Half Year 2026 Trading Update (unaudited)
H1 2026 revenue up 50% to £138m, profit before tax up to £23m, AuM grew to £3.3bn.
vs expectations: on track with guidance
- Revenue £138 million (prior £92 million (HY 2025))
- Profit before tax £23 million (prior £6 million (HY 2025))
- Assets under management £3.3 billion (prior £2.8 billion (HY 2025))
- Credit extended £1.7 billion (prior £1.1 billion (HY 2025))
- Unrestricted cash £136 million (prior £101 million (31 December 2025))
- Term Loans originations £1,050 million (prior £736 million (HY 2025))
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"It’s been another standout six months for Funding Circle. We’ve built upon last year’s momentum with strong revenue and profit growth, driven by our continued product development and market demand. Small businesses power the UK economy, driving innovation, creating jobs and fuelling regional growth. We’re proud to have helped a record number of businesses in H1 access the finance they need to win.
"Our Term Loans business is highly cash-generative, which has enabled us to scale our FlexiPay and Card products. We remain focused on profitable growth - backing even more small businesses across the UK with the funding they need to succeed."
Business performance
Building on the performance achieved in 2025, the Group has had a strong first half of 2026. This was underpinned by our new product innovation in 2025, in particular the new shorter-term loan offering launched at the end of HY 2025 which has now contributed throughout HY 2026. Alongside this we have seen strong SME demand in Q1 2026, which carried through from late 2025 before normalising in Q2 2026 as we approach the typically quieter summer period.
Revenue grew to c.£138 million, up 50% (HY 2025: £92 million, FY 2025: £204 million), and profit before tax was c.£23 million (HY 2025: £6 million, FY 2025: £20 million). Overall credit extended for the half was £1.7 billion (HY 2025: £1.1 billion, FY 2025: £2.5 billion), and assets under management (“AuM”) grew to £3.3 billion (HY 2025: £2.8 billion, FY 2025: £3.0 billion).
The Group’s unrestricted cash balance was £136 million at 30 June 2026 (31 December 2025: £101 million). The increase reflects trading performance and the monetisation of the shorter-term loan portfolio (as referenced in our March 2026 results), partly offset by the ongoing share buyback programme.
Our Term Loans business grew originations to £1,050 million (HY 2025: £736 million) and AuM grew to £3.0 billion (HY 2025: £2.7 billion, FY 2025: £2.8 billion). Term Loans continues to demonstrate strong operating leverage and high cash generation, enabling us to increase investment in FlexiPay and Card. We continue to have a strong funding pipeline with two new forward flow agreements totalling £900 million signed in the half.
Our FlexiPay and Card business has grown transactions to £640 million, up 71% (HY 2025: £375 million, FY 2025: £815 million) with AuM of £300 million (HY 2025: £169 million, FY 2025: £206 million). We renewed and upsized our long-standing funding facility with Citi in April 2026; this now stands at £400 million including our equity.
The strong first-half performance puts us firmly on track to achieve our FY 2026 guidance of at least £235 million revenue and at least £35 million profit before tax while allowing us to continue investing for future growth. We remain mindful of the broader economic environment as we head into the second half. We will update further at our interim results on 8 September.
Capital distributions
We remain capital-light with a robust balance sheet. A third share buyback of up to £25 million was announced in 2025, which is ongoing. Combined with earlier programmes, the company has bought back £72 million of shares representing 18% of its issued share capital to date.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.