Funding Circle shares jumped about 11% on Tuesday 10 November 2026 after the small business lender raised its full-year guidance, saying demand from small and medium-sized enterprises had stayed resilient despite continued economic uncertainty.

The shares were up 11% at 230.50p in late morning trading in London, making Funding Circle one of the strongest risers among FTSE 250 stocks. Earlier in the session the shares had risen 7.45% to 223.75p after the trading update was published.

Funding Circle now expects revenue for 2026 to be at least £275 million, with profit margins of around 16%. Its previous guidance was for revenue of more than £255 million and profit before tax of more than £40 million.

Resilient demand from small businesses

Chief executive Lisa Jacobs said the company had carried the strong momentum seen in the first half of 2026 into the autumn. "SME demand has remained resilient despite continued macro uncertainty. As a result, we are upgrading our FY26 expectations," she said.

The update covers trading in September and October, with November also starting well, according to the company. Funding Circle describes itself as the UK's leading SME finance platform, and says it has extended more than £18 billion in credit to over 135,000 UK businesses since 2010.

The momentum follows a strong first half of the year, when revenue rose 50% to £138.2 million and pre-tax profit reached £24.1 million, up from £6.0 million in the same period a year earlier. The trading update builds on that performance rather than starting from a weak base.

Buybacks return cash to shareholders

Funding Circle also updated investors on its share buyback programme. It launched a fourth buyback on 21 September 2026, which is still running and has so far bought back £5 million of shares.

Together with earlier programmes, the company has now bought back £80 million of shares, representing 19% of its issued share capital. The company said it remained capital-light, with a robust balance sheet and strong cash generation.

Buybacks reduce the number of shares in issue, which can lift earnings per share, but they do not by themselves guarantee future growth. Investors will be watching whether lending volumes and credit quality hold up if the wider economy weakens.

Succession plan under way

The guidance upgrade comes as Funding Circle prepares for a change at the top. Lisa Jacobs intends to step down as chief executive by September 2027, and a succession process is under way.

The company has also set out an ambition to reach the upper end of a £300 million to £350 million revenue range by 2029, assuming a stable economic environment. That longer-term target will depend on continued growth in its term loan business and on newer products moving towards profitability without a deterioration in lending quality.

For now, the market reaction suggests investors were encouraged by the upgrade. The shares have risen sharply this year and were trading well above their 52-week low of 113.20p, although they remained below their 52-week high of 252.03p. Funding Circle announced the upgraded guidance in a regulatory update, and Alliance News reported the share price reaction in London. Share prices can fall as well as rise, and this article is not investment advice.