2025 Fintech Financial Report Outlook: Domestic Business Under Pressure, Strategic Shift Toward Overseas Expansion

As of March 25, Qifu Technology, Lexin, and Xinye Technology, three fintech companies, released their Q4 2025 and full-year financial reports. As the domestic consumer finance industry enters a new phase of intensified regulation and macroeconomic pressures, the performance of fintech companies in 2025 shows a clear divergence.

Data shows that the three companies’ revenues and profits vary significantly. Domestic lending businesses generally face slowing growth and rising risks, while overseas operations have become the main engine for offsetting domestic pressures and driving growth. At the same time, tightening risk controls, optimizing business structures, and cautious management have become common strategic choices across the industry.

Performance Divergence: Lexin’s Revenue Declines 7.4%

Looking at core financial data, the three leading fintech companies’ performances in 2025 show markedly different trends, with significant differences in revenue size and profit growth rates. This reflects not only their distinct business structures but also the overall operating pressures faced by the industry.

Xinye Technology achieved growth in both revenue and net profit. Data shows that in 2025, its full-year net income was 13.569 billion yuan, up 3.8% from 12.066 billion yuan the previous year; net profit was 2.545 billion yuan, up 6.6% from 2.388 billion yuan; operating profit was 2.913 billion yuan, up 14.91% from 2.535 billion yuan.

Notably, although Xinye Technology’s domestic business faced growth slowdown pressures, its overseas business experienced explosive growth, becoming the biggest highlight. In 2025, its total overseas transaction volume reached 14 billion yuan, a 38.6% increase year-over-year; overseas revenue was 3.3 billion yuan, up 32.0%, accounting for 24.6% of the group’s total net income. Growth in overseas matchmaking service fees, net interest income, and other income partially offset declines in domestic guarantee income and post-loan service fees, supporting overall performance growth.

Qifu Technology maintained its leading position in industry revenue, achieving full-year net income of 19.205 billion yuan, up 11.9%; net profit was 5.976 billion yuan, down 4.4%; Non-GAAP (non-GAAP) net profit was 6.354 billion yuan, a slight decrease of 1.0%. Non-GAAP EPS was 46.8 yuan, up 10.4%, demonstrating strong resilience in core business.

Qifu’s revenue is divided into two main segments: credit-driven services and platform services, with a clear structural split. In 2025, credit-driven services generated net revenue of 13.977 billion yuan, up 19.27% from 11.719 billion yuan, serving as the main driver of revenue growth; platform services net revenue was 5.228 billion yuan, down 4.02% from 5.447 billion yuan.

In credit-driven services, expansion of capital-intensive loan matchmaking contributed to revenue growth, with capital-intensive income reaching 1.604 billion yuan, up from 1.017 billion yuan in 2024. The average on-balance loan balance increased, boosting financing income to 8.569 billion yuan. For platform services, the volume of light-capital loan matchmaking and service fees decreased to 1.163 billion yuan due to a contraction in matchmaking scale; referral service fees also declined slightly, but other value-added platform service fees increased to 1.327 billion yuan, doubling compared to the previous year, partially offsetting some core service revenue declines.

Lexin experienced a contrasting performance: revenue declined year-over-year, but profits surged significantly. In 2025, Lexin’s total revenue was 13.152 billion yuan, down 7.4%; however, net profit attributable to common shareholders was 1.677 billion yuan, up 52.4%; adjusted net profit was 1.795 billion yuan, up 49.2%.

Regarding revenue structure, core credit matchmaking services accounted for 9.562 billion yuan, down 13.1%; technology-enabled services and installment e-commerce platform services contributed 2.081 billion yuan and 1.509 billion yuan respectively, with growth rates of 10.6% and 14.1%. Growth in non-credit businesses effectively offset the decline in core credit services.

Domestic Credit Tightening and Enhanced Risk Controls to Address Rising Risks

In 2025, China’s consumer finance industry faced dual pressures from macroeconomic fluctuations and intensified regulatory policies. Industry liquidity tightened, and credit risks marginally increased. The three leading fintech companies proactively adjusted their domestic strategies, tightening risk controls and moderately reducing credit scales to focus on asset quality stability, resulting in noticeable operational adjustments.

In terms of credit scale, all three companies experienced slowdown or contraction. Qifu Technology’s total matchmaking and initiated loan volume in 2025 was 3.2769 trillion yuan, a slight increase of 1.6% year-over-year; platform service loan matchmaking volume was 14.4376 trillion yuan, down 15.4%.

As of December 31, 2025, Lexin’s cumulative loan matchmaking volume was 15.305 trillion yuan, up 15.5% from 13.251 trillion yuan at the end of 2024; total matched loans for the year were 205 billion yuan, down 3.2% from 212 billion yuan in 2024; outstanding loans at year-end were 96.6 billion yuan, down 12.4%.

Xinye Technology’s credit scale also declined. In Q4 2025, its quarterly transaction volume was 38.7 billion yuan, down 28.3% year-over-year; quarterly repeat borrowing by individual users was 30.8 billion yuan, down 34.0%; domestic loan balance was 68.3 billion yuan, down 2.1%.

Under pressure, each company adopted different strategies. Lexin’s installment e-commerce business saw explosive growth, becoming a new domestic growth point. Data shows that in Q4, Lexin’s GMV on the installment e-commerce platform reached 2.154 billion yuan, more than doubling from 964 million yuan in the same period of 2024; for the full year, GMV was 7.622 billion yuan, up 110%. Xinye Technology’s overseas matchmaking service fees, net interest income, and other income grew, partially offsetting declines in domestic guarantee income and post-loan service fees, supporting overall performance. Qifu Technology’s repeat loan volume for the year was 93.3%, slightly higher than 93.1% in 2024.

Meanwhile, industry-wide risk margins are rising, and risk controls are intensifying. Qifu’s Chief Risk Officer Zheng Yanzhan stated, “In Q4, macroeconomic challenges and regulatory uncertainties significantly pressured market liquidity. Our overall asset risk level has increased notably, especially among high-risk customer groups. Key risk indicators show a first-day overdue rate of 6.1% and a 30-day recovery rate of 84.1%. However, the risk control measures implemented in Q4 have begun to show results, with marginal improvements in new loan risk performance and a steady increase in their proportion.”

As of December 31, 2025, the 90-day overdue rate for loans initiated by financial institutions on Qifu’s platform was 2.71%; for Xinye, 2.85%; and for Lexin, 3.1% (as of September 30, 2025, 3.0%). The overdue rate for the first payment of new loans (over 30 days) was below 1%. Lexin’s Chairman and CEO Xiao Wenjie stated, “Q4 is a crucial transition period for the company to adapt to the new regulatory framework. Amid increased industry risk volatility, we proactively advanced compliance, implemented prudent risk management, and achieved a smooth transition, balancing business scale and overall asset quality.”

Accelerating Overseas Expansion, Globalization Becomes New Growth Driver

With domestic market growth under pressure, increasing competition in a saturated environment, and ongoing regulatory normalization, accelerating overseas expansion and diversifying business regions have become common strategic choices for leading fintech companies to break growth bottlenecks and disperse operational risks. The globalization strategies of Xinye Technology and Qifu Technology are gradually bearing fruit, with overseas operations becoming key tools to offset domestic performance pressures.

Xinye Technology’s globalization strategy has entered a harvest phase. In Q4 2025, overseas revenue share rose to 31.4%. Markets in Indonesia and the Philippines achieved profitability, completing the transformation from a domestic fintech platform to a regional inclusive credit service provider. User and business scale grew rapidly: by the end of 2025, overseas registered users exceeded 52.1 million, a 45.9% increase; total borrowing users reached 11.7 million, up 67.1%; quarterly active borrowing users surged 133.8% to 3.8 million. Overseas loan balances and transaction volumes increased by 52.9% and 41.4% respectively, far exceeding domestic growth.

“Our ‘deep local, global vision’ strategy has shown remarkable results,” said Vice Chairman and CEO Li Tiezhen. The company has also strategically entered Australia, its first developed market, combining domestic compliance experience, user-first philosophy, and Southeast Asian operational scale. Moving forward, the company will rely on prudent risk management, continuous AI technology investment, and responsible growth strategies to carefully manage domestic operations while accelerating sustainable overseas expansion, creating ongoing value for users, partners, and shareholders.

Qifu Technology continues to expand overseas while adjusting domestic operations. CEO and Chairman Wu Haisheng stated that the company is increasing overseas resource investment, obtaining necessary local licenses, and establishing local teams to expand into multiple developing markets. In the long term, these overseas markets are expected to offer significant growth opportunities and help diversify the company’s regional business structure.

Industry experts note that under macroeconomic and regulatory pressures, core competitive advantages will include risk management capabilities, business diversification, and global compliance operations. In the future, prudent, refined management, strict domestic risk control, and compliant overseas expansion will be mainstream development paths. Companies with mature risk control systems and global operational capabilities are likely to seize opportunities amid industry segmentation and achieve more sustainable high-quality growth.