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Lexinfintech Holdings
(NASDAQ:LX)
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Rating:62Neutral
Price Target:
$0.79
▼(-39.08% Downside)
Action:Reiterated
Date:09/19/26
The score is driven primarily by improved underlying financial performance (better margins, deleveraging, and 2025 cash-flow rebound), but is held back by a weak technical setup (price below all major moving averages and bearish MACD) and a notably cautious earnings outlook that includes expected Q3 revenue decline and a net loss. Valuation is very compelling on P/E and dividend yield, but those signals appear risk-laden given the guidance and industry funding pressure.
Positive Factors
Improved Balance Sheet
The substantial reduction in leverage improves financial flexibility and lowers balance-sheet pressure compared with prior years. Greater equity support and improved returns on equity should help Lexin absorb industry volatility, maintain operations, and fund its transformation with less reliance on debt.
Negative Factors
Persistent Funding Constraints
Tighter funding availability directly limits loan origination capacity, which is central to Lexin's facilitation and service-fee economics. If constrained supply persists, lower balances and volumes can suppress revenue, reduce operating leverage, and delay recovery in the core credit business.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
The substantial reduction in leverage improves financial flexibility and lowers balance-sheet pressure compared with prior years. Greater equity support and improved returns on equity should help Lexin absorb industry volatility, maintain operations, and fund its transformation with less reliance on debt.
Read all positive factors
Lexinfintech Holdings (LX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.75M
Dividend Yield55.04%
Average Volume (3M)4.46M
Price to Earnings (P/E)0.8
Beta (1Y)1.57
Revenue Growth-4.17%
EPS Growth-34.34%
CountryUS
Employees7,169
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)6.16
Shares Outstanding146,889,050
10 Day Avg. Volume1,640,051
30 Day Avg. Volume4,461,755
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.32
Price to Sales (P/S)0.30
P/FCF Ratio1.19
Enterprise Value/Market Cap4.49
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.07
Enterprise Value/Ebitda0.35
Forecast
1Y Price Target
$1.20Price Target Upside-7.69% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.58
Revenue Forecast (FY)$10.78B
Lexinfintech Holdings Business Overview & Revenue Model
Company Description
LexinFintech Holdings Ltd., together with its subsidiaries, offers online direct sales and online consumer finance services in the People’s Republic of China. The company provides Fenqile, an online consumer finance platform that offers installmen...
How the Company Makes Money
LexinFintech generally earns revenue by facilitating consumer credit transactions and providing technology and related services around those transactions. Key monetization mechanisms typically include: (1) financing service fees and related charge...
Lexinfintech Holdings Earnings Call Summary
Earnings Call Date:Aug 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Negative
The call was dominated by significant industry-wide funding constraints, rising delinquency and credit costs, declining credit-business revenue and an expected third-quarter net loss. The company highlighted strong liquidity, compliance, cost reductions, AI capabilities, e-commerce profitability and progress toward a technology-empowered model, but these positives were outweighed by near-term financial pressure and limited visibility.Positive Updates
Q2 Business Generated RMB 55.43 Billion in Loan Volume
Lexin achieved loan volume of RMB 55.43 billion in the second quarter, generated revenue of RMB 3.19 billion and recorded net profit of RMB 101 million.
Negative Updates
Industry Risk Events Triggered Sector-Wide Funding Tightening
Risk events involving certain peers in late June triggered a crisis of confidence among funding providers, leading to broad-based tightening and even suspension of funding supply across the industry. Management said the funding environment is expected to remain tight for a while and that regulatory scrutiny may increase.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Business Generated RMB 55.43 Billion in Loan Volume
Lexin achieved loan volume of RMB 55.43 billion in the second quarter, generated revenue of RMB 3.19 billion and recorded net profit of RMB 101 million.
Read all positive updates
Company Guidance
Management expects funding supply to remain tight, new loan originations to “decline materially” and the 90 days plus delinquency ratio to “rise further” in the third quarter, while collection rate will “also see a decline”; revenue is expected to further decrease, credit risks and costs to trend upward, and the company to record a net loss in the third quarter, with one-time expenses primarily recognized in the third quarter. AI adoption is expected to deliver further cost reductions in the third quarter, and management costs are expected to come down by 30% to 40%; the company is not providing any specific financial guidance for the second half, will update business and financial guidance for Q4 as it gets more clarity on the regulatory front, and potential dividend declarations for 2026 will be assessed when it announces fourth quarter results in early 2027 after changing dividend distribution from a semiannual to an annual schedule.Lexinfintech Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.95B | 12.79B | 14.20B | 13.06B | 9.87B | 11.38B |
| Gross Profit | 7.85B | 9.24B | 5.03B | 4.51B | 3.03B | 5.75B |
| EBITDA | 1.47B | 2.37B | 1.51B | 1.52B | 1.23B | 2.98B |
| Net Income | 1.03B | 1.63B | 1.10B | 1.07B | 819.75M | 2.33B |
Balance Sheet | ||||||
| Total Assets | 22.39B | 23.18B | 22.24B | 23.14B | 22.77B | 21.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 3.95B | 2.33B | 2.82B | 1.76B | 2.66B |
| Total Debt | 3.69B | 4.80B | 5.27B | 5.51B | 9.26B | 7.67B |
| Total Liabilities | 10.38B | 11.22B | 11.50B | 13.43B | 14.12B | 12.96B |
| Stockholders Equity | 12.01B | 11.96B | 10.74B | 9.71B | 8.65B | 8.03B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.26B | 834.40M | 2.56B | -49.97M | 2.55B |
| Operating Cash Flow | 0.00 | 3.61B | 1.08B | 2.79B | 98.84M | 2.67B |
| Investing Cash Flow | 0.00 | -2.61B | -904.88M | 2.33B | -2.41B | 414.62M |
| Financing Cash Flow | 0.00 | -1.03B | -387.28M | -3.85B | 1.11B | -1.78B |
Lexinfintech Holdings Technical Analysis
Negative
1.30
Price Trends
1.07
Negative
1.49
Negative
2.00
Negative
Market Momentum
-0.11
Negative
25.00
Positive
6.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LX, the sentiment is Negative. The current price of 1.3 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 1.07, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 25.00 is Positive, neither overbought nor oversold. The STOCH value of 6.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LX.
Lexinfintech Holdings Risk Analysis
Lexinfintech Holdings disclosed 106 risk factors in its most recent earnings report. Lexinfintech Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lexinfintech Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $710.40M | 2.60 | 4.56% | 10.17% | -1.89% | -26.81% | |
67 Neutral | $800.95M | 0.89 | 15.36% | 19.47% | -7.92% | -41.54% | |
62 Neutral | $113.75M | 0.76 | 8.64% | 55.04% | -4.17% | -34.34% | |
52 Neutral | $82.78M | -0.17 | -16.95% | 21.10% | -27.36% | -220.29% | |
52 Neutral | $1.03B | -1.31 | -2.80% | 124.43% | ― | ― |
* Financial Sector Average
LX
Lexinfintech Holdings
0.69
-4.02
-85.27%
YRD
Yiren Digital
0.98
-5.40
-84.64%
FINV
FinVolution Group
3.01
-3.68
-55.03%
QFIN
Qifu Technology
6.37
-18.96
-74.85%
LU
Lufax Holding
1.01
-2.86
-73.90%
Lexinfintech Holdings Corporate Events
LexinFintech Second-Quarter Profit Plunges as Sector Turmoil Prompts Liquidity Focus
Aug 31, 2026
LexinFintech Holdings reported unaudited second-quarter 2026 results on August 31, 2026, showing GMV of RMB55.4 billion and operating revenue of RMB3.19 billion, while net income fell sharply to RMB101 million amid a complex industry environment a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.