LexinFintech Holdings Ltd. (NASDAQ: LX) saw its stock price plummet 5.22% in pre-market trading on Thursday, despite reporting strong year-over-year growth in its second-quarter earnings. The significant drop suggests that the company's financial results may have fallen short of market expectations or that other factors in the report raised concerns among investors.

The Chinese fintech company announced its Q2 2025 results before the market opened, reporting a net income of RMB 511 million ($71.39 million), representing a substantial 126% increase from the same period last year. Adjusted earnings per share rose to RMB 3.02 ($0.42), more than doubling from RMB 1.49 in Q2 2024. However, revenue slightly declined by 1.5% year-over-year to RMB 3.587 billion ($500.78 million).

While LexinFintech's bottom-line growth was impressive, the market's negative reaction could be attributed to several factors. The company's total loan originations, a key metric for fintech lenders, grew by only 3.5% year-over-year to RMB 52.9 billion. This modest growth may have disappointed investors expecting more robust expansion. Additionally, the slight decline in revenue despite loan growth suggests pressure on the company's margins or changes in its business mix. The market may also be concerned about the sustainability of the earnings growth in the face of challenging macroeconomic conditions in China.