Funding Circle ends year ahead of market expectations
By Josh White
Date: Tuesday 20 Jan 2026
(Sharecast News) - Funding Circle reported full-year 2025 revenue and profit ahead of market expectations in a trading update on Tuesday, as strong demand and product expansion helped the small business lender reach its medium-term revenue target a year earlier than planned.
The London-listed group said revenue for the year was £204m, up 28% year-on-year, compared with market expectations of £191m, while profit before tax rose to around £20m from £3m in the prior year, ahead of forecasts of £17m.
Credit extended during the year increased 29% to £2.5bn, while balances under management rose to £3bn from £2.8bn.
Funding Circle said the outperformance reflected continued demand despite challenging macroeconomic conditions and the impact of product innovation in opening up new customer segments and use cases.
In its core term loans business, originations increased to £1.6bn from £1.4bn, while loans under management were broadly stable at £2.8bn as new lending more than offset the run-off of legacy Covid-era balances.
The company highlighted robust returns for institutional funders and said it signed four forward flow agreements during the year totalling £2bn.
Growth was also strong in newer products, with FlexiPay and the Cashback credit card delivering transactions of £815m, up from £491m a year earlier.
Balances under management in these products rose to £206m from £119m.
The company reiterated that its current guidance for the 2026 financial year was for revenue of more than £200m, noting that this target had already been achieved a year early.
Updated guidance would be provided alongside the full-year results presentation on 5 March.
On capital returns, Funding Circle said its third share buyback programme, announced in May for up to £25m, remained ongoing, with 16.5% of the company's issued share capital repurchased to date.
"I'm delighted with our strong performance this year," said chief executive Lisa Jacobs.
"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 £200m a year ahead of schedule."
She added that the results reflected the group's strategic transformation announced in 2024 and said the company entered 2026 "with a clear platform for growth as we become a more meaningful part of our customers' lives."
At 1015 GMT, shares in Funding Circle Holdings were up 14.07% at 144.6p.
Reporting by Josh White for Sharecast.com.
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