EarningsQ2 2026 Earnings Report
DE:FCA Q2 2026 EPS Results
Actual EPS€0.09
Consensus EPS―
Beat/Miss―
One Year Ago EPS€0.02
DE:FCA Q2 2026 Revenue Results
Actual Revenue€168.68M
Expected Revenue€161.99M
Beat/MissBeat by +€6.69M
YoY Revenue Growth+51.74%
Earnings Announcement Details
QuarterQ2 2026
Date09/08/2026
TimeBefore Open
Conference CallTuesday, September 8, 2026
DE:FCA Upcoming Earnings
Funding Circle Holdings 's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, led by 50% revenue growth, fourfold profit-before-tax growth, improved margins, upgraded FY 2026 guidance, strong funding availability, growing customer engagement and progress in AI-driven productivity. The main challenges were higher expected credit losses, continued losses in the newer FlexiPay and card products, normalized seasonal demand, U.K. budget uncertainty, a higher expected second-half share-based payment charge and the announced CEO transition. Positive developments significantly outweighed the lowlights.Company Guidance
Strong First-Half Growth and Profitability
Credit extended grew 52% to GBP 1.7 billion, revenue increased 50% to GBP 138 million, and profit before tax grew fourfold to GBP 24 million. Assets under management increased 15% to GBP 3.3 billion.
Upgraded FY 2026 Guidance
The company upgraded FY 2026 guidance to revenue of more than GBP 255 million and profit before tax of more than GBP 40 million, representing a doubling of profit versus last year.
Operating Leverage and Margin Expansion
Operating expenses increased 27% to GBP 99 million while revenue rose 50%, meaning the top line grew roughly twice as fast as costs. Profit before tax margin increased from 1% to 17% in the first half of 2026.
Term Loans Delivered Higher Profitability
Term-loan credit extended increased 43%, assets under management grew 11%, and revenue rose 43% to GBP 108 million. Term-loan profit reached GBP 29 million, with PBT margin increasing from nearly 17% to over 26%.
FlexiPay and Credit Card Momentum
FlexiPay and credit-card transactions grew 71%, assets under management increased 78% year-on-year to GBP 300 million, and revenue rose 83% to GBP 30 million from GBP 16 million a year ago.
Repeat Customer Engagement
Every customer cohort grew during the half, driven by continued engagement and targeted credit-line increases. 90% of revenue came from pre-2026 cohorts, and the company said repeat behavior was predictable and underpinned the long-term growth and profitability of the products.
Multiproduct Strategy Increasing Engagement
The company now has a customer transaction every 20 seconds, compared with every 38 seconds at the end of last year and every half hour five years ago. About one-third of customers hold more than one product, compared with none five years ago, and more than half of card customers are new to Funding Circle.
Capital-Light Funding Platform
Funding Circle reported GBP 3.3 billion of assets under management, with around 91% in term loans funded by a diverse range of investors and around 9% in FlexiPay and the credit card funded through the Citi facility and the company's balance-sheet equity. The company also had around GBP 2.4 billion of forward-flow arrangements, up from GBP 2.2 billion at year-end.
Healthy Investor Appetite and New Funding
The company said appetite for term loans was strong, with healthy competition from new and existing investors. Three new forward-flow deals were signed during the year, including one with a new investor for GBP 500 million in August.
Improved Citi Facility
Funding Circle renewed its Citi facility in April at GBP 320 million plus its own equity. The renewal provided additional capacity on better terms and better pricing.
FlexiPay Reached Free Cash Flow Breakeven
FlexiPay reached free cash flow breakeven before funding investment growth. The company said FlexiPay and the credit card would be profitable by around GBP 10 million on an annualized basis if marketing and new growth investment stopped, and mature cohorts were cash generative.
Shorter-Term Loan Portfolio Monetized
The company sold the shorter-term loan portfolio in January as planned, recouping its GBP 26 million investment. The product is now funded through forward flow like the rest of the term-loan business.
Strong Cash Position and Shareholder Returns
Unrestricted cash was GBP 136 million at the end of June. After the remaining GBP 3 million on the existing buyback and a GBP 45 million operational management buffer, deployable cash was GBP 88 million, up from GBP 76 million at the end of last year. The company announced a further buyback of up to GBP 25 million, while total buybacks including earlier programs are expected to reach approximately GBP 75 million, or around 18% of issued share capital.
Large Underserved Market Opportunity
The company described annual markets of more than GBP 80 billion in SME lending, another GBP 80 billion in card transactions and more than GBP 1.3 trillion in business-to-business payments. Funding Circle's market share remains below 5% in term loans and below 1% in cards.
Technology and Credit-Model Advantages
Funding Circle has 16 years of proprietary data, 10 billion data points and ninth-generation credit models. Its six-minute borrower application has more than 75% of decisions made instantly, and its models differentiate risk around 3x better than bureau scores.
Product Innovation Continued
The company simplified the term-loan application journey, enhanced self-service capabilities, relaunched the FlexiPay and card mobile app, launched company cards, introduced a new broker portal and upgraded the borrower portal.
AI Adoption and Productivity Gains
More than 90% of Circlers frequently use AI in their jobs. An AI-native engineering team delivered more than a 30% improvement in speed to market in Q2, while revenue per person improved 20% compared with last year. A data-subject-access-request process that previously took up to two days of manual work was reduced to minutes for the AI agent, followed by a couple of hours of expert human review.
Positive Medium-Term Outlook
Management said it was trending toward the upper end of its FY 2029 revenue guidance of GBP 300 million to GBP 350 million, with profit margins of low to mid-20%. The company also said it remained confident in its medium-term growth and profitability plan.
Demonstrated SME Economic Impact
Since launch, Funding Circle has extended more than GBP 18 billion in credit to over 135,000 small businesses. Lending through Funding Circle in 2025 supported GBP 7.9 billion in GDP and 117,000 jobs.
Workplace Recognition and Team Performance
The company was recognized by The Sunday Times as one of the U.K.'s Best Places to Work earlier this year, and management highlighted its high-performing, diverse and inclusive culture.
Stable SME Demand and Credit Performance
Management said demand remained strong, with no slowdown from SMEs more generally and no noticeable change in customer sentiment entering the second half. The lending book was described as performing very well, and credit performance remained stable and in line with expectations.
DE:FCA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed