Funding Circle has achieved its FY26 revenue target a year ahead of schedule, causing the SME lending platform鈥檚 share price to rocket by over 17% to 148p in the first half hour of trading today.
The London-based FinTech beat FY25 forecasts, supported by faster growth across its expanding range of products.
The company鈥檚 revenue for the year was approximately 拢204 million, up 28% year-on-year, while profit before tax rose sharply to around 拢20m from 拢3m the year prior, beating current market expectations of 拢191m revenue and 拢17m profit.聽
Total credit extended during the year reached 拢2.5 billion, an increase of 29%, while balances under management rose to 拢3bn from 拢2.8bn.
Funding Circle said performance was driven by two key factors – resilient customer demand despite macroeconomic conditions and product innovation that opened up new customer segments and use cases.
Its Term Loans business grew originations to 拢1.6bn from 拢1.4bn, while loans under management remained stable at 拢2.8bn.
The group also reported growth across newer products, with FlexiPay and its cashback credit card delivering rapid growth.聽
Transactions across these products rose to 拢815m from 拢491m and balances under management increased to 拢206m from 拢119m.
The listed firm reiterated that its current guidance for FY26 is revenue of more than 拢200m – a target it has now reached one year early.聽
Updated guidance will be issued alongside its full-year results presentation on 5th March.
鈥淚鈥檓 delighted with our strong performance this year,鈥� said Lisa Jacobs, CEO of Funding Circle.聽
鈥淲e supported more small businesses than ever before, saw record customer engagement, grew profit before tax significantly and achieved our medium-term revenue target of more than 拢200m a year ahead of schedule.
“This performance is due to our strategic transformation, announced in 2024, focusing on profitable, multi-product UK growth.聽
鈥淚t demonstrates the strength of our capital-light business model, new product investment, and the power of our proprietary data and technology to meet growing customer demand.
鈥淲e enter 2026 with a clear platform for growth as we become a more meaningful part of our customers鈥� lives, serving more of their needs, and capturing a larger share of their financing.鈥�
The company also provided an update on shareholder returns, saying that a third share buyback programme of up to 拢25m, announced in May 2025, is ongoing.聽
Its shares are now (8:30am) up at 148p from 126.2p so far this morning.
The FinTech, which floated on the London Stock Exchange in 2018 at a valuation of around 拢1.5bn, has a market cap of over 拢450m.