Funding Circle (LSE:FCH) reported first-half 2026 revenue of £138.2 million, an increase of 50% year-on-year, as lending activity increased across its term loan, FlexiPay and credit card products.
Profit before tax rose to £24.1 million, approximately four times the prior-year level, while total credit extended increased 52% to £1.69 billion.
Assets under management reached £3.25 billion during the period.
Term Loan Originations Rise 43%
Funding Circle’s term loan originations increased 43% to £1.05 billion in the first half.
The division generated profit before tax of £28.6 million and a PBT margin of 26.4%.
Activity across FlexiPay and credit cards also increased, with transaction volumes rising 71% to £640 million. Funding Circle said these businesses moved closer to breakeven during the period.
The company expanded funding capacity for these products through an increased facility with Citi.
Funding Circle Raises 2026 Guidance
Following its first-half performance, Funding Circle increased its financial guidance for 2026.
The company now expects full-year revenue of more than £255 million and profit before tax of more than £40 million.
Funding Circle also announced plans for an additional share buyback of up to £25 million. The programme would take total share repurchases since March 2024 to £100 million.
The company reported £2.4 billion of committed forward-flow funding arrangements and renewed funding lines to support future lending activity.
Funding Circle Targets £300 Million to £350 Million Revenue by 2029
Funding Circle uses proprietary data and artificial intelligence-based models in its credit assessment processes. Management said its AI-powered credit models outperform traditional credit scores.
The group continues to focus on expanding its products and reaching additional small and medium-sized businesses.
Funding Circle’s medium-term targets include revenue of £300 million to £350 million by 2029 and a profit-before-tax margin in the low-to-mid-20% range.
These figures remain management targets and are not established future results.
More about Funding Circle Holdings plc
Funding Circle Holdings plc is a UK-based financial technology company providing financing products to small and medium-sized enterprises.
Its products include term loans, FlexiPay and credit cards. The company’s platform uses proprietary data and automated credit-decision technology, with lending funded largely through institutional capital.
Funding Circle’s business model is focused on providing multiple financing products to SMEs while using external funding arrangements to support lending activity.
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