SHENZHEN, China, Aug. 31, 2026 (GLOBE NEWSWIRE) -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, today announced its unaudited financial results for the quarter ended June 30, 2026.

Mr. Jay Wenjie Xiao, Chairman and Chief Executive Officer of Lexin, commented, "During the second quarter, the industry environment remained complex. Nevertheless, by prioritizing regulatory compliance and leveraging our diversified business ecosystem, we maintained our operational resilience. For the quarter, our GMV reached 55.4 billion, with total revenue of 3.2 billion and net income of 101 million.

In late June, risk events involving certain industry peers led to a sector-wide tightening of funding supply, impacting broader market sentiment and loan volume. In response, we have taken a disciplined approach to fortify our position: carefully managing our cost structure to enhance operational resilience, refining our risk parameters to safeguard asset quality, optimizing liquidity management for capital efficiency, and advancing our business diversification.

While near-term market uncertainty may persist for some time, our diversified business ecosystem provides a foundation for long-term sustainable operations and tech-empowerment transformation. We remain confident in the long-term fundamentals of our business.

Looking ahead, given the ongoing industry uncertainties, the Board has made a prudent decision to adjust our dividend policy to an annual evaluation cycle to preserve liquidity and maintain a financial buffer to support our business transformation. When market conditions stabilize and our operational performance recovers, the Board will actively evaluate options, including potential share repurchases, to enhance shareholder returns," Mr. Xiao concluded.

Mr. James Zheng, Chief Financial Officer of Lexin, commented, "During the second quarter, we continued to advance our business transformation under the new regulatory framework that took effect in the fourth quarter of last year, achieving progress that largely met our expectations.

The recent risk events involving certain industry players have sector-wide effects, and we have been correspondingly impacted by these headwinds. While we are taking proactive measures to mitigate these uncertainties, our near-term performance will foreseeably remain under considerable pressure. As we manage through this industry transition, we remain highly disciplined, scaling back volume to prioritize asset quality. Our immediate focus is to safeguard our liquidity, fortify our balance sheet, and position the Company to resume sustainable growth once market conditions normalize."

Second Quarter Operational Highlights:

User Base

   -- Total number of registered users across our platform reached 253 million 
      as of June 30, 2026, representing an increase of 7.2% from 236 million as 
      of June 30, 2025. 
 
   -- Number of active users1 in the second quarter of 2026 was 5.0 million, 
      representing an increase of 6.1% from 4.7 million in the second quarter 
      of 2025. 
 
   -- Number of cumulative borrowers with successful drawdown was 39.2 million 
      as of June 30, 2026, an increase of 11.4% from 35.2 million as of June 
      30, 2025. 

Loan Facilitation Business

   -- As of June 30, 2026, we cumulatively originated RMB1,644 billion in loans, 
      an increase of 15.0% from RMB1,430 billion as of June 30, 2025. 
   -- Total loan originations2 in the second quarter of 2026 was RMB55.4 
      billion, an increase of 4.8% from RMB52.9 billion in the second quarter 
      of 2025. 
 
   -- Total outstanding principal balance of loans3 was RMB93.7 billion as of 
      June 30, 2026, representing a decrease of 11.4% from RMB106 billion as of 
      June 30, 2025. 

Credit Performance(4)

   -- 90 day+ delinquency ratio5 was 3.6% as of June 30, 2026, as compared with 
      3.5% as of March 31, 2026. 
 
   -- First payment default rate (30 day+) for new loan originations was below 
      1% as of June 30, 2026. 

Installment E-commerce Platform Service

   -- GMV6 in the second quarter of 2026 for our installment e-commerce 
      platform service was RMB2,342 million, representing an increase of 15.5% 
      from RMB2,029 million in the second quarter of 2025. 
 
   -- In the second quarter of 2026, our installment e-commerce platform 
      service served over 700,000 users. 

Other Operational Highlights

   -- The weighted average tenor of loans originated in the second quarter of 
      2026 was approximately 10.7 months, as compared with 13.2 months in the 
      second quarter of 2025. 
 
   -- Repeated borrowers' contribution7 of loans across our platform for the 
      second quarter of 2026 was 85.7%. 

Second Quarter 2026 Financial Highlights:

   -- Total operating revenue was RMB3,187 million, representing a decrease of 
      11.2% from the second quarter of 2025. 
 
   -- Credit facilitation service income was RMB1,930 million, representing a 
      decrease of 15.0% from the second quarter of 2025. Tech-empowerment 
      service income was RMB473 million, representing a decrease of 43.0% from 
      the second quarter of 2025. Installment e-commerce platform service 
      income was RMB784 million, representing an increase of 60.8% from the 
      second quarter of 2025. 
 
   -- Net income attributable to ordinary shareholders of the Company was 
      RMB101 million, representing a decrease of 80.2% from the second quarter 
      of 2025. Net income per ADS attributable to ordinary shareholders of the 
      Company was RMB0.61 on a fully diluted basis. 
 
   -- Adjusted net income attributable to ordinary shareholders of the Company8 
      was RMB127 million, representing a decrease of 76.4% from the second 
      quarter of 2025. Adjusted net income per ADS attributable to ordinary 
      shareholders of the Company8 was RMB0.76 on a fully diluted basis. 

__________________________

   1. Active users refer to, for a specified period, users who made at least 
      one transaction during that period through our platform or through our 
      third-party partners' platforms using the credit line granted by us. 
 
   2. Total loan originations refer to the total principal amount of loans 
      originated during the given period through our platform or through our 
      third-party partners' platforms. 
 
   3. Total outstanding principal balance of loans refers to the total amount 
      of principal outstanding for loans facilitated and originated at the end 
      of each period, including loans guaranteed by our financial guarantee 
      companies and the loans facilitated across third party platforms that we 
      bear principal risk and excluding loans delinquent for more than 180 days 
      that are charged-off. 
 
   4. Loans under Intelligent Credit Platform are excluded from the calculation 
      of credit performance. Intelligent Credit Platform (ICP) is an 
      intelligent platform on our "Fenqile" app, under which we match borrowers 
      and financial institutions through big data and cloud computing 
      technology. For loans facilitated through ICP, the Company does not bear 
      principal risk. 
 
   5. "90 day+ delinquency rate" refers to the outstanding principal balance of 
      on- and off-balance sheet loans that were 91 to 180 calendar days past 
      due as a percentage of the total outstanding principal balance of on- and 
      off-balance sheet loans across our platform and those loans across third 
      party platforms that we bear principle risk as of a specific date. Loans 
      that are charged-off and loans under "ICP", E-commerce business and 
      overseas are not included in the delinquency rate calculation. 
 
   6. GMV refers to the total value of transactions completed for products 
      purchased on our e-commerce and Maiya channel, net of returns. 
 
   7. Repeated borrowers' contribution for a given period refers to the 
      principal amount of loans borrowed during that period by borrowers who 
      had previously made at least one successful drawdown as a percentage of 
      the total loan facilitation and origination volume through our platform 
      during that period. 
 
   8. Adjusted net income attributable to ordinary shareholders of the Company, 
      adjusted net income per ordinary share and per ADS attributable to 
      ordinary shareholders of the Company are non-GAAP financial measures. For 
      more information on non-GAAP financial measures, please see the section 
      of "Use of Non-GAAP Financial Measures Statement" and the tables 
      captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set 
      forth at the end of this press release. 

Second Quarter 2026 Financial Results:

Operating revenue was RMB3,187 million in the second quarter of 2026, as compared to RMB3,587 million in the second quarter of 2025.

Credit facilitation service income was RMB1,930 million in the second quarter of 2026, as compared to RMB2,270 million in the second quarter of 2025. The decrease was due to the decrease in loan facilitation and servicing fees-credit oriented revenue, as well as financing income.

Loan facilitation and servicing fees-credit oriented was RMB738 million in the second quarter of 2026, as compared to RMB1,131 million in the second quarter of 2025. The decrease was primarily due to the decrease in the APR of off-balance sheet loans and the decrease in origination of off-balance sheet loans.

Guarantee income was RMB759 million in the second quarter of 2026, as compared to RMB571 million in the second quarter of 2025. The increase was primarily due to the increase of outstanding balances in the off-balance sheet loans funded by certain institutional funding partners, which are accounted for under ASC 460, Guarantees.