LexinFintech Holdings Ltd. Reports Third Quarter 2025 Unaudited Financial Results

Core Viewpoint - LexinFintech Holdings Ltd. has reported solid financial results for Q3 2025, demonstrating resilience amid regulatory challenges, with a net income of RMB 521 million, a 68% increase year-over-year, and a commitment to high-quality growth and shareholder returns [3][23][28]. Financial Performance - Net income for Q3 2025 was RMB 521 million, up 2% quarter-over-quarter and 68% year-over-year [3][23]. - Total operating revenue was RMB 3.4 billion, a decrease of 6.7% from Q3 2024 [12]. - Loan originations reached RMB 50.9 billion, a slight decrease of 0.2% from RMB 51.0 billion in Q3 2024 [9][12]. - The net income take rate was 2.01%, exceeding the year-end target of over 2.0% ahead of schedule [5]. Operational Highlights - The total number of registered users increased to 240 million, a 7.7% rise from 223 million a year ago [9]. - Active users utilizing loan products in Q3 2025 reached 4.4 million, up 2.7% from the previous year [9]. - The cumulative number of borrowers with successful drawdowns was 35.9 million, an increase of 8.5% year-over-year [9]. Regulatory Environment - The company has successfully adjusted its operations to comply with new regulatory requirements, with all new loans priced at or below an annual interest rate of 24% effective October 1, 2025 [2][4]. - The new regulatory framework is expected to concentrate market resources towards compliant platforms with strong risk control capabilities [4]. Shareholder Returns - The company increased its dividend payout ratio from 25% to 30% of net profit starting from the second half of 2025 [5]. - Approximately US$25 million worth of ADSs have been repurchased, with the CEO personally purchasing about US$5.1 million worth of ADSs [5][25][26]. Future Outlook - The company anticipates continued fluctuations in industry-wide risks due to the new regulatory framework, which may impact performance in the fourth quarter [28]. - Despite expected sequential declines in transaction volume and net income, the company maintains its guidance for significant year-over-year growth in net income [28].