Figure Technology Solutions — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenue reached $226 million in Q2 2026, a 113% year-over-year increase from $106 million in Q2 2025; for the six months ended June 30, 2026, net revenue was $393 million, up 106% year-over-year.
• Adjusted Net Revenue was $218 million in Q2 2026, a 95% year-over-year increase; for the six months ended June 30, 2026, it was $385 million, up 94% year-over-year.
• Net income increased 192% to $87 million in Q2 2026 compared to $30 million in Q2 2025; for the six months ended June 30, 2026, net income was $132 million, up 351% year-over-year.
• Net income margin reached 38.8% in Q2 2026, an increase of 10.5 percentage points year-over-year; for the six months ended June 30, 2026, the margin was 33.7%, up 18.3 percentage points year-over-year.
• Adjusted EBITDA increased 126% year-over-year to $119 million in Q2 2026; for the six months ended June 30, 2026, Adjusted EBITDA was $202 million, up 149% year-over-year.
• Adjusted EBITDA margin reached 54.6% in Q2 2026, an increase of 7.4 percentage points year-over-year; for the six months ended June 30, 2026, the margin was 52.4%, up 11.6 percentage points year-over-year.
• Earnings per share (Basic) were $0.39 in Q2 2026, a 255% increase from $0.11 in Q2 2025; for the six months ended June 30, 2026, EPS was $0.60, up 1400% year-over-year.
• Earnings per share (Diluted) were $0.35 in Q2 2026, a 338% increase from $0.08 in Q2 2025; for the six months ended June 30, 2026, EPS was $0.53, up 1225% year-over-year.
• Cash and cash equivalents (excluding restricted cash) totaled $1.4 billion as of June 30, 2026, an increase of 20.0% ($239.4 million) compared to December 31, 2025.
• Loans held for sale totaled $597 million as of June 30, 2026, an increase of 47.7% ($193.1 million) compared to December 31, 2025.
• Total assets were $3.02 billion as of June 30, 2026, compared to $2.32 billion as of December 31, 2025.
• Total liabilities were $1.60 billion as of June 30, 2026, compared to $1.08 billion as of December 31, 2025.
• Total stockholders' equity was $1.41 billion as of June 30, 2026, compared to $1.24 billion as of December 31, 2025.

Guidance and Future Outlook

• Provided Q3 2026 guidance for Consumer Loan Marketplace Volume of $4.8 billion to $5.2 billion.
• Management expects the pending Kiavi acquisition to significantly grow the platform into adjacent asset classes.
• The company anticipates accelerating its growth flywheel and first-mover advantage in bringing capital markets on-chain.

Business Segments and Product Lines

• Consumer Loan Marketplace volume was $4.3 billion in Q2 2026, a 132% year-over-year increase from $1.8 billion; for the six months ended June 30, 2026, volume was $7.2 billion, up 124% year-over-year.
• Figure Connect volume was $2.8 billion in Q2 2026, representing 65% of total Consumer Loan Marketplace volume; for the six months ended June 30, 2026, Figure Connect volume was $4.4 billion, up 252% year-over-year.
• Net Take Rate was 3.6% in Q2 2026, down 0.4 percentage points year-over-year; for the six months ended June 30, 2026, the rate was 3.7%, down 0.2 percentage points year-over-year.
• Added 102 origination partners in Q2 2026, reaching 489 total active partners across mortgage banks, depositories, servicers, and fintechs.
• Small/Medium Business (SMB) loan volume increased 57% quarter-over-quarter.
• Democratized Prime third-party borrowing activity reached approximately $170 million as of August 6, 2026, a ~23x increase since December 31, 2025.
• Launched SMB pools on Democratized Prime, adding a diversified asset class alongside Auto and Home Equity.
• Operations and processing costs declined to approximately 67 basis points of Consumer Loan Marketplace volume in Q2 2026, down from 79 basis points in Q2 2025.
• $YLDS in Circulation increased to $556 million as of June 30, 2026, from $328 million as of December 31, 2025.
• Democratized Prime Matched Offers reached $392 million as of June 30, 2026, compared to $206 million as of December 31, 2025.
• Democratized Prime Borrower Demand reached $414 million as of June 30, 2026, compared to $246 million as of December 31, 2025.
• Democratized Prime Available Lender Supply reached $522 million as of June 30, 2026, compared to $213 million as of December 31, 2025.

Market and Competitive Landscape

• Figure is the market leader in real-world asset (RWA) tokenization.
• The company has received AAA ratings from S&P and Moody's on multiple loan securitizations, the first of its kind for blockchain finance.
• More than 480 partners use the loan origination system and capital marketplace.
• Collectively, Figure and its partners have originated over $30 billion of loans to date.

Risks and Challenges

• Risks include history of losses and the risk of not maintaining profitability.
• Reliance on HELOCs and exposure to fluctuations in the HELOC market and housing values.
• Ability to attract and retain borrowers, partners, and loan purchasers.
• Loan performance and default rates affecting access to and pricing of warehouse facilities, whole-loan sales, and securitizations.
• Changes in interest rates and U.S. monetary policy impacting originations, funding costs, and investor demand.
• Legal and regulatory risks affecting lending, mortgage-related activities, and the evolving framework for digital assets.
• Dependence on key third-party providers including cloud, custodial, valuation, and data vendors.
• Technology failures, cybersecurity incidents, or operational disruptions.
• Compliance with licensing, consumer protection, privacy, data security, and sanctions/AML laws.
• Ability to remediate previously identified material weaknesses and meet public company reporting obligations.
• Macroeconomic and geopolitical conditions.
• Dual-class structure and concentrated voting control impacts on corporate governance.
• Equity market volatility affecting Class A common stock.

Management Commentary and Tone

• CEO Michael Tannenbaum stated the company delivered its "strongest quarter yet."
• Management highlighted 132% year-over-year volume growth in the Consumer Loan Marketplace and the addition of over 100 origination partners.
• Management noted the scaling of the capital-light marketplace, with 65% of volumes now on Figure Connect.
• Management mentioned weekly applications surpassed $1 billion as of July.
• Management expressed confidence in accelerating the growth flywheel and first-mover advantage in bringing capital markets on-chain.

Other Key Points

• The Kiavi, Inc. transaction remains on track to close in the second half of 2026.
• The company reported a net loss income attributable to noncontrolling interests of $10 million in Q2 2026.
• Treasury stock at cost was $27.8 million as of June 30, 2026.
• Blockchain common stock was issued with 6,941,715 shares outstanding as of June 30, 2026.
• The company added acquisition-related costs to its definition of Adjusted EBITDA effective June 30, 2026.
• The company added valuation changes in the fair value of marketable securities and YLDS funding costs to its definition of Adjusted Net Revenue effective March 31, 2026.