LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2025 Unaudited Financial Results

Core Viewpoint - LexinFintech Holdings Ltd. reported its financial results for Q4 and full year 2025, highlighting a significant increase in net profit despite a challenging macro environment and regulatory changes [3][4]. Financial Performance - For the full year 2025, net profit reached RMB1.7 billion, a year-over-year increase of 52.4% [3]. - Q4 2025 net income was RMB214 million, down 41.0% from RMB363 million in Q4 2024 [23]. - Total operating revenue for Q4 2025 was RMB3,043 million, a decrease of 16.8% from RMB3,659 million in Q4 2024 [13]. - Full year operating revenue was RMB13,152 million, down 7.4% from RMB14,204 million in 2024 [24]. User and Loan Metrics - The total number of registered users reached 245 million as of December 31, 2025, up 7.6% from 228 million in 2024 [9]. - Active users in Q4 2025 were 4.5 million, a decrease of 3.8% from 4.7 million in Q4 2024 [9]. - Cumulative borrowers with successful drawdown increased to 36.7 million, up 8.9% from 33.8 million in 2024 [9]. - Total loan originations in 2025 were RMB205 billion, down 3.2% from RMB212 billion in 2024 [9]. Revenue Breakdown - Credit facilitation service income for Q4 2025 was RMB2,485 million, down 8.4% from RMB2,712 million in Q4 2024 [13]. - Tech-empowerment service income decreased significantly to RMB170 million, down 71.7% from RMB602 million in Q4 2024 [16]. - Installment e-commerce platform service income increased to RMB388 million, up 12.5% from RMB345 million in Q4 2024 [16]. Cost and Expenses - Cost of sales in Q4 2025 was RMB248 million, down from RMB353 million in Q4 2024 [17]. - Funding costs decreased to RMB34.2 million in Q4 2025 from RMB57.5 million in Q4 2024 [18]. - Processing and servicing costs increased to RMB633 million in Q4 2025, up from RMB583 million in Q4 2024 [18]. Shareholder Returns - The board approved a dividend of US$0.188 per ADS, representing 30% of net income from the second half of 2025 [5]. - The company has repurchased US$39 million worth of ADSs as part of its share repurchase program [36]. Business Outlook - The company anticipates continued consolidation in the market towards compliant platforms with prudent risk management [4]. - For Q1 2026, total loan origination is expected to remain flat due to ongoing macroeconomic uncertainties [38].