Funding Circle reports 17% revenue growth as H1 profits surge

Funding Circle Holdings plc delivered a strong performance in the first half of 2025, reporting a 17% rise in revenue to £92.3 million and a sharp increase in profit before tax to £6.0 million, up from just £0.5 million a year earlier.

Chief Executive Lisa Jacobs said the results reflected the successful execution of the company’s strategy and its growing role in supporting UK small businesses.

“The first half of 2025 demonstrates the clear success of our strategy and execution,” Jacobs said. “We extended £1.1 billion in credit to UK businesses across our product suite and continue to meet more of our customers’ needs with well-loved products like FlexiPay and our Cashback credit card.”

Total credit extended grew 21% year-on-year to £1.11 billion, driven by continued momentum in Term Loans, where originations rose 6% to £736 million. The Term Loans business remained the Group’s primary profit driver, with profit before tax increasing to £12.7 million and margins expanding from 13% to 17%.

The company’s newer products, including FlexiPay and the recently launched Cashback credit card, also performed strongly. FlexiPay transactions climbed 66% to £375 million, taking cumulative transactions since launch past £1 billion. FlexiPay balances increased 42% to £169 million, with over 80% of 2025 revenue from these products coming from existing customers — highlighting strong loyalty and repeat usage.

Funding Circle said its investment in proprietary data, technology, and AI-powered credit models is underpinning growth and improving customer experience. The company remains on track to deliver its medium-term targets for the 2026 financial year, including at least £200 million in revenue and profit before tax of at least £30 million, with PBT margins expected to exceed 15%.

The Group continues to execute its £75 million share buyback programme, having spent £53 million repurchasing and cancelling 50 million shares since its launch in March 2024. A further £19 million was allocated in the first half of 2025, with the programme set to continue.

Investor appetite remains strong, with forward lending commitments of £1.8 billion and annualised net returns on institutional term loans running about 5% above cost of capital.

The period also saw significant boardroom changes. Ken Stannard replaced long-serving chairman Andrew Learoyd in May, while Helen Beck was appointed Senior Independent Director following the departure of Geeta Gopalan. Maeve Byrne became Chair of the Audit Committee in June, and Richard Harvey was named Chair of the Risk Committee in August.

Looking ahead, Jacobs said Funding Circle is well positioned to capture a larger share of SME financing needs.

“Today, we continue to fulfil our mission of backing small businesses as a more meaningful part of our customers’ lives, serving more of their needs, interacting with them more frequently and capturing a larger share of their financing,” she said. “This gives us a clear platform for further growth.”