Lexin (LX.US) released Q2 financial report: Scenario and technology businesses account for more than 50%, AI implementation unleashes operational value, and ecological business is growing rapidly

On August 31, Beijing time, Lexin (LX.US), China's leading new consumer digital technology service provider, announced unaudited financial results for the second quarter of 2026. Revenue of $3.19 billion, profit (non-GAAP EBIT) of $187 million, and transaction volume of $55.4 billion. During the quarter, the company's diversified ecological business, which has been deeply cultivated for many years, showed operational resilience. Non-loan aid businesses such as instalment retail and TOB Digital Intelligence Technology accounted for more than 50% of transactions.

In the second quarter, the company's instalment retail business transaction volume increased 6.3% month-on-month; TOB digital intelligence business transaction volume increased 8% month-on-month; the cumulative number of registered users was 253 million, up 1.4% month-on-month, and 7.2% year-on-year.

During the quarter, with the gradual deepening of AI applications, the company's operating costs fell 17.6% month-on-month.

Xiao Wenjie, CEO of Lexin, said, “The company has always put compliance management first. Facing industry challenges, we have taken the initiative to tighten risk management, strengthen cost and capital control, and accelerate the application of AI in all business processes. The ecological business, which has been laid out over many years, has continued to make positive progress, and management resilience has been further demonstrated.

In the future, the company will follow regulatory guidelines, steadily optimize the business layout, promote the expansion and application of technology, business and operational capabilities accumulated over many years, continue to strengthen fintech capacity building, and provide support for long-term value creation. Although the future of the industry is still full of uncertainty, we remain confident in the long-term development of the company.”

Instalment retail continues to cultivate the scenario to help release the consumption that is just needed

During the quarter, against the backdrop of continued implementation of macro-consumer promotion policies and a steady recovery in domestic consumer demand, Lexin's phased shopping mall was based on expanding domestic demand and promoting consumption, giving full play to scenarios and supply chain values, continuing to explore multi-level consumption potential, effectively meet mass quality consumption needs, help the physical consumer market recover, and serve the overall growth of service consumption.

Relying on the platform's long-term accumulated user, brand and product supply capabilities, the company continues to improve scenarios and supply chain construction around well-known brand cooperation, brand sales, and private brand building to enrich diversified consumer supply. During the quarter, about 440 leading cooperative brands were added, and sales of multiple brand collaborations exceeded 10 million in the short term; the brand sale channel focused on cost-effective brand products, adding nearly 20 well-known brand collaborations; the first OEM's own brand product was launched, achieving steady sales growth.

During the quarter, coinciding with the mid-year consumption boom, Le Mall launched events such as “Trendy Goods Festival”, “May Day Travel Season”, “520 Rewards Season”, and “618 Hi Shopping Season” to help unleash consumer vitality through shopping refund, new customer allowances, and sweepstakes. During the 618 period, the platform's transaction amount increased by 28.14% month-on-month, the number of transactions increased by 21.96% month-on-month, and the number of transactions increased 32.8% month-on-month, fully meeting the diversified and quality consumer needs of consumers.

(Instalment delivery by Le Mall staff in a self-built logistics warehouse)

To B Digital Intelligence Technology's business is growing rapidly and achieving large-scale profits

In the second quarter, the TOB Digital Intelligence Technology business, which has continued its layout for many years, continued to grow rapidly and achieve large-scale profits.

Leading online and scenario-based Internet platforms have accumulated a large number of users and consumption scenarios, and are the main traffic pool for licensed financial institutions to compete for high-quality customers. Leading platforms are shifting towards asset-light and light-operating models. Traditional licensed institutions are increasingly demanding high-quality assets and accurate access in retail transformation, but there are obvious shortcomings in traffic access and scenario adaptation. In this context, third party institutions with leading fintech capabilities are becoming key hubs connecting the “traffic side” and the “capital side”.

Using “Yunxi Technology PRO” as the carrier, the company systematically exports the core capabilities of digital intelligence technology and continues to serve licensed institutions and traffic parties in accordance with regulatory guidance. On the one hand, it relies on Lexin's trillion-level credit experience accumulation and technology implementation practices to help financial institutions optimize operating systems, build more stable asset matrices, and improve the long-term management efficiency of retail credit through decision-making models, business strategies, and various asset credit enhancement models; on the other hand, it helps the efficient distribution and monetization of traffic platforms to fully achieve a win-win situation for all parties.

In the current industry and regulatory environment, TOB's digital intelligence business has long-term value, and the company will continue to increase investment to further assist financial institutions in their digital transformation.

Accelerate the deep application of AI and reduce operating costs by 17.6% month-on-month

In the second quarter, the company further accelerated the in-depth application of AI in all business processes, and achieved remarkable results in reducing costs and improving the efficiency of the entire AI link.

In terms of AI assisted human review, AI can automatically integrate all user qualification information, generate standardized risk assessment reports, reduce the reliance on human experience in human review processes, and improve risk identification efficiency and accuracy; in terms of smart applications, this quarter, strategic agents will further expand their application to assist in generating risk control strategies, identifying black and gray products, and formulating clearance strategies, automatically mining risk characteristics and generating policy rules to improve risk identification accuracy while reducing the probability of erroneous interception of normal users.

Up to now, the company has launched more than 100 AI intelligent positions, fully covering core business scenarios such as intelligent strategy generation, compliance verification, post-loan management, and intelligent customer service, to achieve multiple goals of cost reduction, quality improvement, and efficiency through technology, and comprehensively enhance the company's risk management and steady management capabilities.

In addition, the company is also exploring commercialization and modular output of mature AI capabilities to provide financial institutions with more standardized and replicable technical services through TOB digital intelligence technology business, so that technological advantages can unleash greater commercial value and provide more solid support for the company's transformation and development. AI technology continues to be implemented to fully help the company achieve its cost reduction goals. During the quarter, the company's operating costs fell 17.6% month-on-month. As AI technology continues to be applied in depth, the company's operating costs are expected to drop further in the third quarter.

(AI agents are widely used in various business scenarios of the company)

Digital intelligence technology runs through the consumer protection chain to improve the efficiency of service and ecological management

Lexin has always been driven by digital intelligence technology, adhering to the bottom line of compliance, and continuously improving the consumer rights protection system. In the second quarter, the company relied on industry-leading AI technology to continuously upgrade consumer insurance mechanisms in terms of institutional systems, technological empowerment, ecological governance and smart services to promote the collaborative development of business and social values. During the quarter, in the field of user service and user care, the company continued to improve service capabilities, and capabilities such as semantic understanding of large models and logical reasoning in long texts continued to improve, and was able to more accurately identify and respond to user needs, promote continuous optimization of service experience, and maintain improvement in many core service indicators; at the same time, it relied on model capabilities to strengthen user behavior analysis and hierarchical management to provide differentiated services and care for different groups, and user experience and satisfaction were further improved.

Lexin extends consumer rights protection from internal risk control to ecological governance, deepens the “technology+police” collaboration model, and accurately identifies and actively combats all types of financial “black and gray” behavior. During the quarter, the company responded to regulatory calls and publicly solicited clues about financial black and gray production violations. Up to now, nearly 22,000 reporting leads have been received, many of which have assisted the police in filing a case for investigation. Faced with massive and complex lead information, the company uses black and gray product recognition intelligence to carry out information extraction, risk identification, and relationship exploration through artificial intelligence technology to achieve an intelligent upgrade from clue discovery, case investigation and judgment to risk management, so that black and gray production management moves from relying on human experience to scientific identification. Over the past two years, the company has deeply cracked down on “black and gray production” in the financial sector through police and enterprise collaboration, collaborating with police in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei and other places to uncover nearly 100 cases of various financial black and gray production cases, and knock out 26 specialized criminal gangs. Currently, the company will rely on the anti-blackmail campaign as an opportunity to deepen cooperation between police and enterprises, crack down hard on financial corruption, and jointly build a clean and orderly financial ecosystem.