LexinFintech (LX) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 was RMB 1.7 billion, up 52.4% year-over-year, reflecting resilience amid regulatory and macroeconomic changes.

• Q4 2025 net income was RMB 214 million, down 41% year-over-year, impacted by pricing adjustments, lower loan volume, and increased credit costs.

• The company proactively aligned with new regulations, focusing on compliance, customer-centric strategies, and diversified business lines including consumer finance, installment e-commerce, and inclusive finance.

• AI technology was deeply integrated to enhance user service, risk management, and operational efficiency, with customer service AI agents achieving over 90% accuracy.

• Management emphasized sustainable shareholder returns through disciplined strategy execution and risk management.

Financial highlights

• Full-year 2025 operating revenue was RMB 13,152 million, down 7.4% from 2024; Q4 revenue was RMB 3,043 million, down 16.8% year-over-year.

• Q4 net income was RMB 214 million; adjusted Q4 net income was RMB 239 million.

• Net revenue from credit business was RMB 1.4 billion in Q4; e-commerce net revenue rose to RMB 167 million.

• E-commerce gross margin improved to 7.8%, up 295 basis points quarter-over-quarter.

• Funding cost declined from 4.4% to 3.8% quarter-over-quarter, supporting improved profitability.

Outlook and guidance

• 2026 will focus on proactive user acquisition, enhancing product competitiveness, and targeting high-quality customer segments for normalized growth.

• Management expects total loan origination for Q1 2026 to remain flat due to macroeconomic uncertainties.

• Asset quality is expected to improve as risk stabilizes, with loan origination projected to remain stable or gradually recover.

• No full-year 2026 financial guidance provided due to macro uncertainties; key variables include loan volume, pricing, funding cost, and credit cost.

• Company will continue to focus on risk management and disciplined strategy execution for long-term returns.