LexinFintech (LX) Q2 2025 earnings summary

Executive summary

• Net profit reached RMB 511 million in Q2 2025, up 19% quarter-over-quarter and 126% year-over-year, with revenue rising 16% to RMB 3.6 billion and total GMV at RMB 52.9 billion, up 2.4% sequentially.

• Registered users grew to 236 million, with cumulative active users at 32.5 million and active loan users up 12.6% to 4.7 million.

• Management reaffirmed full-year guidance for significant year-over-year profit growth, emphasizing asset quality, profitability, and operational resilience.

• Dividend payout ratio will increase to 30% of net income for H2 2025, with a US$50–60 million share repurchase and CEO's personal share purchase up to US$10 million.

• Sustained profitability recovery and growth driven by improved asset quality, resilient business ecosystem, and enhanced risk management.

Financial highlights

• Net income margin increased to 14.3% from 13.9% last quarter; net income take rate rose 34 bps to 1.92%, both reaching 14-quarter highs.

• Net revenue of credit business grew 10% to RMB 2 billion; e-commerce net revenue surged 71% to RMB 97 million.

• Tech-empowerment service income rose 55.3% year-over-year to RMB 830 million; installment e-commerce platform service income rose 11.5% year-over-year.

• Gross profit was RMB 1,273 million, up 4.4% quarter-over-quarter but down from RMB 1,348 million year-over-year.

• Cash position at RMB 4 billion and shareholders' equity at RMB 11.6 billion as of June 30, 2025.

Outlook and guidance

• Maintains full-year guidance for significant year-over-year profit growth despite regulatory and market uncertainties.

• Focus remains on premium customer acquisition, risk control, and balancing scale with quality.

• Expects continued strong sequential GMV growth in e-commerce and stable volume with improved risk metrics in Q3.

• Continued investment in technology and digital infrastructure to support growth and operational efficiency.