Funding Circle (LON:FCH) Announces Quarterly Earnings Results

Funding Circle (LON:FCH) posted its quarterly earnings results on Tuesday. The company reported GBX 7.60 EPS for the quarter, Digital Look Earnings reports. Funding Circle had a net margin of 20.67% and a return on equity of 21.54%.

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

• Strong H1 performance: Credit extended rose 52% to £1.7 billion, revenue increased 50% to £138 million, and profit before tax quadrupled to £24 million, lifting the PBT margin to 17%.
• Management upgraded FY2026 guidance to revenue above £255 million and PBT above £40 million, while indicating it is tracking toward the upper end of its FY2029 revenue range.
• The company announced a further share buyback of up to £25 million after the current program, following approximately £72 million of repurchases since March 2024, or around 18% of issued share capital.
• FlexiPay and the credit card continued rapid growth, with revenue up 83% and assets under management up 78%, but the combined business remained loss-making due to upfront marketing and expected credit-loss charges; management expects near-term profitability and says it would already be profitable if growth investment stopped.
• CEO Lisa Jacobs plans to step down by the end of September 2027, creating a succession process, although management emphasized that operations and strategy remain unchanged during the transition.

Funding Circle Trading Down 8.0%

Shares of LON:FCH opened at GBX 211.50 on Tuesday. Funding Circle has a 1 year low of GBX 113.20 and a 1 year high of GBX 252. The company has a debt-to-equity ratio of 119.79, a current ratio of 1.70 and a quick ratio of 3.33. The firm has a market capitalization of £598.77 million, a P/E ratio of 15.11 and a beta of 0.76. The business’s 50-day moving average is GBX 213.67 and its 200 day moving average is GBX 166.93.

Analysts Set New Price Targets

A number of brokerages have commented on FCH. Canaccord Genuity Group reissued a “buy” rating and issued a GBX 300 price objective on shares of Funding Circle in a research note on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft upped their price objective on Funding Circle from GBX 190 to GBX 290 and gave the company a “buy” rating in a research report on Friday, August 14th. Three equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of GBX 295.

Funding Circle Company Profile