- LexinFintech Holdings (LX, Financial) reported its highest quarterly profit in 13 quarters for Q1 2025.
- Revenue reached RMB 3.1 billion, with non-GAAP EBIT up 104.7% YoY to RMB 580 million.
- Dividend payout ratio increased from 25% to 30% effective H2 2025.
LexinFintech Holdings Ltd (NASDAQ: LX), a leading digital technology service enabler, announced robust financial results for the first quarter of 2025, showcasing a significant surge in profitability. The company reported revenue of RMB 3.1 billion and a non-GAAP EBIT of RMB 580 million, reflecting an impressive 104.7% year-over-year and 25.3% quarter-over-quarter growth.
Demonstrating strong operational resilience amidst macroeconomic uncertainties, Lexin achieved its highest quarterly profit in 13 quarters. The transaction volume soared to RMB 51.62 billion, while the managed loan balance reached RMB 107.33 billion, indicating stable business scaling and strong earnings growth.
The company's asset quality improved notably, with early-stage risk metrics (FPD7) for new assets declining by 5% QoQ, the overall delinquency rate dropping by 11% QoQ, and the 90+ day delinquency rate decreasing by 9% QoQ. These enhancements affirm the effectiveness of Lexin's dual-driven risk control and data management strategy.
Lexin's total user base expanded to 232 million, marking an 8.1% year-over-year increase. The company also announced a strategic decision to raise its cash dividend payout ratio from 25% to 30% of total net profit, effective from H2 2025, marking the second increase within six months. This decision underscores Lexin's commitment to delivering shareholder value and its confidence in sustained profitability.
Additionally, Lexin invested RMB 156 million in R&D in Q1 2025, a 15.3% increase from the previous year, with a focus on AI integration and enhancing risk control systems. This investment is part of the company's strategic move to bolster its technological capabilities and operational efficiency.
Despite potential challenges from macroeconomic conditions and industry shifts, Lexin's positive outlook remains intact, supported by its enhanced capabilities and robust multi-business ecosystem. The company anticipates significant year-over-year net profit growth for the full year, bolstered by these strategic initiatives.
