LexinFintech Holdings Ltd. (NASDAQ: LX), a leading new consumption digital technology service provider in China, announced its unaudited financial results for the first quarter of 2026. Faced with macroeconomic and industry challenges, the company's uniquely cultivated ecosystem business demonstrated strong operational resilience. The transaction volume share of businesses including installment retail, offline inclusive finance, and TO B digital intelligence technology has approached 50%. The growth rate of these ecosystem businesses surpassed that of the online loan facilitation business, forming a new growth curve and marking a preliminary completion of the transition between old and new business drivers.
For Q1, the company reported revenue of RMB 3.30 billion. Profit (Non-GAAP EBIT) was RMB 301 million. Managed loan balance reached RMB 96.541 billion. Total transaction volume amounted to RMB 57.898 billion, representing a sequential increase of 15.9% and a year-over-year increase of 12.2%. The number of active users was 5.167 million, up 14.1% sequentially and 8.6% year-over-year. New active users totaled 1.444 million, a sequential surge of 63.3% and a year-over-year increase of 101.6%.
Asset quality continued to improve in Q1, with risks for both newly originated and existing assets showing simultaneous enhancement. The overall delinquency entry rate for all assets decreased by approximately 7% sequentially, and the 30-day delinquency resolution rate maintained a month-on-month recovery trend.
Xiao Wenjie, CEO of Lexin, stated, "In the first quarter, despite challenges from the macro environment, industry adjustments, and the impact of the Spring Festival holiday, our uniquely diversified ecosystem business, cultivated over many years, enabled us to deliver solid performance. The transition between old and new business drivers is preliminarily complete, and we are moving towards a direction of long-term stability, diversification, and health. In the coming quarters, we will continue to deepen our ecosystem businesses, including installment retail, offline inclusive finance, and TO B digital intelligence technology. We believe the unique advantages of our ecosystem business will continuously enhance our operational resilience to fully address future uncertainties."
**Ecosystem Business Nears 50% Transaction Share, Channeling Financial Resources to Broader Sectors** The financial report indicates that in Q1, Lexin's diversified ecosystem businesses, including installment retail, offline inclusive finance, and TO B digital intelligence technology, developed steadily. These businesses efficiently connect financial services with essential consumption scenarios, stimulating domestic demand, activating market consumption potential, helping to solve working capital challenges for micro and small enterprises, and channeling resources to support the real economy at the grassroots level.
During the quarter, Lexin's Fenqile Mall, responding to social consumption trends such as warming market consumption, the surge in travel demand driven by micro-vacations, and growing demand for differentiated consumption, enhanced its full-category supply chain covering food, clothing, daily necessities, transportation, travel, entertainment, and pet-related products. The platform strengthened its full-scenario consumption supply capability by expanding product categories, upgrading logistics services, and optimizing the shopping experience, comprehensively meeting users' multi-level needs from basic living to quality consumption. Leveraging partnerships with leading brands, Fenqile Mall launched a "Brand Flash Sale" channel, which has now contracted with over 20 domestic and international fashion and sportswear brands. Since its launch, overall sales for participating brands have increased by 43% sequentially, effectively meeting public demand for quality consumption. For essential consumption scenarios like daily necessities and holiday gifting, the mall continued to launch major promotional activities, driving growth in essential consumption. Simultaneously, in the 3C digital sector, incentives such as interest subsidies and interest-free installments effectively stimulated user consumption potential. In Q1, driven by major promotions, interest subsidies, and interest-free activities involving hundreds of top brands, platform transaction volume increased by 104.1% year-over-year. As the market enters the mid-year 618 shopping season in Q2, Fenqile Mall has officially launched its "618 Shopping Festival," upgrading its offerings around "simple discounts, real subsidies, low thresholds" through methods like shopping rebates, new user subsidies, and lucky draws to help unleash consumption vitality.
In lower-tier cities and county markets, a vast number of micro and small merchants and individual business owners have rigid funding needs but often cannot access convenient services due to the high barriers of traditional finance. The 2026 Government Work Report proposed increasing financial support for the county economy, micro and small entities, and agriculture-related industries, promoting the extension of financial resource services downward. In Q1, Fenqile Inclusive Finance increased offline investments to meet the operational needs of county-level micro and small businesses and individual proprietors. Localized teams engaged with local industrial clusters, specialized markets, neighborhood shops, and township farmers and breeders, benefiting underserved下沉 regions and micro-business entities that traditional finance struggles to reach. Tailoring to customer characteristics in industries like agriculture, forestry, animal husbandry, and fisheries, Fenqile Inclusive Finance developed differentiated risk control models and approval strategies. By leveraging deeper industry understanding and localized experience, it improved service coverage and matching efficiency under controllable risk. During the quarter, it helped nearly 140,000 users obtain RMB 4.93 billion in inclusive financing, facilitating the continuous and precise flow of financial resources to the "last mile" in counties.
In Q1, Lexin's TO B digital intelligence technology business served as a key hub connecting the "traffic side" and the "funding side." Building on years of accumulated credit operation experience, the company systematically exported its core digital intelligence capabilities through the "Cloud Rhinoceros PRO" solution, building a collaborative bridge between traffic platforms and financial institutions to facilitate efficient matching of traffic distribution and financial service resources.
Regarding overseas operations, the company achieved steady development in its two core markets, Mexico and Indonesia, with simultaneous optimization in scale, profitability, and asset quality.
**Increasing AI Technology Investment, Accelerating External Output of Digital Tech Capabilities** In Q1, Lexin accelerated its technology R&D investment, focusing on expanding its AI footprint. The AI-driven new quality productivity engine achieved scaled application across multiple business scenarios, promoting synergistic efficiency improvements in operations and service systems. Concurrently, the company's digital intelligence capabilities, honed over years, accelerated the external release of value. Leveraging AI-powered new quality productivity, it empowered the full-chain digital and intelligent upgrade of financial services.
During the quarter, the company iterated and upgraded its algorithms and model capabilities for intelligent risk control tools. The newly launched credit report interpretation agent and interactive credit enhancement functions improved user identification accuracy, better supporting personalized pricing and quota services. Within the customer service system, the service robot incorporated large language model multi-turn intent understanding capabilities, performing more stably in complex dialogue scenarios. User intent recognition accuracy increased by over 5%, enhancing the overall user communication experience. On the R&D side, the accelerated adoption of AI coding tools significantly sped up the production of business and test code. The company also advanced its AI infrastructure system construction by establishing a Skill Hub to promote the modular沉淀 and shared reuse of AI capabilities, providing foundational support for scaled applications. Relying on its technological capabilities in risk control, customer acquisition, and operations, the company systematically and modularly outputs these to assist partners in improving their digital operation capabilities and user reach efficiency, releasing the social value of digital technology services.
AI technology is evolving from a point-based efficiency tool into a core driver for upgrading the company's operational and R&D systems, becoming a key element in advancing the transition between old and new growth drivers, building long-term operational resilience, and cultivating new quality productivity. It not only provides technological momentum for the development of its own ecosystem business but also injects core competitiveness into its external digital intelligence technology services.
**Significant Improvement in User Service Efficiency; Bounties Up to RMB 1 Million to Combat Financial Black and Gray Industries** Lexin consistently adheres to a "user-centric" service philosophy, building a warm and trustworthy competitive advantage with consumer rights protection at its core. In Q1, by optimizing intelligent routing allocation and queuing strategies and introducing peak-hour预警 mechanisms, user service efficiency saw significant improvement, with multiple core service indicators trending positively. Regarding user care, the company strengthened user behavior analysis through enhanced model capabilities, refined user segmentation management, and implemented more differentiated care measures for different groups, collectively improving user experience and satisfaction.
Currently, financial black and gray industries have become a persistent issue severely harming consumer rights and disrupting industry order. Unscrupulous intermediaries lure consumers into paying high fees under the guise of "debt relief" or "credit repair," causing significant financial losses and credit damage to numerous consumers. Simultaneously, actors in these black and gray industries spread false information and maliciously slander正规 financial services on internet channels,诱导 indebted individuals into traps, severely polluting the online舆论 environment and financial ecosystem. In response, authorities including the Ministry of Public Security, the National Financial Regulatory Administration, and the Cyberspace Administration of China have repeatedly launched joint crackdowns. Specialized campaigns against financial black and gray industries have become a high-level national consensus.
Over the past two-plus years, Fenqile has engaged in deep打击 of financial "black and gray industries" through police-enterprise cooperation, assisting police in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, and other regions in investigating nearly 100 related cases and dismantling 26 professional criminal gangs. Recently, the Fenqile Security Center issued an announcement publicly soliciting leads on illegal activities involving financial black and gray industries targeting the Fenqile platform. The public can report relevant线索 by calling the Fenqile customer service hotline 95730, the post-loan reporting专线 4001011288, or by emailing hhc_jubao@lexin.com. The company will offer rewards of up to RMB 1 million per case based on the线索's effectiveness, completeness of evidence, and contribution to case打击.
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