Funding Circle (FCH) H1 2025 earnings summary

Executive summary

• Achieved strong, profitable growth in H1 2025, with revenue up 17% year-over-year to £92.3m and PBT rising to £6.0m from £0.5m, reflecting accelerating profitability and strategic progress.

• Extended £1.1bn in credit to UK SMEs, up 21% year-over-year, with continued innovation and product expansion, especially in Flexi Pay and credit card offerings.

• Maintained strong market position as the UK's leading SME finance platform, serving over 110,000 businesses and supporting 87,000 jobs last year.

• Executed share buybacks totaling £75m since March 2024, repurchasing nearly 15% of initial share capital.

• Board and committee leadership changes in 2025, including a new Chairman and committee chairs.

Financial highlights

• Revenue increased 17% to £92.3m, with both Term Loans and FlexiPay contributing; credit extended grew 21% to £1.1bn.

• PBT reached £6.0m, a 12x increase from H1 2024, with Term Loans PBT at £12.7m (38% growth); FlexiPay revenue up 119%.

• FlexiPay and credit card transactions grew 66% to £375m, with over 25,000 active customers and cumulative transactions surpassing £1bn.

• Operating costs rose only 4% year-over-year, with non-marketing costs down 4% and cost savings of £15m achieved.

• Unrestricted cash at £115m as of June 2025, reflecting share buybacks and investment in new products.

Outlook and guidance

• On track to deliver 2025 market expectations and 2026 guidance: over £200m revenue and over £30m PBT.

• Targeting 15-20% revenue CAGR from FY23 and PBT margins above 15%.

• Flexi Pay expected to turn profitable during 2026.

• Strategic focus on customer-led profitable growth, product scaling, and expanding distribution channels.