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Funding Circle Holdings
(LSE:FCH)
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Rating:61Neutral
Price Target:
222.00 p
▲(1.14% Upside)
Action:Reiterated
Date:09/15/26
The score is driven most by mixed financial performance—improving profitability and revenue growth, but weakened by negative cash flow and higher leverage. The latest earnings call adds meaningful support through upgraded guidance and strong operational momentum, while technical indicators are bearish/oversold and partially offset the positive fundamentals. Valuation is supportive due to the low P/E.
Positive Factors
Strong growth and profitability
Rapid growth in lending, revenue and profit indicates stronger customer demand and operating leverage. If maintained, this combination can expand earnings capacity and support reinvestment, while the upgraded full-year outlook provides evidence that momentum extends beyond a single reporting period.
Negative Factors
Negative cash generation and higher leverage
Sustained cash burn reduces financial flexibility and makes the business more reliant on external funding. The simultaneous increase in debt raises balance-sheet sensitivity if operating performance weakens, funding conditions tighten or investment needs remain elevated over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and profitability
Rapid growth in lending, revenue and profit indicates stronger customer demand and operating leverage. If maintained, this combination can expand earnings capacity and support reinvestment, while the upgraded full-year outlook provides evidence that momentum extends beyond a single reporting period.
Read all positive factors
Funding Circle Holdings (FCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£580.93M
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)10.1
Beta (1Y)1.47
Revenue Growth52.96%
EPS Growth242.50%
CountryUK
Employees778
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding293,311,340
10 Day Avg. Volume870,498
30 Day Avg. Volume1,003,662
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.74
Price to Sales (P/S)1.79
P/FCF Ratio-11.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£299.00Price Target Upside36.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.11
Revenue Forecast (FY)£266.13M
Funding Circle Holdings Business Overview & Revenue Model
Company Description
Funding Circle Holdings plc, together with its subsidiaries, provides online lending platforms in the United Kingdom and internationally. The company offers small business loans, recovery loan schemes, government backed loans, business credit card...
How the Company Makes Money
Funding Circle makes money primarily by originating and servicing SME loans and earning fees and/or interest-related income depending on how loans are funded and held. Key revenue streams typically include: (1) Origination-related income: fees ear...
Funding Circle Holdings Earnings Call Summary
Earnings Call Date:Sep 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
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.Positive Updates
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.
Negative Updates
Higher Expected Credit Losses
Expected credit losses for FlexiPay and the credit card rose to GBP 15 million, driven by nearly 80% growth in balances outstanding. Management said the blended ECL rate was around 11% on a last-12-month basis and expected it to remain between 10% and 12% of average balance outstanding, while historic net annualized loss rates remained around 7%.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
For FY ’26, Funding Circle upgraded guidance to revenue of more than GBP 255 million and PBT of more than GBP 40 million, representing a doubling of profit versus last year; for the medium-term, current guidance is revenue of between GBP 300 million, GBP 350 million and profit margins of low to mid-20%, with the company trending towards the upper end of its FY ’29 revenue guidance and expecting to provide a further update at the year-end.Funding Circle Holdings Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
60
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 273.90M | 222.50M | 160.10M | 129.70M | 155.70M | 219.20M |
| Gross Profit | 272.40M | 200.00M | 92.00M | 61.50M | 69.90M | 157.80M |
| EBITDA | 48.70M | 31.40M | 17.20M | -10.30M | 4.10M | 82.00M |
| Net Income | 62.80M | 46.00M | 8.60M | -38.30M | -6.90M | 61.20M |
Balance Sheet | ||||||
| Total Assets | 531.00M | 535.90M | 358.00M | 373.20M | 384.00M | 565.90M |
| Cash, Cash Equivalents and Short-Term Investments | 445.80M | 447.00M | 187.60M | 290.00M | 246.80M | 375.30M |
| Total Debt | 254.80M | 273.60M | 109.50M | 69.50M | 66.10M | 237.40M |
| Total Liabilities | 289.10M | 307.50M | 141.50M | 126.40M | 100.00M | 277.90M |
| Stockholders Equity | 241.90M | 228.40M | 216.50M | 246.80M | 284.00M | 288.00M |
Cash Flow | ||||||
| Free Cash Flow | -51.90M | -34.40M | -70.30M | -37.70M | -24.30M | 90.70M |
| Operating Cash Flow | -51.40M | -33.80M | -67.40M | -25.60M | -10.40M | 100.10M |
| Investing Cash Flow | -65.20M | -126.20M | 23.30M | 66.40M | 162.00M | 310.90M |
| Financing Cash Flow | 155.70M | 124.70M | 10.20M | 3.70M | -201.70M | -291.20M |
Funding Circle Holdings Technical Analysis
Positive
219.50
Price Trends
205.18
Positive
193.91
Positive
168.96
Positive
Market Momentum
1.92
Negative
60.98
Neutral
80.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FCH, the sentiment is Positive. The current price of 219.5 is above the 20-day moving average (MA) of 193.44, above the 50-day MA of 205.18, and above the 200-day MA of 168.96, indicating a bullish trend. The MACD of 1.92 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 80.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FCH.
Funding Circle Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £54.49M | 8.90 | 8.28% | 5.58% | 5.19% | 14.53% | |
74 Outperform | £118.07M | 6.40 | 13.97% | ― | 22.63% | 33.09% | |
69 Neutral | £14.09M | 3.86 | 15.18% | 6.06% | 53.19% | 129.54% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £248.00M | 4.42 | 41.54% | 4.94% | 25.27% | 69.00% | |
61 Neutral | £580.93M | 10.09 | 26.71% | ― | 52.96% | 242.50% | |
44 Neutral | £9.16M | -0.57 | 216.55% | 8.45% | 37.16% | -1246.15% |
* Financial Sector Average
GB:FCH
Funding Circle Holdings
210.00
83.40
65.88%
GB:TIME
Time Finance plc
58.90
8.70
17.33%
GB:ORCH
Orchard Funding
66.00
10.14
18.15%
GB:LEND
Sancus Lending Group
0.85
0.41
93.18%
GB:DFCH
Distribution Finance Capital Holdings Plc
71.60
20.60
40.39%
GB:ASAI
ASA International Group PLC
248.00
77.66
45.59%
Funding Circle Holdings Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle lifts treasury stake as buy-back trims free float
Neutral
Oct 19, 2026
Funding Circle Holdings plc has continued to execute its previously announced share buy-back programme, purchasing a series of tranches of ordinary shares on the London Stock Exchange between 12 October and 16 October 2026 from Deutsche Bank AG. T...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Tightens Free Float With Treasury Share Buy-Back
Positive
Oct 5, 2026
Funding Circle Holdings plc has continued to execute its share buy-back programme, repurchasing a total of 425,000 ordinary shares on the London Stock Exchange between 28 September and 2 October 2026 at volume-weighted average prices ranging from ...
Regulatory Filings and Compliance
Funding Circle Updates Market on Total Voting Rights
Neutral
Oct 2, 2026
Funding Circle Holdings has disclosed its latest total voting rights, confirming that as of 30 September 2026 it had 304,741,576 ordinary shares in issue, of which 10,250,648 are held in treasury. This leaves 294,490,928 ordinary shares carrying v...
Stock BuybackRegulatory Filings and Compliance
Funding Circle Corrects Share Buyback Disclosure and Updates Voting Rights
Neutral
Sep 30, 2026
Funding Circle Holdings plc corrected a previous disclosure on transactions in its own shares, clarifying that several column headings in an aggregate information table had been mistakenly transposed, while confirming that all underlying data rema...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Updates Market on Progress of Share Buy-Back and Revised Voting Rights
Positive
Sep 28, 2026
Funding Circle Holdings plc disclosed details of recent share repurchases on the London Stock Exchange carried out through Deutsche Bank as part of its previously announced buy-back programme. Across the period from 21 to 25 September 2026, the co...
Business Operations and StrategyStock Buyback
Funding Circle Launches New £25m Buyback After Completing Third Programme
Positive
Sep 21, 2026
Funding Circle Holdings has completed its third £25 million share buyback programme, repurchasing 18,038,193 ordinary shares, equivalent to 5.92% of its issued capital, with a portion cancelled and the remainder held in treasury. Following th...
Stock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock in Latest Share Buyback Tranche
Positive
Sep 21, 2026
Funding Circle Holdings plc has continued its share buyback programme, repurchasing ordinary shares on the London Stock Exchange from Investec Bank between 14 and 18 September 2026 at volume-weighted average prices in the low to high 180 pence ran...
Regulatory Filings and Compliance
Funding Circle CFO boosts stake with London share purchase
Positive
Sep 18, 2026
Funding Circle Holdings, listed in London, operates a data-driven lending platform focused on UK small and medium-sized businesses, having originated more than £18bn in loans to over 135,000 firms since 2010. Its model targets both borrowers ...
Business Operations and StrategyStock Buyback
Funding Circle Adds to Treasury Stock in Ongoing Share Buyback
Positive
Sep 14, 2026
Funding Circle Holdings plc has continued its previously announced share buyback programme, purchasing ordinary shares on the London Stock Exchange via Investec Bank between 8 and 11 September 2026. The trades were executed at volume-weighted aver...
Business Operations and StrategyStock BuybackFinancial Disclosures
Funding Circle hikes 2026 guidance on surging SME lending and profit
Positive
Sep 8, 2026
Funding Circle reported a strong first half of 2026, with revenue up 50% to £138.2 million and profit before tax quadrupling to £24.1 million, driven by growth in SME term loans and expanding usage of its FlexiPay and credit card offerin...
Business Operations and StrategyExecutive/Board Changes
Funding Circle launches CEO succession plan as Lisa Jacobs prepares to step down
Positive
Sep 8, 2026
Funding Circle has announced that CEO Lisa Jacobs plans to step down by no later than September 2027, after 14 years with the UK SME finance platform and nearly five years as chief executive. The board will begin a formal search for her successor ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Updates Market on Latest Share Buybacks and Voting Rights
Positive
Sep 7, 2026
Funding Circle Holdings plc has continued to execute its previously announced share buyback programme, repurchasing a total of 30,745 ordinary shares on the London Stock Exchange between 1 and 2 September 2026 at volume-weighted average prices of ...
Regulatory Filings and Compliance
Funding Circle Updates Total Voting Rights and Share Capital
Neutral
Aug 28, 2026
Funding Circle Holdings has reported that as of 28 August 2026 its issued share capital totals 304,741,576 ordinary shares, of which 8,457,506 are held in treasury. This leaves 296,284,070 ordinary shares carrying voting rights, a figure sharehold...
Business Operations and StrategyPrivate Placements and Financing
Funding Circle Secures £500m Castlelake Backing to Boost UK SME Lending
Positive
Aug 11, 2026
Funding Circle has secured a new funding agreement with global alternative investment manager Castlelake, which will provide up to £500m of committed capital to UK small businesses over the next two years. The deal further diversifies Funding...
Stock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock as Buyback Programme Advances
Positive
Aug 3, 2026
Funding Circle Holdings has continued executing its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 28 and 31 July 2026 through Investec Bank. The company is holding these shares in t...
Regulatory Filings and Compliance
Funding Circle Updates Total Voting Rights and Share Capital Position
Neutral
Jul 31, 2026
Funding Circle Holdings plc has confirmed that its total issued listed share capital as of 31 July 2026 stands at 304,741,576 ordinary shares of 0.1p each, of which 8,392,272 shares are held in treasury. This leaves 296,349,304 ordinary shares car...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.