Funding Circle Holdings plc (“Funding Circle” or the “Group”) today announces results for the six months ended 30 June 2026.
Lisa Jacobs, Funding Circle CEO, commented:
It has been another strong half for Funding Circle, reflecting the momentum across our business and continued execution against our multi-product strategy. We delivered record revenue performance, up 50% year-on-year, and PBT grew fourfold to £24m. As a result of our strong performance, we are upgrading our full year 2026 guidance to more than £255m in revenue and more than £40m in PBT. Upon the conclusion of our current share buyback we will commence a further share buyback of up to £25m, bringing the total to £100m since March 2024.
Our Term Loans business is highly cash-generative, powered by a capital-light platform and sustainable institutional funding. This enables us to invest in scaling our FlexiPay and Credit Card products, which deepen our engagement with SMEs and meet more of their needs. During the first half, we’re proud to have backed a record 18,000 SMEs to access the finance they need to win, extending £1.7bn of credit, with a customer transaction every 20 seconds.
The opportunity in front of us remains substantial. Economic growth starts with small businesses - every day, entrepreneurs across the UK are investing, hiring and innovating, and Funding Circle exists to help them do exactly that. UK small businesses remain underserved by traditional lenders, and our technology, data capabilities and continued product innovation mean we are well-placed to meet their needs. We remain focused on continuing to deliver profitable growth as we back even more small businesses across the UK as their trusted financial partner.
| H1 2026 | H1 2025 |
|---|---|---|
£m | £m | |
Credit extended¹ | 1,690 | 1,111 |
Assets under Management² | 3,253 | 2,829 |
Revenue³ | 138.2 | 92.3 |
Profit before taxation | 24.1 | 6.0 |
Profit for the period | 22.6 | 5.8 |
Unrestricted cash⁴ | 136.5 | 115.0 |
1. Credit extended includes Term Loan originations and FlexiPay and Credit card transactions.
2. Assets under Management (“AuM”) is the total value of term loan principal and interest due from borrowers and drawn lines of credit and Credit card spend balances (excluding defaulted balances).
3. Net income is also referred to as “Revenue”.
4. Unrestricted cash refers to total cash less cash restricted in use.
Financial Highlights
Credit extended: Increased 52% to £1,690m (H1 2025: £1,111m).
Assets under Management (“AuM”): Increased to £3,253m (31 December 2025: £2,961m, 30 June 2025: £2,829m).
Revenue: Increased 50% to £138.2m (H1 2025: £92.3m), continuing the strong momentum seen at the end of 2025.
Profitability: Profit before tax (“PBT”) grew fourfold to £24.1m (H1 2025: £6.0m), demonstrating the operating leverage of the business with 17.4% PBT margin (H1 2025: 6.5%).
Business Unit Performance
Term Loans
Originations: Grew 43% to £1,050m (H1 2025: £736m), driven by product innovation and borrower demand, particularly in Q1 2026.
AuM: Increased to £2,953m (31 December 2025: £2,755m, 30 June 2025: £2,660m) driven by growth in originations.
Profitability: PBT increased to £28.6m (H1 2025: £12.7m), reflecting strong operating leverage and further margin improvement to 26.4% (H1 2025: 16.7%).
Robust and attractive returns through the cycle: annualised net returns to institutional investors continued to be in line with investor expectations across our product suite, resulting in continued investor demand with £2.4bn in committed forward flows.
FlexiPay & Credit Card
Transactions: Increased 71% to £640m (H1 2025: £375m), reflecting new customer growth and continued strong usage from existing customers. 90% of revenue was from pre-2026 customer cohorts.
AuM: Increased to £300m (31 December 2025: £206m, 30 June 2025: £169m).
Performance: Continued progress toward profitability, with a reduced loss before tax of £4.5m (H1 2025: £6.7m loss).
Funding capacity for continued growth: Renewed and upsized long-standing funding facility with Citi in April 2026 with improved terms; it now stands at £320 million and extends for a two-year term, giving lending capacity of £400 million including Funding Circle equity.
Capital Allocation & Cash
Unrestricted cash increased to £136.5m (31 December 2025: £100.9m), reflecting positive cash flows (including FlexiPay now free cashflow breakeven) and the monetisation of the shorter-term loan portfolio, partly offset by the ongoing share buyback programme.
Distributions: Since launching our first buyback in 2024, we have bought back c.£72m of shares, representing c.18% of our issued share capital to date. Our third share buyback programme of up to £25 million, announced in 2025, is currently ongoing. We will commence a further share buyback of up to £25 million once the existing programme completes.
Operational & Strategic Progress
Powerful data driving risk differentiation: Our AI-powered credit models are 3x better at differentiating risk than traditional bureau scores. 16 years of proprietary data including 10 billion data points feeds our model development, deepens the competitive moat around the business, and enables us to say "yes" to more businesses.
Technology advantage: Our instant decision technology enhances the customer experience and our platform allows for fast product development and new feature launches.
AI-native business: We are actively deploying and embedding AI across the business, with targeted investment in Product & Engineering, Marketing & Distribution, Customer Service & Operations, and Credit, Underwriting & Analytics.
High customer satisfaction & strong brand awareness: With a Customer NPS of 77 and Trustpilot score of 4.5, our brand reputation drives 80% consideration amongst our target market.
Strong track record and funding pipeline: Our capital-light platform is built for scale. We have delivered consistent and robust loan returns to our institutional funders, with whom we have long-standing arrangements and £2.4bn of future forward flow capacity in place, including three agreements announced in the year to date.
Multi-product capabilities: We have diversified and expanded our product suite beyond our longer-term loan offering. We now have a customer transaction once every 20 seconds, up from once every 30 minutes in 2021. 31% of customers have more than one product, as we deepen engagement and capture a larger share of our customers’ financing needs. We continue to attract new audiences to the Funding Circle ecosystem; more than 50% of our credit card customers are new to Funding Circle.
Engaged and talented team: Our mission-led culture is a differentiator. We achieved a record engagement of 74% in 2025, and in May, we were named one of the UK’s Best Places to Work by The Sunday Times.
Meaningful impact: In 2025, lending through Funding Circle supported over 117,000 jobs and contributed £7.9bn to UK GDP. Every £1 million of lending through our platform contributed £2.7 million to GDP, 39 jobs and £700,000 in tax revenue.
Looking ahead
Our strategic priorities are focused on customer-led profitable growth:
Get to yes: get the right product to the right business, through credit excellence and product improvements.
Expand our audience: target new segments; deepen and expand our distribution channels.
Scale our products: capitalise on the large market opportunity by focusing on refining and scaling our products to drive growth and margin expansion.
Build a seamless lifetime customer experience: deliver an exceptional experience throughout our customers’ lifetime journey with our expanded product set, as their trusted financial partner.
Guidance
As a result of strong H1 2026 performance, we have upgraded FY26 guidance and are trending toward the upper end of our FY29 medium-term revenue guidance, assuming a stable macro environment.
Period | Growth | Profit |
FY26 Guidance | Revenue more than £255m (previously c.£235m) | PBT more than £40m (previously at least £35m) |
Medium term (FY29) | Revenue of c.£300m–£350m | PBT margins of low to mid-20s (%) |
Analyst presentation
Management will host a presentation and conference call for institutional investors and analysts at 9:30am UK time (BST) on Tuesday 8 September 2026. To watch and listen to the webcast, with the opportunity to submit written questions, please use this link to register and gain access to the event. For conference call access, please dial +44 33 0551 0200 or +1 786 697 3501. Quote ‘Funding Circle Half Year Results’ when prompted by the operator. An on-demand replay and transcript will also be available on the Funding Circle website following the presentation.
For further details:
Funding Circle Holdings plc
ir@fundingcircle.com
press@fundingcircle.com
Lisa Jacobs, Chief Executive Officer
Tony Nicol, Chief Financial Officer
Headland Consultancy
Stephen Malthouse and Jack Gault (+44 20 3805 4822)
Forward looking statements and other important information:
This document contains forward looking statements, which are statements that are not historical facts and that reflect Funding Circle’s beliefs and expectations with respect to future events and financial and operational performance. These forward looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors, which may be beyond the control of Funding Circle and which may cause actual results or performance to differ materially from those expressed or implied from such forward looking statements. Nothing contained within this document is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of Funding Circle or its business. Any historical information contained in this statistical information is not indicative of future performance.
The information contained in this document is provided as of the dates shown. Nothing in this document should be construed as legal, tax, investment, financial, or accounting advice, or solicitation for or an offer to invest in Funding Circle.
About us:
Funding Circle (LSE: FCH) is the UK’s leading SME finance platform. Since 2010, we have extended more than £18bn in credit to over 135,000 UK businesses, helping them power the economy and their communities.
By combining proprietary AI-powered credit models with a human touch, we provide a seamless experience that allows SMEs to borrow, pay later, and spend through a single ecosystem. For institutional investors, Funding Circle offers access to an attractive, underserved asset class through a platform built on deep data and a proven track record of robust returns.