LexinFintech Q2 2025: Navigating Contradictions in Regulation, Shareholder Returns, and AI Integration

Regulatory impact on loan facilitation business, shareholder returns and dividend policy, risk management and asset quality, AI integration and application are the key contradictions discussed in LexinFintech Holdings Ltd.'s latest 2025Q2 earnings call.



Revenue and Profit Growth:
- LexinFintech reported revenue of RMB 3.6 billion for Q2 2025, up 16% quarter-over-quarter, with net profit reaching RMB 511 million, a 19% increase quarter-over-quarter and 126% year-over-year growth.
- The growth was driven by sustained improvement in asset quality, resilient business ecosystem expansion, and strategic product and service enhancements.

E-commerce and Tech Empowerment:
- The company's e-commerce GMV reached RMB 52.9 billion, up 2.4% quarter-over-quarter, while e-commerce gross profit was RMB 97 million, increasing by 71% quarter-over-quarter.
- This was attributed to the successful integration of the e-commerce business within the ecosystem, increased customer engagement, and diversified product offerings.

Risk Management and Asset Quality:
- Day 1 delinquency ratio decreased by 2%, and 90-days delinquency ratio decreased by 6% quarter-over-quarter.
- Improved risk management strategies, enhanced predictive models, and proactive measures to mitigate industry fluctuations contributed to the reduction in risk metrics.

Shareholder Returns and Dividend Policy:
- LexinFintech declared a $60 million share repurchase plan and increased the cash dividend payout ratio from 25% to 30%.
- These measures are aimed at enhancing shareholder returns and align with the company's commitment to delivering value to investors amidst a challenging market environment.