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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DJ Funding Circle plc: Full Year 2025 Results -2-
For conference call access, please dial +44 33 0551 0200 or +1 786 697 3501 Quote 'Funding Circle FY25' when prompted by the operator.
An on-demand replay and transcript will also be available on the Funding Circle website following the presentation.
For further details:
Funding Circle Holdings plc ir@fundingcircle.com press@fundingcircle.com
Lisa Jacobs, Chief Executive Officer
Tony Nicol, Chief Financial Officer
Headland Consultancy
Stephen Malthouse and Jack Gault (+44 20 3805 4822)
Forward looking statements and other important information:
This document contains forward looking statements, which are statements that are not historical facts and that reflect Funding Circle's beliefs and expectations with respect to future events and financial and operational performance. These forward looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors, which may be beyond the control of Funding Circle and which may cause actual results or performance to differ materially from those expressed or implied from such forward looking statements. Nothing contained within this document is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of Funding Circle or its business. Any historical information contained in this statistical information is not indicative of future performance.
The information contained in this document is provided as of the dates shown. Nothing in this document should be construed as legal, tax, investment, financial, or accounting advice, or solicitation for or an offer to invest in Funding Circle.
About us:
Funding Circle (LSE: FCH) is the UK's leading SME finance platform. Since 2010, we have extended more than GBP17bn in credit to over 125,000 UK businesses, helping them power the economy and their communities.
By combining proprietary AI-powered credit models with a human touch, we provide a seamless experience that allows SMEs to borrow, pay later, and spend through a single ecosystem. For institutional investors, Funding Circle offers access to an attractive, underserved asset class through a platform built on deep data and a proven track record of robust returns.
Business Review
It has been a standout year for Funding Circle. We supported more small businesses than ever before, grew revenue 28% to GBP204 million, achieving our medium-term revenue target a year ahead of schedule, grew profit before tax ("PBT") to over GBP20 million and achieved record Circler engagement.
In 2024, we launched our plan to become a simpler, leaner, and UK-focused multi-product business, and, after two years of strong execution, we are realising the benefits. Our performance was driven by new product innovation and strong demand, underpinned by the power of our proprietary data and technology and capital-light business model.
Our position as the UK's leading SME finance platform is stronger than ever. We are serving a large and underserved market, enabling businesses to borrow, pay later, and spend, delivering a superior customer experience and attractive returns to our platform investors. And, we're still just getting started.
Business finance that backs small businesses
For 15 years, we have backed the small businesses that keep the UK economy moving. We have extended c.GBP17 billion of credit to over 125,000 UK businesses.
We're passionate about what we do - the businesses we support are the restaurants, popcorn makers, furniture manufacturers and flooring suppliers. They sit at the heart of local communities, driving growth and creating jobs and it's an honour to play a small but important part in their stories.
In 2025, lending through Funding Circle supported 117,000 jobs, GBP7.9 billion in GDP contribution and GBP2.2 billion in tax receipts. We once again lent to businesses in every one of the country's 650 constituencies, powering tens of thousands of SMEs.
As we have diversified our product set, it has been pleasing to see the impact, we now offer over ten different products, we have a customer transaction every 38 seconds (vs every half an hour in 2021), and in H2 last year, 50% of our credit extended came from outside our core term loan products.
We remain capital-light with a robust balance sheet. We are continuing to return value to shareholders through share buybacks, having purchased 17% of our initial share capital since March 2024, while maintaining a strong cash position to support growth.
Strategic progress: borrow, pay later, spend
Over the last few years, we have executed against our multi-product strategy, driving an expanded customer set, an increased share of wallet and deeper customer engagement. Today, we are a more important part of our customers' lives.
We are executing against our four strategic pillars to drive profitable growth:
1. Get to 'Yes': Expanding our product offering, improving our customer service and our credit segmentation to get to 'Yes' for more businesses. This year we reorganised our sales teams to better serve customers' financial holistic needs, launched a shorter-term loan product, and further expanded our Marketplace partnerships to support those we cannot fund directly.
2. Expand our audience: Through new distribution channels and product sets, we are broadening the range of customers we can serve and attract. Our Cashback card is bringing new customers into the Funding Circle ecosystem. We continue to invest in our existing direct and intermediated distribution channels and our new partnership with TNT Sports, building on our existing partnership with Gallagher PREM Rugby, will also put Funding Circle in front of new SME audiences.
3. Scale our product offering: We are driving our newer products, FlexiPay and Cashback card, towards scale and profitability. We have made good progress building out product features to offer more flexibility for customers.
4. Build a seamless lifetime customer experience: We are serving our customers across a broader set of needs and by solving more problems for our customers, we are laying the foundations for long-term relationships as their trusted financial partner.
Our technology and data advantage
When we speak to our customers, they want fast and easy access to credit with a human touch. In a small business, the owners are the operators, the marketers and the financiers. We provide a six minute application form, instant decisions for 73% of applicants, and funding in as little as 24 hours. This drives strong satisfaction with an NPS (Term Loans) of 79 and lets customers focus on what they do best, running their businesses.
We can do this thanks to our data and technology, which delivers a competitive advantage. Our AI-powered risk models are trained with our proprietary data on hundreds of thousands of loans and transactions alongside public data sources, discriminating risk three times better than bureau scores alone.
We continue to invest in our technology and data stack. Gen AI forms part of this as we evolve into an AI-native organisation. We are leveraging AI to improve customer experience and productivity - from better understanding customer sentiment and serving customers faster, to speeding up product development. We are deploying Gen AI thoughtfully and safely with a 'human in the loop' approach.
People and culture
Our results and strategic progress are all testament to the hard work of our Circlers. It is their passion, commitment and dedication that means we continue to help more SMEs thrive. We achieved a record employee engagement score of 74% in 2025.
This year, we launched our new 'People Pact' reflecting our collective commitment to be all in and 'On a Mission' every day to back small businesses, to grow fast, to belong together, to build better, and to be different. At Funding Circle we are on a mission that really matters and ultimately reaps rewards for our Circlers, our customers, our investors and shareholders, and our business.
Looking ahead
We are excited by the potential that we have to continue to become our customers' trusted financial partner. 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, to fuel even more SME success stories across the UK.
Financial review
Outperforming expectations and delivering growing PBT
Overview of the year ended 31 December 2025
We are pleased to report that the Group delivered strong revenue and sustainable profit growth in 2025, demonstrating continued scalability following the move to profitability in 2024. This performance was driven by growth across Term Loans (a longer-term financial product offering) and FlexiPay (a shorter-term line of credit product) which also incorporates the Cashback card (launched in H2 2024), demonstrating the strength of our expanded product suite in meeting the diverse financing needs of SMEs. FlexiPay and the Cashback card are presented as one segment.
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DJ Funding Circle plc: Full Year 2025 Results -3-
While these two business segments are at different stages of maturity, product innovation has remained a driver for both. In our more established Term Loans business, we have successfully expanded our product range to include our shorter-term loan offering. Simultaneously, in our high growth FlexiPay segment, we have continued to iterate on features to deepen customer engagement.
Credit extended Assets under
(Originations and Transactions) Management
31 December 31 December
FY 2025 FY 2024
2025 2024
GBPm GBPm
GBPm GBPm
Continuing operations
Term Loans 1,638 1,407 2,755 2,714
FlexiPay 815 492 206 119
Total 2,453 1,899 2,961 2,833
Overall, credit extended grew by 29% to GBP2.5 billion, with significant growth for Term Loans and FlexiPay. Assets under management grew to GBP3.0 billion with credit performance in line with management expectations.
Strong credit extended translated into revenue growth of 28% to GBP204.3 million (2024: GBP160.1 million), achieving our 2026 revenue guidance a year earlier than expected. The Group made a profit before tax of GBP20.3 million (2024: profit before tax of GBP3.4 million before exceptional items, profit before tax of GBP0.8 million after exceptional items).
Segmental highlights1 31 December 2025 31 December 20242
Continuing operations Continuing operations
Term Term
FlexiPay Total FlexiPay Total
Loans Loans
GBPm GBPm GBPm GBPm
GBPm GBPm
Transaction fees 105.8 1.2 107.0 84.7 0.6 85.3
Servicing fees 35.9 - 35.9 37.5 - 37.5
Interest income 5.6 44.6 50.2 8.3 22.6 30.9
Other fees 5.0 0.1 5.1 5.1 0.1 5.2
Operating income 152.3 45.9 198.2 135.6 23.3 158.9
Investment income 24.3 - 24.3 2.8 - 2.8
Total income 176.6 45.9 222.5 138.4 23.3 161.7
Fair value (losses)/gains (6.7) - (6.7) 4.2 - 4.2
Cost of funds (2.5) (9.0) (11.5) - (5.8) (5.8)
Net income ("revenue") 167.4 36.9 204.3 142.6 17.5 160.1
Profit/(loss) before tax (before exceptional 32.2 (11.9) 20.3 19.0 (15.6) 3.4
items)
Exceptional items - - - (2.3) (0.3) (2.6)
Profit/(loss) before tax 32.2 (11.9) 20.3 16.7 (15.9) 0.8
1. The Group primarily uses profit before tax in its resource allocation and decision making and has therefore
discontinued disclosing Adjusted EBITDA as an additional non-GAAP measure.
2. The segmental results of the discontinued US business for 2024 are not presented above.
Term Loans
Term Loans originations increased by 16% to GBP1,638 million (2024: GBP1,407 million). Growth was driven by product innovation and increased borrower demand, with a particularly strong Q4 2025.
We continue to look at ways to provide access to finance for SMEs. Alongside our principal longer-term financial product, we met business needs through a range of other products:
-- We expanded our loan proposition with a shorter-term loan (6 to 24-month terms). To support the launch, whilst we
tested and iterated this product, we funded it through our balance sheet in line with our capital allocation
policy. It was funded through the same leveraged warehouse as FlexiPay. The product expansion has been a success
and we onboarded an institutional investor, Waterfall Asset Management, in January 2026 to fund the product going
forward. We also sold the shorter-term loan portfolio to that investor in line with the value it was carried at. -- We continued to participate in the government's Growth Guarantee Scheme ("GGS") which enabled us to provide finance
to SMEs at a lower cost than we would otherwise be able to. -- We have also continued to grow originations through our Marketplace network of third-party finance providers. This
allows us to support even more SMEs with access to a wider range of financing options.
Under our off-balance-sheet funding model, Term Loans are funded through agreements with institutional investors. During 2025, we signed five forward flow arrangements with investors and we have c.GBP2.2bn future funding in place including the institutional funders we onboarded for shorter-term loans earlier this year (31 December 2024: c.GBP2.1 billion).
Assets under Management ("AuM") started to grow again and reached GBP2.8 billion, as new lending outpaced the amortisation of the legacy Covid-19 government-guaranteed loans. As at 31 December 2025, the legacy Covid-19 loans represented c.8% of total AuM (31 December 2024: 27%).
The Term Loans business delivered revenue of GBP167.4 million, growing 17% (2024: GBP142.6 million). This growth came principally from originations and successful scaling of our shorter-term loan offering. The income from shorter-term loans is presented within investment income as we earned interest whilst the loans were on-balance-sheet. Going forward this will move to a fee-based model where we earn an upfront transaction fee and a servicing fee in line with our other Term Loans products.
Profit before tax was GBP32.2 million, up from GBP19.0 million in 2024 (GBP16.7 million in 2024 after exceptional items). PBT margin increased to 19.2% (2024: 13.3%; 2024: 11.7% after exceptional items), showing the strong efficiency and scalability of our established platform business.
FlexiPay and Cashback card
Our line of credit product, FlexiPay, has demonstrated significant growth to date and we continue to invest in it. FlexiPay includes a line of credit product and a Cashback card.
Transactions grew by 66% to GBP815 million (2024: GBP492 million), driven by customer growth and new features, increasing customer engagement. We also continue to scale Cashback card, launched in H2 2024. Active accounts increased by 56% to nearly 20,000 in 2025, driving transaction growth. AuM grew to GBP206 million at 31 December 2025 (2024: GBP119 million), following transaction and active account growth.
Revenue for FlexiPay was GBP36.9 million in 2025, increasing from GBP17.5 million in 2024, primarily due to interest income growth. This was driven by a rise in transactions and fee growth. The average fee for each drawdown grew to 7.3% (2024: 5.8%), reflecting a longer average repayment period after offering wider repayment terms during 2024 of 1, 3, 6, 9 or 12 months.
The FlexiPay segment has two primary products - FlexiPay, a line of credit and a Cashback card. The line of credit offers the instant ability to settle invoices or withdraw cash via bank transfer or the FlexiPay card. A one-off drawdown fee is charged, with repayment spread over 1-12 months. There is no additional interest. On our Cashback card, when a customer transacts, an interchange fee of 1.75% is earned alongside interest on any revolving balances. The product offers customers 2% cashback in the first six months, followed by 1% thereafter.
FlexiPay is funded through Funding Circle's invested capital and a senior debt facility with Citi. The lines of credit are part of Funding Circle's balance sheet. The interest payable on this facility is shown in "cost of funds" and is based on SONIA plus a margin. This facility is currently GBP240 million with the ability to upsize further and is due for renewal in April 2026. This facility now only funds FlexiPay, however during 2025 the facility also funded our shorter-term loans and was GBP291 million at 31 December 2025, prior to an institutional investor being onboarded for future shorter-term loan funding.
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