DJ Funding Circle plc: Full Year 2025 Results
Funding Circle Holdings plc (FCH)
Funding Circle plc: Full Year 2025 Results
05-March-2026 / 07:00 GMT/BST
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Funding Circle Holdings plc
Full Year 2025 Results
FY 2026 REVENUE GUIDANCE ACHIEVED A YEAR EARLY
UPGRADED FY 2026 GUIDANCE & ATTRACTIVE NEW MEDIUM-TERM TARGETS
Funding Circle Holdings plc ("Funding Circle" or the "Group") today announces results for the twelve months ended 31
December 2025.
Lisa Jacobs, Funding Circle CEO, commented:
"We delivered a standout performance in 2025, exceeding our expectations and hitting our 2026 revenue guidance a year
early, and we supported more SMEs than ever before. Strong growth in the credit we extended led to revenue growth of
28% to GBP204m and profit before tax increasing to GBP20m, demonstrating the strong operating leverage and profitability of
our platform.
"We've successfully executed against our strategy to deepen our engagement with SMEs and expand our multi-product
offering, enabling us to meet more of our customers' needs. We now interact with a customer once every 38 seconds,
putting us at the heart of their businesses as a trusted financial partner. Our 15 years of proprietary data and
technology expertise are the foundation of our competitive advantage, allowing us to deliver a superior customer
experience.
"Looking ahead, we see a significant opportunity to further grow our share of the SME finance market. Our confidence in
the strength and scalability of our platform is reflected in the attractive new medium-term targets we are setting
today. By becoming a more meaningful partner to our customers, we aim to not only grow our business but to support the
next phase of growth across the UK's SME economy."
Group FY 2025 FY 2024
GBPm GBPm
Credit extended1 2,453 1,899
Assets under Management2 2,961 2,833
Revenue3 204.3 160.1
Profit before taxation (before exceptional items) 20.3 3.4
Profit before taxation (after exceptional items) 20.3 0.8
Profit for the year (after exceptional items) 46.0 8.6
Unrestricted Cash4 100.9 150.5
Financial Highlights
-- Group Revenue: Increased 28% to GBP204.3m (2024: GBP160.1m), achieving 2026 revenue guidance a year early. -- Profitability: Significant 6x growth in Profit Before Tax (PBT) to GBP20.3m, up from GBP3.4m pre-exceptionals and GBP0.8m
post exceptionals in 2024 demonstrating the business' operating leverage. Profit for the year (after exceptional
items) of GBP46.0m (2024: GBP8.6m). -- Credit Extended: Increased 29% to GBP2,453m (2024: GBP1,899m). -- Assets under Management (AuM): Increased to GBP2,961m (2024: GBP2,833m). -- Active customers: Increased 10% to 52.7k (2024: 47.9k).
Business Unit Performance
Term Loans
-- Originations: Grew 16% to GBP1,638m (2024: GBP1,407m) driven by product innovation and borrower demand. -- AuM: Increased to GBP2,755m (2024: GBP2,714m) as new lending outpaced the repayment of legacy Covid-19
government-guaranteed loans. -- Profitability: PBT increased to GBP32.2m (2024: GBP19.0m before exceptional items), reflecting strong operating
leverage which led to margins improving to 19.2% (2024: 13.3%). -- Robust and attractive returns through the cycle: Annualised net returns to institutional investors continued to be
5% above cost of capital, resulting in continued investor demand with GBP2.2bn in committed forward flows.
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1. Credit extended includes Term Loan originations and FlexiPay and Cashback card transactions. 2. Assets under Management ("AuM") is the total value of term loan principal and interest due from borrowers and drawn
lines of credit and Cashback card spend balances (excluding defaulted balances) previously referred to as Loans
under Management and balances outstanding. 3. Net income is also referred to as "Revenue". 4. Unrestricted cash refers to total cash less cash that is restricted in use.
FlexiPay & Card
-- Transactions: Strong momentum with transactions growing 66% to GBP815m (2024: GBP492m), reflecting good customer
engagement and roll-out of new features. >80% revenue from prior cohorts. -- AuM: Increased 73% to GBP206m (2024: GBP119m) as a result of new and repeat usage from customers. -- Performance: Continued progress toward profitability with a reduced loss before tax of GBP11.9m (2024: GBP15.6m loss
before exceptional items). Expected credit losses remain in line with our expectations.
Capital Allocation & Cash
Unrestricted cash remained healthy at GBP100.9m (2024: GBP150.5m) following proactive deployment aligned to our capital allocation framework:
-- Deliver: Group cash generative; Term Loan profits successfully funded continued FlexiPay investment. -- Invest: R&D for development of new shorter-term loan product within our Term Loans business, which has resulted in
an institutional investor onboarded in January 2026 to fund future originations. The existing shorter-term loan
portfolio was sold in line with its carrying value. -- Distribute: A third share buyback of up to GBP25m was announced in 2025. Combined with earlier programmes, GBP64m has
been returned to shareholders across 2024 and 2025, with GBP11m remaining. In 2025 specifically, GBP30m was deployed
for buybacks and GBP9m for the employee benefit trust.
Operational & Strategic Progress
-- Powerful data driving risk discrimination: Our AI-powered credit models are 3x better at discriminating risk than
traditional bureau scores. 15 years of proprietary data including 10 billion data points feeds our model
development, deepens the competitive moat around the business, and enables us to say "yes" to more businesses. -- Differentiated technology: Our instant decision technology enhances the customer experience and our platform allows
for fast product development and new feature launches. -- High customer satisfaction & strong brand awareness: With an NPS (Term Loans) of 79 and Trustpilot score of 4.6,
our brand reputation drives consideration amongst our target market of 80%. -- Strong track record and funding pipeline: Our capital-light platform is built for scale. We have delivered
consistent and robust loan returns to our institutional funders, with whom we have long-standing arrangements and
GBP2.2bn of future forward flow capacity in place. -- Multi-product capabilities: We have diversified and expanded our product suite beyond our longer-term loan
offering, with c.50% of our credit extended in H2 2025 coming from other products. Nearly 70% of our FlexiPay
revenue comes from our existing Term Loan customers, as we deepen engagement and capture a larger share of our
customers' financing needs. We are also attracting new audiences to the Funding Circle ecosystem. 50% of our Card
customers are new to Funding Circle and our new shorter-term lending product has unlocked previously untapped
segments of the SME market. -- Engaged and talented team: Our mission-led culture is a differentiator. We achieved a record engagement of 74% in
2025 and our teams received 11 industry awards, including the NACFB Unsecured Lender of the Year for the seventh
consecutive year. -- Meaningful impact: In 2025, lending through Funding Circle supported over 117,000 jobs and contributed GBP7.9bn to UK
GDP. Every GBP1 million of lending through our platform contributed GBP2.7 million to GDP, 39 jobs and GBP700,000 in tax
revenue.
Looking ahead Our strategic priorities are focused on customer-led profitable growth:
-- Get to yes: Get the right product to the right business, through credit excellence and product improvements. -- Expand our audience: Target new segments; deepen and expand our distribution channels. -- Scale our products: Capitalise on the large market opportunity by focusing on refining and scaling our products to
drive growth and margin expansion. -- Build a seamless lifetime customer experience: Deliver an exceptional experience throughout our customers' lifetime
journey with our expanded product set, as their trusted financial partner.
These will deliver customer-led top-line growth and increased profit within our current product set over the coming years, while enabling the next phase of longer-term growth with continued investment in our product and technology capabilities. We are building powerful insights into our customers that provide a strong platform for growth beyond our existing product set as we become our customers' trusted financial partner.
Guidance
We have upgraded our FY26 guidance having achieved our previous revenue target a year early. We are also establishing new medium-term targets through to FY29:
Period Growth Profit FY26 Guidance Upgraded to revenue of c.GBP235m PBT of at least GBP35m Medium term (FY29) Revenue of c.GBP300m-GBP350m PBT margins of low to mid-20s (%)
Analyst presentation Management will host a presentation and conference call for institutional investors and analysts at 9:30am UK time (GMT), on Thursday 5 March 2026.
To watch and listen to the webcast, with the opportunity to submit written questions, please use this link to register and gain access to the event.
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