Figure Technology Solutions delivered a blockbuster Q2, driven by rapid adoption of its blockchain-powered marketplace and a pivot toward capital-light, third-party loan activity. Key numbers - Consumer Loan Marketplace volume: $4.26B in Q2 (up 132% YoY, 47% QoQ). - Net revenue: $225.6M (up 113% YoY). - Net income: $87.4M (up 192% YoY); net income margin widened to 38.8% from 28.3%. - Adjusted EBITDA: $119.4M (up 126% YoY) with a 54.6% margin. Management is targeting a 60% adjusted EBITDA margin for 2026–2028. Figure Connect and the move to third-party origination Figure Connect—its blockchain-based marketplace that links third-party loan sellers and buyers—accounted for $2.77B, or 65% of total Consumer Loan Marketplace volume, and jumped 262% YoY. Launched in June 2024, Connect volume is defined as consumer loans originated by third-party sellers through the marketplace. That shift toward third-party flow is central to Figure’s strategy to scale without loading up its balance sheet. Ecosystem and technology fees rose to $72.9M (from $28.1M a year earlier), and gain on loan sales climbed to $57.6M (from $36.3M). Operational efficiency improved too: operations and processing costs fell to ~67 basis points of marketplace volume from 79 bps a year earlier. Not all $4.3B is “onchain” A note for crypto readers: the $4.26B marketplace figure includes loans originated through Figure’s loan origination system—HELOCs, DSCR, personal loans—not solely blockchain trades. While Connect is rapidly growing as the onchain conduit, the headline number should not be interpreted as $4.3B of blockchain-native transactions alone. Network growth and product scale - Figure added 102 origination partners in Q2, bringing its active network to 489 (mortgage banks, depositories, servicers, fintechs). - Loans held for sale rose 47.7% to $597M. - Cash and cash equivalents (ex-restricted cash) reached $1.4B at June 30, up $239.4M from year-end. Product diversification and tokenization Figure’s expansion beyond home-equity products continued. SMB loan volume was up 57% QoQ. Its Democratized Prime onchain lending marketplace saw third-party borrowing reach about $170M as of Aug. 6—roughly 23x its year-end level. On the token front, Figure’s SEC-registered yield-bearing YLDS token grew to $556M in circulation at June 30 (versus $328M at the end of 2025). YLDS distribution has expanded beyond Provenance to Sui, opening another onchain rail for tokenized financial products. M&A and financing Figure agreed to acquire real-estate lender Kiavi for $717M, a deal expected to add residential transition and DSCR loan inventory to its marketplaces. Management said the transaction remains on track to close in H2 2026 but is still subject to closing conditions and regulatory approvals. To help fund the deal, Figure closed a $600M offering of 8.5% senior notes due 2031 on July 14, with proceeds earmarked in part for the Kiavi acquisition. Guidance and outlook Figure is guiding Q3 Consumer Loan Marketplace volume of $4.8B–$5.2B (midpoint implies roughly 102% YoY growth), with the usual caveats around lending demand and funding markets. CEO Michael Tannenbaum noted weekly loan applications exceeded $1B by July and reiterated that the Kiavi acquisition would materially expand the platform into adjacent asset classes once closed and integrated. Market reaction and next milestones Investors reacted positively: FIGR closed Aug. 13 at $31.88, up about 3.9% on the day. Watch for Figure’s weekly operating updates, Q3 marketplace results, and the completion/integration of the Kiavi transaction as upcoming catalysts. Bottom line Q2 was Figure’s strongest quarter since going public, reflecting rapid marketplace adoption, stronger fee-based revenue, and improving profitability metrics. For crypto investors, the takeaways are accelerating onchain product scale (YLDS and Democratized Prime), rapid third-party Connect growth, and an ongoing strategic pivot toward a capital-light, token-enabled financial marketplace. Read more AI-generated news on: undefined/news