China's LexinFintech Q2 revenue falls 11%, profit drops 76%
China's LexinFintech Q2 revenue falls 11%, profit drops 76%
Overview
China fintech firm's Q2 revenue fell 11% yr/yr amid sector funding and regulatory headwinds
Adjusted net income dropped 76% yr/yr as company prioritized asset quality
Company shifted to annual dividend evaluation and repurchased 5.8% of shares under prior program
Outlook
Company expects Q3 2026 loan origination to decrease significantly quarter-over-quarter
Company says it may incur a net loss in Q3 2026
Result Drivers
SECTOR HEADWINDS - Co said sector-wide tightening of funding supply and recent risk events among peers negatively impacted loan volume and market sentiment
LOAN FACILITATION DECLINE - Co attributed drop in credit facilitation service income to decreased APR and origination of off-balance sheet loans
E-COMMERCE PLATFORM GROWTH - Co said installment e-commerce platform service income increased due to higher transaction volume
Company press release: ID:nGNX5lb6w9
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 3.19 bln |
|
Q2 Adjusted Net Income per ADS |
| RMB 0.76 |
|
Q2 Net Income per ADS |
| RMB 0.61 |
|
Q2 Net Income |
| RMB 101.32 mln |
|
Q2 Gross Profit |
| RMB 495.72 mln |
|
Q2 Pretax Profit |
| RMB 154.78 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 $3.00, about 154.2% above its August 28 closing price of $1.18
The stock recently traded at 1 times the next 12-month earnings vs. a P/E of 2 three months ago
Reuters Recommended Reads
Aug 28 - China fintech Jiayin swings to Q2 loss as transactions tumble; suspends dividend
Aug 28 - China's Bank of Gansu interim profit rises amid reduction in funding costs
Aug 28 - China's Join-Share's H1 revenue, profit fall on lower guarantee fee income
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.)