Figure Technology Solutions, Inc.

What they do

Figure operates a blockchain-based lending platform for home equity lines of credit (HELOCs) and other consumer loans, serving both Figure-branded and partner-branded channels. It also runs Figure Connect, a capital-light marketplace that facilitates loan sales and securitization. The company earns technology and processing fees, origination fees, servicing fees, and gains on loan sales, while using its own LOS to originate loans rapidly and at low cost.

Revenue drivers

• Figure Connect — A capital-light marketplace launched in June 2024 that reached 65% of Consumer Loan Marketplace volume in Q2 2026; revenue is derived from volume-based technology and processing fees.
• Partner-branded loans — Volume-based technology and processing fees from partners originating loans on the LOS, plus program fees from securitizations; in Q1 2026 partner-branded HELOCs had an average customer interest rate of 8.7% and a 754 FICO score.
• Figure-branded loans — Origination fees, interest income, and gains on sale from loans the company originates itself; in Q1 2026 these HELOCs had an average customer interest rate of 8.4% and a 750 FICO score.
• Servicing fees — Recurring monthly fees for managing loan portfolios on behalf of owners; the company services the majority of loans facilitated through its platform.

Recent performance

In Q2 2026, net revenue was $225.6 million, up 113% year-over-year, and net income was $87.4 million, up 192% to an 38.8% margin. Consumer Loan Marketplace volume grew 132% to $4.3 billion, with Figure Connect volume of $2.8 billion. For the first half of 2026, net revenue was $392.6 million, net income was $132.5 million, and diluted EPS was $0.53. The company ended Q2 with $1.4 billion in cash and $316 million in long-term debt.

Strategy

Figure is shifting loan volumes to Figure Connect, its capital-light marketplace, which accounted for 65% of Q2 2026 volumes, and is adding origination partners, reaching 489 active partners. It is expanding into adjacent asset classes including SMB, auto, and home equity, with the pending acquisition of Kiavi expected to add to that expansion. The company emphasizes automation and low production costs, claiming average production cost per loan of $717 versus an industry average of $11,109. It is also growing Democratized Prime, a funding ecosystem, with third-party borrowing rising 23x since year-end 2025.

Risks

• HELOC concentration — Substantially all revenue is derived from the HELOC product, making the company susceptible to fluctuations in the HELOC market.
• History of losses — Despite recent profitability, the company has a history of losses and may not sustain profitability.
• Regulatory and digital asset risk — The company's lending and digital asset activities are subject to a changing regulatory environment and risks inherent in blockchain technology.
• Growth management — Rapid growth, including the Kiavi acquisition and expansion into new asset classes, could strain operations if not managed effectively.

Outlook

Management expects the Kiavi acquisition to significantly grow the platform into adjacent asset classes and accelerate growth. Weekly applications surpassed $1 billion as of July 2026. The company is focused on scaling Figure Connect and Democratized Prime, and expects continued margin expansion.