China's LexinFintech Q4 revenue falls 17% as risk management weighs

Overview

• China fintech platform's Q4 revenue fell 17% yr/yr as risk management weighed on results

• Q4 adjusted net income dropped 39% yr/yr amid regulatory transition and industry volatility

• Company declared US$0.188 per ADS dividend and repurchased US$39 mln in shares

Outlook

• LexinFintech expects Q1 2026 total loan origination to remain flat due to macro uncertainties

• Company says it may adjust performance outlook as circumstances evolve

• LexinFintech remains cautious despite improving risk metrics, citing macroeconomic uncertainty

Result Drivers

• RISK MANAGEMENT AND PRICING - Co said proactive risk management and pricing adjustments weighed on Q4 net income

• DECLINE IN LOAN ORIGINATION AND APR - Lower loan origination volumes and reduced APRs on off-balance sheet loans led to decreased credit facilitation income

• TECH-EMPOWERMENT SERVICE DROP - Tech-empowerment service income fell sharply due to lower loan facilitation volume through ICP

Company press release: ID:nGNX525rdm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 $5.80, about 123.9% above its March 18 closing price of $2.59

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

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