Funding Circle Reports Strong H1 Performance with Revenue Growth of 50% and Raised Full-Year Guidance
Funding Circle reported robust first-half performance in fiscal year 2026, extending credit by £1.7 billion—up 52% from the previous year—and generating revenue of £138 million, a 50% increase. Profit before tax surged fourfold to £24 million as assets under management rose 15% to £3.3 billion. The company raised its full-year guidance for both revenue and profit, projecting figures above £255 million and £40 million respectively. Funding Circle also announced an additional share buyback of up to £25 million following a current program that has already repurchased about 18% of issued shares since March 2024. The term loans segment drove much of the growth, with revenue increasing by 43%, and its profit margin expanding from nearly 17% to over 26%. Meanwhile, newer products like FlexiPay and credit cards saw transaction volumes rise 71%, contributing £30 million in revenue despite remaining loss-making. The company’s operating expenses grew at a slower pace than revenue (up 27%), with the CFO noting continued improvement in efficiency. CEO Lisa is set to step down by September 2027, signaling leadership transition plans.
Topics: leadership_transition lending profitability revenue_growth share_buybacks