LexinFintech Holdings Ltd. (LX) Announces Third Quarter 2025 Unaudited Financial Earnings Results

LexinFintech Holdings Ltd. (LX) today announced its earnings results for the most recent quarter, reporting a remarkable earnings per share (EPS) of $4.10. This figure significantly exceeded analysts’ expectations, with a notable beat of $4.10 over the estimated EPS of $0.00. The strong performance highlights the company’s robust financial health and growth trajectory in the competitive fintech landscape.

Key Highlights:

• LexinFintech reported a net income of RMB521 million for Q3 2025, a 68% increase year-over-year.
• Loan originations reached RMB50.9 billion, with a total of RMB1,480.5 billion in loans cumulatively originated.
• The company’s user base grew to 240 million, with 4.4 million active users in Q3 2025.
• The company increased its dividend payout ratio from 25% to 30% of net profit.
• Management anticipates continued industry-wide risk fluctuations due to new regulatory frameworks, impacting performance in Q4 2025.

In the third quarter of 2025, LexinFintech Holdings Ltd. demonstrated strong financial resilience despite a challenging regulatory environment. Chairman and CEO Jay Wenjie Xiao noted that the company successfully adjusted its operations to comply with new regulations, which included capping new loan interest rates at 24%. The results reflected the effectiveness of Lexin’s operational strategies, with net income rising to RMB521 million, marking a significant year-over-year increase. The company also reported a robust user base growth, reaching 240 million registered users, and highlighted its commitment to enhancing shareholder returns through increased dividends and share repurchases.

Looking ahead, management expressed cautious optimism, acknowledging that while the new regulatory framework may lead to fluctuations in transaction volume and net income in the short term, they are maintaining their guidance for significant year-over-year growth in net income. CFO James Zheng emphasized the focus on improving asset quality and operational efficiency to ensure sustainable growth. The company remains dedicated to leveraging its competitive advantages and navigating market changes effectively.

LexinFintech Holdings Ltd. (LX) has experienced a tumultuous ride in the stock market, with a staggering 58.45% decline over the past six months, reflecting investor concerns despite its underlying financial metrics. The company’s price-to-earnings ratio stands at an astonishingly low 0.44, suggesting that the stock may be undervalued relative to its earnings potential. Over the past two years, Lexin has demonstrated a solid earnings growth rate of 12.69% CAGR, alongside a revenue growth of 7.79% CAGR, indicating a resilient business model. However, the recent price changes, including a sharp 34.18% drop in the last month alone, raise questions about market sentiment and investor confidence. Despite a net profit margin of 11.62% and a commendable return on invested capital of 17.27%, the stock’s performance has not reflected these strengths. The one-year price change of 10.88% offers a glimmer of hope, but it remains overshadowed by the more significant declines in the short term. As Lexin navigates these challenges, investors will be keenly watching for signs of recovery and whether the fundamentals can translate into a more stable stock price.

LexinFintech Holdings Ltd., through its subsidiaries, offers online consumer finance services in the People’s Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as provides online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was incorporated in 2013 and is headquartered in Shenzhen, the People’s Republic of China.