LexinFintech (LX) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, June 2, 2026 astatine 12:25 PM CDT 25 min read

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Date

Thursday, March 19, 2026 astatine 7 a.m. ET

Call participants

• Chief Executive Officer — Jay Xiao

• Chief Risk Officer — Zhanwen Qiao

• Chief Financial Officer — Xigui Zheng

• Head of Investor Relations — Will Tan

Full Conference Call Transcript

Jay Xiao: [Interpreted] Hi, everyone. Thanks for joining america contiguous for our 4th fourth 2025 net call. In the 4th quarter, we optimized our concern operations wrong the caller regulatory framework, successfully achieving our objectives of stabilizing standard and mitigating risk. During this play of manufacture adjustment, our unsocial concern ecosystem demonstrated its differentiated advantages, starring to a important rebound successful progressive users. Guided by our semipermanent oriented philosophy, we are seeing the resilience of our multi-business synergy go progressively evident, further strengthening our quality to navigate concern cycles. In the 4th quarter, our indebtedness measurement reached RMB 50 cardinal and gross reached RMB 3 billion. Number of progressive users stood astatine 4.53 cardinal with 884,000 caller progressive users.

For the afloat twelvemonth of 2025, full indebtedness measurement was RMB 205.3 billion. Net nett was RMB 1.7 billion, representing a year-over-year summation of 52.4%. Next, I volition locomotion you done the cardinal initiatives we person undertaken since the 4th quarter. First, we proactively aligned our operations with the caller regulatory requirements, adhering to a precocious modular of compliance. Following the authoritative implementation of the caller regulations successful Q4 and gathering connected the earlier completion of concern adjustments and strategy deployment, we stay focused connected our customer-centric strategy to further optimize our merchandise matrix and personalized work experience.

By operating prudently wrong the regulatory framework, we person not lone enhanced our semipermanent sustainability and hazard resilience, but besides efficaciously connected fiscal services with marketplace demand. Through our diversified concern lines, including online user finance, installment e-commerce and off-line inclusive finance, we proceed to enactment the existent system and foster steadfast maturation successful user spending. Second, we person comprehensively strengthened our hazard absorption to guarantee dependable concern development. Since the 4th quarter, the manufacture has faced an upward inclination successful recognition risk. In response, we optimized our hazard strategies and maintained stringent standards for caller indebtedness quality.

By incorporating much real-time information dimensions, we person enhanced the proactiveness and precision of our hazard identification, starring to a month-over-month betterment successful hazard indicators for caller loans. Regarding our existing portfolio, we focused connected refined operations for high-quality assets. By optimizing recognition enactment allocations and implementing a differentiated pricing framework, we enhanced some merchandise competitiveness and the lawsuit experience, ensuring the continued stableness of our existing assets. Overall, we successfully stabilized our hazard illustration during the 4th with plus prime remaining dependable and cardinal hazard indicators improving monthly. Since the opening of 2026, respective cardinal hazard indicators person shown a affirmative trajectory successful January and February.