Funding Circle has raised its annual revenue forecast to at least £275m following stronger demand for small-business finance, extending a period of growth in lending activity and profitability.
The London-listed company now expects a pre-tax profit margin of approximately 16% for the financial year ending December 2026, reflecting continued trading momentum during September and October.
Its revised revenue expectation represents an increase of at least £20m compared with the previous guidance of more than £255m, which was issued alongside the company’s half-year results in September.
The earlier forecast also anticipated profit before tax exceeding £40m. The latest figures indicate a higher expected level of earnings, although the company has not disclosed a separate revised absolute profit target.
Chief executive Lisa Jacobs said demand from smaller businesses remained resilient despite uncertainty surrounding the economic outlook.
“We’ve carried the strong momentum seen in the first half of 2026 into the autumn, and SME demand has remained resilient despite continued macro uncertainty,” she said.
The company attributed its improved expectations to sustained customer demand and continued development of its financial products.
Funding Circle provides loans, credit facilities, and payment products to UK small and medium-sized enterprises, using technology-based credit assessment alongside institutional funding arrangements.
Its expanding product range is intended to allow customers to access different types of finance through a single platform, rather than relying exclusively on traditional business loans.
Lending activity supports profitability —
The upgraded forecast builds on substantial growth during the first six months of the year.
Funding Circle reported half-year revenue of £138.2m, up 50% from £92.3m during the corresponding period in 2025.
Profit before tax increased from £6m to £24.1m, while the pre-tax profit margin improved from 6.5% to 17.4%.
The company extended £1.69bn in credit during the period, representing an increase of 52% year on year.
Term loan originations rose 43% to £1.05bn, while transactions through its FlexiPay and credit card products increased 71% to £640m.
The different products support distinct business financing requirements. Term loans provide capital for longer-term expenditure, while revolving credit and payment facilities can help customers manage shorter-term purchasing and cash flow needs.
Funding Circle has also been encouraging customers to use multiple products. At the half-year stage, approximately 31% of its customers were using more than one service.
The broader product mix has supported customer activity, although its newer financing operations remain less profitable than the established term lending business.
FlexiPay and credit card activities reported a combined pre-tax loss of £4.5m during the first half, narrowing from £6.7m a year earlier.
Management has been seeking to increase their scale while controlling costs, supported by the profitability of the wider business.
Assets under management reached £3.25bn at 30 June, compared with £2.83bn a year earlier.
Funding Circle also reported approximately £2.4bn in committed forward funding flows from institutional partners, supporting future lending activity through its capital-light model.
Shareholder returns and leadership transition —
The stronger financial position has supported continued distributions to shareholders.
Funding Circle began its fourth share buyback programme on 21 September and had repurchased approximately £5m of shares under that programme by the November update.
Including earlier programmes, the company has spent around £80m on repurchases, equivalent to approximately 19% of its issued share capital.
The earnings upgrade comes during a planned leadership transition.
Rob Straathof, currently chief executive of Berlin-based technology subscription company Grover and previously head of small-business finance provider Liberis, has been appointed to succeed Jacobs, subject to regulatory approval.
He is expected to join during the first half of 2027, with Jacobs remaining in charge during the transition and departing no later than September 2027.
Funding Circle has now increased its financial expectations twice during 2026, first following its September half-year results and again after stronger trading during the autumn.
The revised forecast is based on continued demand from UK smaller businesses, improvements to its product offering, and further growth in a lending platform that has generated substantially higher revenue and profitability during the year.
