Despite ongoing challenges from the macroeconomic environment and industry cycle adjustments, LexinFintech Holdings Ltd. delivered a resilient performance in the fourth quarter.
Financial results show that Lexin generated revenue of RMB 3 billion in Q4, with a profit (Non-GAAP EBIT) of RMB 299 million. Transaction volume reached RMB 50 billion, while managed loan balance stood at RMB 96.6 billion. For the full year 2025, cumulative profit (Non-GAAP EBIT) was RMB 2.216 billion, with total transaction volume amounting to RMB 205.3 billion.
These figures highlight Lexin's stable operational capabilities during an industry adjustment period. Driven by a long-term philosophy, the company's diversified business ecosystem is gradually demonstrating its ability to withstand cyclical fluctuations. Behind the performance, three key points from Lexin's Q4 report deserve attention:
First, the number of active users increased by 884,000.
The growth in active users reflects continuous optimization in Lexin's products, service capabilities, and operational efficiency. The report indicates that Lexin's cumulative user base reached 244 million by the end of Q4, with 4.53 million active users during the quarter, including 884,000 new active users.
This growth is notable against the backdrop of overall industry pressure. As management stated during the earnings call, the increase in active users results from the company's ongoing efforts to enhance customer acquisition capabilities and investments, demonstrating the effectiveness of its user-centric, refined operations.
Lexin's businesses include personal credit, installment retail, and inclusive finance, which synergize to form a unique, diversified ecosystem. This sustained ecological layout allows the company to flexibly adjust service models within new regulatory frameworks, catering to the diverse needs of different users and building a durable competitive advantage.
Second, installment retail focused on daily necessities saw transaction volume grow year-over-year.
User growth underscores the robustness of Lexin's business foundation, while the performance of its Fenqile Mall highlights the company's ability to navigate cycles and its future potential. In Q4, Fenqile Mall's overall transaction volume increased by 94.5% year-over-year, nearly doubling. Transactions in essential consumer goods such as food, clothing, daily necessities, and transportation surged by 383.14% annually. Categories like apparel, personal care, sports, and accessories all saw quarter-over-quarter growth exceeding 100%.
During major shopping events like Double 11 and Double 12, the mall's robust supply chain system, combined with consumer-friendly offers such as interest-free and low-interest installments, drove daily shipment volumes to record highs.
As China's first installment e-commerce platform, Fenqile Mall leverages its long-accumulated brand and supply chain strengths to effectively meet consumer demand for 3C electronics, big-ticket items, and daily necessities. Over a decade of experience is now translating into tangible growth drivers for the company.
From an industry perspective, increasingly clear regulatory guidance emphasizing genuine consumption and compliant operations has raised the entry barrier. The installment e-commerce sector is poised for a phase of consolidation and restructuring.
Fenqile differentiates itself from platforms operating near compliance boundaries in several key ways: First, it focuses squarely on physical consumption scenarios and strictly combats disguised cash-out practices. Its product range covers everything from digital gadgets and cosmetics to daily necessities and groceries, providing a one-stop solution for consumers' essential needs. Second, the platform operates primarily on a self-operated model rather than a marketplace approach, maintaining strict control over sourcing, pricing, and fulfillment to eliminate potential violations by third-party merchants. Third, product prices are consistently benchmarked against major e-commerce platforms, with some popular items even offering significant price advantages, while fees remain firmly within compliant ranges.
As consumption remains a primary engine for economic growth, supportive policies continue to emerge. Platforms like Fenqile Mall, which are built on genuine transactions and physical fulfillment, are likely to undergo a reassessment of their value. This will help the company gain trust from more high-quality users and partners, laying a stronger foundation for future development.
Dividend payout ratio increased in the second half.
The financial report also announced that the company will distribute a dividend for the second half of 2025, amounting to $0.188 per ADS. The payment date is set for May 14, targeting all shareholders of record as of April 16.
This dividend payout represents approximately 30% of net profit, maintaining a leading position within the industry. In addition to cash dividends, the company has actively pursued share buybacks and increased holdings. Under the buyback plan announced in July 2025, about 80% had been completed as of March 18. Management's personal share acquisition plans have been fully executed.
With the gradual implementation of buybacks and increased holdings, combined with dividends, shareholder returns continue to improve, positioning Lexin ahead of many peers. The current P/E ratio is below 3 times, and the P/B ratio stands at 0.26 times, both lower than industry averages, indicating that Lexin represents a compelling investment opportunity.
Looking ahead to 2026, Lexin's management stated that the company will continue to increase the proportion of high-quality customers, building a more stable and profitable business foundation to drive high-quality growth and deliver sustainable long-term returns for shareholders.
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