Funding Circle Holdings Plc · LSE:FCH
Funding Circle — FY2025 Earnings Presentation
36 slides from Funding Circle's earnings presentation, Mar 5, 2026
Slide 1: Full Year 2025 results
Full Year 2025 results Choc on Choc
Slide 2: Standout performance
Standout Delivered ahead of expectations performance Strong customer demand in a large, underserved market Significant Focused strategy, product innovation and growth opportunity Technology & data deepens our competitive moat ahead Capital light platform built for scale Attractive medium-term opport
Slide 3: Leading UK online SME finance platform
Leading UK online SME finance platform backing small businesses to win £17bn credit extended to SMEs since 2010 125,000 Pay later Monthly Borrow Longer term small businesses funded since 2010 Spend Daily 117,000 jobs supported in 2025 £7.9bn GDP contribution in 2025 3
Slide 4: 2025 performance ahead of expectations
2025 performance ahead of expectations £204m £2.5bn Revenue Credit extended 28% YoY 29% YoY £20m £3.0bn Profit before tax Assets under Management 6 x growth £128m YoY 4
Slide 5: Delivering against our plan: leaner, simpler and profitable
Delivering against our plan: leaner, simpler and profitable Active customers Credit extended Revenue PBT Thousands £m £m £m 25% 90% 57% £30m 5
Slide 6: Multi-product strategy driving growth and loyalty
Multi-product strategy driving growth and loyalty Increased frequency of customer transactions 38 secs 30 minutes in 2021) Deep engagement with existing 69% customers of FlexiPay revenue from Term Loan customers Attracting new customers 50% of card customers new to Funding Circle 6
Slide 7: Strong growth and robust returns in 2025
Strong growth and robust returns in 2025 Robust and attractive loan returns 5% Above cost of capital Flat GDP and consumer confidence Insolvencies above historic trend Strong funding 103 5,535 pipeline 101 100 95 3,927 £2.2bn In forward flow commitments Continued demand 29% YOY credit extended Sou
Slide 8: Financial Performance
Financial Performance 8
Slide 9: Strong revenue growth driving operating leverage
Strong revenue growth driving operating leverage Group financial performance £m FY 25 FY 24 Change • Strong top line revenue growth of 28% Revenue 204.3 160.1 28% • Operating expenses growth driven by Operating expenses (excl. ECL 165.7 148.1 12% variable costs Expected credit losses ECL 18.
Slide 10: Capital light and built for scale
Capital light and built for scale Using right funding for right products; strong institutional funding demand Assets under Management £m 93% off-balance sheet funding Term Loans business) £3.0bn 5% vs FY24 7% balance sheet funding FlexiPay & Credit card) 10
Slide 11: Term Loans: PBT growth of 70%, margins at 19%
Term Loans: PBT growth of 70%, margins at 19% Revenue growing with operating leverage driving margin growth £m Loan volume Credit extended Assets under Revenue PBT 000s Originations) Management 1 Margins 13.3% 19.2% Up 16% with particularly Return to growth, new Growth of 17% from credit 70% grow
Slide 12: Term Loans: attracting steady funding pipeline
Term Loans: attracting steady funding pipeline Annualised net returns 5% above cost of capital, through the cycle Strength of Stable, robust, Continuing demand credit models attractive returns from institutions Annualised net returns 5 3x by cohort Deals signed during 2025 Better risk discriminatio
Slide 13: FlexiPay: seeing strong recurring revenues
FlexiPay: seeing strong recurring revenues Strong growth from FlexiPay & Credit card £m Active customers Credit extended Assets under Revenue PBT 000s Transactions) Management Continuing towards profit FlexiPay and Credit card Growth of 66% from Growth of 73% as a result Strong growth with 80% as
Slide 14: FlexiPay: strong recurring revenue dynamics
FlexiPay: strong recurring revenue dynamics Recurring revenue dynamics Strong recurring assets under management 80% FlexiPay AuM by half year cohort, £m Revenue from prior cohorts Strong growth 81 73% AuM growth 1.6x Active customers 14
Slide 15: FlexiPay: efficient use of our own capital
FlexiPay: efficient use of our own capital Capital cycles quickly (c.34m cycle); consistent credit performance Efficient capital usage Funding capacity for continuing growth Rolling 12-month transactions and AuM £240m £m Transactions 34 m cycle AuM Citi facility + Funding Circle equity of £56m 15
Slide 16: Expected credit loss charge in line with expectations
Expected credit loss charge in line with expectations Credit performance in line with expectations FlexiPay credit performance (backward looking) Expected credit loss charge (forward looking) 1 £m FY23 FY24 FY25 Net annualised loss rate AuM at year end 58 119 206 Average annual AuM 38 89 163 Expecte
Slide 17: Continued operating leverage demonstrated
Continued operating leverage demonstrated Significant operating leverage & scalability: revenue up 28%, costs up 12% Operating expenses £m Operating expenses: revenue ratio % Marketing SBP 12% Other 1 YoY 1.2% YoY Salaries Marketing costs remain at c.30% of revenue 1 Data and processing, IT, depre
Slide 18: Capital allocation framework
Capital allocation framework A disciplined approach to managing capital Deliver Capital required to deliver the medium-term plan with existing products growth strategy in MTP Invest Investment in products to drive opportunities, e.g. co-investment in government guarantee schemes to make platform str
Slide 19: Capital allocation in practice
Capital allocation in practice Unrestricted cash deployed in the period Future deployable cash £m £m Deliver Invest Distribute Share R&D loans buyback sold Jan 26 (remaining c. Management £26m £11m) Buffer¹ (c.£40m) • Deliver: Term Loans and FlexiPay collectively cash generative • R&D loans held for
Slide 20: Outlook
Outlook FY26 guidance upgraded and new medium-term guidance established Growth Profitability FY23FY25 Revenue reached £204m PBT increased from £10)m to £20m Simpler, leaner, more profitable FY26 Guidance Upgraded to revenue of c.£235m PBT of at least £35m Medium term FY29 Revenue of c.£300m-£350
Slide 21: Looking ahead
Looking ahead 21
Slide 22: Big opportunity in large, addressable market
Big opportunity in large, addressable market £80bn+ SME debt origination market £1.3trn SME B2B payments £80bn+ SME card transactions The Nest Climbing 22
Slide 23: Tech and data continues to deepen competitive moat around the business
Tech and data continues to deepen competitive moat around the business 6 min application time 73% instant decisions 15 years of proprietary 3x better risk discrimination SME data than bureau score 10 billion data points Feeding our Gen9 credit models 79 NPS Term Loans) 23
Slide 24: Continued product innovation and growth
Continued product innovation and growth Term Loans / Marketplace FlexiPay / Card Shorter-term loans Accounting integrations Self-service enhancements Multiple company cards Marketplace expansion Digital wallets 24
Slide 25: AI employed to drive customer experience and productivity
AI employed to drive customer experience and productivity Team fluency >90% Circlers using Gen AI Operations productivity 110% Increase in collections call quality reviews Engineering productivity 30% AI-authored code in Q4 2025 Contributing to 19% YoY improvement in revenue / person Bird & Blend
Slide 26: Why we're winning
Why weʼre winning Powerful data driving risk discrimination Differentiated technology High customer satisfaction & strong brand awareness Strong track record and funding pipeline Multi-product capabilities Engaged and talented team Wick & Tallow 26
Slide 27: Trusted financial partner
Trusted Focused strategy and product innovation driving growth and improved profitability financial Attractive medium-term financial goals fuelling more SME success stories partner Strong platform for longer-term growth for SMEs beyond our current product set 27
Slide 28: Q&A
Q&A Lisa Jacobs Tony Nicol CEO CFO 28
Slide 29: Thank you.
Thank you. Business Finance that backs you 29
Slide 30: Disclaimer
Disclaimer Information regarding forward-looking statements This Presentation includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Groupʼs control and all of which are based on the Groupʼs current belief
Slide 31: Appendices
Appendices 31
Slide 32: Borrow Pay later Spend
Borrow Pay later Spend Term Loan FlexiPay line of credit Credit card Loan for long term investment Flexible line of credit for paying bills, Cashback credit card for everyday purposes to support business growth supplier invoices and managing short term business spending or long term cashflow managem
Slide 33: Multi-product view
Multi-product view Borrow Pay later Spend Term Loan FlexiPay line of credit Cashback credit card Funding Circle loans Product type Government guaranteed loans Rolling line of credit Credit card with cash back Marketplace 3rd party loans) c.£19k credit limit c.£75k loan Average size & draw c.£3k dra
Slide 34: How we make money
How we make money Business Unit Revenue stream Driver Typical yield % of FY25 revenue Transaction fees Originations c.6.5% 52% Term Loans Servicing fees AUM c.1.3% p.a. 20% Investment income Invested capital Variable 9% Drawdown fees & Transactions Variable 15% FlexiPay credit card interest Credit C
Slide 35: Illustrative – FlexiPay & Credit card unit economics
Illustrative – FlexiPay & Credit card unit economics • Upfront customer acquisition CPA reducing over time) • Upfront expected credit losses • Stable repeat usage • Payback period 1218 months • Wider portfolio benefits with high engagement and marketing efficiencies 35
Slide 36: Our models deliver 3x better risk discrimination than the bureau score
Our models deliver 3x better risk discrimination than the bureau score Default rates (by deciles) Risk Band Bureau Funding Circle (Delphi score) (Gen 9 model) • Compared to the UK bureau delphi Highest Risk scores, our Gen 9 model achieves 3 1 24.8% 30.7% times greater separation between lowest and
Funding Circle Holdings — FY2025 Earnings Presentation on 6ix