LexinFintech Holdings Ltd. (LX): Business Model Canvas [Dec-2025 Updated]

You're trying to get a precise read on LexinFintech Holdings Ltd.'s playbook now that the regulatory dust has settled. Honestly, their model is a masterclass in balancing growth with capital efficiency: they use their $\text{240 million}$ registered users and sharp AI risk systems to push out loans like the $\text{RMB50.9 billion}$ originated in Q3 2025, all while keeping funding costs down via institutional partners. This isn't just lending; it's an integrated consumption-finance ecosystem. I've broken down their entire nine-block Business Model Canvas, complete with Q3 2025 revenue figures, so you can see exactly where the money is made and what risks they're managing. Dive in below for the full strategic map.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Key Partnerships

You're mapping out LexinFintech Holdings Ltd.'s strategic alliances, which are the backbone of its technology-empowered financial service model, especially as it navigates the post-regulatory environment of late 2025. The focus here is on how these external relationships-from funding sources to technology enablers-allow LexinFintech to operate with agility, particularly in its capital-light strategy.

Major Chinese commercial banks for funding and credit risk sharing

LexinFintech Holdings Ltd. relies on collaboration with financial institutions to fund its on-balance sheet loan book and share credit risk. While specific commercial bank names aren't always public, the financial impact of these funding relationships is clear. For instance, funding costs for new loans under the capital-heavy model dropped to 3.93% in Q1 2025, down by 9 basis points, showing improved terms with funding partners. The funding cost for Q1 2025 was RMB 83.0 million, down from RMB 90.7 million in Q1 2024. The company actively collaborates with financial institutions to optimize funding supply.

Institutional funding partners for the capital-light model

The pivot to a capital-light, technology-centric approach is heavily dependent on institutional funding partners who take on principal risk. This strategy allows LexinFintech Holdings Ltd. to manage risk exposure effectively. In Q1 2025, the total volume under the capital-light model, where LexinFintech doesn't take principal risk for higher-risk customers, increased by 43% quarter-over-quarter. This volume accounted for 28% of the total Gross Merchandise Volume (GMV), a significant jump from 20% in the prior quarter. The reduction in off-balance sheet loans funded by certain institutional funding partners in Q1 2025 impacted guarantee income.

Third-party e-commerce platforms for customer acquisition and loan distribution

Third-party platforms are crucial for reaching the young consumer segment and driving transaction volume, which feeds into loan origination. LexinFintech Holdings Ltd.'s installment e-commerce business is a key driver for customer acquisition and engagement. The company has upgraded its e-commerce platform supply chain and introduced branded merchants. The platform served over 520,000 users in Q3 2025. For context on the scale of transactions these partnerships facilitate, the GMV for essential daily consumer goods on the platform surged 133.8% year-over-year during the recent Singles' Day Shopping Festival.

Cloud and AI technology providers (e.g., Tencent Cloud) for infrastructure

Technology partners provide the essential infrastructure for LexinFintech Holdings Ltd.'s risk management and operational efficiency. The company was recognized in June 2025 for its leadership in AI technology within the fintech industry. This is powered by proprietary technology like its self-developed large model, Lexin GPT, which uses multidimensional data. The deployment of integrated AI agents has tangibly improved operations; for example, user request identification accuracy improved by over 20%. The tech-empowerment service income, which reflects the use of this proprietary technology, grew 72.8% year-over-year in Q1 2025, reaching RMB 625 million.

Merchants on the Fenqile installment e-commerce platform

Merchants on Fenqile are a direct component of the value proposition, offering goods that drive installment loan demand. The number of merchants LexinFintech Holdings Ltd. partners with directly on its installment e-commerce platform shows the breadth of its retail ecosystem. In Q1 2025, the platform served 200 merchants. This number was around 180 merchants in Q2 2025. The tech-empowerment service, which supports these financial institutions and partners, served over 95 business customers in Q1 2025, maintaining a customer retention rate of over 80%.

Here's a snapshot of the quantitative output from these key partnerships across the first three quarters of 2025:

The success of these partnerships directly impacts the bottom line; for example, Q3 2025 net income reached RMB 521 million, a 68% year-over-year increase.

• Tech-empowerment service retained over 80% of its business customers in Q1 2025.
• The company's overall loan volume reached RMB 50.89 billion in Q3 2025.
• The capital-light model helped LexinFintech Holdings Ltd. maintain a net profit take rate of 2.01% in Q3 2025.

Finance: draft the Q4 2025 funding utilization forecast by next Tuesday.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Key Activities

You're looking at the core engine driving LexinFintech Holdings Ltd.'s operations as of late 2025, post-major regulatory adjustments. The key activities center on technology deployment, core lending volume management, platform refinement, strict compliance adherence, and geographic diversification.

Developing and deploying AI-driven risk management (Lexin GPT) is a critical ongoing activity. LexinFintech's self-developed large model, Lexin GPT, has been enhanced with multidimensional data, which has improved the accuracy of user request identification by over 20% and significantly boosted request solution efficiency. This technology is now embedded across the entire digital lending lifecycle, from marketing to post-loan management. The firm's commitment to this area was recognized when it was awarded "Best AI Technology for Financial Technology Company in China" at The Asian Banker Awards 2025.

The activity of facilitating loan originations remains central, though adjusted for the new environment. Total loan originations in the third quarter of 2025 reached RMB50.9 billion. This volume represented a slight decrease of 0.2% compared to the RMB51.0 billion originated in the third quarter of 2024. As of September 30, 2025, the total cumulative loans originated stood at RMB1,480.5 billion.

Operating and refining the installment e-commerce platform shows significant growth in its specific segment. The Gross Merchandise Volume (GMV) for the installment e-commerce platform service in Q3 2025 was RMB2,313 million, marking a massive increase of 180% from RMB827 million in Q3 2024. This platform served over 520,000 users during that quarter. The net revenue from this e-commerce business grew by 14%, adding RMB 14 million to reach RMB 111 million in Q3 2025.

Ensuring regulatory compliance is a non-negotiable activity following recent policy shifts. LexinFintech Holdings Ltd. efficiently completed its business adjustments to comply with new regulations during Q3 2025. A concrete measure of this compliance is that all new loans originated starting October 1, 2025, have been priced at or below a 24% annual interest rate. Asset quality monitoring is also key, with the 90-day-plus delinquency ratio reported at 3.0% as of September 30, 2025.

The final key activity involves expanding overseas business, like the foray into Mexico. This international expansion signals a strategic move to diversify away from the domestic market risks. The company's operations in Mexico are characterized as a "strong double-digit quarter-over-quarter grower". This geographic diversification is part of a broader ecosystem growth plan that includes fintech, e-commerce, and micro-business lending.

Here are some key operational metrics from the third quarter of 2025:

The technology deployment supports these activities through specific internal systems:

• The "Gauss" customer data platform ensures standardized data assets.
• The "Riemann" anomaly attribution system provides intelligent analytics.
• The "Turing" simulation engine supports smart decision-making processes.
• AI-powered platform delivers automated risk strategy recommendations.

The company's focus on high-quality customers is evident in the user base metrics:

• Number of active users in Q3 2025 was 4.4 million.
• Cumulative borrowers with successful drawdown reached 35.9 million as of September 30, 2025.

Compliance also involves managing the balance sheet structure, which as of September 30, 2025, showed total assets of RMB23 billion and cash and equivalents of RMB2.19 billion.

Finance: draft 13-week cash view by Friday.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Key Resources

You're looking at the core assets LexinFintech Holdings Ltd. relies on to operate its credit technology-empowered personal financial service model as of late 2025. These aren't just line items; they're the engine room.

Proprietary big data and AI-driven credit risk management systems are central. The effectiveness of these systems is reflected in the asset quality metrics. The 90-day delinquency ratio for the total loan portfolio was reported as stable at 3.0% as of Q3 2025. This follows earlier improvements, where the day-one delinquency ratio for the total loan portfolio dropped by 4% in Q4 2024. Furthermore, the first payment default rate within 7 days for new loans saw an 8% sequential improvement in Q4 2024. The company's investment in this area is shown by Research and development expenses in the third quarter of 2025 being RMB150 million.

The scale of the customer base is a massive resource. LexinFintech Holdings Ltd. has built a substantial network of users who form the foundation for its lending and e-commerce activities. This resource is detailed below:

The Fenqile installment e-commerce platform and app ecosystem is another critical asset, driving both transaction volume and user engagement outside of pure credit facilitation. This ecosystem is growing rapidly, especially in Gross Merchandise Volume (GMV).

• GMV for the installment e-commerce platform service in Q3 2025 reached RMB2,313 million.
• This Q3 2025 GMV represented an increase of 180% compared to Q3 2024.
• The platform served over 520,000 users in the third quarter of 2025.

LexinFintech Holdings Ltd. maintains strong relationships with institutional funding partners, which is essential for funding its loan originations. While the exact count isn't in the latest reports, the financial scale of funding is evident. For instance, the funding cost in the second quarter of 2025 was RMB59.9 million, down from RMB90.5 million in Q2 2024, partly due to a decrease in the balance of funding debts. The company is a technology-empowered enabler connecting consumers with financial institutions.

Finally, the intellectual property related to fintech and data analytics underpins the entire operation. This is evidenced by the growth in tech-empowerment services, which saw income increase by 18.9% in Q3 2025. The company's mission explicitly states its use of technology and risk management expertise. The R&D expenses for Q3 2025 were RMB150 million.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Value Propositions

You're looking at how LexinFintech Holdings Ltd. delivers value to its users in the current operating environment, which, as of late 2025, is heavily shaped by new regulations. The core value proposition centers on speed, access, and compliance.

Quick, convenient digital lending with fast processing times is a foundational promise. While exact processing times aren't published as a KPI, the scale of operations suggests efficiency. In the third quarter of 2025, total loan originations reached RMB 50.9 billion, showing the continuous flow of credit facilitated through their digital channels. This volume supports a registered user base that hit 240 million as of September 30, 2025.

The service is specifically tailored for access to installment financing for young, educated consumers. The platform maintains a deep relationship with its user base; the number of active users who used loan products in the third quarter of 2025 was 4.4 million. Furthermore, the base of cumulative borrowers who successfully drew down a loan reached 35.9 million as of September 30, 2025.

LexinFintech Holdings Ltd. provides diversified financial products for high-quality and long-tail segments, a strategy that has become critical for profitability. This diversification is evident in the revenue mix, which balances traditional credit facilitation with growth in tech and e-commerce services. The company's net income take rate, a measure of profitability against the loan balance, advanced to 2.01% in Q3 2025, achieving the year-end target ahead of schedule.

Here's a quick look at how the revenue streams contributed in Q3 2025, showing this diversification in action:

The commitment to compliance with regulatory interest rate caps for borrower safety is a non-negotiable value point now. Effective October 1, 2025, LexinFintech Holdings Ltd. implemented a strict pricing policy, ensuring all new loans are priced at or below an annual interest rate of 24%. This proactive compliance helped maintain overall risk fluctuation under control for both new and existing loans during the quarter.

The final key value is the integrated consumption and financing experience via Fenqile. This platform blends retail with credit, which is reflected in the growth of the installment e-commerce segment. While the third-party seller model accounted for 85% of e-commerce GMV in Q3 2025, up from 75% last quarter, the income from this service line grew to RMB 345 million. This synergy helps drive user engagement and asset quality improvement. You see the success in the growth of the tech-empowerment service income, which rose to RMB 456 million, an 18.9% increase year-over-year.

The value proposition is further supported by shareholder returns, reflecting financial stability:

• Net income for Q3 2025 was RMB 521 million, a 68% increase year-over-year.
• The dividend payout ratio was increased to 30% of net profit.
• Share repurchases totaled approximately US$25 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Customer Relationships

You're looking at how LexinFintech Holdings Ltd. manages its massive user base, which stood at 240 million total registered users as of September 30, 2025. That's a jump of 7.7% from the 223 million registered users in the year-ago quarter. The relationship strategy is clearly tiered, moving from broad digital interaction to more specific, high-value engagement.

Automated, self-service digital platforms for mass user interaction

The foundation of the relationship is the self-service digital platform, primarily the Fenqile app, which hosts the Intelligent Credit Platform (ICP) to match borrowers with financial institutions. This automation handles the bulk of the interaction. As of Q3 2025, the number of active users utilizing their loan products was 4.4 million. The scale of the platform is evident in the cumulative number of borrowers who have successfully drawn down loans, reaching 35.9 million by September 30, 2025.

Here's a snapshot of the platform's scale as of late 2025:

Tailored solutions like flexible repayment for prime customers

To manage risk and cater to better-quality borrowers, LexinFintech Holdings Ltd. has tightened its credit standards, which acts as a form of tailored service by focusing on lower-risk profiles. Management confirmed that all new loans originated starting October 1, 2025, were priced at or below a 24% annual interest rate, a direct response to regulatory shifts. This focus on quality is reflected in asset quality metrics. The 90-day-plus delinquency ratio improved to 3.0% as of September 30, 2025, down from 3.1% at the end of Q2 2025. Furthermore, the first payment default rate (30-day-plus) for new loan originations remained very low, below 1% as of March 31, 2025. This suggests that the customers who remain and qualify for the current offerings are high-quality.

One-on-one services for high-quality, high-value customer segments

While the platform is largely automated, the focus on credit quality inherently directs resources toward higher-value segments. The company's credit business net revenue take rate saw a significant increase in Q2 2025, rising to 7.51% from 6.69% the previous quarter, indicating better monetization from the credit-worthy pool. The APR for the capital-heavy model also ticked up to 23.2% in Q2 2025, showing that the pricing power on the best assets is being captured. You can see this as a form of one-on-one service-better pricing and terms for the best-rated customers.

Data-driven customer re-offers to boost loyalty and retention

The use of proprietary data analytics is central to driving repeat business. The company has enhanced its AI technology deployment, which improved user request identification accuracy by over 20% in Q3 2025. This precision directly feeds into better re-offer strategies. While the exact repeat borrower contribution percentage for 2025 isn't explicitly stated, the company tracks the principal amount of loans borrowed by users who have previously made a successful drawdown, which is the direct measure of retention success. The commitment to long-term holders is also underscored by the board approving an increase in the cash dividend payout ratio to 30% of total net income, effective from the second half of 2025, up from 25%.

Community and content engagement for young consumers

For younger consumers, LexinFintech Holdings Ltd. uses its installment e-commerce platform as a primary engagement tool, which is essentially a content and commerce ecosystem. The Gross Merchandise Volume (GMV) for this service in Q3 2025 hit RMB2,313 million, representing a massive 180% increase year-over-year. Specifically, GMV for essential daily consumer goods grew 133.8% year-over-year in Q3 2025. This platform serves over 520,000 users in a quarter, showing that content and commerce are key to keeping the young user base active outside of pure lending. Finance: draft 13-week cash view by Friday.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Channels

The distribution and customer access strategy for LexinFintech Holdings Ltd. (LX) relies on a mix of proprietary digital assets and technology-enabled partnerships as of late 2025.

Fenqile installment e-commerce platform (primary mobile app)

The Fenqile platform serves as the core channel for LexinFintech Holdings Ltd. operations.

• Total number of registered users reached 240 million as of September 30, 2025.
• Number of cumulative borrowers with successful drawdown was 35.9 million as of September 30, 2025.
• Loan originations for the third quarter of 2025 totaled RMB 50.9 billion.
• E-commerce platform Gross Merchandise Volume (GMV) increased by 38% year-over-year in the third quarter of 2025.
• GMV for essential daily consumer goods on the e-commerce platform grew 58.5% quarter-over-quarter and 133.8% year-over-year in Q3 2025.
• Installment e-commerce platform service income for Q3 2025 was RMB 345 million, marking an increase of 11.8% year-over-year.

Online advertising and referral services for customer acquisition

Customer acquisition efficiency is managed through cost controls across marketing channels.

• Total operating expenses, which include sales and marketing expenses, decreased by 4% quarter-over-quarter to RMB 1.4 billion in Q3 2025.
• This reduction in operating expenses reflects a reprioritization of user acquisition costs during the business transition period.

Direct integration with third-party e-commerce platforms (e.g., Alibaba, JD.com)

Technology-empowerment services channel revenue reflects activity from partners and third-party integrations.

The company also provides scenario-based lending through its Le Hua Card offering.

Offline inclusive finance channels targeting micro business owners

Specific standalone financial figures for purely offline channels are not explicitly detailed in the latest reports, but the overall business model includes technology-driven platform services for financial institution customers and partners.

Mobile application stores and digital marketplaces

The primary mobile app, Fenqile, is distributed through digital marketplaces, contributing to the overall user base growth.

• Total registered users grew to 240 million as of September 30, 2025, up 7.7% from September 30, 2024.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Customer Segments

You're looking at the core of LexinFintech Holdings Ltd.'s business, which is deeply rooted in serving the credit needs of China's younger demographic. This segment is the engine for their consumer finance operations, and the numbers from late 2025 show a focus on quality and scale.

The primary customer base for LexinFintech Holdings Ltd. is the young generation of consumers in China, who are targeted for their high growth potential in credit markets. This focus is supported by their AI and big data capabilities for risk management.

Here are the key metrics defining the scale of the customer base as of the third quarter of 2025:

• Total registered users reached 240 million as of September 30, 2025.
• Users who had credit lines available stood at 47.2 million as of June 30, 2025.
• The number of cumulative borrowers who successfully drew down a loan reached 35.9 million as of September 30, 2025.
• Active users utilizing loan products in Q3 2025 were 4.4 million.

LexinFintech Holdings Ltd. segments its customers based on product usage and quality:

High-Quality, Prime Customers:

The company targets high-quality, prime customers, which is reflected in their improving asset quality metrics. This focus helps manage risk, especially given the evolving regulatory landscape, which now mandates a maximum annual interest rate of 24% for new loans originated starting October 1, 2025.

• The 90-day-plus delinquency ratio improved to 3.0% as of September 30, 2025.
• The first payment default rate (30-day-plus) for new loan originations remained below 1% as of September 30, 2025.
• Repeated borrowers contributed 85.1% of loans across the platform in Q3 2025.

Users of the Installment E-commerce Platform (Fenqile):

This group utilizes the Buy Now Pay Later (BNPL) framework offered through the main platform, Fenqile. This specific service line is showing strong growth in Gross Merchandise Volume (GMV).

Small and Micro Business Owners in Lower-Tier Markets:

While the primary focus is on young individual consumers, LexinFintech Holdings Ltd. also serves small and micro business owners, often through technology empowerment services provided to financial institutions, which saw income grow by 72.8% in Q1 2025. This suggests an indirect or technology-enabled service to this segment.

Long-Tail Customer Segments:

The large gap between total registered users (240 million as of Q3 2025) and active users (4.4 million in Q3 2025) points to a significant long-tail segment that is registered but not currently monetized through active loan usage, representing future acquisition potential.

• Users with credit lines: 47.2 million (as of June 30, 2025).
• Registered users: 240 million (as of September 30, 2025).

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Cost Structure

You're looking at the major outflows for LexinFintech Holdings Ltd. as of late 2025, focusing on what it costs to run the business, especially after the strategic shifts seen in the Q2 reports.

Funding costs for on-balance sheet loans and credit facilitation have been a point of pressure. The management noted that new regulations on loan facilitation led to an increase in funding costs for both capital-light and capital-heavy models during Q2 2025. This rise in cost of funds directly impacts the profitability of the credit business, even as the net revenue take rate improved. To be fair, this is a direct consequence of the evolving regulatory environment in China.

The direct operating expenses show clear areas of investment and scale. Here's a breakdown of some key reported costs from the second quarter of 2025:

Technology and development costs, which LexinFintech Holdings Ltd. groups under Research and Development expenses, reflect ongoing investment in its core differentiators. These costs were RMB158 million in Q2 2025, up from RMB143 million in Q2 2024, primarily due to increased investment in technology development. This spend supports the deployment of AI across operations to bolster efficiency, as mentioned by the CEO.

The cost related to credit risk is managed through provisioning and fair value adjustments. While the specific provision expense for credit losses isn't itemized in the same way as operating expenses, the company's stance on risk is clear:

• The Provision Coverage Ratio remained ample at 270% as of June 30, 2025, an increase of 2 percentage points quarter-over-quarter.
• The impact of contingent guarantee liabilities was reflected in the change in fair value of financial guarantee derivatives and loans at fair value, which resulted in a gain of RMB184 million in Q2 2025, a significant swing from a loss of RMB368 million in Q2 2024.

The overall cost base is managed tightly; total operating expenses, which bundle processing and servicing costs, sales and marketing, R&D, and G&A, increased by about 10% quarter-over-quarter to reach RMB1.4 billion in Q2 2025, driven mainly by the increase in sales and marketing and processing/servicing costs. Finance: draft 13-week cash view by Friday.

LexinFintech Holdings Ltd. (LX) - Canvas Business Model: Revenue Streams

You're looking at how LexinFintech Holdings Ltd. (LX) turns its operations into cash as of late 2025, which is a critical view given the recent regulatory shifts. Honestly, the revenue mix shows a clear pivot, leaning on both its core lending enablement and its growing e-commerce ecosystem.

The primary income driver remains the service fee generated from facilitating credit, though this area saw adjustments due to the new compliance environment effective October 1, 2025, requiring loan APRs at or below 24%.

Here's a breakdown of the key revenue streams based on the third quarter of 2025 figures:

The total operating revenue for LexinFintech Holdings Ltd. in Q3 2025 was RMB3,417 million.

You can see the direct financial impact of the business segments in the table above. For instance, the Tech-empowerment service income showed solid growth, reaching RMB456 million, which was an increase of 18.9% from Q3 2024.

The Installment e-commerce platform service income also grew, hitting RMB345 million in Q3 2025, up 11.8% year-over-year, driven by increased transaction volume with third-party sellers.

When we look closer at the credit-related income, the components that feed into the overall credit facilitation service income are important:

• Loan facilitation and servicing fees-credit oriented: RMB1,428 million in Q3 2025.
• Guarantee income: RMB620 million in Q3 2025, flat compared to Q3 2024.
• Financing income: RMB569 million in Q3 2025, up from RMB499 million in Q3 2024, primarily due to higher outstanding balances on on-balance sheet loans.

Regarding the merchandise sales component, the gross profit figure gives us a view into the profitability of that side of the platform. The Gross profit for LexinFintech Holdings Ltd. was RMB1,193 million in Q3 2025. The Cost of sales for that period was RMB270 million.

It's worth noting that the decrease in the overall Credit facilitation service income to RMB2,617 million from RMB2,970 million in Q3 2024 was partially offset by the rise in Financing income. That's the trade-off you see when loan pricing tightens but on-balance sheet loan volume increases. The net income take rate, a key metric reflecting overall profitability from the loan balance, reached 2.01% in Q3 2025.

Finance: draft 13-week cash view by Friday.