Lexinfintech (LX)
NASDAQ:LX
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Lexinfintech Holdings
(NASDAQ:LX)
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Rating:72Outperform
Price Target:
$2.50
▼(-24.24% Downside)
Action:Upgraded
Date:05/04/26
The score is driven primarily by improved 2025 financial performance (better margins, leverage, and cash flow) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technical trend signals and a mixed earnings-call outlook with pricing pressure, elevated credit costs/delinquency, and limited forward guidance.
Positive Factors
Improved Profitability
Net margin expansion to ~12.8% in 2025 reflects sustained cost discipline, higher gross and operating margins and lower funding costs. Structural margin improvement increases cash generation and buffers the business versus cyclical shocks, supporting medium‑term resilience if margins hold.
Negative Factors
Top-line Contraction
Material revenue contraction reduces operating leverage and constrains reinvestment capacity. If originations and pricing do not recover, sustaining profits will rely on cost cuts or new revenue lines, increasing execution risk and making margin gains more fragile over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Net margin expansion to ~12.8% in 2025 reflects sustained cost discipline, higher gross and operating margins and lower funding costs. Structural margin improvement increases cash generation and buffers the business versus cyclical shocks, supporting medium‑term resilience if margins hold.
Read all positive factors
Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$328.30M
Dividend Yield8.86%
Average Volume (3M)1.44M
Price to Earnings (P/E)4.6
Beta (1Y)1.47
Revenue Growth-7.69%
EPS Growth48.72%
CountryUS
Employees4,667
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.60
Shares Outstanding146,889,050
10 Day Avg. Volume1,350,504
30 Day Avg. Volume1,437,849
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.32
Price to Sales (P/S)0.30
P/FCF Ratio1.19
Enterprise Value/Market Cap9.49
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit0.63
Enterprise Value/Ebitda1.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.09
Revenue Forecast (FY)$11.84B
Lexinfintech Holdings Business Overview & Revenue Model
Company Description
LexinFintech Holdings Ltd., through its subsidiaries, offers online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase...
How the Company Makes Money
LexinFintech primarily makes money by facilitating consumer credit transactions through its platform and earning fees for the services it provides in the process. Key revenue streams include: (1) Loan facilitation and related service fees earned w...
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The call communicates a mixed but resilient outlook: the company demonstrated strong full-year profitability, user rebound and meaningful improvements (AI adoption, e-commerce margin expansion, lower funding costs, stronger provisioning and capital/return measures). However, Q4 experienced significant top-line compression, higher credit costs and elevated delinquency metrics driven by regulatory-driven pricing caps and industry liquidity tightening. Management emphasized prudent risk management, ecosystem diversification and a cautious path to gradual recovery, while withholding full-year 2026 guidance due to macro uncertainty.Positive Updates
Full-Year Profitability and Growth
Net profit for full year 2025 was RMB 1.7 billion, representing a year-over-year increase of 52.4%.
Negative Updates
Quarterly Revenue and Net Income Decline
Total net revenue for Q4 was RMB 1.5 billion, down 26% (RMB 530 million) quarter-over-quarter; net income fell to RMB 214 million in Q4, a sequential decrease of RMB 307 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Profitability and Growth
Net profit for full year 2025 was RMB 1.7 billion, representing a year-over-year increase of 52.4%.
Read all positive updates
Company Guidance
Management guided that loan originations should remain roughly stable in Q1 2026 at Q4 levels (Q4 loan volume RMB50.0bn; FY2025 total loan volume RMB205.3bn), while they are not providing full‑year 2026 guidance; they expect pricing to continue down from the Q4 weighted‑average APR of 21.7% (down 140bps QoQ) and funding‑cost dynamics to remain important after funding cost fell from 4.4% to 3.8% in Q4. They said credit costs that rose by RMB185m to RMB1.3bn and a gross provision ratio on new loans of 7.24% (up 27bps QoQ, above historical peak vintage charge‑off ~6.1%) should gradually optimize but with prudent, ample provisioning retained, and they aim to bring loan risk back within target appetite by H2 2026 after seeing day‑1 delinquency improve (Dec down 8% vs Oct and over 10% decline from its October peak) despite Q4 QoQ day‑1 +7% and 90+ day delinquency +3%. Operationally they will become more proactive on high‑quality user acquisition as risk stabilizes, continue cost discipline (OPEX down 11% to RMB1.2bn), and maintain shareholder returns (Q4 net income RMB214m; cash ~RMB4.0bn; shareholders’ equity ~RMB12bn; ADS repurchases USD39m completed and CEO >USD10m personal buy; 2025 dividend USD0.2382 per ADS, >100% YoY).Lexinfintech Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.01B | 12.79B | 14.20B | 13.06B | 9.87B | 11.38B |
| Gross Profit | 4.97B | 9.24B | 5.03B | 4.51B | 3.03B | 5.75B |
| EBITDA | 1.81B | 2.37B | 1.51B | 1.52B | 1.23B | 2.98B |
| Net Income | 1.61B | 1.63B | 1.10B | 1.07B | 819.75M | 2.33B |
Balance Sheet | ||||||
| Total Assets | 22.51B | 23.18B | 22.24B | 23.14B | 22.77B | 21.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 3.95B | 2.33B | 2.82B | 1.76B | 2.66B |
| Total Debt | 4.88B | 4.80B | 5.27B | 5.51B | 9.26B | 7.67B |
| Total Liabilities | 10.91B | 11.22B | 11.50B | 13.43B | 14.12B | 12.96B |
| Stockholders Equity | 11.60B | 11.96B | 10.74B | 9.71B | 8.65B | 8.03B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.26B | 834.40M | 2.56B | -49.97M | 2.55B |
| Operating Cash Flow | 0.00 | 3.61B | 1.08B | 2.79B | 98.84M | 2.67B |
| Investing Cash Flow | 0.00 | -2.61B | -904.88M | 2.33B | -2.41B | 414.62M |
| Financing Cash Flow | 0.00 | -1.03B | -387.28M | -3.85B | 1.11B | -1.78B |
Lexinfintech Holdings Technical Analysis
Negative
3.30
Price Trends
2.13
Negative
2.44
Negative
3.51
Negative
Market Momentum
-0.06
Positive
37.52
Neutral
14.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Negative. The current price of 3.3 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 2.13, and below the 200-day MA of 3.51, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LX.
Lexinfintech Holdings Risk Analysis
Lexinfintech Holdings disclosed 106 risk factors in its most recent earnings report. Lexinfintech Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lexinfintech Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.16B | 5.42 | 15.80% | 5.20% | 4.05% | 8.52% | |
73 Outperform | $1.55B | 2.17 | 24.99% | 7.30% | 11.94% | 5.49% | |
72 Outperform | $328.30M | 4.55 | 14.37% | 8.86% | -7.69% | 48.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $165.95M | 28.48 | 0.54% | 10.37% | -1.41% | -98.13% | |
| ― | $2.33B | ― | -2.37% | ― | ― | ― |
* Financial Sector Average
LX
Lexinfintech Holdings
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Lexinfintech Holdings Corporate Events
LexinFintech Delivers Higher 2025 Profit on Lower Revenue as It Tightens Risk in China Consumer Finance
Mar 19, 2026
LexinFintech reported unaudited fourth-quarter and full-year 2025 results on March 19, 2026, showing solid annual profitability despite regulatory shifts and macro headwinds. Full-year 2025 net income attributable to ordinary shareholders jumped 5...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.