Half Year 2026 Trading Update

16 July 2026

 Funding Circle Holdings plc

 Half Year 2026 Trading Update (unaudited)

STRONG FIRST HALF PERFORMANCE AND CONTINUED GROWTH MOMENTUM

Lisa Jacobs, CEO of Funding Circle, said:

"It’s been another standout six months for Funding Circle. We’ve built upon last year’s momentum with strong revenue and profit growth, driven by our continued product development and market demand. Small businesses power the UK economy, driving innovation, creating jobs and fuelling regional growth. We’re proud to have helped a record number of businesses in H1 access the finance they need to win.

"Our Term Loans business is highly cash-generative, which has enabled us to scale our FlexiPay and Card products. We remain focused on profitable growth - backing even more small businesses across the UK with the funding they need to succeed."

Business performance

Building on the performance achieved in 2025, the Group has had a strong first half of 2026. This was underpinned by our new product innovation in 2025, in particular the new shorter-term loan offering launched at the end of HY 2025 which has now contributed throughout HY 2026. Alongside this we have seen strong SME demand in Q1 2026, which carried through from late 2025 before normalising in Q2 2026 as we approach the typically quieter summer period.

Revenue grew to c.£138 million, up 50% (HY 2025: £92 million, FY 2025: £204 million), and profit before tax was c.£23 million (HY 2025: £6 million, FY 2025: £20 million). Overall credit extended for the half was £1.7 billion (HY 2025: £1.1 billion, FY 2025: £2.5 billion), and assets under management (“AuM”) grew to £3.3 billion (HY 2025: £2.8 billion, FY 2025: £3.0 billion).

The Group’s unrestricted cash balance was £136 million at 30 June 2026 (31 December 2025: £101 million). The increase reflects trading performance and the monetisation of the shorter-term loan portfolio (as referenced in our March 2026 results), partly offset by the ongoing share buyback programme.

Our Term Loans business grew originations to £1,050 million (HY 2025: £736 million) and AuM grew to £3.0 billion (HY 2025: £2.7 billion, FY 2025: £2.8 billion). Term Loans continues to demonstrate strong operating leverage and high cash generation, enabling us to increase investment in FlexiPay and Card. We continue to have a strong funding pipeline with two new forward flow agreements totalling £900 million signed in the half.

Our FlexiPay and Card business has grown transactions to £640 million, up 71% (HY 2025: £375 million, FY 2025: £815 million) with AuM of £300 million (HY 2025: £169 million, FY 2025: £206 million). We renewed and upsized our long-standing funding facility with Citi in April 2026; this now stands at £400 million including our equity.

The strong first-half performance puts us firmly on track to achieve our FY 2026 guidance of at least £235 million revenue and at least £35 million profit before tax while allowing us to continue investing for future growth. We remain mindful of the broader economic environment as we head into the second half. We will update further at our interim results on 8 September.

Capital distributions

We remain capital-light with a robust balance sheet. A third share buyback of up to £25 million was announced in 2025, which is ongoing. Combined with earlier programmes, the company has bought back £72 million of shares representing 18% of its issued share capital to date.

For further details:

Funding Circle Holdings plc                                                                                                            

ir@fundingcircle.com  press@fundingcircle.com

Lisa Jacobs, Chief Executive Officer                                                                                              

Tony Nicol, Chief Financial Officer

Headland Consultancy

Stephen Malthouse and Jack Gault (+44 20 3805 4822)

About Funding Circle:

Funding Circle (LSE: FCH) is the UK’s leading SME finance platform. Since 2010, we have extended more than £18bn in credit to over 135,000 UK businesses, helping them power the economy and their communities.

By combining proprietary AI-powered credit models with a human touch, we provide a seamless experience that allows SMEs to borrow, pay later, and spend through a single ecosystem. For institutional investors, Funding Circle offers access to an attractive, underserved asset class through a platform built on deep data and a proven track record of robust returns.