0002064124-26-000009
SEC filingRevenue grew 48.7% to $506.9M driven by ecosystem fees and gain on sale; net income surged 574.3% to $134.3M.
Figure Technology Solutions describes itself as building the future of capital markets using blockchain-based technology. Its proprietary platform powers next-generation lending, trading, and investing activities in consumer credit and digital assets. The company has achieved strong profitability, with net income of $134.3 million for the year ended December 31, 2025.
Figure does not explicitly report financial results by segment. The Business section describes two primary areas: Consumer Credit (home equity lending) and Digital Assets & Trading. Consumer credit is the dominant revenue driver, with HELOCs comprising over 98% of total loan originations in 2025. Revenue from Figure Connect and other new products grew faster than legacy LOS-driven sources in 2025.
Figure's core platform is the Loan Origination System (LOS), which reduces home equity loan funding time to a median of 10 days and production cost to approximately $717 per loan. Key platforms include: DART, an electronic registry on the Provenance Blockchain; Figure Connect, a marketplace for loan trading; Figure Exchange, a digital asset marketplace; YLDS, a registered interest-bearing stablecoin; Democratized Prime, a DeFi marketplace; and OPEN, an on-chain public equity network launched in February 2026.
Figure uses a dual go-to-market strategy: direct-to-consumer (Figure-branded) and partner-branded. Partners use Figure's technology to originate loans independently, paying fees based on loan principal. Figure Connect serves as a marketplace connecting sellers and buyers. As of December 31, 2025, Figure had 307 active partners. No customer concentration was disclosed.
Figure faces competition from legacy bank technology providers, fintech lending platforms, and digital asset exchanges. In digital assets, competitors include incumbent centralized exchanges and stablecoin issuers. Figure differentiates through blockchain-based automation, speed, transparency, regulatory licenses, and unique products like DART and Democratized Prime.
Figure's strategic pillars include: displacing legacy infrastructure with blockchain technology; enhancing loan liquidity through Figure Connect and the Guarantor Vehicle joint venture; expanding into digital asset trading and investing; disintermediating capital markets via Democratized Prime; and scaling partner adoption of DART.
As of December 31, 2025, Figure had approximately 602 full-time employees. None are unionized, and the company has not experienced work stoppages. Employee retention is supported by market-based compensation and unique benefits.
Figure Technology Solutions delivered strong financial results in 2025. Total net revenue increased 48.7% to $506.9 million from $340.9 million in 2024, driven by a 326.7% surge in ecosystem and technology fees (to $120.8 million) and a 28.3% rise in net gain on sale of loans (to $180.0 million). Operating income soared to $117.5 million from $9.2 million, reflecting a 1172.6% increase, as operating expenses grew only 17.4% due to scale benefits. Net income attributable to Figure Technology Solutions reached $133.9 million, a 677.6% jump from $17.2 million, bolstered by a $22.8 million income tax benefit from a reassessment of deferred tax assets after the Recombination. Adjusted EBITDA margin expanded to 48.8% from 29.9%, indicating significant operational leverage.
Revenue is split between Figure-branded and Partner-branded channels. Figure-branded revenue grew 27.4% to $134.8 million, driven by a 43.0% increase in gain on sale of loans (to $66.2 million) and a 14.8% rise in origination fees (to $65.5 million), supported by 17.5% volume growth. Partner-branded revenue surged 86.8% to $238.6 million, primarily from a 355.7% jump in ecosystem and technology fees (to $117.7 million), as Figure Connect marketplace volume expanded dramatically. Gain on sale of loans in the partner channel increased 21.0% to $113.9 million. The partner channel now represents 47% of total net revenue, up from 37% in 2024, highlighting the success of the platform strategy.
Management emphasized continued expansion of the ecosystem, including the launch of OPEN (On-Chain Public Equity Network) in February 2026 and a secondary offering of Blockchain Common Stock. The company expects to benefit from HELOC market trends and increasing partner adoption. While no specific numerical guidance was provided, the strong cash position ($1.2 billion) and $1.8 billion available funding debt capacity support growth investments and share repurchases. The recent $200 million share repurchase program signals confidence. Key risks include regulatory changes and macroeconomic cycles, but management believes its technology-driven model provides resilience.
As of December 31, 2025, Figure Technology Solutions reported cash and cash equivalents of $1.20 billion, up sharply from $289.7 million a year earlier, driven by IPO proceeds of $663.4 million. Marketable securities increased to $273.2 million from $163.5 million. Total debt rose to $557.2 million (including $100.5 million at fair value) from $473.2 million, net of $2.6 million in unamortized deferred financing costs. Shareholders' equity improved to $1.24 billion from $363.4 million, reflecting the IPO and retained earnings.
The Notes did not disclose material purchase commitments or contractual obligations beyond debt maturities and lease liabilities. Debt maturities show $55.5 million due in 2026 (recourse and nonrecourse combined), with the remainder substantially nonrecourse and due after 2030. Operating lease liabilities were $4.2 million non-current.
No share buyback or common dividend programs were announced or authorized. Net debt issuance during 2025 totaled $84.9 million, with gross proceeds of $6.04 billion and repayments of $5.95 billion, reflecting the revolving nature of warehouse facilities. Capital expenditures were limited to internally developed software capitalization of $20.6 million (4.1% of revenue). No property, plant, or equipment capex was disclosed.
The Company operates as a single operating and reportable segment following the August 2025 Recombination. The Chief Operating Decision Maker reviews consolidated net income. No geographic breakdown of revenue or assets is provided; substantially all revenue and long-lived assets are in the United States.
Figure Technology's risk factors reveal deep concentration in its HELOC product, which generates substantially all revenue. Any downturn in the HELOC market—due to macroeconomic conditions, competition, or regulatory changes—would directly harm financial performance. The company also exhibits significant partner concentration: its top 10 partners accounted for 56% of origination volume in 2025, and these partners have no long-term commitments. The loss of a major partner could materially reduce revenue. Additionally, Figure has a history of losses and expects costs to rise as it invests in growth and public company operations. While it achieved net income in 2024 and 2025, profitability may not be sustained.
The company relies heavily on automated underwriting models and third-party data. Model errors or inaccurate data could lead to higher loan losses and damage partner relationships. Its HELOC origination process uses remote online notaries and automated valuations, which have not been legally tested in all jurisdictions; adverse legal outcomes could impair security interests. Digital asset-secured loans introduce collateral volatility and margin call risks. The underwriting of these loans is also vulnerable to system failures and cybersecurity threats.
A key risk is the uncertain classification of digital assets as securities. If a supported asset is deemed a security, Figure may need to delist it from Figure Exchange, resulting in lost revenue and potential liabilities. The company's HELOCs are characterized as open-end credit under TILA; recharacterization as closed-end credit would impose significant additional regulatory requirements and could invalidate existing loans. State usury laws and interest rate limitations also pose risks, especially since most HELOCs are second liens not eligible for federal preemption.
Figure primarily uses warehouse credit facilities to fund loans. As of December 2025, aggregate borrowing limits were $1.6 billion, and average utilization was 21%. If these facilities are not renewed or replaced, origination activities could cease. The gain-on-sale origination model makes earnings dependent on capital market conditions; rising interest rates and volatility have previously reduced sale prices. Securitization markets have been constrained during downturns, limiting access to financing.
The digital asset industry is rapidly evolving and faces uncertain regulation. Figure's reliance on third-party custodians for digital asset collateral introduces custody risk. The overall adoption of digital assets remains limited, and negative publicity surrounding other platforms could reduce confidence. The company also faces intense competition from both regulated and unregulated entities, including offshore platforms that may have lower compliance costs.
The cash flow statement was not included in the provided excerpt, preventing direct analysis of operating cash flow, capex, or free cash flow. Net income (from the income statement) was $134.3M in FY2025, compared to $19.9M in FY2024. The balance sheet shows a substantial increase in cash from $289.7M to $1.20B, suggesting strong cash generation or financing activities. Without the cash flow statement, it is impossible to assess cash flow quality, working capital changes, or capital expenditure intensity. Further details are needed to evaluate the company's cash conversion and financial health.