Funding Circle profits jump to £6m as revenue increases 17pc

UK-headquartered SME lender Funding Circle saw its pre-tax profits increase to £6m in the first half of 2025, up from £500,000 year-on-year.

The FTSE-listed lender also saw its revenues increase by 17 per cent to £92.3m from £79.1m over the same period last year.

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It also saw growth in its Term Loan and FlexiPay products, with Term Loans seeing a pre-tax profit of £12.7m, while FlexiPay pre-tax losses narrowed to £6.7m from £8.7m, which the firm said reflected the product continuing to scale. FlexiPay transactions were up 66 per cent year-on-year, with cumulative transactions exceeding £1bn since launch.

Chief executive Lisa Jacobs (pictured) said the firm is on track to deliver its medium-term guidance of more than £200m in revenue and more than £30m in pre-tax profit for the full 2026 financial year, and is continuing its share buyback program.

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“The first half of 2025 demonstrates the clear success of our strategy and execution, delivering another period of strong, profitable growth as we extended £1.1bn in credit to UK businesses across our product suite. We achieved 17 per cent revenue growth to £92.3m and a significant increase in PBT to £6m,” she said.

“Our performance is underpinned by our great customer experience, powered by our proprietary data, technology and AI powered credit models. We are leveraging these strengths to deliver operating leverage in our Term Loans business whilst continuing to grow our newer cashflow products.

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“Today, we continue to fulfil our mission of backing small businesses as a more meaningful part of our customers’ lives, serving more of their needs, interacting with them more frequently and capturing a larger share of their financing. This gives us a clear platform for further growth.”