Lexinfintech Holdings Ltd (LX) Price

LexinFintech Reports Strong Q3 2025 Earnings, Stock Surges on Profit Growth

## Executive Summary **LexinFintech Holdings Ltd.** ($LX) announced strong financial results for the third quarter of 2025, demonstrating significant operational resilience and profitability amidst a challenging macroeconomic environment. The company reported a 68.4% year-over-year increase in net income, driven by its strategic focus on scenario-based services and its broader business ecosystem. The market reacted positively to the news, with the company's U.S.-listed stock surging over 14% in pre-market trading, signaling investor confidence in its risk management and sustainable growth strategy. ## The Event in Detail For the third quarter ending September 30, 2025, **LexinFintech** posted total operating revenue of CNY 3.42 billion. Its Non-GAAP EBIT, a key measure of profitability, stood at CNY 675 million, marking a 1.5% increase from the previous quarter. Key financial highlights include: * **Net Income:** Net income attributable to ordinary shareholders was RMB 521 million, a substantial 68.4% increase from the same period in 2024. * **Adjusted Net Income:** Adjusted net income, which excludes items like share-based compensation and interest expense from convertible notes, rose 63.5% year-over-year to RMB 544 million. * **Transaction Volume:** The total loan origination volume for the quarter was CNY 50.89 billion. * **User Base:** The company's user base expanded to 240 million, representing a 7.7% increase year-over-year. The robust performance was reflected in the company's stock price, which saw a significant pre-market rally of over 14% on the day of the announcement. ## Business Strategy Analysis **LexinFintech's** Q3 results underscore a deliberate strategy centered on balancing growth with risk management. Management stated they "proactively moderated the growth pace" and enhanced "user categorization and risk identification" in response to "industry-wide risk fluctuation." This indicates a shift towards prioritizing high-quality customer groups and sustainable profitability over aggressive, high-risk expansion. The company is strengthening its focus on its "scenario-based and ecosystem businesses." This strategy leverages technology and a diverse consumer service portfolio to deepen customer engagement and create multiple revenue streams. The company’s recent accolades, including being named one of the "2025 Guangdong Top 100 Private Enterprises" and winning "Best AI Technology for Financial Technology Company in China," highlight its recognized leadership in applying advanced technology to financial services. ## Market Implications The immediate market implication was the sharp increase in **LexinFintech's** stock value, reflecting investor approval of the company’s ability to deliver strong net profit growth despite industry headwinds. While the report indicates a stable and positive outlook for **LexinFintech**, the direct impact on the broader fintech market is expected to be limited. However, the company's success serves as a case study for how fintech firms can navigate credit risk volatility and macroeconomic uncertainty through disciplined operational adjustments and technology-driven risk controls. The performance may bolster investor sentiment for established fintech players with proven risk management frameworks. ## Broader Context The financial report was delivered against a backdrop of what the company described as "uncertainty of the external environment" and "industry credit risk volatility." **LexinFintech's** ability to increase its net profit margin for seven consecutive quarters points to the effectiveness of its strategic pivot. By focusing on its core high-quality user base and leveraging AI in its risk management systems, the company has successfully balanced its business scale against external risks, positioning itself for what management hopes is stable and sustainable development.