Funding Circle revenue rises 50% as H1 profit reaches £23m

Funding Circle Holdings has reported a strong first half of 2026, with revenue increasing by 50% and profit before tax rising to approximately £23 million as demand for its SME finance products continued to grow.

Revenue for the six months reached around £138 million, up from £92 million in H1 2025, while profit before tax increased from £6 million a year earlier.

Total credit extended during the period rose to £1.7 billion, compared with £1.1 billion in H1 2025, while assets under management increased to £3.3 billion from £2.8 billion.

Funding Circle said the performance was supported by product innovation introduced during 2025, particularly a new shorter-term loan offering launched at the end of the first half of last year.

The group also reported strong SME demand during the first quarter of 2026, continuing momentum from late 2025, before activity normalised during the second quarter ahead of the typically quieter summer period.

“Small businesses power the UK economy, driving innovation, creating jobs and fuelling regional growth. We’re proud to have helped a record number of businesses in H1 access the finance they need to win.

“Our Term Loans business is highly cash-generative, which has enabled us to scale our FlexiPay and Card products. We remain focused on profitable growth – backing even more small businesses across the UK with the funding they need to succeed.”

Funding Circle’s Term Loans business increased originations to £1.05 billion, up from £736 million in H1 2025, with assets under management rising to £3.0 billion from £2.7 billion.

The company said the business continues to generate strong cash flows and operating leverage, supporting increased investment in its FlexiPay and Card products.

Funding Circle also signed two new forward flow agreements totalling £900 million during the half, strengthening its funding pipeline.

Transactions across FlexiPay and Card increased by 71% to £640 million, from £375 million in H1 2025, while assets under management in the division grew to £300 million from £169 million.

In April, Funding Circle renewed and increased its long-standing funding facility with Citi, which now stands at £400 million including the group’s equity contribution.

The company’s unrestricted cash balance stood at £136 million at the end of June, up from £101 million at the end of 2025. Funding Circle said the increase reflected its trading performance and the monetisation of its shorter-term loan portfolio, partially offset by its ongoing share buyback programme.

Following the strong first-half performance, Funding Circle said it remains on track to achieve its full-year 2026 guidance of at least £235 million in revenue and at least £35 million in profit before tax, while continuing to invest for future growth.

The company added that it remains mindful of the broader economic environment heading into the second half of the year.

Funding Circle also continues to return capital to shareholders through a third share buyback programme of up to £25 million, announced in 2025. Across its buyback programmes to date, the company has repurchased £72 million of shares, representing 18% of its issued share capital.

The group is due to provide a further update alongside its interim results on 8 September.