The Figure story

What drives the business

• Figure’s foundation is home equity lending through its own brand and partner technology platform, which facilitated approximately $8.3 billion of home equity lending in 2025, when HELOCs accounted for over 98% of total loan originations.
• Partners pay fees based on loan principal originated through Figure’s Loan Origination System and transacted on Figure Connect, but their agreements are non-exclusive and do not require them to use the platforms.
• Figure Connect adds a marketplace behind the origination engine, supported by the Sixth Street Partners joint venture, whose total equity commitment is $210.5 million and whose ownership is 95% Sixth Street equity and 5% Figure equity.
• Kiavi, a lending platform for residential real estate investors acquired in September 2026, extends Figure’s lending business, while Democratized Prime connects borrowers and lenders and $YLDS provides an interest-bearing stablecoin registered with the SEC.
• Revenue over the last twelve months reached $709 million, growing 88.8%, with a 28.4% operating margin, although Democratized Prime had not generated material revenue in 2025 and YLDS generated $1.1 million in net interest income that year.

What the price assumes

The growth implied by Figure’s price is not measured because TenQ does not run a reverse DCF for finance industry classifications, where free cash flow may not measure earnings.

At $27.68, Figure has a market value of $6.2 billion and trades at 16.6x earnings and 8.8x sales, alongside revenue growth of 88.8% over the last twelve months.

TenQ’s earnings-yield check passes at 6.0% against the Treasury benchmark of 5.3%, but its price-versus-growth check fails because there is no positive three-year earnings growth behind the price.

What could change the story

• Reliance on HELOCs exposes Figure to housing values, interest rates and loan performance, which can affect origination demand and access to funding.
• The top 10 partners contributed 56% of origination volume in 2025, while the two largest customers accounted for 30% of revenue, leaving meaningful exposure to a small group of relationships.
• Kiavi integration and new product launches place demands on management and infrastructure, while the $600 million note issuance adds financing obligations and TenQ’s interest-coverage check falls short at 4.93 against 5.00.
• Despite a 33.5% net margin, Figure fails TenQ’s cash-conversion checks, including sales-to-cash conversion of -12.2% against a sector benchmark of 27.5%, although finance-company cash flows require care in interpretation.
• Competition from traditional financial institutions and digital asset companies, evolving regulation and previously identified internal-control weaknesses could complicate expansion.

What to watch next

• The November 2026 financial release is scheduled to include Kiavi’s post-acquisition loan volumes, making the separation of acquired activity from existing-platform growth important when comparing periods.
• Final Consumer Loan Marketplace Volume for the quarter to September 2026 can be compared with the preliminary $5,119 million and the previously issued guidance range of $4.8 billion to $5.2 billion, both excluding Kiavi.
• Revenue, cash conversion and interest coverage will show how greater marketplace activity and acquisition financing affect financial performance, while Democratized Prime fee revenue and $YLDS circulation will indicate whether digital asset adoption is becoming a larger earnings contributor.

Sources

• Figure's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The FIGR stock report, for every figure and check