Funding Circle (LON:FCH) Posts Earnings Results

Funding Circle (LON:FCH) released its quarterly earnings results on Thursday. The company reported GBX 14.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Funding Circle had a return on equity of 12.96% and a net margin of 15.52%.

Here are the key takeaways from Funding Circle’s conference call:

• Exceeded 2026 guidance a year early — revenue rose 28% to GBP 204m, credit extended increased 29% to GBP 2.5bn and PBT swung to GBP 20.3m (from GBP 3.4m in 2024), showing clear operating leverage.
• Management upgraded FY2026 guidance to circa GBP 235m revenue and at least GBP 35m PBT and set medium-term FY2029 targets of GBP 300–350m revenue with PBT margins trending to the low–mid 20s.
• FlexiPay & card are scaling fast — active users and transactions jumped (AUM GBP 206m, revenue +111% to GBP 36.9m, transactions +66% to GBP 850m) but the segment is loss-making now (GBP 11.9m) due to upfront marketing and IFRS 9 ECLs, with management describing a J‑curve to future profitability.
• Term loans remain the profitable core — AUM ~GBP 2.8–3.0bn, margins ~19%, funded 93% by institutional investors who have seen ~5% net returns above cost of capital, and over GBP 2bn of future funding secured.
• Capital allocation shows active buybacks (17% of shares repurchased, GBP 75m program ongoing), a deployable cash buffer of ~GBP 76m and an effective cash tax rate ~10% for several years; dividends are being considered but not yet planned until cash-backed profits increase.

Funding Circle Price Performance

FCH traded down GBX 6 during midday trading on Thursday, reaching GBX 140. 4,974,840 shares of the company’s stock were exchanged, compared to its average volume of 1,317,241. Funding Circle has a 1-year low of GBX 87.10 and a 1-year high of GBX 176.80. The stock has a market capitalization of £405.07 million, a PE ratio of 20.00 and a beta of 0.70. The company has a debt-to-equity ratio of 89.48, a current ratio of 1.78 and a quick ratio of 3.33. The business’s 50-day moving average price is GBX 145.21 and its 200 day moving average price is GBX 133.44.

About Funding Circle