Funding Circle profit jumps in 2025; ups guidance for 2026

Funding Circle Holdings PLC on Thursday reported a sharp rise in annual profit and revenue for 2025, as assets under management and lending volumes increased, and upgraded its guidance for 2026.

The London-based lending platform focused on small and medium enterprises posted revenue of £204.3 million for the year ended December 31, up 28% from £160.1 million in 2024.

Pretax profit from continuing operations rose to £20.3 million, compared with £3.4 million before exceptional items in 2024 and £800,000 after exceptional items in the same year.

Profit after tax for 2025 increased to £46.0 million from £8.6 million in 2024.

Assets under management grew to £2.96 billion at December 31 from £2.83 billion a year earlier, while credit extended rose 29% to £2.45 billion from £1.90 billion.

Within its core term loans business, originations increased 16% to £1.64 billion, and profit before tax rose to £32.2 million from £19.0 million, before exceptional items.

In its FlexiPay and card segment, transactions climbed 66% to £815 million, narrowing the pretax loss to £11.9 million from £15.6 million before exceptional items.

Chief Executive Lisa Jacobs said the company had delivered a ‘standout performance’ and achieved its 2026 revenue guidance a year early.

Looking ahead, Funding Circle upgraded its 2026 guidance to revenue of around £235 million and pretax profit of at least £35 million. It also set new medium-term targets to 2029, including revenue of £300 million to £350 million and pretax profit margins in the low to mid-20% range.

Shares in the company were down 3.7% at 140.60 pence in London at midday on Thursday.

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