LexinFintech Holdings Ltd. (LX) saw its stock price surge 5.53% in after-hours trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The Chinese fintech company reported a significant year-over-year increase in net income and announced an increase in its dividend payout ratio, signaling confidence in its financial position and future prospects.

For the first quarter ended March 31, 2025, LexinFintech reported net income of RMB430.3 million ($59.3 million), representing a substantial 113% increase compared to the same period last year. The company's adjusted net income, which excludes share-based compensation expenses and investment loss, reached RMB471.6 million ($65.0 million). Despite a slight 4.3% year-over-year decrease in total operating revenue to RMB3,104 million ($427.8 million), LexinFintech demonstrated strong profitability improvements driven by enhanced asset quality and reduced funding costs.

In a move that further bolstered investor confidence, LexinFintech's board of directors approved an increase in the company's cash dividend payout ratio from 25% to 30% of total net income, effective from the second half of 2025. This decision underscores the company's commitment to delivering value to shareholders and reflects management's optimism about LexinFintech's financial stability and growth prospects. Looking ahead, the company expects to achieve significant year-over-year growth in net income for the full year 2025, driven by continued improvements in asset quality. However, management remains cautious due to ongoing macroeconomic uncertainties and may adjust its performance outlook as needed.