China's LexinFintech Q1 net income falls 53% on higher credit costs

LexinFintech Holdings

25/05/2026 04:32

Overview

The Chinese personal finance platform's first-quarter revenue rose 6.6% yr/yr

Adjusted net income and EPS for Q1 fell more than 50% yr/yr

Company repurchased 5.9% of shares since July 2025 under buyback programme

Outlook

LexinFintech expects Q2 2026 total loan origination to remain relatively flat

Company says macroeconomic uncertainties may impact performance outlook

LexinFintech plans to enhance operational resilience to navigate evolving market dynamics

Result Drivers

NON-CONSUMER FINANCE GROWTH - Revenue growth was primarily driven by non-consumer finance businesses, including installment e-commerce, offline inclusive financing, and fintech-empowerment services, per CEO Jay Wenjie Xiao

HIGHER CREDIT COSTS - Increased provisions for financing receivables and contingent guarantee liabilities weighed on profitability

RISK MANAGEMENT INVESTMENT - Company increased risk management expenses and user engagement investments, impacting cost structure

Company press release: ID:nGNX6Sc7wq

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 3.31 bln
Q1 Adjusted EPS
RMB 1.35
Q1 EPS
RMB 1.20
Q1 Net Income
RMB 201.44 mln
Q1 Gross Profit
RMB 834.63 mln
Q1 Pretax Profit
RMB 269.41 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for Lexinfintech Holdings Ltd is $3.80, about 93.9% above its May 22 closing price of $1.96

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)