On May 25, Beijing time, LexinFintech Holdings Ltd. (LX.US), a leading new consumption digital technology service provider in China, released its unaudited financial results for the first quarter of 2026. Facing macroeconomic and industry challenges, the company's uniquely developed ecosystem business, cultivated over many years, demonstrated strong operational resilience. The transaction volume share of businesses including installment retail, offline inclusive finance, and B2B digital intelligence technology has approached 50%. The growth rate of these ecosystem businesses exceeded that of the online loan facilitation business, forming a new growth curve for the company and marking the initial completion of the transition between old and new business drivers.
For Q1, the company reported revenue of RMB 3.309 billion; profit (Non-GAAP EBIT) of RMB 301 million; total managed outstanding loan balance of RMB 96.541 billion; total transaction volume of 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 reached 5.167 million, up 14.1% sequentially and 8.6% year-over-year; new active users numbered 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 delinquency entry rate for the total asset portfolio decreased by approximately 7% sequentially, and the 30-day delinquency resolution rate maintained a month-on-month recovery trend.
The CEO of LexinFintech Holdings Ltd. stated: "In the first quarter, despite challenges from the macroeconomic environment, industry adjustments, and the impact of the Spring Festival holiday, our uniquely diversified ecosystem business, developed over many years, enabled us to deliver solid performance this quarter. The transition between old and new business drivers is initially complete, and we are moving towards long-term, stable, diversified, and healthy development. In the coming quarters, we will continue to deepen our ecosystem businesses, including installment retail, offline inclusive finance, and B2B digital intelligence technology. We believe the advantages of our unique ecosystem business will continue to enhance the company's operational resilience, allowing us to fully navigate future uncertainties."
**Ecosystem Business Nears 50% of Transaction Volume, Directing Financial Resources to Broader Sectors**
The financial report indicates that in Q1, the company's diversified ecosystem businesses, including installment retail, offline inclusive finance, and B2B digital intelligence technology, developed steadily. These businesses efficiently connect financial services with essential scenarios, stimulate domestic demand, activate market consumption potential, help solve working capital challenges for micro and small enterprises, and channel resources to support the real economy at the grassroots level.
During the quarter, the Fenqile Mall, under LexinFintech Holdings Ltd., focused on social consumption trends such as warming market consumption, the surge in travel demand driven by micro-vacations, and the growth in differentiated consumption needs. It enhanced its full-category supply chain covering food, clothing, daily necessities, travel, tourism, entertainment, and pet-related products. The platform strengthened its all-scenario consumption supply capability by expanding product categories, upgrading logistics services, and optimizing the shopping experience, comprehensively meeting users' multi-layered needs from basic living to quality consumption.
Leveraging its partnerships with leading brands, Fenqile Mall launched a "Brand Flash Sale" channel during the quarter, which has already signed agreements with over 20 domestic and international fashion and sports brands. Since its launch, the overall sales volume of participating brands has increased by 43% sequentially, effectively meeting public demand for quality consumption. For essential consumption scenarios and festive gifting, the mall continued to launch major promotional activities, driving growth in everyday consumption. Simultaneously, in the 3C digital products sector, incentive programs like interest subsidies and interest-free installments effectively stimulated user consumption potential. In Q1, driven by major promotions and interest subsidy/interest-free activities involving hundreds of top brands, the platform's transaction volume increased by 104.1% year-over-year.
As the market enters the 618 mid-year consumption peak in Q2, Fenqile Mall recently officially launched its "618 Shopping Festival" campaign. Centered on the upgraded theme of "Simple Discounts, Real Subsidies, Low Threshold," the campaign aims to unleash consumption vitality through methods like shopping credit rebates, subsidies for new users, and prize draws.
**In low-tier cities and county markets, a vast number of micro and small merchants and individual operators have rigid funding needs but often cannot access convenient services due to the high barriers of traditional financial services.** The 2026 Government Work Report proposed increasing financial support for the county economy, micro and small entities, and agriculture-related industries, promoting the downward flow of financial resource services. In Q1, Fenqile Inclusive Finance increased offline investments to meet the operational needs of county-level micro and small businesses and individual entrepreneurs. Localized teams engaged directly with local industrial clusters, specialized markets, neighborhood shops, and township farmers and breeders, benefiting underserved下沉 regions and micro-entities that are difficult for traditional finance to reach.
Tailored to the characteristics of customer groups in industries like agriculture, forestry, animal husbandry, and fishing, Fenqile Inclusive Finance developed differentiated risk control models and approval strategies. Leveraging deeper industry understanding and localized experience, it improved service coverage and matching efficiency while maintaining risk control. 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 county areas.
In Q1, LexinFintech Holdings Ltd.'s B2B digital intelligence technology business served as a key bridge connecting the "traffic side" and the "funding side." Building on years of accumulated credit operation experience, the company systematically output its core digital intelligence capabilities through the "Cloud Rhino PRO" solution, establishing a collaborative bridge between traffic platforms and financial institutions to facilitate efficient connection between traffic distribution and financial service resources.
Regarding overseas operations, the company maintained steady development in its two core markets, Mexico and Indonesia, during the quarter, with simultaneous optimization in scale, profitability, and asset quality.
**Increasing AI Technology Investment, Accelerating Output of Digital Technology Capabilities**
In Q1, LexinFintech Holdings Ltd. accelerated the pace of its technology R&D investments, focusing significantly on AI deployment. The new quality productivity engine with AI at its core achieved scaled application across multiple business scenarios, driving collaborative efficiency improvements in operations and service systems. Concurrently, the company's accumulated digital intelligence capabilities over the years accelerated their external value release, empowering the full-chain digital intelligence upgrade of financial services based on AI-driven new quality productivity.
During the quarter, the company iterated and upgraded its algorithms and model capabilities in 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 customer service robot incorporated large language model capabilities for multi-turn intent understanding, performing more stably in complex dialogue scenarios. User intent recognition accuracy improved by over 5%, enhancing the overall communication experience for users. On the R&D side, the accelerated adoption of AI Coding tools significantly increased the production speed of business and test code. Furthermore, the company advanced the construction of its AI infrastructure system by establishing a Skill Hub to promote the modular沉淀 and shared reuse of AI capabilities, providing underlying support for scaled applications.
Leveraging its technological capabilities in risk control, customer acquisition, and operations, the company assists partners in improving their digital operation capabilities and user reach efficiency through systematic and modular output, 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 drivers, building long-term operational resilience, and fostering new quality productivity. It not only provides technological momentum for the development of its own ecosystem businesses but also injects core competitiveness into its external digital intelligence technology services.
**Significant Improvement in User Service Efficiency; Offering Rewards Up to RMB 1 Million to Combat Financial Black/Grey Industries**
LexinFintech Holdings Ltd. consistently adheres to a "user-centric" service philosophy, building warm and trustworthy competitive advantages with consumer rights protection at the core. In Q1, by optimizing intelligent routing allocation and queuing strategies and introducing peak-hour预警 mechanisms, the company significantly improved user service efficiency, 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 various groups, overall improving user experience and satisfaction.
Currently, financial black/grey 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 reduction" or "credit repair," causing substantial financial losses and credit damage to many consumers. Simultaneously, actors in these black/grey industries spread false information widely on internet channels, maliciously slander正规 financial services, and诱骗 indebted individuals into traps, severely polluting the online舆论 environment and financial ecosystem.
In response to this issue, government departments including the Ministry of Public Security, the National Financial Regulatory Administration, and the Cyberspace Administration of China have联合 launched multiple crackdowns. Specialized campaigns to整治 financial black/grey industries have become a high-level national consensus. Over the past two-plus years, Fenqile has deeply combated financial "black/grey industries" through police-enterprise collaboration, assisting police in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, and other regions in investigating nearly 100 related cases and dismantling 26 specialized criminal gangs.
Recently, the Fenqile Security Center issued a public announcement soliciting leads from society regarding illegal activities of financial black/grey 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 sending an email to hhc_jubao@lexin.com. The company will provide rewards to informants based on the线索's effectiveness, completeness of evidence, and contribution to case resolution, with rewards reaching up to RMB 1 million per case.
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