China's LexinFintech Q2 revenue falls 11%, profit drops 76%
LX•Drivers behind the quarter
- Sector headwinds - The company said sector-wide tightening of funding supply and recent risk events among peers negatively affected loan volume and market sentiment.
- Loan facilitation decline - It attributed the drop in credit facilitation service income to a decreased APR and lower origination of off-balance sheet loans.
- E-commerce platform growth - Installment e-commerce platform service income increased due to higher transaction volume.
Outlook and capital returns
The company expects Q3 2026 loan origination to decrease significantly quarter-over-quarter and said it may incur a net loss in Q3 2026.
It also said it has shifted to annual dividend evaluation and repurchased 5.8% of shares under its prior program.
Q2 revenue and profit decline
China's LexinFintech Q2 revenue fell 11% year over year amid sector funding and regulatory headwinds, while adjusted net income dropped 76% year over year as the company prioritized asset quality.
Key quarterly figures and analyst coverage
| Metric | Actual |
|---|---|
| Q2 Revenue | RMB 3.19 billion |
| Q2 Adjusted Net Income per ADS | RMB 0.76 |
| Q2 Net Income per ADS |
