Funding Circle Holdings plc (LSE: FCH) released its full-year 2025 financial results on 5 March 2026, highlighting a year of remarkable expansion and profitability. The UK’s small and medium-sized enterprise (SME) finance platform reported gains across key metrics, achieving its 2026 revenue target a full year ahead of schedule while deepening relationships with business customers.
Chief Executive Officer Lisa Jacobs described the results as outstanding, noting that the company supported more SMEs than ever before.
Credit extended rose 29% to £2.453 billion, driving group revenue up 28% to £204.3 million from £160.1 million in 2024.
Profit before tax surged sixfold to £20.3 million (from £3.4 million pre-exceptionals), underscoring the platform’s impressive operating leverage.
After exceptional items, full-year profit reached £46.0 million, compared with £8.6 million previously.
Active customers grew 10% to 52,700, while assets under management edged higher to £2.961 billion.
The core Term Loans business continued to thrive, with originations climbing 16% to £1.638 billion.
Assets under management in this segment reached £2.755 billion, as fresh lending more than offset repayments from legacy government-backed loans.
Profit before tax for Term Loans advanced to £32.2 million, lifting margins to 19.2%.
Institutional investors continued to receive attractive annualized net returns approximately 5% above their cost of capital, sustaining strong demand with £2.2 billion in committed forward-flow funding secured.
The newer FlexiPay and Cashback Card offerings gained significant traction, with transaction volumes surging 66% to £815 million.
Assets under management in this area jumped 73% to £206 million, reflecting repeat usage and product enhancements.
The segment narrowed its pre-tax loss to £11.9 million from £15.6 million, with credit losses remaining well within expectations and over 80% of revenue generated from existing customer cohorts.
Funding Circle maintained a solid capital position, ending the year with £100.9 million in unrestricted cash.
The company followed its disciplined capital allocation framework by investing in innovation—such as a new shorter-term loan product—while returning substantial value to shareholders.
Share buybacks totaling £64 million across 2024 and 2025 (including a fresh £25 million program) underscored confidence in the business.
Operationally, the platform’s proprietary AI-driven credit models, powered by 15 years of data encompassing 10 billion points, proved three times more effective at risk assessment than traditional credit scores.
This edge enabled faster approvals and higher acceptance rates. The company’s lending activity supported over 117,000 jobs and contributed £7.9 billion to UK GDP, with every £1 million lent generating £2.7 million in economic output.
Funding Circle outlined strategic priorities: improving credit decisions to say “yes” more often, broadening its customer base, scaling products, and delivering a seamless lifetime experience.
These efforts aim to capture a larger share of the SME finance market through cross-selling—nearly 70% of FlexiPay revenue already comes from Term Loan clients—and by attracting new segments.
The company upgraded its 2026 guidance to approximately £235 million in revenue and at least £35 million in profit before tax.
New medium-term targets through FY29 project revenue of £300–350 million and profit-before-tax margins in the low-to-mid 20% range. With a capital-light model, diversified product suite, and proven track record, Funding Circle is well-positioned to drive sustained profitable growth and support the UK’s SME economy.