Figure Q2 profit jumps 192% as loan volume reaches $4.3B

Figure Technology Solutions reported $4.26 billion in Consumer Loan Marketplace volume for the second quarter on Aug. 13, up 132% from a year earlier and 47% from the first quarter.

The Nasdaq-listed blockchain lending company also reported net income of $87.4 million, up 192%, while net revenue more than doubled to $225.6 million.

The results mark Figure’s strongest quarter since becoming a public company and show a growing share of activity moving through its capital-light marketplace model. Figure Connect accounted for $2.77 billion, or 65%, of total consumer loan marketplace volume, compared with $767 million a year earlier.

Figure Connect now handles 65% of marketplace volume

Figure Connect volume rose 262% year over year in Q2. The marketplace, launched in June 2024, connects third-party loan sellers and buyers using Figure’s blockchain-based infrastructure. Figure defines Connect volume as consumer loans originated by third-party sellers through the marketplace.

That distinction matters when interpreting the headline $4.3 billion figure. Consumer Loan Marketplace volume also includes HELOC, debt-service coverage ratio and personal loan originations through Figure’s loan origination system. It should not be read as $4.3 billion of blockchain trades alone.

The shift toward third-party activity supports Figure’s push for a business requiring less balance-sheet capital. Ecosystem and technology fees rose to $72.9 million from $28.1 million, while gain on loan sales increased to $57.6 million from $36.3 million. Figure Connect itself represented nearly two-thirds of marketplace volume.

Figure also added 102 origination partners during the quarter, taking its active network to 489 across mortgage banks, depositories, servicers and fintech companies. Operations and processing costs fell to roughly 67 basis points of marketplace volume from 79 basis points one year earlier.

Figure profit grows faster than revenue

Net revenue rose 113% year over year to $225.6 million, while net income increased from $30 million to $87.4 million. The net income margin expanded from 28.3% to 38.8%. Operating income also rose to $77.7 million from $27.7 million, showing the profit increase was not solely the result of below-the-line accounting items.

Adjusted EBITDA reached $119.4 million, up 126%, while adjusted EBITDA margin expanded to 54.6% from 47.2%. Figure’s presentation sets a medium-term adjusted EBITDA margin target of 60% for 2026 through 2028. The 60% figure is a management target, not a guaranteed outcome.

The balance sheet also expanded. Cash and cash equivalents, excluding restricted cash, reached $1.4 billion at June 30, up $239.4 million from year-end. Loans held for sale increased 47.7% to $597 million.

Blockchain lending products expand beyond home equity

Figure’s growth is increasingly coming from products outside its original home-equity business. Small and medium-sized business loan volume grew 57% from the first quarter, while third-party borrowing on its Democratized Prime onchain lending marketplace reached about $170 million as of Aug. 6, roughly 23 times its year-end level.

Its regulated digital asset business also continued to scale. YLDS in circulation stood at $556 million at June 30, compared with $328 million at the end of 2025. Figure’s SEC-registered yield-bearing YLDS token expanded beyond Provenance to Sui, adding another route for the company’s tokenized financial products.

Figure is also expanding its underlying loan inventory. As crypto.news reported, the company agreed to acquire real-estate lender Kiavi for $717 million, a transaction expected to add residential transition and DSCR loans to Figure’s marketplaces. Figure said Thursday the acquisition remains on track to close during the second half of 2026.

Figure closed a $600 million offering of 8.5% senior notes due 2031 on July 14, with proceeds intended in part to fund the Kiavi transaction. The acquisition still depends on closing conditions and required regulatory approvals.

Q3 guidance points to another volume increase

Figure expects Consumer Loan Marketplace volume of $4.8 billion to $5.2 billion in the third quarter. At the midpoint, the company’s investor presentation says that would represent roughly 102% growth from a year earlier. The guidance is forward-looking and depends on lending demand, funding markets and other operating assumptions.

CEO Michael Tannenbaum said weekly loan applications had exceeded $1 billion by July and said the pending Kiavi acquisition “will significantly grow our platform into adjacent asset classes.” The latter remains a company expectation until the acquisition closes and integration begins.

Investors responded positively to the earnings session. FIGR closed Aug. 13 at $31.88, up 3.94%, after trading between $29.50 and $33.77 during the day.

The next milestones are Figure’s weekly operating updates, Q3 marketplace performance and completion of the Kiavi acquisition. The Aug. 13 filing furnished the quarterly earnings release to the SEC.