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 ...