Funding Circle (LON:FCH) Announces Quarterly Earnings Results

Funding Circle (LON:FCH - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported GBX 7.60 EPS for the quarter, Digital Look Earnings reports. Funding Circle had a net margin of 22.93% and a return on equity of 26.71%.

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 Price Performance

Shares of Funding Circle stock traded down GBX 8 during trading on Friday, reaching GBX 191.20. The company's stock had a trading volume of 11,500,137 shares, compared to its average volume of 1,882,785. Funding Circle has a one year low of GBX 113.20 and a one year high of GBX 252. The stock has a 50-day moving average price of GBX 216.87 and a two-hundred day moving average price of GBX 168.14. The company has a current ratio of 1.87, a quick ratio of 3.33 and a debt-to-equity ratio of 105.33. The stock has a market capitalization of £541.30 million, a P/E ratio of 13.66 and a beta of 0.76.

Analyst Ratings Changes

Several brokerages have commented on FCH. Canaccord Genuity Group boosted their price target on shares of Funding Circle from GBX 300 to GBX 308 and gave the stock a "buy" rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a GBX 290 price objective on shares of Funding Circle in a research report on Wednesday. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of GBX 299.

Funding Circle Company Profile