Funding Circle (LON:FCH) Announces Quarterly Earnings Results

Funding Circle (LON:FCH) issued its quarterly earnings results on Tuesday. The company reported GBX 7.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Funding Circle had a net margin of 20.67% and a return on equity of 21.54%.

Here are the key takeaways from Funding Circle’s conference call:

• Strong H1 performance: Credit extended rose 52% to £1.7 billion, revenue increased 50% to £138 million, and profit before tax quadrupled to £24 million, lifting the PBT margin to 17%.
• Management upgraded FY2026 guidance to revenue above £255 million and PBT above £40 million, while indicating it is tracking toward the upper end of its FY2029 revenue range.
• The company announced a further share buyback of up to £25 million after the current program, following approximately £72 million of repurchases since March 2024, or around 18% of issued share capital.
• FlexiPay and the credit card continued rapid growth, with revenue up 83% and assets under management up 78%, but the combined business remained loss-making due to upfront marketing and expected credit-loss charges; management expects near-term profitability and says it would already be profitable if growth investment stopped.
• CEO Lisa Jacobs plans to step down by the end of September 2027, creating a succession process, although management emphasized that operations and strategy remain unchanged during the transition.

Funding Circle Stock Performance

LON:FCH traded down GBX 12.95 during midday trading on Wednesday, hitting GBX 197.05. The company’s stock had a trading volume of 4,661,623 shares, compared to its average volume of 1,841,126. Funding Circle has a fifty-two week low of GBX 113.20 and a fifty-two week high of GBX 252. The company has a debt-to-equity ratio of 119.79, a current ratio of 1.70 and a quick ratio of 3.33. The firm has a market cap of £557.87 million, a P/E ratio of 14.08 and a beta of 0.76. The firm’s 50 day moving average is GBX 214.90 and its 200-day moving average is GBX 167.33.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on FCH shares. Canaccord Genuity Group lifted their price objective on shares of Funding Circle from GBX 300 to GBX 308 and gave the stock a “buy” rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 290 target price on shares of Funding Circle in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of GBX 299.

Funding Circle Company Profile