LexinFintech Holdings Ltd.

First-quarter 2026 loan volume was RMB 57.9 billion, up 15.9% quarter-over-quarter and 12.2% year-over-year. Revenue reached RMB 3.3 billion, and net profit was RMB 201 million. Net revenue from the credit business was RMB 1.5 billion, up 7.2% quarter-over-quarter, while net income from installment e-commerce was RMB 208 million. E-commerce gross profit reached RMB 208 million, up 24%, with gross margin expanding 169 basis points to 9.4%. Credit cost was RMB 1.3 billion, up 0.8% sequentially, and cash, cash equivalents and restricted cash were approximately RMB 3.3 billion as of March 31. For guidance, management said total loan originations in the second quarter are expected to remain relatively stable, and full-year 2026 outlook remains cautious with no specific numeric guidance given.

Jay Xiao’s core message was that Lexin’s long-built diversified ecosystem is starting to show its value, with installment e-commerce, offline inclusive finance and fintech empowerment now accounting for nearly half of loan volume. He emphasized the company’s transition from old to new growth drivers and said the strategy is aimed at healthier, more sustainable development. His tone was confident but measured, repeatedly stressing compliance, customer experience, and resilience rather than aggressive growth.

The CFO said the first quarter’s RMB 3.3 billion of revenue and RMB 201 million of net income reflected a structurally stronger mix, even as online consumer finance faced macro and pricing pressure. He highlighted net credit-business revenue of RMB 1.5 billion, supported by RMB 382 million of tech empowerment service income, and said the e-commerce business produced RMB 208 million of gross profit with 9.4% gross margin. He also cited total credit cost of RMB 1.3 billion, a gross provision ratio of about 7.2% for new capital-heavy loans, a coverage ratio of 258%, and cash of about RMB 3.3 billion, while saying expenses rose mainly from ecosystem user engagement and service infrastructure investment.

Analysts focused on the impact of new regulations, the asset-quality trend, full-year outlook, and shareholder returns. Management said the industry is becoming more mature and compliance-focused, but still has room for healthy growth, and reiterated that asset quality is improving across both existing and new loans. On the full-year view, management declined to give specific numbers but said online consumer finance may remain pressured, ecosystem businesses should support relatively stable loan volume, credit costs should ease if macro conditions hold, and expenses should be managed carefully. On capital returns, management said it plans to cancel 20 million ADS, representing about 12% of outstanding shares, but has temporarily suspended new buybacks due to macro uncertainty.