LexinFintech Holdings Ltd. Reports Second Quarter 2025 Unaudited Financial Results

SHENZHEN, China, Aug. 07, 2025 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ:LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended June 30, 2025.

Mr. Jay Wenjie Xiao, Chairman and Chief Executive Officer of Lexin, commented, "Building upon our risk management enhancements, operational refinement, and unique business ecosystem advantages, we continued to deliver robust performance for the second quarter of 2025, demonstrating our operational resilience against uncertain external environment.

In the second quarter, revenue achieved a quarter-over-quarter increase of 16% to RMB3.6 billion, and net income increased by 19% quarter-over-quarter to RMB511 million, a record high in the past 14 quarters. Total loan origination reached RMB53 billion, representing approximately 2.4% quarter-over-quarter increase.

Looking ahead, we'll further strengthen our customer-centric approach to enhance customer experience and attract quality customers, leverage our business ecosystem advantages to drive greater synergies, and deploy AI across operations to bolster efficiency. Amid the current macroeconomic and industry landscape, we will maintain our prudent strategy with a dual focus on safeguarding asset quality and driving profitability growth. Although external uncertainties remain, we reaffirm our full-year guidance of delivering strong year-over-year net income growth.

The management has always placed great emphasis on shareholder returns. In accordance with our dividend policy, the board of directors has approved a dividend of US$0.194 per ADS, representing 25% of net income for the first half of 2025. As previously announced, we will increase our dividend payout ratio to 30% of net income for the second half of 2025. On top of cash dividend, we've announced a US$50 million share repurchase program on July 21, 2025, along with my personal share purchase of up to US$10 million. We'll continue to explore various means to deliver value to our shareholders."

Mr. James Zheng, Chief Financial Officer of Lexin, commented, "In the second quarter, our performance continued to progress steadily as planned in our business turnaround road-map. Net income reached RMB511 million, representing a 19% quarter-over-quarter and 126% year-over-year increase. Net income take rate, calculated as net income divided by average loan balance, was 1.92%, advancing by 34 basis points compared to the first quarter. Consistent with our long-term objectives, we'll continue to focus on asset quality improvement, ecosystem synergy enhancement, and operational refinement to sustain our profitability recovery trajectory."

Second Quarter 2025 Operational Highlights:

User Base

Total number of registered users reached 236 million as of June 30, 2025, representing an increase of 7.9% from 219 million as of June 30, 2024, and users with credit lines reached 47.2 million as of June 30, 2025, up by 8.9% from 43.3 million as of June 30, 2024.

Number of active users1 who used our loan products in the second quarter of 2025 was 4.7 million, representing an increase of 12.6% from 4.2 million in the second quarter of 2024.

Number of cumulative borrowers with successful drawdown was 35.2 million as of June 30, 2025, an increase of 8.2% from 32.5 million as of June 30, 2024.

Loan Facilitation Business

As of June 30, 2025, we cumulatively originated RMB1,429.6 billion in loans, an increase of 17.0% from RMB1,222.2 billion as of June 30, 2024.

Total loan originations2 in the second quarter of 2025 was RMB52.9 billion, an increase of 3.5% from RMB51.1 billion in the second quarter of 2024.

Total outstanding principal balance of loans3 was RMB106 billion as of June 30, 2025, representing a decrease of 8.1% from RMB115 billion as of June 30, 2024.

Credit Performance4

90 day+ delinquency ratio5 was 3.1% as of June 30, 2025, as compared with 3.3% as of March 31, 2025.

First payment default rate (30 day+) for new loan originations was below 1% as of June 30, 2025.

Installment E-commerce Platform Service

GMV6 in the second quarter of 2025 for our installment e-commerce platform service was RMB2,029 million, representing an increase of 117% from RMB933 million in the second quarter of 2024.

In the second quarter of 2025, our installment e-commerce platform service served over 460,000 users and around 180 merchants.

Other Operational Highlights

The weighted average tenor of loans originated on our platform in the second quarter of 2025 was approximately 13.2 months, as compared with 12.8 months in the second quarter of 2024.

Repeated borrowers' contribution7 of loans across our platform for the second quarter of 2025 was 86.1%.

Second Quarter 2025 Financial Highlights:

Total operating revenue was RMB3,587 million, representing a decrease of 1.5% from the second quarter of 2024.

Credit facilitation service income was RMB2,270 million, representing a decrease of 15.0% from the second quarter of 2024. Tech-empowerment service income was RMB830 million, representing an increase of 55.3% from the second quarter of 2024. Installment e-commerce platform service income was RMB487 million, representing an increase of 11.5% from the second quarter of 2024.

Net income attributable to ordinary shareholders of the Company was RMB511 million, representing an increase of 126% from the second quarter of 2024. Net income per ADS attributable to ordinary shareholders of the Company was RMB2.85 on a fully diluted basis.

Adjusted net income attributable to ordinary shareholders of the Company8 was RMB541 million, representing an increase of 116% from the second quarter of 2024. Adjusted net income per ADS attributable to ordinary shareholders of the Company8 was RMB3.02 on a fully diluted basis.

__________________________

Active users refer to, for a specified period, users who made at least one transaction during that period through our platform or through our third-party partners' platforms using the credit line granted by us.

Total loan originations refer to the total principal amount of loans facilitated and originated during the given period.

Total outstanding principal balance of loans refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period,including loans guaranteed by our financial guarantee companies and excluding loans delinquent for more than 180 days.

Loans under Intelligent Credit Platform are excluded from the calculation of credit performance. Intelligent Credit Platform (ICP) is an intelligent platform on our "Fenqile" app, under which we match borrowers and financial institutions through big data and cloud computing technology. For loans facilitated through ICP, the Company does not bear principal risk.

"90 day+ delinquency rate" refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under "ICP" and overseas are not included in the delinquency rate calculation.

GMV refers to the total value of transactions completed for products purchased on our e-commerce and Maiya channel, net of returns.

Repeated borrowers' contribution for a given period refers to the principal amount of loans borrowed during that period by borrowers who had previously made at least one successful drawdown as a percentage of the total loan facilitation and origination volume through our platform during that period.

Adjusted net income attributable to ordinary shareholders of the Company, adjusted net income per ordinary share and per ADS attributable to ordinary shareholders of the Company are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures Statement" and the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Second Quarter 2025 Financial Results:

Operating revenue was RMB3,587 million in the second quarter of 2025, as compared to RMB3,641 million in the second quarter of 2024.

Credit facilitation service income was RMB2,270 million in the second quarter of 2025, as compared to RMB2,669 million in the second quarter of 2024. The decrease was due to the decrease in guarantee income and loan facilitation and servicing fees-credit oriented, partially offset by the increases in financing income.

Loan facilitation and servicing fees-credit oriented was RMB1,131 million in the second quarter of 2025, as compared to RMB1,433 million in the second quarter of 2024. The decrease was primarily due to the decrease in the APR of off-balance sheet loans, as well as the increase in the early repayment behaviors.

Guarantee income was RMB571 million in the second quarter of 2025, as compared to RMB722 million in the second quarter of 2024. The decrease was primarily due to the decrease of outstanding balances in the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.

Financing income was RMB568 million in the second quarter of 2025, as compared to RMB513 million in the second quarter of 2024. The increase was primarily driven by the increase in the origination of on-balance sheet loans.

Tech-empowerment service income was RMB830 million in the second quarter of 2025, as compared to RMB535 million in the second quarter of 2024. The increase was primarily driven by the increase of loan facilitation volume through ICP and the increase of referral services.

Installment e-commerce platform service income was RMB487 million in the second quarter of 2025, as compared to RMB437 million in the second quarter of 2024. The increase was primarily driven by the increase in transaction volume.

Cost of sales consisted of cost of inventory sold and other costs. Cost of sales was RMB426 million in the second quarter of 2025, as compared to RMB423 million in the second quarter of 2024.

Funding cost was RMB59.9 million in the second quarter of 2025, as compared to RMB90.5 million in the second quarter of 2024. The decrease was primarily driven by the decrease in funding rates and balance of funding debts to fund the on-balance sheet loans.

Processing and servicing costs was RMB606 million in the second quarter of 2025, as compared to RMB519 million in the second quarter of 2024. The increase was primarily driven by an increase in risk management expenses.

Provision for financing receivables was RMB257 million for the second quarter of 2025, as compared to RMB171 million for the second quarter of 2024. The increase was primarily due to the increase in the outstanding loan balances of on-balance sheet loans, including the increase in the outstanding loan balances of oversea business.

Provision for contract assets and receivables was RMB164 million in the second quarter of 2025, as compared to RMB155 million in the second quarter of 2024.

Provision for contingent guarantee liabilities was RMB802 million in the second quarter of 2025, as compared to RMB935 million in the second quarter of 2024. The decrease was primarily driven by the improvement of credit risk performance and the decrease of outstanding balances in the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.

Gross profit was RMB1,273 million in the second quarter of 2025, as compared to RMB1,348 million in the second quarter of 2024.

Sales and marketing expenses was RMB567 million in the second quarter of 2025, as compared to RMB467 million in the second quarter of 2024. This increase was primarily due to an increase in online advertising costs.

Research and development expenses was RMB158 million in the second quarter of 2025, as compared to RMB143 million in the second quarter of 2024. The increase was primarily due to increased investment in technology development.

General and administrative expenses was RMB96.0 million in the second quarter of 2025, as compared to RMB100 million in the second quarter of 2024.

Change in fair value of financial guarantee derivatives and loans at fair value was a gain of RMB184 million in the second quarter of 2025, as compared to a loss of RMB368 million in the second quarter of 2024. The change was primarily driven by the fair value gains realized as a result of the release of guarantee obligation as loans are repaid, partially offset by the fair value loss from the re-measurement of the expected loss rates.

Income tax expense was RMB120 million in the second quarter of 2025, as compared to RMB60.0 million in the second quarter of 2024. The increase was primarily due to the increase in income before income tax expense.

Net income was RMB511 million in the second quarter of 2025, as compared to RMB227 million in the second quarter of 2024.

Recent Development

Semi-Annual Dividend

The board of directors of the Company has approved a dividend of US$0.097 per ordinary share, or US$0.194 per ADS, for the six-month period ended June 30, 2025 in accordance with the Company's dividend policy, which is expected to be paid on September 15, 2025 to shareholders of record (including holders of ADSs) as of the close of business on August 26, 2025 New York time.

According to the updated dividend policy approved by the Board on May 19, 2025, starting from the second half of 2025, cash dividend payout is raised to 30% of total net income.

Share Repurchase Plan and Management Purchase

On July 21, 2025, the Company announced a US$50 million share repurchase program. The timing and dollar amount of the repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements.

Alongside the share repurchase program, Mr. Jay Wenjie Xiao, Chairman and Chief Executive Officer of the Company planned to use his personal funds to purchase up to US$10 million worth of the ADSs.

Management Changes

Mr. Erwin Yong Lu has tendered his resignation as the Chief Technology Officer of the Company for family and personal reasons, effective September 30, 2025. The Company thanks him for his contribution.

Business OutlookLooking ahead, despite evolving market and industry conditions, based on our current assessment, we maintain our performance guidance, expecting net income for the full year 2025 to achieve a significant year-over-year growth. The forecast is subject to the impact of macroeconomic factors, and we may adjust the performance outlook as appropriate based on evolving circumstances.

Conference Call

The Company's management will host an earnings conference call at 7:00AM U.S. Eastern time on August 7, 2025 (7:00 PM Beijing/Hong Kong time on August 7, 2025).

Participants who wish to join the conference call should register online at:

https://s1.c-conf.com/diamondpass/10049362-fg8h6t.html

Once registration is completed, each participant will receive the dial-in number and a unique access PIN for the conference call.

Participants joining the conference call should dial in at least 10 minutes before the scheduled start time.

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.lexin.com.

About LexinFintech Holdings Ltd.

We are a leading credit technology-empowered personal financial service enabler. Our mission is to use technology and risk management expertise to make financing more accessible for young generation consumers. We strive to achieve this mission by connecting consumers with financial institutions, where we facilitate through a unique model that includes online and offline channels, installment consumption platform, big data and AI driven credit risk management capabilities, as well as smart user and loan management systems. We also empower financial institutions by providing cutting-edge proprietary technology solutions to meet their needs of financial digital transformation.

For more information, please visit http://ir.lexin.com.

To follow us on Twitter, please go to: https://twitter.com/LexinFintech.

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use adjusted net income attributable to ordinary shareholders of the Company, non-GAAP EBIT, adjusted net income per ordinary share and per ADS attributable to ordinary shareholders of the Company, four non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted net income attributable to ordinary shareholders of the Company as net income attributable to ordinary shareholders of the Company excluding share-based compensation expenses, interest expense associated with convertible notes, and investment income/(loss) and we define non-GAAP EBIT as net income excluding income tax expense, share-based compensation expenses, interest expense, net, and investment income/(loss).

We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Adjusted net income attributable to ordinary shareholders of the Company enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible notes, and investment income/(loss). Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense, share-based compensation expenses, interest expense, net, and investment income/(loss). We also believe that the use of these non-GAAP financial measures facilitates investors' assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.

These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net income attributable to ordinary shareholders of the Company and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible notes, income tax expense, interest expense, net, and investment income/(loss) have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net income attributable to ordinary shareholders of the Company and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling each of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.1636 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2025. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Lexin's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," " expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the expectation of the collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Lexin's goal and strategies; Lexin's expansion plans; Lexin's future business development, financial condition and results of operations; Lexin's expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin's expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

LexinFintech Holdings Ltd.IR inquiries:Will TanTel: +86 (755) 3637-8888 ext. 6258E-mail:

Media inquiries:Ruifeng XuTel: +86 (755) 3637-8888 ext. 6993E-mail:

SOURCE LexinFintech Holdings Ltd.

 

LexinFintech Holdings Ltd.Unaudited Condensed Consolidated Balance Sheets

 

 

 

 

As of

 

(In thousands)

December 31, 2024

 

June 30, 2025

 

 

RMB

 

RMB

 

US$

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

2,254,213

 

 

2,077,282

 

 

289,977

 

Restricted cash

 

1,638,479

 

 

1,422,365

 

 

198,554

 

Restricted term deposit and short-term investments

 

138,497

 

 

395,276

 

 

55,178

 

Short-term financing receivables, net(1)

 

4,668,715

 

 

5,427,917

 

 

757,708

 

Short-term contract assets and receivables, net(1)

 

5,448,057

 

 

4,663,987

 

 

651,067

 

Deposits to insurance companies and guarantee companies

 

2,355,343

 

 

2,201,097

 

 

307,261

 

Prepayments and other current assets

 

1,321,340

 

 

1,758,027

 

 

245,411

 

Amounts due from related parties

 

61,722

 

 

83,887

 

 

11,710

 

Inventories, net

 

22,345

 

 

29,886

 

 

4,172

 

Total Current Assets

 

17,908,711

 

 

18,059,724

 

 

2,521,038

 

Non-current Assets

 

 

 

 

 

 

Restricted cash

 

100,860

 

 

71,588

 

 

9,993

 

Long-term financing receivables, net(1)

 

112,427

 

 

90,781

 

 

12,673

 

Long-term contract assets and receivables, net(1)

 

317,402

 

 

283,031

 

 

39,510

 

Property, equipment and software, net

 

613,110

 

 

803,776

 

 

112,203

 

Land use rights, net

 

862,867

 

 

845,667

 

 

118,051

 

Long-term investments

 

284,197

 

 

239,498

 

 

33,433

 

Deferred tax assets

 

1,540,842

 

 

1,687,365

 

 

235,547

 

Other assets

 

500,363

 

 

433,358

 

 

60,494

 

Total Non-current Assets

 

4,332,068

 

 

4,455,064

 

 

621,904

 

TOTAL ASSETS

 

22,240,779

 

 

22,514,788

 

 

3,142,942

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

74,443

 

 

72,045

 

 

10,057

 

Amounts due to related parties

 

10,927

 

 

13,431

 

 

1,875

 

Short-term borrowings and current portion of long-term borrowings

 

690,772

 

 

841,506

 

 

117,470

 

Short-term funding debts

 

2,754,454

 

 

2,811,878

 

 

392,523

 

Deferred guarantee income

 

975,102

 

 

1,224,450

 

 

170,927

 

Contingent guarantee liabilities

 

1,079,000

 

 

675,974

 

 

94,362

 

Accruals and other current liabilities

 

4,019,676

 

 

3,938,086

 

 

549,734

 

Total Current Liabilities

 

9,604,374

 

 

9,577,370

 

 

1,336,948

 

Non-current Liabilities

 

 

 

 

 

 

Long-term borrowings

 

585,024

 

 

569,690

 

 

79,526

 

Long-term funding debts

 

1,197,211

 

 

653,349

 

 

91,204

 

Deferred tax liabilities

 

91,380

 

 

102,705

 

 

14,337

 

Other long-term liabilities

 

22,784

 

 

6,775

 

 

946

 

Total Non-current Liabilities

 

1,896,399

 

 

1,332,519

 

 

186,013

 

TOTAL LIABILITIES

 

11,500,773

 

 

10,909,889

 

 

1,522,961