LexinFintech Holdings Ltd. reported third‑quarter 2025 results that showed a 6.7% year‑over‑year decline in revenue to RMB 3.4 billion, while net income surged 68% to RMB 521 million, reflecting a 15% net‑income margin that expanded from 14% in the prior quarter.
The company’s earnings per share were CNY 3.06 on a basic basis and CNY 2.92 diluted, with a Non‑GAAP EPADS of $0.43. Although consensus estimates were not publicly disclosed, LexinFintech has a track record of beating both EPS and revenue forecasts 100% of the time over the past year, underscoring the strength of its execution.
Revenue decline was driven by regulatory constraints that capped new loan interest rates at 24% and reduced transaction volume, while the company’s loan originations fell only 0.2% YoY to RMB 50.9 billion. In contrast, tech‑empowerment services grew 18.9% and installment e‑commerce revenue rose 11.8%, highlighting the resilience of higher‑margin segments.
Management attributed the net‑income growth to disciplined cost management and a favorable mix shift toward tech‑empowerment and e‑commerce services. "Despite this complex environment, Lexin has delivered a set of solid financial results," the CEO said, noting that the company’s ecosystem has adapted to new regulatory requirements while continuing to expand its 240 million‑user base.
Looking ahead, the company cautioned that Q4 2025 may see a decline in transaction volume and net income because of ongoing regulatory adjustments, but it remains optimistic about year‑over‑year growth. The guidance signals confidence in maintaining profitability through cost discipline and strategic investment in high‑return verticals.
The earnings beat the company’s historical pattern of exceeding expectations, and the margin expansion demonstrates operational leverage. The headwinds of regulatory change are offset by tailwinds from a growing user base and strong performance in tech‑empowerment and e‑commerce, positioning LexinFintech to navigate the evolving market environment.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.