Funding Circle (LON:FCH) Posts Earnings Results

Funding Circle (LON:FCH) issued its quarterly earnings data on Tuesday. The company reported GBX 7.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Funding Circle had a return on equity of 26.71% and a net margin of 22.93%.

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 opened at GBX 203 on Thursday. The company has a debt-to-equity ratio of 105.33, a quick ratio of 3.33 and a current ratio of 1.87. Funding Circle has a fifty-two week low of GBX 113.20 and a fifty-two week high of GBX 252. The stock has a market capitalization of £574.71 million, a PE ratio of 14.50 and a beta of 0.76. The company has a fifty day moving average of GBX 215.68 and a two-hundred day moving average of GBX 167.64.

Analysts Set New Price Targets

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

About Funding Circle