Funding Circle Holdings plc has reported a strong first half of 2026, with revenue rising 50% to £138 million and profit before tax reaching £23 million. The growth was underpinned by new product innovations and robust demand from small businesses, particularly in the Term Loans and FlexiPay segments. The company’s unrestricted cash balance stood at £136 million as of June 30, 2026, reflecting trading performance and portfolio monetisation.

Financial Performance

The Group’s overall credit extended for the half reached £1.7 billion, while assets under management (AuM) grew to £3.3 billion. The performance builds on momentum from 2025, with strong SME demand in Q1 2026 carrying through from late 2025 before normalising in Q2 2026. The company remains focused on profitable growth, backed by its capital-light model and robust balance sheet.

Segment Highlights

The Term Loans business grew originations to £1,050 million, with AuM increasing to £3.0 billion. The segment continues to demonstrate strong operating leverage and high cash generation, enabling increased investment in FlexiPay and Card products. Two new forward flow agreements totalling £900 million were signed during the half, strengthening the funding pipeline.

The FlexiPay and Card business saw transactions grow 71% to £640 million, with AuM reaching £300 million. In April 2026, the company renewed and upsized its funding facility with Citi to £400 million, including equity. The strong first-half performance positions Funding Circle to achieve its FY 2026 guidance of at least £235 million in revenue and £35 million in profit before tax.

Capital Distributions

Funding Circle announced a third share buyback of up to £25 million in 2025, which remains ongoing. Combined with earlier programmes, the company has repurchased £72 million of shares, representing 18% of its issued share capital to date. The interim results are scheduled for release on September 8.

Funding Circle (LSE: FCH) has successfully completed SBOLT 2026-1, its tenth public securitisation of loans originated on its platform, marking a decade of public market issuance. This transaction, composed of loans owned by Waterfall Asset Management (WAM), cements Funding Circle's position as the leading public SME ABS issuer in the UK and Europe since 2016. The milestone underscores the scale and maturity of its SME ABS programme, which has unlocked long-term capital pools for UK small and medium-sized enterprises.

Operated on behalf of platform investors, the securitisation programme has established SME lending as a distinct asset class. Across all ten SBOLT transactions, the initiative has delivered total securitised issuance of c.£2.5 billion and supported lending to more than 33,000 UK small businesses. The success of SBOLT 2026-1 was driven by Funding Circle's track record of sustainable returns and consistent programme-based issuance.

Key Programme Metrics

A significant development in this transaction is the first participation of the British Business Bank in a Funding Circle public securitisation. This involvement broadens institutional participation and represents a further milestone in the development of the UK SME ABS asset class. The transaction was well-received by investors, reflecting strong pricing achieved in the current market environment.

Strategic Partnerships

Funding Circle's platform and technology enable institutional investors to deploy capital efficiently to a diverse range of UK SMEs. The company has maintained a long-standing relationship with Waterfall Asset Management since 2018. James Cuby, Head of Europe at Waterfall Asset Management, noted that the SBOLT ABS programme is viewed as a prime example of how forward flows and platform partnerships should operate.

Dipesh Mehta, Chief Capital Officer at Funding Circle, highlighted that the milestone enables institutional partners to deploy capital to support UK SMEs effectively. He emphasized that the demand for the transaction underlines investor confidence in Funding Circle's tech platform and credit assessment capabilities. Reinald de Monchy, Chief Banking Officer at the British Business Bank, added that the transaction supports a more diverse and resilient small business lending ecosystem.