Funding Circle reported first-half 2026 revenue of £138.2 million, up 50% year over year, as increased lending volumes, product expansion and operating leverage drove a sharp increase in profitability.
Profit before tax increased more than fourfold to £24.1 million from £6 million, with PBT margin expanding to 17.4% from 6.5%.
Credit extended increased 52% to £1.69 billion, while assets under management increased 15% to £3.25 billion.
Funding Circle provides financing to UK small and medium-sized businesses through products including Term Loans, FlexiPay lines of credit, credit cards and a marketplace connecting businesses with third-party lenders.
The company’s multi-product strategy is increasing customer engagement. 31% of existing customers now use more than one Funding Circle product, compared with none in the first half of 2021, while more than 50% of credit card customers are new to Funding Circle.
The company said application processing has also accelerated dramatically, with the process taking approximately 20 seconds compared with 38 seconds in 2025 and 30 minutes in 2021.
Funding Circle is increasingly using proprietary data and AI to improve underwriting and operations. Its Gen 9 credit model provides approximately three times greater risk differentiation than the UK bureau model, while more than 90% of employees are using generative AI.
The platform has extended more than £18 billion of credit to SMEs since 2010, supporting more than 135,000 small businesses.
Following the first-half performance, Funding Circle upgraded fiscal 2026 guidance to more than £255 million of revenue, compared with approximately £235 million previously.
The company now expects profit before tax above £40 million, up from previous guidance of at least £35 million. Its medium-term fiscal 2029 target remains approximately £300 million to £350 million of revenue with PBT margins in the low-to-mid 20% range.
Funding Circle also announced a further £25 million share buyback program as its deployable cash and cash generation increase.
