LexinFintech Holdings Ltd. Financial Overview
LexinFintech Holdings Ltd. (NASDAQ: LX), a premier technology-driven enabler of personal financial services, recently disclosed its unaudited financial results for the third quarter ending on September 30, 2025. The announcement reflects the company's agile adaptation to regulatory changes while maintaining a robust operational performance.
Financial Highlights of Q3 2025
In the third quarter, Lexin achieved a net income of RMB521 million, marking a 2% increase quarter-over-quarter and a staggering 68% increase year-over-year. Additionally, loan originations for the quarter totaled RMB50.9 billion, while revenue reached RMB3.4 billion. These figures indicate the company's resilience and operational effectiveness in the face of a challenging regulatory environment.
Operational Adjustments and Strategy
Mr. Jay Wenjie Xiao, Chairman and CEO, noted that the company has effectively completed necessary operational adjustments to align with new regulations. As part of these adjustments, starting from October 1, 2025, new loans are being priced at or below a 24% annual interest rate.
User Growth and Engagement
Lexin's user base continues to expand, with a total of 240 million registered users by the end of September 2025, marking a 7.7% increase compared to the previous year. Active user engagement is also noteworthy, with 4.4 million users actively utilizing loan products in the third quarter, a 2.7% rise from the same period in the previous year.
Loan Facilitation Metrics
From a broader perspective, the loan facilitation business has also shown significant growth. As of September 30, 2025, Lexin has cumulatively originated loans worth RMB1,480.5 billion, demonstrating a 16.3% increase year-on-year. Furthermore, the total outstanding principal balance for loans was RMB102 billion.
Revenue Breakdown and Insights
The company's total operating revenue in the third quarter stood at RMB3,417 million, reflecting a decrease of 6.7% compared to the same quarter a year ago. Notably, credit facilitation service income reached RMB2,617 million while tech-empowerment service income increased by 18.9% to RMB456 million.
Improving Asset Quality
Despite facing external challenges, Lexin has maintained strong credit performance. The 90-day delinquency ratio was recorded at 3.0%, showing an improvement from 3.1% in the preceding quarter. Moreover, the first payment default rate for new loan originations is below 1%, highlighting the efficacy of Lexin's risk management systems.
Shareholder Value Enhancement
Lexin is committed to enhancing shareholder returns, illustrated by an increase in its dividend payout ratio from 25% to 30% of net profit, effective in the second half of the year. The company has also actively repurchased approximately US$25 million worth of American Depositary Shares (ADS), with Mr. Xiao himself investing about US$5.1 million.
Outlook for the Future
Looking forward, Lexin is optimistic about its sustainability and growth, despite anticipated industry risks associated with regulatory shifts. The company aims to maintain significant year-over-year growth in net income while focusing on enhancing operational efficiency and improving asset quality.
Frequently Asked Questions
What were LexinFintech's net income results for Q3 2025?
LexinFintech reported a net income of RMB521 million, reflecting a 68% increase compared to the same quarter last year.
How many registered users does LexinFintech have?
As of September 30, 2025, Lexin has a total of 240 million registered users.
What is LexinFintech's strategy moving forward?
The company is focusing on enhancing operational efficiency and maintaining strong risk management practices amidst ongoing regulatory changes.
What was the company's revenue for Q3 2025?
For the third quarter of 2025, LexinFintech reported total revenue of RMB3.4 billion.
What improvements have been noted in LexinFintech's credit performance?
The company recorded a 90-day delinquency ratio of 3.0%, an improvement from 3.1% in the previous quarter, showcasing effective credit management.
