Figure Technology Solutions posted a standout third quarter, sending its shares up 24% to $42.76 on Friday after the company delivered results far ahead of Wall Street expectations.
The newly public fintech, which completed its IPO in September, reported sharp year-over-year gains across revenue, earnings, and loan originations, driven primarily by accelerating adoption of its blockchain-based lending infrastructure.
Revenue and earnings far exceed expectations
The company reported quarterly earnings of $89.8 million, or 34 cents per share, more than triple the $27.4 million, or 9 cents, recorded in the same period last year.
Analysts surveyed by FactSet had expected earnings of just 15 cents per share.
Revenue came in at $156.4 million, up from $101 million a year ago and well above consensus estimates of $119.4 million.
Bernstein analysts described the results as a “massive beat,” noting that adjusted revenue of roughly $156 million was 30% ahead of expectations.
Adjusted EBITDA reached about $86 million, 60% above forecasts of roughly $54 million, with margins expanding to almost 55%.
The performance underscores Figure’s rapid scale-up in the months following its Nasdaq debut.
Founded by SoFi co-founder Mike Cagney, the company has grown into the largest independent non-bank originator of home-equity lines of credit (HELOCs) in the United States.
Tokenized loan growth powers core marketplace
Loan originations climbed to $2.5 billion in the third quarter, up roughly 34% from the previous quarter and about 70% higher year over year.
Figure’s core HELOC offerings accounted for roughly $2.4 billion of volume, significantly outpacing the broader HELOC market, which grew around 4% over the same period.
A key driver of this growth is the company’s blockchain-based partner ecosystem.
Partner-originated and tokenized loans made up approximately $1.9 billion of total volume, or 76% of all originations.
The company’s Figure Connect marketplace, its primary tokenized origination channel, contributed about $1.1 billion — up 48% quarter over quarter — and accounted for nearly half of all loan activity.
New product categories also gained traction, generating more than $80 million in volume.
These include crypto-backed loans, small and medium-business loans, and debt service coverage ratio loans, reflecting early diversification outside Figure’s HELOC roots.
As tokenized partner channels expand, profitability has followed.
Partner-branded and intermediated loans delivered take rates of around 4.2%, up 36 basis points from the prior quarter, while take rates on Figure-branded loans rose to roughly 7.1%.
Expanding ecosystem strengthens long-term outlook
Figure also reported expanding adoption across its broader ecosystem.
Active partners on its platforms increased from about 170 to roughly 246 during the quarter, while marketplace participants on Connect rose from 27 to 33.
This growing network positioned the company as what Bernstein analysts called the “category leading tokenization platform for credit.”
The analysts reaffirmed their outperform rating and $54 price target on the stock, implying roughly 56% upside from Thursday’s close.
They pointed to structural growth in tokenized loan origination — particularly through Connect — as central to their long-term investment thesis.
Still, they cautioned that macroeconomic conditions, including potential rapid interest-rate declines and a slowdown in private-credit markets, could influence performance.
And while Figure’s DeFi initiatives, including its expanding YLDS stablecoin supply, show “promising progress,” they have yet to materially contribute to revenue.
With strong execution, rising partner demand, and expanding blockchain-based lending infrastructure, Figure Technology Solutions remains well-positioned as it builds on its breakout third-quarter performance.
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