Lexin (LX.US) Releases Q2 Financial Report: Scenario and Technology Business Account for Over 50%, AI Implementation Unlocks Operational Value, Ecosystem Business Grows Rapidly

On August 31, Beijing time, China's leading new consumption digital technology service provider Lexin (LX.US) released its unaudited financial results for the second quarter of 2026. Revenue reached 3.19 billion yuan, profit (Non-GAAP EBIT) was 187 million yuan, and transaction volume was 55.4 billion yuan. During the quarter, Lexin’s multi-year-developed diversified ecosystem business demonstrated operational resilience, with transaction volume from non-lending-aid businesses such as installment retail and TO B intelligent technology now accounting for more than 50% of total volume.

In the second quarter, the transaction volume of the company’s installment retail business increased by 6.3% quarter-on-quarter; TO B intelligent technology business transaction volume increased by 8% quarter-on-quarter; the cumulative registered user count reached 253 million, up 1.4% quarter-on-quarter and 7.2% year-on-year.

During the quarter, as AI applications continued to be implemented, the company’s operating costs decreased by 17.6% quarter-on-quarter.

Lexin CEO Xiao Wenjie stated: “The company always puts compliant operations first. Facing industry challenges, we proactively tightened risk management, strengthened cost and fund control, accelerated the application of AI to all business processes, and saw continued positive progress in ecosystem business development, further demonstrating operational resilience.

Looking ahead, the company will follow regulatory guidelines, steadily optimize our business layout, promote the expanded application of our accumulated technology, business, and operational capabilities over the years, and continue to strengthen our fintech capacity building to support long-term value generation. Although the industry outlook remains uncertain, we remain confident in the company’s long-term development.”

Continued Deepening of Installment Retail Scenarios to Boost Fundamental Consumption Release

In the quarter, against the backdrop of continuous macro consumption-promotion policies and steady recovery of domestic consumer demand, Lexin’s Fenqile Mall focused on expanding domestic demand and promoting consumption, leveraging the value of consumption scenarios and supply chains to further explore multilevel consumer potential, effectively satisfy the public’s demand for quality consumption, support the revival of the physical consumption market, and serve the overall growth of consumer spending.

Relying on the platform’s long-term accumulation of users, brands, and product supply capabilities, the company continued to improve both scenario and supply chain capabilities, enriching diverse consumption supply through well-known brand partnerships, brand flash sales, and the building of its own brands. During the quarter, approximately 440 new top brand partners were added, with several brands surpassing ten million yuan in short-term sales; in the brand flash sales channel, which focuses on high-value brand products, nearly 20 new well-known brand cooperation were added; the first OEM private-label product was launched and achieved steady sales growth.

During the quarter, coinciding with the mid-year consumption peak, Fenqile Mall launched activities such as the “Trendy Goods Festival,” “May Day Travel Season,” “520 Gifts Season,” and the “618 Shopping Festival.” By offering cash-back, new customer subsidies, and lotteries, the platform helped to release consumer vitality. During 618, the platform’s transaction volume increased by 28.14% quarter-on-quarter, transaction participants increased by 21.96% quarter-on-quarter, and the number of orders placed grew by 32.8% quarter-on-quarter, fully meeting consumers’ diversified and quality consumption needs.

(Fenqile Mall staff packing and shipping in the self-built logistics warehouse)

Rapid Growth of TO B Intelligent Technology Business Achieves Scalable Profitability

In the second quarter, the company’s TO B intelligent technology business, which has been developed over many years, continued to maintain rapid growth and achieve scalable profitability.

Leading online scenario-based internet platforms have accumulated massive numbers of users and consumption scenarios, becoming major traffic pools for licensed financial institutions striving for high-quality clients. These leading platforms are transforming towards light-asset and light-operation models. Traditional licensed institutions, in their retail transformation, have growing demand for high-quality assets and precise targeting, but still face obvious shortcomings in traffic integration and scenario adaptation. Against this background, third-party institutions with advanced fintech capabilities are emerging as key hubs connecting the “traffic side” and “funding side.”

The company leverages “Yunxi Technology PRO” as the carrier, systematically outputting its core intelligent technology capabilities and continuing to serve licensed institutions and traffic partners in line with regulatory direction. On one hand, using Lexin’s accumulated trillions in lending experience and practical technology implementation, through decision models, business strategies, and various asset enhancement models, and via localized deployment, we help financial institutions optimize their operating systems, build a more robust asset matrix, and improve the long-term quality efficiency of retail lending operations; on the other hand, we help traffic platforms efficiently distribute and monetize, achieving a win-win situation for all three parties.

Given today’s industry and regulatory environment, the TO B intelligent technology business possesses long-term value. The company will continue to increase investment to further empower the digitalization and intelligence transformation of financial institutions.

Accelerating Deep AI Applications, Operating Costs Fall 17.6% Quarter-on-Quarter

In the second quarter, the company further accelerated the deep application of AI in all business links, achieving significant cost and efficiency improvements across the AI full chain.

In AI-assisted human review, AI can automatically integrate all user qualification information to generate standardized risk assessment reports, reducing dependence on manual experience in the review process, and improving risk identification efficiency and accuracy. In terms of intelligent agent applications, this quarter, strategy agents further expanded applications, including aiding in the creation of risk control strategies, detecting illicit activities, and formulating exit strategies. By automatically mining risk features and generating strategic rules, these agents increased the accuracy of risk identification while reducing false positives for normal users.

As of now, the company has launched over 100 AI intelligent agent positions, fully covering core business scenarios such as intelligent strategy generation, compliance checks, post-loan management, and intelligent customer service. Technology empowerment is realizing the multiple goals of cost reduction, quality improvement, and efficiency gains, comprehensively elevating the company’s risk management and stable operation capabilities.

In addition, the company is exploring the productization and modular output of its mature AI capabilities, providing more standardized and replicable technology services to financial institutions through its TO B intelligent technology business. This enables greater release of commercial value from technological advantages and gives the company stronger fundamental capabilities for transformation and development. The continued implementation of AI technology greatly aids in achieving cost reduction targets. In the quarter, the company’s operating costs fell by 17.6% quarter-on-quarter. As AI technology continues to be deeply applied, it is expected that operating costs will decrease further in the third quarter.

(AI intelligent agents are widely applied across company business scenarios)

Intelligent Technology Empowers Full-Chain Consumer Protection, Improves Service and Ecosystem Governance Effectiveness

Lexin has always been driven by intelligent technology, adhering to the bottom line of regulatory compliance and continuously improving its consumer rights protection system. In the second quarter, relying on industry-leading AI technology, the company further upgraded its consumer protection mechanisms in terms of institutional systems, technical empowerment, ecosystem governance, and smart services, synergizing business and social value development. During the quarter, in the fields of user service and care, the company continuously improved service capabilities. Large model semantic understanding and long-text logical reasoning capabilities continued to improve, enabling more precise identification and response to user needs and driving continued optimization of the service experience, with many core service indicators maintaining a positive trend. Meanwhile, relying on model capabilities to enhance user behavior analysis and hierarchical management, differentiated services and care were provided to different user groups, further improving user experience and satisfaction.

Lexin extends consumer rights protection from internal risk control to ecosystem governance, deepening the “technology + police” collaboration model to accurately identify and actively combat various forms of financial crimes. During the quarter, responding to regulatory calls, the company publicly solicited illegal and non-compliant financial activity clues from society. As of now, nearly 22,000 whistleblower clues have been received, many of which have assisted police investigations. Faced with massive, complex information, the company has leveraged intelligent agents for black/grey industry identification, using AI technology for information extraction, risk identification, and relationship mining, achieving intelligent upgrades from clue discovery and case analysis to risk disposal. This marks a transition from reliance on manual experience to technological identification in illicit activity governance. Over the past two years, through close police-enterprise cooperation, the company has helped crack nearly one hundred financial crime cases in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, and other locations, dismantling 26 professional criminal gangs. Currently, the company will take advantage of continued anti-crime initiatives, deepen police-enterprise collaboration, crack down on illicit financial activities, and jointly build a clean and orderly financial ecosystem.