Figure Technology Solutions — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue reached $287 million for Q3 2026, an 84% year-over-year increase from $156 million in Q3 2025; for the nine months ended September 30, 2026, net revenue was $680 million, up 96% from $347 million in the prior year period.
• Adjusted Net Revenue was $283 million for Q3 2026, an 83% increase year-over-year; for the nine months, it was $669 million, up 89% year-over-year.
• Net income remained flat at $89 million for Q3 2026 compared to $90 million in Q3 2025; for the nine months, net income was $222 million, an 86% increase from $119 million in the prior year period.
• Q3 2025 net income included a one-time tax benefit of $31 million; Q3 2026 net income margin was 31%, a decrease of 26 percentage points year-over-year.
• Adjusted EBITDA increased 91% year-over-year to $164 million for Q3 2026; for the nine months, Adjusted EBITDA was $366 million, up 119% year-over-year.
• Adjusted EBITDA margin reached 58% in Q3 2026, an increase of 3 percentage points year-over-year; for the nine months, the margin was 55%, up 8 percentage points year-over-year.
• Cash and cash equivalents totaled $1.6 billion as of September 30, 2026, an increase of $392 million (33%) compared to December 31, 2025.
• Loans held for sale totaled $644 million as of September 30, 2026, an increase of $240 million (59%) compared to December 31, 2025.
• Earnings per share (basic) were $0.40 for Q3 2026, down 5% from $0.42 in Q3 2025; for the nine months, EPS (basic) was $1.00, up 108% from $0.48 in the prior year period.
• Earnings per share (diluted) were $0.36 for Q3 2026, up 6% from $0.34 in Q3 2025; for the nine months, EPS (diluted) was $0.90, up 137% from $0.38 in the prior year period.

Guidance and Future Outlook:

• Q4 2026 Loan Marketplace Volume guidance is set between $6.2 billion and $6.7 billion.
• Q4 2026 Gross Take Rate guidance is set between 3.1% and 3.4%.

Business Segments and Product Lines:

• Loan Marketplace volume was $5.8 billion in Q3 2026, a 135% increase from the prior year, including $677 million contributed by Kiavi (acquired September 1, 2026).
• Figure Connect volume was $4.3 billion in Q3 2026, representing 72% of standalone Loan Marketplace volume; Figure Connect volume grew 276% year-over-year.
• The acquisition of Kiavi added $8 billion in annual run-rate volume and expanded Figure into Residential Transition Loan (RTL) and Debt Service Coverage Ratio (DSCR) markets.
• Small/Medium Business (SMB) loan originations achieved a $500 million run-rate volume supported by over 150 active partners.
• The partner base expanded to 612 standalone partners and 894 including Kiavi, with over 20 active depository partners.
• A new agentic Loan Officer Assistant deployed in partnership with Sierra has processed roughly $260 million in funded loans and driven a 29% increase in funded dollars per loan approval.
• 28 participants are now utilizing the YLDS stablecoin for marketplace transactions, with YLDS in circulation reaching $504 million as of September 30, 2026, up from $328 million at year-end 2025.
• Prime platform metrics as of September 30, 2026, included 588 million in matched offers, 600 million in borrower demand, and 825 million in available lender supply, compared to 206 million, 246 million, and 213 million respectively at December 31, 2025.

Market and Competitive Landscape:

• Figure Connect volume grew 276% year-over-year, reflecting a rapid transition toward a capital-light marketplace model.
• Figure is the market leader in real-world asset (RWA) tokenization, having received AAA ratings from S&P and Moody's on multiple loan securitizations.
• Gross Take Rate decreased to 3.9% in Q3 2026 from 5.2% in Q3 2025; Net Take Rate decreased to 3.5% from 4.4% in the prior year period.

Risks and Challenges:

• Risks include reliance on HELOCs, exposure to fluctuations in the HELOC market and housing values, and potential loan performance and default rates.
• Risks include changes in interest rates, U.S. monetary policy, and legal/regulatory risks affecting lending, mortgage activities, and the evolving framework for digital assets.
• Risks include dependence on key third-party providers, technology failures, cybersecurity incidents, and compliance with licensing and consumer protection laws.
• Risks include the dual-class share structure, concentrated voting control, and equity market volatility.

Management Commentary and Tone:

• CEO Michael Tannenbaum described the quarter as a "record quarter" highlighted by consecutive quarters of over 100% volume growth and the rapid expansion of the capital-light marketplace.
• Management noted the successful acquisition of Kiavi adds diversified asset classes and supercharges marketplace growth.
• Management expressed confidence in scaling the future of capital markets by expanding the reach of technology and bringing large institutional buyers onto blockchain rails.

Other Key Points:

• The Board of Directors authorized a $200 million increase to the share repurchase program, bringing total authorization to $400 million.
• Figure actioned $30 million in initial cost synergies since closing the Kiavi transaction.
• Amortization expense excluded from Adjusted EBITDA includes amortization of intangible assets recognized in the Kiavi acquisition.
• The company reported $15.5 million in acquisition-related costs and $2.4 million in restructuring costs for Q3 2026.
• Stock-based compensation expense was $24.3 million for Q3 2026 and $76.2 million for the nine months ended September 30, 2026.