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Funding Circle Reports Strong H1 2026 Profit Amid Business Model Shift

Funding Circle has reported £23 million in profit before tax for the first six months of 2026, with revenue growth of 50%. This follows a shift in its business model away from peer-to-peer lending.

  • Funding Circle achieved £23 million in profit before tax in the first half of 2026.
  • The company saw 50% revenue growth in the first six months of the current financial year.
  • Funding Circle permanently closed its peer-to-peer lending platform in 2022, shifting to institutional and government-backed lending.

Funding Circle, the SME finance platform, has reported a profit before tax of £23 million for the first six months of 2026, alongside 50% revenue growth. This performance follows a period of losses in 2022 and 2023, with the company returning to profitability in 2024.

The company's business model has evolved significantly. After suspending access to its peer-to-peer (P2P) platform in April 2020, Funding Circle permanently closed it in 2022. It now relies on a combination of government financing and institutional-backed lending to meet its funding needs.

For 2025, Funding Circle reported sales of £204 million and an adjusted profit before tax of £26 million. Brokers Canaccord Genuity estimate a run-rate of over £250 million in revenue and £37 million in profit before tax, based on activity in late 2025 and early 2026. The company has also expanded its product offerings to include short-term lending, FlexiPay, and credit cards.

Why this matters: The company's return to profitability and growth in a challenging economic environment suggests its revised business model may be proving effective.

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