China's LexinFintech reports drop in Q3 revenue

LexinFintech Holdings

24/11/2025 08:29

Overview

LexinFintech Q3 revenue decreased 6.7% yr/yr, reflecting challenges in loan facilitation

Net income for Q3 increased 68% yr/yr, indicating improved profitability

Company repurchased $25 mln worth of ADSs, enhancing shareholder value

Outlook

LexinFintech expects industry-wide risk fluctuations due to new regulatory framework

Company maintains guidance for significant year-over-year growth in net income

LexinFintech increases dividend payout ratio from 25% to 30% of net profit starting from second half of this year.

Result Drivers

REGULATORY COMPLIANCE - Lexin transitioned operations to comply with new regulations, pricing new loans at or below 24% interest rate

REVENUE STREAM CHANGES - Decrease in loan facilitation income offset by increases in tech-empowerment and e-commerce platform services

SHAREHOLDER VALUE - Co increased dividend payout ratio and repurchased $25 mln worth of ADSs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
RMB 3.42 bln
Q3 Adjusted EPS
RMB 3.06
Q3 EPS
RMB 2.93
Q3 Net Income
RMB 521.27 mln
Q3 Gross Profit
RMB 1.19 bln
Q3 Pretax Profit
RMB 646.82 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "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 $12.40, about 71.8% above its November 21 closing price of $3.50

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nGNXc0WD1Q

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(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.)