LexinFintech (LX) Q1 2025 earnings summary

Executive summary

• Achieved record GAAP net profit of RMB 430 million in Q1 2025, up 18.6% quarter-over-quarter and 113.4% year-over-year, the highest in 13 quarters.

• Loan origination volume reached RMB 51.6 billion, a slight decrease of 0.6% quarter-over-quarter and 11% year-over-year.

• User base reached over 232 million, with active loan users at 4.8 million, both up year-over-year.

• Transformation to a risk-driven, data-driven, and machine-based operational model completed, entering a new phase of high-quality growth.

• Management remains confident in significant year-over-year net income growth for 2025, reaffirming full-year guidance despite macroeconomic and regulatory uncertainties.

Financial highlights

• Total operating revenue was RMB 3.10 billion, down 15.2% sequentially and 4.3% year-over-year.

• Net income margin rose to 13.9% from 9.9% last quarter; net profit take rate increased to 1.58% from 1.31% sequentially.

• Tech-empowerment service income rose 4% sequentially and 72.8% year-over-year to RMB 625 million, now 20% of total revenue.

• Credit facilitation service income declined 19.2% sequentially and 17.3% year-over-year to RMB 2,191 million.

• Gross profit increased 1.9% year-over-year to RMB 1,219 million.

Outlook and guidance

• Confident in achieving substantial year-over-year net profit growth for full year 2025, with full-year profit guidance reaffirmed.

• Cash dividend payout ratio to increase to 30% of net profit from H2 2025, after previous increases from 20% to 25%.

• Guidance may be adjusted based on macroeconomic factors.