LexinFintech Holdings (NASDAQ: LX ) has established itself as one of the leading Chinese fintech companies providing consumer financial services. The company's platform, "Fenqile" provides consumers with installment-based loans, pretty similar to how BNPL contracts work.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opin ...

LexinFintech Holdings Ltd. (NASDAQ:LX) is among the best stocks with the highest upside potential. According to the recent disclosure with the Securities and Exchange Commission, Nomura Holdings Inc. has increased its position in LexinFintech Holdings Ltd. (NASDAQ:LX) by a whopping 437.7% during the first quarter. Following the addition of 414,749 shares, the firm now owns 509,512 shares of the company’s stock, valued at $5,141,000. With the rise in BNPL services, the outlook looks overwhelmingly positive ...

Financial Performance - The company reported a revenue of RMB3.6 billion for Q2 2025, marking a 16% increase quarter-over-quarter and a slight decrease of 1.5% year-over-year [3][10][16] - Net income reached RMB511 million, representing a 19% increase quarter-over-quarter and a significant 126% increase year-over-year, achieving the highest net income in the past 14 quarters [3][23][16] - Total loan origination for the quarter was RMB53 billion, reflecting a 2.4% increase from the previous quarter and a 3.5% increase from the same quarter last year [3][9] Operational Highlights - The total number of registered users increased to 236 million, up 7.9% from 219 million a year ago, with users holding credit lines reaching 47.2 million, an 8.9% increase [9] - Active users utilizing loan products in Q2 2025 rose to 4.7 million, a 12.6% increase from 4.2 million in Q2 2024 [9] - The cumulative number of borrowers with successful drawdowns reached 35.2 million, an 8.2% increase year-over-year [9] Business Strategy and Outlook - The company plans to enhance its customer-centric approach, leverage its business ecosystem for greater synergies, and deploy AI to improve operational efficiency [4][28] - Despite external uncertainties, the company reaffirms its full-year guidance for strong year-over-year net income growth [4][28] Shareholder Returns - The board approved a dividend of US$0.194 per ADS for the first half of 2025, representing 25% of net income, with plans to increase the payout ratio to 30% for the second half of 2025 [5][24][25] - A US$50 million share repurchase program was announced, alongside a personal share purchase commitment of up to US$10 million by the CEO [5][26] Financial Metrics - The net income take rate improved to 1.92%, an increase of 34 basis points from the previous quarter [5] - The gross profit for Q2 2025 was RMB1.27 billion, down from RMB1.35 billion in Q2 2024 [20][16] - The 90-day+ delinquency ratio improved to 3.1% from 3.3% in the previous quarter, indicating better credit performance [9]

LexinFintech Holdings (NASDAQ: LX ) is a leading Chinese fintech company that provides consumer financial services. The company's main platform, "Fenqile," provides consumers with installment-based loans. Much like many of the BNPL players in the US, LexinFintech has benefited from the rise in BNPL Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions ...