Funding Circle has achieved its FY26 revenue target a year ahead of schedule, causing the SME lending platform’s 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’s revenue for the year was approximately £204 million, up 28% year-on-year, while profit before tax rose sharply to around £20m from £3m the year prior, beating current market expectations of £191m revenue and £17m profit.
Total credit extended during the year reached £2.5 billion, an increase of 29%, while balances under management rose to £3bn from £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 £1.6bn from £1.4bn, while loans under management remained stable at £2.8bn.
The group also reported growth across newer products, with FlexiPay and its cashback credit card delivering rapid growth.
Transactions across these products rose to £815m from £491m and balances under management increased to £206m from £119m.
The listed firm reiterated that its current guidance for FY26 is revenue of more than £200m – a target it has now reached one year early.
Updated guidance will be issued alongside its full-year results presentation on 5th March.
“I’m delighted with our strong performance this year,” said Lisa Jacobs, CEO of Funding Circle.
“We 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 £200m a year ahead of schedule.
“This performance is due to our strategic transformation, announced in 2024, focusing on profitable, multi-product UK growth.
“It 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.
“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.”
The company also provided an update on shareholder returns, saying that a third share buyback programme of up to £25m, announced in May 2025, is ongoing.
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 £1.5bn, has a market cap of over £450m.