Shares of Yiren Digital Ltd (NYSE: YRD) plummeted 14.67% in early trading on Thursday following the release of disappointing first-quarter 2025 financial results and the announcement of a key management change. The Chinese AI-powered financial and lifestyle services platform faced a sharp sell-off as investors reacted to a significant decrease in profitability and other concerning factors.

For the first quarter of 2025, Yiren Digital reported a net income of RMB 247.506 million ($34.1 million), marking a substantial decline from RMB 485.9 million in the same quarter of 2024. The company's earnings per share (EPS) dropped to $0.39, representing a 48.69% decrease from $0.76 in the year-ago period. Despite reporting a 13% year-over-year increase in total net revenue to RMB 1,554.526 million ($214.22 million), the sharp decline in profitability appears to have spooked investors.

Adding to investor concerns, Yiren Digital announced that its current Chief Financial Officer, Mr. Yuning Feng, will resign due to personal reasons. Mr. Ka Chun William Hui has been appointed as the new CFO, effective June 30, 2025. This management shake-up, coupled with increased provisions for contingent liabilities and decreased sales in the insurance brokerage and lifestyle segments, likely contributed to the negative sentiment. The company's forward-looking statement, projecting total revenue for the second quarter of 2025 to be between RMB 1.6 billion and RMB 1.7 billion, seems to have been insufficient to assuage investor concerns about the company's growth trajectory and profitability.