Funding Circle Holdings Limited (GB:FCH)
LSE:FCH
Want to see GB:FCH full AI Analyst Report?
Top Page
Funding Circle Holdings
(LSE:FCH)
Select Model
Select Model
Rating:55Neutral
Price Target:
151.00 p
▲(23.37% Upside)
Action:Reiterated
Date:04/04/26
The score is driven primarily by mixed financials: a strong 2025 rebound in revenue and profitability is outweighed by continued cash burn and a sharp rise in leverage. Technically, the stock shows weak momentum (below key moving averages with negative MACD), while valuation is a relative positive with a low P/E.
Positive Factors
Strong recent revenue growth and return to profitability
A 28% revenue increase in 2025 alongside a return to net profitability indicates the platform is scaling and monetising originations and servicing more effectively. This strengthens long-term cash generation potential and validates product-market fit if credit trends remain stable.
Negative Factors
Sharply higher leverage versus prior year
Debt more than doubled year-over-year, materially raising financial leverage and interest cost exposure. Higher leverage reduces flexibility to absorb shocks, increases refinancing and covenant risk, and makes the business more sensitive to rising funding costs or credit stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recent revenue growth and return to profitability
A 28% revenue increase in 2025 alongside a return to net profitability indicates the platform is scaling and monetising originations and servicing more effectively. This strengthens long-term cash generation potential and validates product-market fit if credit trends remain stable.
Read all positive factors
Funding Circle Holdings (FCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£421.51M
Dividend YieldN/A
Average Volume (3M)773.11K
Price to Earnings (P/E)9.7
Beta (1Y)1.06
Revenue Growth37.60%
EPS Growth2766.67%
CountryUK
Employees726
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding298,753,080
10 Day Avg. Volume805,237
30 Day Avg. Volume773,110
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.08
Revenue Forecast (FY)£234.63M
Funding Circle Holdings Business Overview & Revenue Model
Company Description
Funding Circle Holdings plc, operating through its subsidiaries, provides digital lending platforms to businesses in the United Kingdom, the United States, and other global markets. The company specializes in offering a range of financial solution...
How the Company Makes Money
Funding Circle primarily makes money by generating fees and interest income across the lifecycle of SME loans it originates and services. Key revenue streams typically include: (1) Origination and arrangement fees: fees charged when a loan is orig...
Funding Circle Holdings Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong revenue and profit growth, successful product expansion, and high customer satisfaction. However, challenges in the macroeconomic environment and losses in the FlexiPay segment present areas to watch.Positive Updates
Profitable Growth and Revenue Increase
Funding Circle achieved a 17% year-on-year revenue growth to GBP 92.3 million, with profit before tax rising to GBP 6 million from GBP 0.5 million a year prior.
Negative Updates
Challenging Macroeconomic Environment
The broader economic backdrop remains challenging with flat inflation-adjusted GDP, low consumer and business confidence, and business insolvencies above their long-term trend.
Read all updates
Q2-2025 Updates
Positive
Negative
Profitable Growth and Revenue Increase
Funding Circle achieved a 17% year-on-year revenue growth to GBP 92.3 million, with profit before tax rising to GBP 6 million from GBP 0.5 million a year prior.
Read all positive updates
Company Guidance
In the recent call discussing Funding Circle's half-year results for 2025, significant growth metrics were highlighted. The company saw a 20% year-on-year increase in credit extended, totaling GBP 1.1 billion, and a 17% rise in revenue, reaching GBP 92.3 million. Notably, Profit Before Tax (PBT) improved to GBP 6 million, a significant jump from GBP 0.5 million the previous year, with term loans contributing GBP 12.7 million to PBT, reflecting a 38% growth. FlexiPay revenue more than doubled, and the company reported strong customer satisfaction with a Net Promoter Score (NPS) of 81 and a Trustpilot score of 4.6. Future projections remain promising, with expectations of over GBP 200 million in revenue and GBP 30 million in PBT by 2026, supported by a robust pipeline of GBP 1.8 billion in future funding commitments. Additionally, the company has a strong cash balance of GBP 115 million and has completed significant share buybacks, purchasing 15% of its initial share capital since March 2024.Funding Circle Holdings Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
60
Neutral
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 222.50M | 160.10M | 129.70M | 155.70M | 219.20M |
| Gross Profit | 200.00M | 92.00M | 61.50M | 69.90M | 157.80M |
| EBITDA | 31.40M | 5.40M | -10.30M | 4.10M | 82.00M |
| Net Income | 46.00M | 8.60M | -38.30M | -6.90M | 61.20M |
Balance Sheet | |||||
| Total Assets | 535.90M | 358.00M | 373.20M | 384.00M | 565.90M |
| Cash, Cash Equivalents and Short-Term Investments | 447.00M | 187.60M | 290.00M | 246.80M | 375.30M |
| Total Debt | 273.60M | 109.50M | 69.50M | 66.10M | 237.40M |
| Total Liabilities | 307.50M | 141.50M | 126.40M | 100.00M | 277.90M |
| Stockholders Equity | 228.40M | 216.50M | 246.80M | 284.00M | 288.00M |
Cash Flow | |||||
| Free Cash Flow | -34.40M | -70.30M | -37.70M | -24.30M | 90.70M |
| Operating Cash Flow | -33.80M | -67.40M | -25.60M | -10.40M | 100.10M |
| Investing Cash Flow | -126.20M | 23.30M | 66.40M | 162.00M | 310.90M |
| Financing Cash Flow | 124.70M | 10.20M | 3.70M | -201.70M | -291.20M |
Funding Circle Holdings Technical Analysis
Positive
122.40
Price Trends
142.63
Positive
143.94
Positive
134.98
Positive
Market Momentum
1.31
Negative
59.42
Neutral
70.83
Neutral
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 122.4 is below the 20-day moving average (MA) of 141.42, below the 50-day MA of 142.63, and below the 200-day MA of 134.98, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 59.42 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | £43.02M | 7.25 | 8.28% | ― | 5.19% | 14.53% | |
68 Neutral | £243.00M | 6.11 | 33.54% | 4.74% | 34.56% | 89.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £93.53M | 6.12 | 12.38% | ― | 18.38% | 13.20% | |
62 Neutral | £12.17M | 4.04 | 14.61% | 3.33% | 8.91% | 94.32% | |
58 Neutral | £12.89M | 7.41 | ― | ― | 35.19% | ― | |
55 Neutral | £421.51M | 9.67 | 21.54% | ― | 37.60% | 2766.67% |
* Financial Sector Average
GB:FCH
Funding Circle Holdings
147.60
29.60
25.08%
GB:TIME
Time Finance plc
46.50
-11.50
-19.83%
GB:ORCH
Orchard Funding
57.00
-8.89
-13.49%
GB:LEND
Sancus Lending Group
1.20
0.72
150.00%
GB:DFCH
Distribution Finance Capital Holdings Plc
57.00
16.00
39.02%
GB:ASAI
ASA International Group PLC
243.00
103.36
74.02%
Funding Circle Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Funding Circle Hits £2.5bn Issuance with Tenth SME Loan Securitisation
Positive
Jun 18, 2026
Funding Circle, the UK’s leading SME finance platform, has built a sizable presence in small business lending by combining proprietary AI-based credit assessment with a digital ecosystem for borrowing and payments. The platform targets under...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock as Share Buy-Back Progresses
Positive
Jun 15, 2026
Funding Circle Holdings has continued executing its previously announced share buy-back programme, repurchasing ordinary shares on the London Stock Exchange between 8 and 12 June 2026 at volume-weighted average prices ranging from about 136p to 14...
Stock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock with June Share Buybacks
Neutral
Jun 8, 2026
Funding Circle Holdings has continued executing its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 1 and 5 June 2026 through Investec Bank. The transactions were carried out at volum...
Business Operations and StrategyPrivate Placements and Financing
Funding Circle Renews £200m Deutsche Bank Funding Pact for UK SMEs
Positive
Jun 3, 2026
Funding Circle has renewed its £200 million forward flow agreement with Deutsche Bank, extending a relationship that dates back to 2014 and reinforcing the bank’s role as a key institutional funder on the platform. The partnership is ai...
Stock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Buyback Holdings With New Treasury Share Purchases
Positive
Jun 1, 2026
Funding Circle Holdings has continued its ongoing share buyback programme, repurchasing a total of 103,224 ordinary shares on the London Stock Exchange between 27 and 29 May 2026 through Investec Bank. The transactions were executed at volume-weig...
Regulatory Filings and Compliance
Funding Circle updates total voting rights and share capital
Neutral
May 29, 2026
Funding Circle Holdings has reported that, as of 29 May 2026, its total issued listed share capital stands at 304,741,576 ordinary shares, of which 7,344,986 are held in treasury. This leaves 297,396,590 ordinary shares carrying voting rights, a f...
Business Operations and StrategyStock Buyback
Funding Circle Adds to Treasury Stock with Latest Share Buy-Back
Positive
May 26, 2026
Funding Circle Holdings plc disclosed that it repurchased a total of 252,230 ordinary shares on the London Stock Exchange between 18 and 22 May 2026, under its ongoing buy-back programme initiated in May 2025. The trades, executed by Investec Bank...
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
Funding Circle shareholders back all resolutions at 2026 AGM
Positive
May 21, 2026
Funding Circle Holdings reported that all 18 resolutions put to shareholders at its 2026 annual general meeting were approved by poll, with both ordinary and special resolutions passing comfortably. The votes confirmed the company’s Annual R...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Funding Circle executives boost stakes through share incentive plan
Positive
May 19, 2026
Funding Circle Holdings has disclosed that chief executive Lisa Jacobs and chief financial officer Tony Nicol have increased their holdings in the company through its HMRC-approved Share Incentive Plan. The plan allows employees to buy partnership...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Boosts Treasury Stock with Latest Share Buybacks
Positive
May 18, 2026
Funding Circle Holdings has continued its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange via Investec Bank between 11 and 15 May 2026 at volume‑weighted average prices in the mid‑...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock with Latest Share Buyback
Positive
May 11, 2026
Funding Circle Holdings has continued to execute its share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 5 and 8 May 2026 via Investec Bank. The stock was bought at volume‑weighted average prices of abo...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Boosts Treasury Stock with Latest Share Buyback
Positive
May 5, 2026
Funding Circle Holdings has continued its share buyback programme, repurchasing ordinary shares on the London Stock Exchange via Investec Bank between 27 April and 1 May 2026 at volume-weighted average prices ranging from about 139p to 155p. The c...
Regulatory Filings and Compliance
Funding Circle updates total voting rights and share capital
Neutral
May 1, 2026
Funding Circle Holdings has confirmed that as of 30 April 2026 its issued listed share capital stands at 304,741,576 ordinary shares, of which 6,351,728 are held in treasury. This leaves 298,389,848 ordinary shares in circulation carrying voting r...
Business Operations and StrategyStock Buyback
Funding Circle Adds to Treasury Stock With Latest Share Buy-Back Tranche
Positive
Apr 27, 2026
Funding Circle Holdings plc has continued its previously announced share buy-back programme, repurchasing ordinary shares on the London Stock Exchange between 20 and 24 April 2026 at volume-weighted average prices ranging from about 152p to 158p p...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock in Ongoing Share Buy-Back
Positive
Apr 20, 2026
Funding Circle Holdings plc has continued executing its previously announced share buy-back programme, repurchasing ordinary shares on the London Stock Exchange between 13 and 17 April 2026 through Investec Bank at volume-weighted average prices r...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Funding Circle publishes 2025 annual report and sets date for 2026 AGM
Neutral
Apr 16, 2026
Funding Circle Holdings has published its Annual Report for the year ended 31 December 2025, along with the notice of its 2026 annual general meeting and proxy form, on its corporate website. Printed copies are being mailed to shareholders who opt...
Business Operations and StrategyPrivate Placements and Financing
Funding Circle Upsizes FlexiPay Funding Facility to £320m for Two Years
Positive
Apr 14, 2026
Funding Circle has renewed and upsized its long-standing funding facility for its FlexiPay business to £320 million, extending it over a two-year term to underpin the expansion of its capital-light, multi-product SME finance offering. Continu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock with Latest Share Buyback
Positive
Apr 13, 2026
Funding Circle Holdings has continued its share buyback programme, repurchasing a total of 105,264 ordinary shares on the London Stock Exchange between 7 and 10 April 2026 at volume‑weighted average prices ranging from about 135p to 142p. Th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock as Share Buyback Progresses
Positive
Apr 7, 2026
Funding Circle Holdings has continued to execute its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange via Investec Bank between 30 March and 2 April 2026 at volume‑weighted average price...
Business Operations and StrategyExecutive/Board Changes
Funding Circle awards long-term performance share options to top executives
Positive
Apr 2, 2026
Funding Circle Holdings has granted new 2026 Performance Share Plan awards to chief executive Lisa Jacobs and chief financial officer Tony Nicol under its 2018 Long Term Incentive Plan. The awards, structured as nil-cost options over ordinary shar...
Regulatory Filings and Compliance
Funding Circle updates total voting rights and share capital structure
Neutral
Mar 31, 2026
Funding Circle Holdings has reported that as of 31 March 2026 its total issued listed share capital comprises 304,741,576 ordinary shares, of which 5,456,692 are held in treasury. This leaves 299,284,884 ordinary shares carrying voting rights, a f...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Funding Circle Adds to Treasury Stock in Ongoing Buy‑Back Programme
Positive
Mar 30, 2026
Funding Circle Holdings has continued its share buy‑back programme, repurchasing ordinary shares on the London Stock Exchange between 23 and 27 March 2026 at volume‑weighted average prices ranging from about 129.8p to 136.2p per share....
Executive/Board ChangesRegulatory Filings and Compliance
Funding Circle Grants Deferred Share Bonus Awards to Top Executives
Neutral
Mar 26, 2026
Funding Circle Holdings has granted deferred bonus awards in the form of nil-cost share options to chief executive Lisa Jacobs and chief financial officer Anthony Nicol under its remuneration policy. Jacobs received options over 125,587 ordinary s...
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.