**Summary**
Funding Circle Holdings plc (FCH) released its Full Year 2025 Trading Update on January 20, 2026, announcing strong financial performance ahead of market expectations. Key highlights include
1. **Financial Performance**
Revenue of £204 million, up 28% year-on-year, surpassing the FY 2026 guidance a year early.
Profit before tax of £20 million, significantly higher than the £3 million in FY 2024 and ahead of market expectations of £17 million.
Credit extended increased by 29% to £2.5 billion, with balances under management rising to £3.0 billion.
2. **Business Drivers**
Strong demand despite macroeconomic challenges.
Product innovation expanded customer segments and use cases.
Term Loans business grew originations to £1.6 billion, with stable loans under management at £2.8 billion.
FlexiPay and Cashback credit card transactions surged to £815 million, with balances under management reaching £206 million.
3. **Strategic Transformation**
Success attributed to the 2024 strategic shift focusing on profitable, multi-product UK growth.
Proprietary AI-powered credit models and technology enhanced customer engagement and efficiency.
4. **Capital Return**
Ongoing £25 million share buyback program, with 16.5% of issued share capital repurchased to date.
5. **Future Outlook**
Updated FY 2026 guidance to be provided on March 5, 2026, following the early achievement of revenue targets.
CEO Lisa Jacobs emphasized continued growth, increased customer engagement, and expanded financing solutions for SMEs.
Funding Circle remains the UK’s leading SME finance platform, having extended over £17 billion in credit to 125,000 businesses since 2010, leveraging its capital-light model and innovative technology.