Figure Technology Shares Give Up Early Jump After Q2 Revenue More Than Doubles

Figure Technology Solutions shares initially climbed after the blockchain-focused lender reported second-quarter revenue that more than doubled from a year earlier, but the rally faded after regular trading began. The company posted net revenue of $225.6 million for the three months ended June 30, up 113% from $106.1 million in the same quarter of 2025, alongside a sharp increase in loan marketplace activity.

The stock rose roughly 5% in premarket trading, according to CoinDesk, extending a 10% gain from Wednesday. By 11:15 a.m. Eastern Time on Thursday, however, Google Finance showed Figure shares at $30.26, down 1.35% on the session after opening at $32.13 and reaching an intraday high of $32.94. That reversal makes the market reaction more mixed than the early move suggested, even as the earnings release showed rapid growth across several of Figure’s core businesses.

In its second-quarter results filed with the SEC, Figure said net income rose 192% to $87.4 million from $30.0 million a year earlier. Diluted earnings per share increased to $0.35 from $0.08, while the company’s net income margin widened to 38.8% from 28.3%.

Revenue growth was matched by a surge in loan marketplace volume

The biggest operating driver was Figure’s Consumer Loan Marketplace, which includes loans originated through its technology as well as third-party loans traded through Figure Connect. Marketplace volume reached $4.26 billion in the quarter, up 132% from $1.84 billion a year earlier. Figure Connect volume alone climbed 262% to $2.77 billion and accounted for about 65% of total Consumer Loan Marketplace volume.

That shift is important to Figure’s business model because Figure Connect is designed to match loan originators with capital providers without requiring Figure to hold all of the underlying credit on its own balance sheet. The company has been emphasizing this capital-light marketplace model as it expands beyond loans originated directly under the Figure brand. During the quarter, it added 102 origination partners, bringing the total to 489 active partners across mortgage banks, depositories, servicers and fintech companies.

Revenue growth was broad rather than confined to a single line item. Ecosystem and technology fees increased to $72.9 million from $28.1 million a year earlier. Origination fees rose to $26.3 million from $16.3 million, while net gains on loan sales increased to $57.6 million from $36.3 million. Gains on servicing assets rose to $29.1 million from $1.8 million. Those increases helped offset a higher expense base as Figure continued adding scale.

Adjusted net revenue, a non-GAAP measure used by management to remove certain valuation effects and other items, rose 95% to $218.4 million. Adjusted EBITDA increased 126% to $119.4 million, and adjusted EBITDA margin expanded to 54.6% from 47.2%. The company also ended June with about $1.44 billion of cash and cash equivalents, excluding restricted cash, compared with $1.20 billion at the end of 2025.

Figure Connect is becoming a larger part of the platform

Figure’s quarter also shows how quickly its business mix is moving toward marketplace activity. Figure Connect represented 65% of Consumer Loan Marketplace volume in Q2, up from 56% in the first quarter. The platform launched in June 2024, so its growing share of volume has become one of the clearest indicators of Figure’s effort to scale without tying every transaction to its own lending balance sheet.

Other parts of Figure’s blockchain ecosystem are expanding as well, although they remain smaller than the consumer lending operation. The company reported $556 million of $YLDS in circulation at June 30, up from $328 million at the end of 2025. Democratized Prime, its on-chain lend-borrow marketplace, had $392 million of matched offers at quarter end. Figure said third-party borrowing on that platform reached approximately $170 million as of August 6, roughly 23 times the level at the end of last year.

Management is also pointing to application activity as a sign that loan volumes can keep growing. In its earnings materials, Figure said weekly applications surpassed $1 billion in July. For the third quarter, it guided Consumer Loan Marketplace volume to a range of $4.8 billion to $5.2 billion. At the midpoint, that would represent another step up from the $4.26 billion recorded in Q2, though the guidance remains a forecast rather than a completed result.

Kiavi acquisition could broaden Figure beyond its current lending mix

A second growth leg is the pending acquisition of Kiavi, a lender to residential real estate investors. Figure said Thursday that the transaction remains on track to close in the second half of 2026. Under the agreement announced in June, Figure will acquire Kiavi’s technology and operating platform, while a joint venture between Figure and Sixth Street will acquire Kiavi’s balance-sheet assets. The total transaction purchase price is $717 million.

Figure has said the Kiavi transaction could add more than $7 billion in annual first-lien volume to Figure Connect and more than $100 million of monthly flow to Democratized Prime. Those are company projections and depend on the deal closing and the businesses being integrated as planned. The acquisition is strategically relevant because Figure’s existing marketplace has been heavily associated with home-equity lending, while Kiavi brings residential transition loans and debt-service-coverage-ratio lending for real estate investors.

The company has already raised debt to help fund the purchase. In July, Figure closed a $600 million private offering of 8.5% senior notes due 2031, with the stated intention of using the proceeds in part for the cash consideration payable in the Kiavi acquisition. That financing adds interest expense and execution risk, but it also gives Figure committed capital for a transaction management sees as a way to expand the range of assets moving through its marketplace.

For investors, the earnings report presents two different signals at once. The operating numbers show exceptionally fast year-over-year growth in revenue, profit and loan volume, and Figure is forecasting another sequential increase in marketplace activity for Q3. The stock’s reversal after an early jump shows that strong headline growth did not translate into an uninterrupted rally. The next concrete tests are whether Figure can sustain its marketplace volume trajectory and complete the Kiavi acquisition on the timetable it has set for the second half of 2026.