LexinFintech Holdings Ltd. (NASDAQ: LX) saw its stock surge 5.65% in 24-hour 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 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.