LexinFintech Holdings Ltd., operator of the Fenqile platform recently subjected to regulatory talks, has released its fourth-quarter and full-year 2025 results, which appear to fall short of expectations. According to the announcement, Lexin reported total revenue of RMB 3.043 billion in Q4 2025, down 16.8% year-over-year, with a notably steeper decline compared to the first three quarters. Credit facilitation service revenue decreased by 8.4% to RMB 2.485 billion, while technology-enabled service revenue plummeted 71.7% to RMB 170 million. However, installment e-commerce platform service revenue rose 12.5% to RMB 388 million.
Net income attributable to ordinary shareholders for the quarter dropped 41% to RMB 214 million, with adjusted net income down 38.9% to RMB 239 million. For the full year 2025, Lexin’s total revenue declined 7.4% to RMB 13.152 billion. Credit facilitation service revenue fell 13.1% to RMB 9.562 billion, though technology-enabled service revenue increased 10.6% to RMB 2.081 billion, and installment e-commerce platform revenue grew 14.1% to RMB 1.509 billion. Full-year net income attributable to ordinary shareholders rose 52.4% to RMB 1.677 billion, with adjusted net income up 49.2% to RMB 1.795 billion.
The fourth-quarter performance was significantly affected by the implementation of new internet-assisted lending regulations issued by the National Financial Regulatory Administration, effective October 1, 2025. These rules aim to standardize the lending industry and curb issues such as usury and aggressive collection practices. Lexin’s Chairman and CEO Xiao Wenjie stated, “The fourth quarter marked an important transition as we adapted to the new regulatory framework. Amid increased industry volatility, our proactive compliance efforts and rigorous risk management enabled a stable transition while balancing business scale and asset quality.”
Despite these efforts, Lexin was summoned by regulators last week for discussions, highlighting ongoing compliance challenges. Recent reports indicate that some non-mainstream institutions continue to circumvent regulations through disguised high-interest practices, such as mandatory membership fees and short-term high-rate products.
Regulators have instructed Lexin to standardize marketing practices, clearly disclose loan terms, adhere to personal information protection laws, conduct collections legally, and improve customer complaint mechanisms to protect consumer rights.
Founded in 2013 and headquartered in Shenzhen, Lexin went public on the Nasdaq in late 2017. Its business segments include Fenqile Mall (installment retail), Fenqile Consumer Finance, Fenqile Inclusive Finance, and overseas consumer lending. As of the end of 2025, Lexin had 245 million registered users, up 7.6% year-over-year. Active users in Q4 totaled 4.5 million, down 3.8%, while full-year active users reached 8.2 million, a slight 0.3% increase. Cumulative borrowers with successful drawdowns grew 8.9% to 36.7 million, and total loan issuance rose 15.5% to RMB 1.53 trillion. However, Q4 loan volume fell 3.8% to RMB 50 billion, and full-year volume declined 3.2% to RMB 205 billion.
Outstanding loan principal balance decreased 12.4% to RMB 96.6 billion from RMB 110 billion a year earlier. The 90+ day delinquency rate edged up to 3.1% from 3.0% at the end of September 2025, though the first payment default rate for new loans remained below 1%. The average loan term held steady at 12.9 months, and repeat borrowers accounted for 86.4% of loan volume. As the assisted lending industry enters a new phase of normalization in 2026, Lexin believes it is well-positioned to capture consolidation opportunities.