Funding Circle (LON:FCH - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported GBX 7.60 earnings per share for the quarter, Digital Look Earnings reports. Funding Circle had a return on equity of 21.54% and a net margin of 20.67%.
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 FCH opened at GBX 212.75 on Tuesday. The stock has a market cap of £602.31 million, a P/E ratio of 15.20 and a beta of 0.76. Funding Circle has a 1 year low of GBX 113.20 and a 1 year high of GBX 252. The stock's 50-day moving average price is GBX 213.67 and its two-hundred day moving average price is GBX 166.93. The company has a current ratio of 1.70, a quick ratio of 3.33 and a debt-to-equity ratio of 119.79.
Analyst Upgrades and Downgrades
Several equities research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Funding Circle from GBX 190 to GBX 290 and gave the stock a "buy" rating in a research report on Friday, August 14th. Canaccord Genuity Group reaffirmed a "buy" rating and set a GBX 300 target price on shares of Funding Circle in a report on Tuesday, July 21st. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat.com, Funding Circle currently has a consensus rating of "Buy" and a consensus price target of GBX 295.
Check Out Our Latest Stock Analysis on Funding Circle
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