UK-headquartered SME lender Funding Circle has seen its pre-tax profits increase nearly sixfold to £20.3m, bringing total profit for the year to £46m.
In its full-year results for 2025, published today (Thursday 5 March), the FTSE-listed lender said profit before tax for the year marked significant growth from £3.4m in 2024, before exceptional items.
Funding Circle also saw revenue increase by 28 per cent to £204.3m, up from £160.1m in 2024. The positive results in 2025 were also reflected in growth in Funding Circle’s assets under management, which rose from £2.83bn in 2024 to £2.96bn.
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“We delivered a standout performance in 2025, exceeding our expectations and hitting our 2026 revenue guidance a year early, and we supported more SMEs than ever before,” said Lisa Jacobs, chief executive at Funding Circle. “Strong growth in the credit we extended led to revenue growth of 28 per cent to £204m and profit before tax increasing to £20m, demonstrating the strong operating leverage and profitability of our platform.”
The firm said credit extended also increased by 29 per cent to £2.5bn, compared with £2.8bn in 2024.
Within its business unit, the firm said originations grew by 16 per cent, while profitability before tax increased to £32.2m.
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The full-year results also showed positive growth for its flexipay and card unit, with transactions growing 66 per cent to £815m due to new features. Its value of assets under management also increased 73 per cent to £206m, driven by new and repeat usage from customers, the firm said.
Following the 2025 results, Funding Circle said it has upgraded its medium-term targets, raising its revenue goal from around £300m to £350m and setting profit before tax margins in the low to mid-20s per cent range.
Jacobs added: “Looking ahead, we see a significant opportunity to further grow our share of the SME finance market. Our confidence in the strength and scalability of our platform is reflected in the attractive new medium-term targets we are setting today.”
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