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Funding Circle Holdings PLC on Tuesday said it delivered stronger-than-expected revenue and profit growth in 2025, achieving its financial 2026 revenue target a year earlier. Funding Circle shares were up 16% to 146.49 pence in London on Tuesday afternoon. The London-based lending platform focused on small and medium enterprises said revenue for the year was about £204 million, up 28% from a year earlier, beating market expectations of £191 million. Profit before tax rose to around £20 million from £3 million in 2024, also ahead of consensus of £17 million. Funding Circle said overall credit extended during the year increased 29% to £2.5 billion, while balances under management rose to £3.0 billion from £2.8 billion. The company said the outperformance reflected continued strong demand despite macroeconomic headwinds, alongside product innovation that opened up new customer segments and use cases. Within its core Term Loans business, originations grew to £1.6 billion from £1.4 billion, while loans under management were broadly stable at £2.8 billion. Funding Circle said amortisation of legacy Covid-era loans was offset by new lending, supporting attractive returns for institutional funders. During the year, it signed four forward-flow funding agreements totalling £2.0 billion. Funding Circle also reported growth in its FlexiPay and Cashback credit card products. Transactions rose to £815 million from £491 million a year earlier, while balances under management increased to £206 million from £119 million. The company reiterated its existing guidance for financial 2026 revenue of more than £200 million, noting that this target has now been achieved a year ahead of plan. Updated guidance will be provided alongside its full-year results on March 5. Chief Executive Officer Lisa Jacobs said the group supported more small businesses than ever before in 2025, delivered record customer engagement and significantly increased profitability. ‘This performance is due to our strategic transformation, announced in 2024, focusing on profitable, multi-product UK growth,’ Jacobs said. ‘We enter 2026 with a clear platform for growth as we become a more meaningful part of our customers‘ lives, serving more of their needs, and capturing a larger share of their financing.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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