Funding Circle achieves FY 2026 revenue target a year early

Funding Circle has reported a strong financial performance for FY 2025, surpassing market expectations on both revenue and profit, and achieving its FY 2026 revenue target one year ahead of schedule.

The Group delivered revenue of approximately £204 million, up 28% year on year and ahead of the expected £191 million. Profit before tax rose sharply to around £20 million, compared with £3 million in FY 2024 and exceeding expectations of £17 million. Total credit extended reached £2.5 billion, an increase of 29%, while balances under management grew to £3.0 billion from £2.8 billion last year.

The company said its outperformance reflects the success of its strategic transformation and the strength of its platform, brand and data-driven technology. Growth was driven by resilient customer demand and expansion into new customer segments through product innovation.

The Term Loans business recorded £1.6 billion in originations, up from £1.4 billion in FY 2024, while loans under management remained stable at £2.8 billion as new lending offset the amortisation of legacy Covid-era loans. The business continued to attract institutional funders, securing four forward flow agreements worth £2.0 billion over the past year.

FlexiPay and the Cashback credit card business also posted significant growth, with annual transactions rising to £815 million (FY 2024: £491 million) and balances under management increasing to £206 million from £119 million.

Funding Circle’s existing FY 2026 guidance forecasts revenue above £200 million – a threshold now reached a year early. Updated guidance will be issued alongside the company’s results presentation on 5 March 2026.

The Group also confirmed the progress of its third share buyback programme, announced in May 2025, with up to £25 million allocated. To date, Funding Circle has repurchased 16.5% of its issued share capital.

“We supported more small businesses than ever before, saw record customer engagement, grew PBT significantly and achieved our medium-term revenue target of more than £200 million a year ahead of schedule.

“This performance is due to our strategic transformation, announced in 2024, focusing on profitable, multi-product UK growth. It demonstrates the strength of our capital-light business model, new product investment, and the power of our proprietary data and technology to meet growing customer demand.

“We enter 2026 with a clear platform for growth as we become a more meaningful part of our customers’ lives, serving more of their needs, and capturing a larger share of their financing.”