Total Loan Volume Growth
Total loan volume reached RMB 57.9 billion in Q1 2026, up 15.9% quarter-over-quarter and 12.2% year-over-year.
Lexinfintech Holdings
· LX
May 25th, 2026
Summary
- Earnings Call Date:
- 2026-05-25
- Change Since:
- -10.31%
- Next Earnings Date:
- 2026-09-01
Earnings Call Sentiment
PositiveThe call highlights a clear and constructive transition toward a more diversified, ecosystem-driven business model with strong user growth, meaningful loan volume expansion, improvements in risk indicators, and rising contribution from fintech empowerment and installment e-commerce. These positives offset near-term headwinds in the traditional online consumer finance segment, a modest sequential decline in net income, higher operating expenses and lingering macro/regulatory uncertainty. Overall, the company portrays operational resilience and cautious optimism while maintaining a prudent posture on capital and risk.
Company Guidance
Management guided a prudent, steady recovery into Q2 while accelerating its diversified ecosystem — installment e‑commerce, offline inclusive finance and fintech empowerment — which already accounted for nearly 50% of total loan volume (Q1 loan volume RMB57.9bn, +15.9% QoQ, +12.2% YoY) and helped non‑online consumer finance GMV rise to ~50% of total GMV (up 42% sequentially). They expect total loan originations to remain relatively stable in Q2, continued expansion of prime segments (Q1 loan volume from prime white‑collar customers +56% QoQ; prime small‑and‑micro business customers +30% QoQ), and further asset‑quality improvement (day‑1 delinquency down ~7% QoQ, FPD30 for Q1 new loans expected to decline ~6%, 30‑day collection rates improved). Management also said credit costs should trend lower from Q1’s RMB1.3bn (up 0.8% QoQ) while keeping conservative provisioning (gross provision ratio for new capital‑heavy loans ~7.2%; coverage ratio 258%), continuing targeted investments in customer experience (operating expenses RMB1.4bn, +13.8% QoQ) and preserving liquidity (cash ~RMB3.3bn).
Strong User Growth
Active users increased to 5.17 million, up 14.1% QoQ and 8.6% YoY; new active users were 1.44 million, rising 63.3% QoQ and 101.6% YoY.
Revenue and Net Income Stability
Total revenue was RMB 3.3 billion, an 8.7% sequential increase; net income was RMB 201 million (reported as relatively stable despite a small sequential decline).
Diversified Ecosystem Momentum
Non-online consumer finance GMV grew to nearly 50% of total GMV, up 42% sequentially, with ecosystem businesses (installment e-commerce, offline inclusive finance, fintech empowerment) driving faster growth than online loan facilitation.
Fintech Empowerment Revenue Ramp
Tech/fintech empowerment service income contributed RMB 382 million to credit business growth; credit business net revenue rose to RMB 1.5 billion, a 7.2% QoQ increase.
Installment E-commerce Improvement
Installment e-commerce GMV held steady at RMB 2.2 billion; gross profit reached RMB 208 million (up 24% QoQ) and gross margin expanded by 169 basis points to 9.4%; orders from high-quality users increased 35.7%.
Prime Segment Expansion
Loan volume from prime white-collar customers rose 56% QoQ and from prime small & micro business customers rose 30% QoQ, reflecting successful prime segment management.
Risk Metrics Improving
Day-1 delinquency for total assets decreased about 7% QoQ; FPD30 for new loans initiated in Q1 expected to decline ~6%; 30-day collection rates improved month-over-month.
Conservative Provisioning and Coverage
Total credit cost was RMB 1.3 billion (up 0.8% QoQ, primarily volume-driven); gross provision ratio for new capital-heavy loans ~7.2% (exceeding historical peak vintage charge-off rate); coverage ratio was 258% in Q1.
Offline & Geographic Reach
Offline inclusive finance expanded county-level coverage (~100 counties), serving over 4 million small & micro merchants/individual operators; overseas business developed steadily.
Shareholder Return Action (Plan)
Company plans to cancel 20 million ADS, representing ~12% of outstanding shares, as a step to enhance shareholder returns (subject to completion and future repurchase decisions).
Operator
Good day, and thank you for standing by. Welcome to Lexin First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Will Tan, IR Director of the company. Please go ahead.
Will Tan
Thank you, operator. Hello, everyone. Welcome to our first quarter 2026 earnings conference call. Our results were released earlier today and concurrently available on our IR website. Today, you will hear from our Chairman and CEO, Mr. Jay Wenjie Xiao, who will provide an update on our overall performance and the strategies of our business. Our CFO, Mr. Arvin Zhanwen Qiao, will then provide more details on our risk management initiatives and updates.
Lastly, our CFO, Mr. James Zheng, will discuss our financial performance. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Last, please note that all figures are presented in renminbi terms and all comparisons are made on a quarter-over-quarter basis unless otherwise stated. Please kindly note Jay and Arvin will give their whole remarks in Chinese first, then the English version will be delivered by Jay's and Arvin's AI-based voices. With that, I'm now pleased to turn over the call to Mr. Jay Wenjie Xiao, Chairman and the CEO of Lexin. Please sir.
Jay Xiao
[Interpreted] Hi, everyone. Thanks for joining us today for our first quarter 2026 earnings call. In the first quarter, against the backdrop ...
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