LexinFintech revenue drops 80% as it warns of possible net loss

LexinFintech reported about RMB3.19 billion in second-quarter 2026 revenue and net income of RMB101 million, an 80.2% year-on-year drop as the firm faced sector-wide funding tightening and a strategic focus on safeguarding asset quality. Loan originations rose about 4.8% to RMB55.4 billion, while outstanding principal fell 11.4%, reflecting a deliberate emphasis on liquidity and risk control. Income from credit facilitation and tech-empowerment services declined sharply, even as installment e-commerce platform income surged around 60.8%, underscoring a divergence within the business lines. The company signaled a more cautious near term, warning of significantly lower third-quarter loan originations and the potential for a net loss, and it adjusted its dividend policy to an annual evaluation cycle while exploring future share repurchases. Lexin’s leadership attributed the results to industry headwinds but stressed ongoing diversification, cost discipline, and enhanced liquidity management as foundations for long-term resilience. The quarter also highlighted strong growth in non-lending segments, contributing over half of total volume and supporting the company’s multi-year ecosystem strategy as it tightens risk controls and accelerates AI-driven efficiency initiatives.