Q4 2025 Lexinfintech Holdings Ltd Earnings Call Transcript
Key Points
- LexinFintech Holdings Ltd (LX) achieved a significant rebound in active users, reaching 4.53 million with 884,000 new active users in Q4 2025.
- The company reported a year-over-year net profit increase of 52.4% for the full year of 2025, amounting to $1.7 billion.
- LexinFintech Holdings Ltd (LX) successfully aligned its operations with new regulatory requirements, enhancing long-term sustainability and risk resilience.
- The company demonstrated strong growth in its offline inclusive finance, tech empowerment, and overseas businesses, highlighting the resilience of its diversified ecosystem.
- AI technology integration improved user service experience, with AI agents achieving over 90% response accuracy and reducing human intervention in credit approvals to 3.4%.
- Net income for Q4 2025 decreased to $214 million, primarily due to pricing adjustments and contraction in loan volume.
- The company faced elevated volatility in industry-wide credit risk, leading to increased credit costs and conservative provisioning.
- Operating expenses did not decline proportionately with revenue, impacting net profit due to fixed costs and seasonal expense recognition.
- The weighted average APR of new loans originated in Q4 2025 was 21.7%, reflecting a 140 basis point decline quarter-over-quarter.
- Despite improvements, risk levels remained elevated in Q4 2025, with ongoing macroeconomic uncertainties affecting financial performance.
Welcome to the Lexin fourth quarter 2025. At this time, all participants are in a listen-only mode.
(Operator Instructions)
Please be advised, today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Will Tan. Please go ahead.
Thank you, operator. Hi, everyone. Welcome to our fourth-quarter 2025 earnings conference call. Our results were released earlier today and are currently available on our IR website.
Today, you will hear from our Chairman and CEO, Mr. Jay Wenjiexiao, who will provide an update on our overall performance and strategies of our business. Our CRO, Mr. Arvind Zhangwenqiao, will then provide more details on our risk management initiatives and updates. Lastly, our CFO, Mr. James Deng, will discuss our financial performance.
Before we continue, I would like to refer you to our Safe Harbor statement in our earnings press release, which also applies to this call, as we will be making forward-looking statements. Last
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