The Starling Bank app displayed on a person’s phone.
Adrian Dennis | AFP via Getty Images
LONDON — British online lender Starling Bank on Wednesday reported a sharp drop in annual profit, citing an issue with Covid-era business loan fraud and a regulatory fine over financial crime failings.
Starling, which offers fee-free current accounts and lending services via a mobile app, posted profit before tax for the year ending March 31, 2025 of £223.4 million ($301.9 million), down nearly 26% year-over-year.
Revenue at the bank totalled £714 million, up about 5% from £682 million a year ago. However, that marked a slowdown from the more than 50% revenue growth Starling saw in its 2024 fiscal year.
Profits for the year were impacted by a £29 million fine by the U.K.’s Financial Conduct Authority over failings related to Starling’s financial crime prevention systems.
Starling also flagged an issue with the Bounce Back Loan Scheme (BBLS) that was designed to provide firms with access to cash during the coronavirus pandemic.
Starling was one of several banks that were approved to lend cash to firms during the Covid-19 outbreak in 2020. The scheme provided a 100% guarantee to lenders, making the government responsible for covering the full outstanding loan amount if a borrower defaulted.
However, Starling said it has since “identified a group of BBLS loans which potentially did not comply with a guarantee requirement” due to weaknesses in its historic fraud checks. After flagging this to the state-owned British Business Bank, the firm subsequently “volunteered to remove the government guarantee on those loans.”
“As a result, we have taken a £28.2m provision in this year’s accounts,” the bank said, referring to both the FCA fine and BBLS issue.
However, Starling said it held an Expected Credit Loss provision of £800,000 as of March 31 in relation to certain BBLS loans “where the guarantee provided under the BBLS guarantee agreement may no longer be available to the Company.”
“This is a legacy issue which we dealt with transparently and in full cooperation with the British Business Bank,” Declan Ferguson, Starling’s chief financial officer, said on a media call Wednesday.
Starling has operated as a licensed bank in the U.K. since 2018. It counts the likes of Goldman Sachs, Fidelity Investments and the Qatar Investment Authority as shareholders.
The firm, which was last privately valued in 2022 at £2.5 billion, faces hefty competition from both incumbent banks and rival fintechs like Monzo and Revolut.
Palmer Luckey, Founder @ Oculus VR Andutil Industries, during day two of Collision 2019 at Enercare Center in Toronto, Canada.
Stephen McCarthy | Sportsfile | Getty Images
Meta and Anduril, the defense-tech startup founded by Palmer Luckey, announced Thursday that they’ve formed a partnership to create virtual and augmented reality devices intended for use by the U.S. army.
The partnership represents a major step by Meta to supply cutting-edge technology to the government in addition to working once again with Luckey, who sold his Oculus VR startup to the social media company for $2 billion in 2014.
Luckey and Meta had an acrimonious split, with the Anduril founder telling CNBC in 2019 that he “got fired” from the company formerly known as Facebook “for no reason at all,” suggesting that a $10,000 donation to a pro-Donald Trump group ahead of the 2016 U.S. election could have contributed to the decision.
Meta has also been pitching its open-source Llama family of AI models to government agencies and in November said it would make the those tools available to government units “working on defense and national security applications, and private sector partners supporting their work.”
“Meta has spent the last decade building AI and AR to enable the computing platform of the future,” Meta CEO Mark Zuckerberg said in a statement. “We’re proud to partner with Anduril to help bring these technologies to the American service members that protect our interests at home and abroad.”
Meta and Anduril have placed a joint bid on an Army contract for VR devices that is worth up to $100 million, The Wall Street Journal reported on Thursday. The two companies are working on EagleEye, a system that carries sensors that enhance soldiers’ hearing and vision, according to the report. Meta and Anduril will move forward on their partnership whether or not they win the Army contract, per the Journal.
The two companies pitched their partnership as helping the U.S. maintain a “technical edge” while aiding national security and saving the military “billions of dollars by utilizing high-performance components and technology originally built for commercial use.”
“I am glad to be working with Meta once again.” Luckey said in a statement. “Of all the areas where dual-use technology can make a difference for America, this is the one I am most excited about.”
Anduril also announced in December that it partnered with OpenAI on an artificial-intelligence initiative related to “national security missions.”
Amazon CEO Andy Jassy speaks during an Amazon Devices launch event in New York City, U.S., February 26, 2025.
Brendan Mcdermid | Reuters
Amazon‘s devices unit has a new team tasked with inventing “breakthrough” consumer products that’s being led by a former Microsoft executive who helped create the Xbox.
The ZeroOne team is spread across Seattle, San Francisco and Sunnyvale, California, and is focused on both hardware and software projects, according to job postings from the past month. The name is a nod to its mission of developing emerging product ideas from conception to launch, or “zero to one.”
Amazon has a checkered history in hardware, with hits including the Kindle e-reader, Echo smart speaker and Fire streaming sticks, as well as flops like the Fire Phone, Halo fitness tracker and Glow kids teleconferencing device.
Many of the products emerged from Lab126, Amazon’s hardware research and development unit, which is based in Silicon Valley.
The new group is being led by J Allard, who spent 19 years at Microsoft, most recently as technology chief of consumer products, a role he left in 2010, according to his LinkedIn profile. He was a key architect of the Xbox game console, as well as the Zune, a failed iPod competitor.
Allard joined Amazon in September, and the company confirmed at the time that he would be part of the devices and services team under Panos Panay, who left Microsoft for Amazon in 2023 to lead the group.
An Amazon spokesperson confirmed Allard oversees ZeroOne but declined to comment further on the group’s work.
The job postings provide few specific details about what ZeroOne is building, though one listing references working on “conceiving, designing, and bringing to market computer vision techniques for a new smart-home product.”
Another post for a senior customer insights manager in San Francisco says the job entails owning “the methodology and execution of concept testing and early feedback for ZeroOne programs.”
“You’ll be part of a team that embraces design thinking, rapid experimentation, and building to learn,” the description says. “If you’re excited about working in small, nimble teams to create entirely new product categories and thrive in the ambiguity of breakthrough innovation, we want to talk to you.”
Amazon has pulled in staffers from other business units that have experience developing innovative technologies, including its Alexa voice assistant, Luna cloud gaming service and Halo sleep tracker, according to Linkedin profiles of ZeroOne employees. The head of a projection mapping startup called Lightform that Amazon acquired is helping lead the group.
While Amazon is expanding this particular corner of its devices group, the company is scaling back other areas of the sprawling devices and services division.
Earlier this month, Amazon laid off about 100 of the group’s employees. The job cuts included staffers working on Alexa and Amazon Kids, which develops services for children, as well as Lab126, according to public filings and people familiar with the matter who asked not to be named due to confidentiality. More than 50 employees were laid off at Amazon’s Lab126 facilities in Sunnyvale, according to Worker Adjustment and Retraining Notification (WARN) filings in California.
Amazon said the job cuts affected a fraction of a percent of the devices and services organization, which has tens of thousands of employees.
Omada Health plans to raise up to $158 million in its up coming IPO, attaining a market cap of about $1.1 billion at the top end of its expected range, according to a filing on Thursday.
The virtual chronic care company filed its prospectus earlier this month, and has just updated the filing with an expected pricing range of $18 to $20 per share. Omada said it plans to sell 7.9 million shares in the offering.
The size of the offering and share price could change, and the market cap could be higher on a fully diluted bases. The IPO is expected to take place next week.
Omada, which offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension, will be the second digital health company to hit the market in a matter of weeks after an extended drought. Digital physical therapy startup Hinge Health debuted on the New York Stock Exchange earlier this month.
Omada, based in San Francisco, describes its approach as a “between-visit care model” that is complementary to the broader health-care ecosystem, according to its prospectus.
Sean Duffy, Omada’s CEO, co-founded the company in 2012 with Andrew DiMichele and Adrian James, who have both moved on to other ventures.
Omada’s revenue increased 57% in its first quarter to $55 million from $35.1 million a year earlier, the filing said. For 2024, revenue rose 38% to $169.8 million from $122.8 million the previous year.
The company’s net loss narrowed to $9.4 million in the first quarter from $19 million a year ago.
“To our prospective shareholders, thank you for learning more about Omada,” Duffy said in the prospectus. I invite you to join our journey.”
The company will trade on the Nasdaq under the ticker symbol “OMDA.”
Morgan Stanley, Goldman Sachs and JPMorgan Chase are leading the offering. Omada’s top shareholders are U.S. Venture Partners, Andreessen Horowitz and Fidelity.