LexinFintech Holdings Ltd. (NASDAQ: LX) saw its stock soar 5.53% in after-hours trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The Chinese fintech company reported substantial year-over-year growth in net income and announced an increase in its dividend payout ratio, driving investor enthusiasm.

For the quarter ended March 31, 2025, LexinFintech reported a net income of RMB430.3 million ($59.3 million), representing a remarkable 113% increase compared to the same period last year. The company's adjusted net income, which excludes share-based compensation expenses and investment-related items, reached RMB471.6 million ($65.0 million). Despite a slight 4.3% year-over-year decrease in total operating revenue to RMB3,104.1 million ($427.8 million), LexinFintech demonstrated strong profitability improvements driven by enhanced operational efficiency and risk management.

In addition to the robust financial performance, LexinFintech announced that its Board of Directors has approved an increase in the cash dividend payout ratio from 25% to 30% of total net income, effective from the second half of 2025. This move signals the company's confidence in its future prospects and commitment to delivering value to shareholders. Furthermore, LexinFintech's management expressed optimism about the full year 2025, expecting net income to achieve significant year-over-year growth driven by continued improvements in asset quality.

The combination of strong quarterly results, increased dividend payout, and positive outlook for the rest of the year appears to have fueled investor confidence, resulting in the 5.53% after-hours surge in LexinFintech's stock price. As the company continues to focus on enhancing its technology-driven financial services and maintaining robust risk management practices, investors seem encouraged by LexinFintech's growth trajectory and financial stability in the competitive Chinese fintech landscape.