Funding Circle Holdings plc (LSE:FCH) reported strong results for 2025, with revenue increasing 28% to £204.3m and profit before tax rising to £20.3m. The performance enabled the company to reach its previously stated 2026 revenue target a year ahead of schedule.
Total credit extended during the year climbed 29% to £2.45bn, reflecting robust demand from small and medium-sized enterprises. Assets under management edged up to £2.96bn, while the number of active customers increased 10% to 52,700, highlighting continued growth in the platform’s SME lending activity.
The group’s core Term Loans division delivered improved margins and generated profit before tax of £32.2m. Meanwhile, the FlexiPay and business card offerings continued to expand rapidly, with transaction volumes increasing 66%. Both products moved closer to breakeven, helping diversify the company’s revenue streams beyond its traditional lending business.
Funding Circle said it benefits from strong institutional backing, with £2.2bn of committed funding flows supporting loan originations. The company also reported £100.9m in unrestricted cash following share buybacks, strengthening its financial position.
On the back of the strong performance, management upgraded its guidance for 2026 and outlined new strategic targets through 2029. The company aims to scale its data-driven SME lending platform further, positioning itself as a long-term financial partner for UK businesses.
The outlook is supported by improving profitability and a solid balance sheet, alongside a constructive earnings trajectory. However, the company continues to report negative operating and free cash flow, and technical indicators suggest the shares may be overbought in the near term. Valuation is also relatively full, with a price-to-earnings ratio around 25 and no dividend yield currently available.
More about Funding Circle Holdings
Funding Circle Holdings plc is a UK-based fintech lender focused on providing financial products to small and medium-sized enterprises. Its offering includes term loans, flexible payment solutions and business credit cards. Operating through a capital-light marketplace model, the company uses AI-driven credit assessment built on more than 15 years of proprietary SME data, while attracting institutional funding to support the growth of its multi-product financing platform.
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