Strong Loan Volume and User Growth
LexinFintech (NASDAQ: LX) has announced its financial results for the first quarter of 2026, highlighting a period of significant platform expansion. The company reported total loan volume of RMB 57.9 billion, representing a 15.9% increase sequentially and a 12.2% rise year-over-year. Revenue reached RMB 3.3 billion, supported by a sharp increase in user engagement. Active users grew to 5.17 million, up 14.1% from the previous quarter, while new active users surged 63.3% sequentially to 1.44 million.
Diversified Business Model Offsets Consumer Finance Headwinds
Despite ongoing macroeconomic uncertainty affecting the online consumer finance sector, LexinFintech’s management emphasized the success of its diversified ecosystem. According to Chairman and CEO Jay Wenjie Xiao, segments including installment e-commerce, offline inclusive finance, and fintech empowerment now account for nearly 50% of the company’s total loan volume.
- Fintech Empowerment (ShuKe): This model, which involves partnerships with banks and internet platforms for risk assessment, saw loan volumes reach approximately RMB 31 billion.
- Installment E-commerce: Gross profit in this segment rose 24% sequentially to RMB 208 million, with the company expanding its product categories to include travel, apparel, and pet supplies.
- Offline Inclusive Finance: The company continues to expand into county-level markets, serving over 4 million small and micro merchants.
Improved Asset Quality and Risk Management
The company reported an improvement in asset quality as the impact of industry regulations has begun to subside. Chief Risk Officer Arvin Zhanwen Qiao noted that the day-one delinquency ratio for total assets declined by approximately 7% compared to the fourth quarter of 2025. LexinFintech has increasingly utilized large-scale AI models to enhance its risk management, enabling real-time credit line adjustments and more precise identification of high-quality borrowers, specifically among white-collar workers and microbusiness owners.
Financial Performance and Future Outlook
While revenue grew, net income for the quarter fell 5.9% sequentially to RMB 201 million. This decline was attributed to increased operating expenses related to marketing, user engagement, and infrastructure investment. Regarding the company’s capital allocation, management announced plans to cancel 20 million American depositary shares, representing roughly 12% of total outstanding shares, though new share repurchases remain temporarily suspended due to broader market uncertainty.
“The build-up of the ShuKe model creates a robust revenue pipeline, and it will improve our long-term asset quality and ensure steady profitability across market cycles,” said CFO James Zheng.
Looking ahead, LexinFintech remains cautious. Management has opted not to provide full-year financial targets, citing the unpredictable nature of the current macroeconomic environment. However, the company expects loan volume to remain stable as its diversified ecosystem continues to serve as a growth catalyst.
