Funding Circle Holdings (LSE:FCH), the online lending platform for small and medium-sized businesses, said revenue grew to approximately £138 million in the first half of 2026, up 50% from £92 million a year earlier.
Profit before tax nearly quadrupled to approximately £23 million, up from £6 million in the first half of 2025 and already exceeding the £20 million recorded for the whole of 2025.
Credit extended over the period reached £1.7 billion, up from £1.1 billion, while assets under management grew to £3.3 billion from £2.8 billion a year earlier.
"It's been another standout six months for Funding Circle. Our Term Loans business is highly cash-generative, which has enabled us to scale our FlexiPay and Card products", said chief executive Lisa Jacobs.
Term Loans originations rose to £1,050 million from £736 million, supported by two new forward flow funding agreements totalling £900 million signed during the half. FlexiPay and Card transactions climbed 71% to £640 million, with assets under management of £300 million, after the company renewed and upsized its funding facility with Citi to £400 million, including equity in April.
The company said the first-half performance keeps it on track to meet full-year guidance of at least £235 million revenue and at least £35 million profit before tax, while flagging caution over the broader economic environment heading into the second half. Funding Circle will provide a further update at its interim results on 8 September.
News Intelligence what this means for the company
Funding Circle delivered 50% H1 revenue growth to £138m and nearly quadrupled pre-tax profit to £23m, already exceeding full-year 2025 profit of £20m. The company reaffirmed full-year guidance (£235m+ revenue, £35m+ PBT) despite flagging economic caution, signalling confidence that its cash-generative Term Loans business can sustain momentum through H2.
- The company's ability to scale FlexiPay and Card products hinges on continued access to funding facilities (Citi facility upsized to £400m in April); any tightening of credit availability or partner withdrawal would constrain growth in these higher-margin segments.
- Forward flow funding agreements (£900m signed in H1) are critical to origination growth; reliance on these partnerships means refinancing risk and potential margin pressure if lenders reduce appetite for SME lending.
H1 execution validates the profitability inflection thesis—PBT already at 66% of full-year 2025 guidance—but the company's own caution on the broader economic environment and dependence on external funding partnerships introduce execution risk for the second half. Interim results on 8 September will be critical to assess whether H2 headwinds materialize.
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