On August 7, 2025, Beijing time, Lexin (NASDAQ: LX), China’s leading new-consumption digital technology service provider, today announced its unaudited financial results for the second quarter of 2025: revenue reached RMB 3.59 billion , up 15.6% quarter-over-quarter (QoQ); profit (Non-GAAP EBIT) was RMB 670 million , up 15.2% QoQ and 116.4% year-over-year (YoY). Q2 profit was the highest in 14 quarters, marking the fifth straight quarter of sequential growth, while multiple core business indicators continued to improve.
In terms of scale, the company's transaction volume in the second quarter was RMB 52.86 billion ; the total loans under management was RMB 105.78 billion ; and the number of users reached 236 million.
In terms of asset quality, risk indicators have continued to improve for 4 consecutive quarters: the FPD7(First-payment default) of newly added assets in Q2 decreased by approximately 5% QoQ; the delinquency rate of all assets dropped by about 2% QoQ; and the 90+ day non-performing loan ratio of all assets fell by around 6% QoQ, with asset quality improving quarter by quarter.
In terms of financial indicators, the company's profit margin (annualized net profit / loan balance) in the second quarter increased by 34 basis points compared to the first quarter, with consecutive quarterly growth of more than 20 basis points for multiple quarters.
Lexin has always placed great emphasis on shareholder returns. With the approval of the Board of Directors, the ex-dividend and ex-rights date for the first half of the year is set for August 26. A cash dividend of US$0.194 per ADS will be distributed on September 15, representing approximately 25% of the first-half net profit. This payout is roughly 76% higher than the US$0.11 per ADS dividend for the second half of 2024. Starting in the second half of this year, the dividend payout ratio will be raised from 25% to 30% of net profit. In July, Lexin also launched a US$60 million share-repurchase program. Together, these measures are expected to further increase shareholder returns, underscoring the company’s commitment to shareholder value and its confidence in long-term growth.
Xiao Wenjie, CEO of Lexin, stated: "The company has adhered to a strategic transformation driven by risk and data to achieve refined operations, delivering another quarter of high-quality growth. Facing an uncertain macro environment, the company has adhered to a prudent business strategy, with steady growth in ecological businesses, continuous improvement in asset quality, and a sustained recovery in profitability, leading to more stable development.
Looking ahead to the third quarter, we will continue to operate steadily, actively leverage the synergistic advantages of ecological businesses, enhance the company's operational resilience, maintain a continuous decline in risks, and achieve continued profit growth. Therefore, we maintain our full-year net profit guidance of significant YoY growth."
Ecological Business Gains Momentum as Unique Advantages Unlock New Growth
Since the beginning of this year, policies such as the “Action Plan for Boosting Consumption” and the "Guiding Opinions on Financial Support for Boosting and Expanding Consumption" have been rolled out, emphasizing “expanding financial supply in consumption,”“increasing personal consumer loan issuance,” and “deepening integration of financial services with consumption scenarios.”Lexin actively aligns with these policies by enriching its product suite and optimizing user experience, bridging consumer intent with action in a more convenient and affordable way and continuously contributing to consumption growth.
In Q2, Fenqile Mall comprehensively upgraded its supply chain, onboarded numerous well-known brand merchants, and strengthened enhanced offerings such as "Zhenpin Hui" and "Factory Store" to meet users' diversified needs. High-quality consumption scenarios combined with major promotion activities drove the GMV of Fenqile Mall to rise continuously. Especially during the "6·18" period, GMV increased by 139% YoY, effectively boosting consumption.
Small and micro enterprises are crucial to economic and social development and people's livelihoods. Inclusive finance plays an important role in solving the funding difficulties of small and micro enterprises and enhancing their resilience. In May 2025, the State Financial Regulatory Administration issued a document requiring inclusive finance to "deepen the financing coordination mechanism" and "accurately match financing needs". During the quarter, Fenqile Inclusive, a subsidiary of Lexin, upgraded its products and services using big data and AI large models, continuously optimized user experience, improved the accuracy of credit matching, and effectively avoided misrejection issues caused by seasonal and cyclical business fluctuations. It supported the development of small, micro, and even smaller enterprises with low-interest and high-limit financial products. The "Believe in Small Dreams" program of Fenqile Inclusive has been implemented in more than 330 counties and cities across 30 provinces, autonomous regions, and municipalities,facilitating RMB 4.69 billion in loan disbursements.
In terms of digital technology business, Lexin has profound experience and an expert team in quantitative risk control, with cross-institution and cross-platform risk control capabilities. Through localized deployment of delivery and services, it has significantly improved partners' customer acquisition efficiency and retention rate. During the quarter, the number of loan users increased significantly, and transaction volume rose by 171.3% QoQ.
In overseas business, Lexin has continuously optimized customer acquisition channels and customer quality, strengthened risk operations, localized management, and integrated marketing strategies achieving continuous optimization of asset structure and growth in scale and revenue for multiple consecutive quarters.
Lexin keeps deepening innovation across its ecosystem. All businesses are growing steadily, reinforcing a virtuous cycle of complementary synergy and circular enhancement that builds unique competitive moats while generating significant social value.
Risk Control System Upgrade and AI Agent Implementation: Dual-Drive to Consolidate Underlying Capabilities
Financial reports show that Lexin's R&D investment in the second quarter was RMB 160 million, up 10% YoY, remaining industry-leading. Long-term technological investment has consolidated underlying capabilities, and the risk and data dual-drive strategy has enhanced the company's operational resilience in responding to industry challenges.
(Chart: Ten Technical Systems Driving the Digital and Intelligent Development of Lexin's Business)
In Q2, Lexin focused on the special identification and disposal of customer groups vulnerable to industry risk fluctuations, and promoted the growth of high-quality customer scale through interactive re-offer. At the same time, the company upgraded its risk control system using AI large models, increased the construction and application of intelligent risk control tools, improved the efficiency of risk decision-making and the accuracy of quota and price strategies, promoted the upgrading of risk management from quantification to intelligence, and built a leading advantage in risk management capabilities. The localized AI large models are also applied to multiple important business scenarios. For example, in the post-loan management field, the intelligent data auxiliary platform realizes full-process AI empowerment from case allocation, collection operations to user management and withholding strategies, driving a significant improvement in post-loan repayment efficiency.
AI large models and intelligent agents are reshaping Lexin's business processes, becoming the core engine for improving operational efficiency and user experience. The self-developed AI Agent made significant progress during the quarter, with 50 "AI Agent positions" launched, driving improvements in management and operational efficiency. Within this year, Lexin's AI Agent positions will be expanded to more than 100, covering scenarios such as auxiliary strategy optimization, collection quality inspection, and decision-making efficiency improvement, promoting the upgrading of risk management accuracy and laying a safety cushion for long-term development. By virtue of its innovative exploration and application in AI large models and intelligent agents, Lexin won the "Best AI Technology for China's Fintech Companies" award from The Asian Banker in Q2. This is also the company's seventh consecutive year of winning honors from The Asian Banker.
Lexin focuses on the top-level design and long-term mechanism construction of consumer protection governance, promotes the integration of consumer protection into the entire business chain, and builds a "predictive" rights protection system driven by user needs and product experience, promoting the high-quality development of consumer protection work. In Q2, the company increased technological investment in consumer protection work, improved more than 50 digital, intelligent, and model-based tools, and enhanced service response rate and user satisfaction.
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Company Name: LexinFintech Holdings Ltd
Contact Person: Chuanda Xu
Email: Send Email
City: Shenzhen
Country: China
Website: http://ir.lexin.com/
