observer reports that Jiayin Technology’s lending platforms “Youwo Loan” and “Jirong” are still facing high service fees after the implementation of the new lending regulations in 2025, with annualized comprehensive interest rates far exceeding the regulatory cap of 24%, leading to numerous user complaints. BoLang Capital further analyzed that the company evades regulation through related-party fee transfers, hidden charges, and aggressive collection practices, with nearly 100,000 related complaints on the Black Cat Complaint Platform. This incident may intensify regulatory pressure and pose challenges to the company’s sustainability.

Recent Stock Performance

Affected by the compliance controversy, Jiayin Technology’s stock price has recently experienced volatility and a downward trend. According to internal data, from February 9 to 12, 2026, the stock price fell from $6.55 to $6.26, a decline of 1.11% over the period, with a volatility of 9.48%. Specifically, on February 10, the stock dropped 2.60%, and on February 12, it further declined 1.11% to $6.26. Trading volume was relatively light, reflecting cautious market sentiment. Over the past five days, the stock has gained 3.64%, but over the past 20 days, it has fallen 7.12%, indicating ongoing medium- to long-term pressure.

Financial Report Analysis

Jiayin Technology’s Q3 2025 performance shows revenue and net profit growth, but regulatory concerns loom. BoLang Capital’s report states that the company posted revenue of $1.47 billion, with loan facilitation volume of 32.2 billion yuan, and a net profit increase of 39.7% year-over-year. However, high growth relies heavily on marketing expenses (37.7% of revenue in Q2 2025), and asset quality concerns are emerging, such as a 180-day overdue rate rising to 2.39% at the end of 2024. If the new lending regulations are strictly enforced, its high-fee model may face margin compression risks.

Institutional Opinions

On February 12, 2026, BoLang Capital released an analysis stating that Jiayin Technology’s profit model operates in a regulatory gray area. While financial data appears strong, the company’s business qualifications are lacking (e.g., a small loan company with a registered capital of only 150 million yuan, below regulatory thresholds), and its “self-guarantee” mechanism is essentially ineffective. The report believes that under stricter regulation, the company’s transformation has yet to show results. Since the new regulations took effect in October 2025, the stock price has nearly halved. Several institutions have downgraded their ratings, mainly citing concerns over “business compliance issues increasing operational uncertainty.”