Figure Technology Solutions, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
FIGR$22.73+8.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0002064124-26-000029
Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001628280-26-057061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 210 previous paragraphs and 220 current paragraphs.
112 unchanged; 71 reworded; 30 added; 22 removed; 5 previous and 7 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
Reclassifications and Immaterial Error Corrections
Current report
The accompanying Management’s Discussion and Analysis of Financial Condition and Results of Operations gives effect to certain voluntary reclassifications, a voluntary change in accounting principle, and immaterial error corrections made to the previously reported Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025. These items include changes in the presentation of marketable securities income and customer deposit liability activity within the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows, a change in accounting principle for payment stablecoins, and a correction to the presentation of retained beneficial interests in loan securitizations within the Condensed Consolidated Statements of Cash Flows. See “Note 2—Summary of Significant Accounting Policies” in the Condensed Consolidated Financial Statements for further detail. In addition, the Management’s Discussion and Analysis of Financial Condition and Results of Operations may have other immaterial corrections and reclassifications that management has deemed necessary to conform prior period presentation to current period presentation for comparability.
Current report
Proposed Acquisition of Kiavi, Inc.
Current report
On June 10, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), to acquire Kiavi, Inc., a Delaware corporation (“Kiavi”), a market leading AI-powered lending platform for residential real estate investors used to buy, renovate, and resell properties.
Current report
Under the terms of the Merger Agreement, at the closing of the Merger (the “Closing”), we will pay an aggregate of approximately $532.4 million in cash to Kiavi equity holders, subject to customary purchase price adjustments set forth in the Merger Agreement, including for Kiavi's cash, indebtedness, transaction expenses, operating net working capital, and warehouse working capital.
Current report
On July 14, 2026, we closed a private offering of $600.0 million principal amount of 8.500% Senior Notes due 2031 (the “Notes”). The net proceeds from the offering were $586.5 million. We intend to utilize the net proceeds from the offering to fund the cash consideration payable in connection with the proposed acquisition of Kiavi, as well as for general corporate purposes and to pay fees and expenses related to the Notes. The completion of the offering was not conditioned on the completion of the Kiavi acquisition and if the Kiavi acquisition is not completed, the net proceeds will be used for general corporate purposes.
Current report
Concurrently with, and as a result of the issuance of the Notes, we terminated the Bridge Loan Facility that was entered into concurrent with the Merger Agreement. Refer to “Note 14—Subsequent Events” in the Condensed Consolidated Financial Statements for further information regarding the issuance of the senior notes.
Current report
The obligation to consummate the transactions contemplated by the Merger Agreement is subject to the satisfaction or waiver of a number of customary closing conditions set forth in the Merger Agreement. In addition, the obligation of us to consummate the Merger is subject to the satisfaction or waiver of certain additional conditions, including the completion of a pre-closing restructuring, the contemporaneous closing of the sale of a subsidiary of Kiavi to a newly formed joint venture between the Company and a third party immediately prior to the Merger, and obtaining certain governmental and regulatory licenses and approvals. The Merger Agreement contains representations, warranties and covenants that are customary for a transaction of this nature.
Current report
The Merger Agreement contains mutual termination rights for Kiavi and Figure under certain conditions, as defined in the Merger Agreement. The Merger Agreement also contains a termination right for us if Kiavi has not delivered the Requisite Stockholder Consent (as defined in the Merger Agreement) to us prior to the date specified in the Merger Agreement. Under the Merger Agreement, we may be required to pay a termination fee to Kiavi of $25.0 million if the Merger Agreement is terminated by us under certain conditions, as defined in the Merger Agreement.
Current report
Other income (expense), net
Current report
Servicing fees increased $6.5 million, or 44.2%, due to a $6.2 billion, or 69.4%, increase in the weighted average unpaid principal balance of HELOC loans serviced, rising to $15.1 billion at June 30, 2026, from $8.9 billion at June 30, 2025, partially offset by a decrease of 5 basis points in the weighted average servicing fee rate from 33 basis points to 28 basis points.
Current report
Gain on sale of loans, net, increased $40.8 million, or 61.8%, due to a $30.4 million increase in the total realized gains on whole loan and securitized loan sales, driven by an increase in the UPB of loans sold from $2.4 billion to $4.3 billion, an increase of $1.9 billion period over period, together with a 3.8% decrease in the weighted average price of loans sold. Additionally, there was a $0.5 million decrease in the fair value of loans not yet sold offset by an increase in unrealized derivatives during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Due to changes in rates impacting our derivative positions, we recognized realized gains on our derivatives of $7.3 million and unrealized losses of $2.6 million during the six months ended June 30, 2026
Current report
Marketable securities income, net remained flat for the three months ended June 30, 2026, compared to three months ended June 30, 2025 as the change in fair value of the marketable securities we held was offset by an increase in interest income on the marketable securities we held.
Current report
Marketable securities income, net decreased $4.0 million, or 34.7%, primarily due to a $7.0 million decrease in recognized change in fair value of the marketable securities we held, partially offset by an $2.9 million increase in interest income on the marketable securities we held.
Current report
Figure-branded net revenue increased $23.0 million, or 84.7%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This was primarily due to a $12.9 million or 103.3% increase in gain on sale of loans as a result of an increase in the UPB of loans sold and fair value of loans not sold yet. Additionally, there was a $9.4 million, or 67.0%, increase in Figure-branded origination fees as a result of a 68.2% increase in Figure-branded volume.
Current report
Figure-branded net revenue increased $43.3 million, or 89.3%, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. This was primarily due to a $22.5 million or 99.6% increase in gain on sale of loans as a result of an increase in the UPB of loans sold and a $19.4 million, or 78.5%, increase in Figure-branded origination fees as a result of an 81.4% increase in Figure-branded volume.
Current report
Technology and product development expense decreased $2.3 million, or 6.8%, primarily due to a $3.4 million decrease in stock-based compensation expense from prior year expense related to services exchanged for the issuance of warrants in the prior year which were fully earned in the prior year and therefore had no expense in the six months ended June 30, 2026. Additionally, compensation and benefits decreased driven by a decline in cost per employee, offset by an increase in software costs driven by cloud compute and storage costs.
Current report
Operations and processing expense increased $14.5 million, or 100.1%, primarily due to an $11.0 million increase in processing fees due to a 131.7% increase in Consumer Loan Marketplace Volume. Additionally, compensation and benefits increased $3.4 million, or 64.4%, primarily due to a 43.7% increase in average headcount driven by the increase in Consumer Loan Marketplace volume.
Current report
Sales and marketing expense increased $13.8 million, or 81.2%, primarily due to a $10.6 million increase in advertising and other expense driven by a 68.2% increase in Figure-branded volume, as well as a $2.4 million increase in compensation and benefits primarily due to a 117.1% increase in average headcount.
Current report
Interest expense increased $7.3 million, or 58.9%, primarily due to a $7.3 million increase in interest expense related to Democratized Prime and a $3.2 million increase related to the Retained Interest Facility warehouse, offset by a $2.1 million decrease in warehouse facilities and a $1.9 million decrease in interest on our MSR Facility.
Current report
Other income (expense), net
Current report
Other income (expense), net increased $3.2 million, or 177.2%, primarily driven by a $6.1 million increase in Other, largely due to a $5.9 million gain recognized on the disposal of our equity-method investment in Reflow Services, LLC in May 2026, along with a $0.7 million increase in the change in fair value of digital assets held, partially offset by a $0.8 million decrease in the change in value of fund investments, and a $2.8 million decrease in staking rewards and gain on sale and usage of digital assets, during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Digital assets held at fair value decreased $5.4 million as of June 30, 2026 compared to December 31, 2025 due to a $3.9 million decrease in the fair value of Solana holdings, a $1.0 million decrease in the fair value of digital assets held in our liquidity pools and a $0.8 million decrease in the fair value of United States Dollar Tether holdings, partially offset by immaterial increases in the fair value of other digital assets.
Current report
Other current liabilities decreased $32.6 million, or 30.8%, as of June 30, 2026 compared to December 31, 2025, primarily due to lower crypto collateral balances, reflecting declines in both quantity and price of crypto assets held, as well as reduced platform liabilities. These decreases were partially offset by growth in loan-related payables, consistent with higher loan volume, and a modest increase in other liabilities.
Current report
Pending Acquisition and Related Financing Activities
Current report
On June 10, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), to acquire Kiavi.
Current report
Concurrently with the execution of the Merger Agreement, we entered into a commitment letter with Bank of America, N.A., BofA Securities, Inc. and Barclays Bank PLC, pursuant to which Bank of America, N.A. and Barclays Bank PLC committed, subject to the satisfaction of customary conditions, to provide us with a 364-day bridge loan facility in an aggregate principal amount not to exceed $600.0 million. As of June 30, 2026, there were no outstanding borrowings under the Bridge Loan Facility.
Current report
On July 14, 2026, we closed on a private offering of $600.0 million principal amount of 8.500% Senior Notes due 2031. The net proceeds from the offering were $586.5 million. Concurrently with, and as a result of the issuance of the Senior Notes, the Company terminated the Bridge Loan Facility effective July 14, 2026. If the Kiavi acquisition does not close, the proceeds from the Notes will be used for general corporate purposes. Interest payments for the Notes are due semi-annually in arrears on January 31 and July 31 of each year, beginning on January 31, 2027. The Notes will mature on July 31, 2031, unless earlier repurchased or redeemed.
Current report
Refer to “Note 10—Commitments and Contingencies” for more information regarding the proposed acquisition of Kiavi and “Note 14—Subsequent Events” in the Condensed Consolidated Financial Statements for further details on the Senior Note issuance.
Current report
Critical Accounting Estimates
Removed paragraphs (22)
Previous report
OPEN Launch
Previous report
In February 2026, we launched the On-Chain Public Equity Network (“OPEN”), a blockchain-based network designed to modernize the underlying infrastructure that supports the issuance, trading, custody and lending of public equity securities.
Previous report
OPEN enables companies to issue their equity natively on the Provenance Blockchain and make it available for secondary market trading on our ATS. OPEN is designed to reduce reliance on traditional centralized market infrastructure and to provide new capabilities for public companies and shareholders. These capabilities are anticipated to include lower costs and capital requirements compared to existing clearing and settlement models, greater access to trading through self-custody and self-settlement mechanisms that can reduce the need for custodial intermediaries, and portfolio margining across digital and tokenized assets.
Previous report
We support frictionless two-way exchangeability between our securities issued on OPEN and our listed Class A common stock, a capability that we expect to make available to future OPEN issuers. This exchangeability is intended to promote liquidity and prices near par between blockchain securities and securities listed on national market exchanges.
Previous report
Blockchain Common Stock Offering
Previous report
In February 2026, the Company successfully completed a secondary public offering of 4,375,000 shares of its Series A Blockchain Common Stock ("Blockchain Stock"). The selling stockholders in the offering agreed to sell 4,687,500 shares of Class A common stock to the underwriters. The Company did not raise proceeds through this offering. In conjunction with the offering, the Company repurchased 312,500 of our Class A common stock, subsequently held in treasury, that were subject to the offering at an aggregate amount of approximately $10 million at $32.00 per share.
Previous report
The Blockchain Stock is a new class of equity security that trades exclusively on the Company’s ATS, allowing for trading 24 hours per day, 7 days per week. The Blockchain Stock provides the ability for holders to lend their stock transparently and utilize cross-asset collateralization through DeFi protocols. The offering served as the foundational launch of OPEN.
Previous report
Share Repurchase Program
Previous report
Other expense, net
Previous report
(A)During the current period, we voluntarily elected to change the income statement presentation for net gains and losses on the change in fair value of marketable securities, and the interest income earned on marketable securities, by reclassifying them into a separate line item, “Marketable securities income, net”. Previously, these amounts were included within “Gain on sale of loans, net” and “Interest income”, respectively. The change in classification has been applied retrospectively to all periods presented. This presentation change resulted in a $2.2 million decrease to “Gain on sale of loans, net” and a $5.4 million decrease to “Interest income” for the three months ended March 31, 2026. For further information, see Note 2, Change in Financial Statement Presentation, to the Condensed Consolidated Financial Statements.
Previous report
Servicing fees increased $2.6 million, or 36.6%, due to a $6.1 billion, or 72.0%, increase in the weighted-average servicing portfolio unpaid principal HELOC loan balance of $14.6 billion serviced at March 31, 2026, compared to $8.5 billion at
Previous report
(A)During the current period, we voluntarily elected to change the income statement presentation for the net change in fair value of marketable securities by reclassifying them into a separate line item, “Marketable securities income, net”. The change in classification has been applied retrospectively to all periods presented. This presentation change resulted in a $2.2 million decrease to “Gain on sale of loans, net” as of March 31, 2025. For further information, see Note 2, Change in Financial Statement Presentation, to the Condensed Consolidated Financial Statements.
Previous report
Marketable securities income, net decreased $4.0 million, or 51.9%, primarily due to a loss on the change in fair value of $2.5 million for the three months ended March 31, 2026, compared to a gain on the change in fair value of $2.2 million for the three months ended March 31, 2025.
Previous report
Figure-branded net revenue increased $20.3 million, or 94.8%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This was primarily due to a $10.0 million, or 93.5%, increase in Figure-branded origination fees as a result of a 99.0% increase in Figure-branded volume. Additionally, gain on sale of loans, net, increased $9.6 million, or 95.0%, as a result of an increase in the UPB of loans sold.
Previous report
Other expense, net
Previous report
Digital assets held at fair value decreased $2.7 million at March 31, 2026 primarily due to a $3.3 million decrease in the fair value of Solana holdings compared to the prior year.
Previous report
Digital assets held at cost increased $0.2 million at March 31, 2026 primarily due to an increase in the quantity of HASH held.
Previous report
Other current liabilities decreased $19.0 million, or 18.0%, as of March 31, 2026 compared to December 31, 2025, primarily driven by a decrease of $21.4 million on crypto collateral held due to a decrease in both the quantity and price of crypto assets held as collateral, partially offset by a $2.3 million increase in liabilities due to the growth of deposit activity on Democratized Prime.
Previous report
(A)As of December 31, 2025, we corrected the presentation of retained beneficial interests in loan securitization transactions in the Condensed Consolidated Statements of Cash Flows. Prior period amounts have been recast to conform to the current period presentation. For further information, see Note 2 to the Condensed Consolidated Financial Statements.
Previous report
(B)As of December 31, 2025, we reclassified USDC stablecoins from “Digital assets” to “Cash and cash equivalents” on the Condensed Consolidated Balance Sheets. Prior period amounts have been recast to conform to the current period presentation. For further information, see Note 2 to the Condensed Consolidated Financial Statements.
Previous report
(B)The Company has made immaterial adjustments, with no individual adjustment greater than $43 thousand, to correct the presentation of services exchanged for issuance of warrants, stock-based compensation expense, and amortization of internally developed software costs for the three months ended March 31, 2025.
Previous report
Critical Accounting Policies and Estimates
Reworded paragraphs (71)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 16, 2026 (the “2025 Form 10-K”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should read the section titled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and “Risk Factors” in our 2025 Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. U.S. Dollars appearing in tables are presented in thousands unless otherwise indicated.
Current wording
You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 16, 2026 (the “2025 Form 10-K”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should read the section titled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and “Risk Factors” in our 2025 Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. U.S. Dollars appearing in tables are presented in thousands unless otherwise indicated. In each table where “n.m.” appears, management has deemed the percentage calculation not meaningful.
Previous wording
Blockchain can do more than disrupt existing markets. By taking historically illiquid assets, such as loans, and putting these assets and their performance history on-chain, blockchain is able to bring liquidity to historically static markets. That liquidity, coupled with the ability to achieve true digital perfection and control, opens previously inaccessible financing opportunities that were not accessible before.
Current wording
Blockchain can do more than disrupt existing markets. By taking historically illiquid assets, such as loans, and putting these assets and their performance history on-chain, blockchain is able to bring liquidity to historically static markets. That liquidity, coupled with the ability to achieve true digital perfection and control, opens previously inaccessible financing opportunities.
Previous wording
(1)Ecosystem Volume consists of Consumer Loan Marketplace Volume and Digital Asset Marketplace Volume.
Current wording
(A)Ecosystem Volume consists of Consumer Loan Marketplace Volume and Digital Asset Marketplace Volume.
Previous wording
(2)We define Consumer Loan Marketplace Volume as the total U.S. dollar equivalent value of originations of HELOCs, DSCR, and personal loans on our LOS, as well as the volume of third-party loans traded on Figure Connect. We believe this measure is an indication of our scale and represents a potential revenue opportunity from the technology used for consumer credit loan originations.
Current wording
(B)We define Consumer Loan Marketplace Volume as the total U.S. dollar equivalent value of originations of HELOCs, DSCR, and personal loans on our LOS, as well as the volume of third-party loans traded on Figure Connect. We believe this measure is an indication of our scale and represents a potential revenue opportunity from the technology used for consumer credit loan originations.
Previous wording
(3)We define Partner-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our partners’ brands. Partner-branded volume is inclusive of Figure Connect Volume.
Current wording
(C)We define Partner-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our partners’ brands. Partner-branded volume is inclusive of Figure Connect Volume.
Previous wording
(4)We define Figure-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our brand.
Current wording
(D)We define Figure-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our brand.
Previous wording
(5)We define Digital Asset Marketplace Volume as the total U.S. dollar equivalent value of matched trades transacted between a buyer and seller through Figure Exchange. We believe this measure is an indication of our scale and represents a potential opportunity for our digital asset offering.
Current wording
(E)We define Digital Asset Marketplace Volume as the total U.S. dollar equivalent value of matched trades transacted between a buyer and seller through Figure Exchange. We believe this measure is an indication of our scale and represents a potential opportunity for our digital asset offering.
Previous wording
(6)We define Figure Connect Volume as the total U.S. dollar equivalent value of Consumer Loan Marketplace Volume originated by third-party sellers through our Figure Connect marketplace. We believe this measure is a reflection of the underlying growth of our Figure Connect ecosystem.
Current wording
(F)We define Figure Connect Volume as the total U.S. dollar equivalent value of Consumer Loan Marketplace Volume originated by third-party sellers through our Figure Connect marketplace. We believe this measure is a reflection of the underlying growth of our Figure Connect ecosystem.
Previous wording
(7)Net Take Rate is derived from the sum of ecosystem and technology fees, origination fees, gain on sale of loans, net and gain on servicing asset, net from our Condensed Consolidated Statements of Operations. These items represent revenue generated from Figure-branded and Partner-branded volume. Valuation changes in fair value of mortgage servicing rights, which we believe are not indicative of operating performance, and marketing expenses in our operating expenses are deducted. This net amount is divided by overall consumer loan marketplace volume for that period.
Current wording
(G)Net Take Rate is derived from the sum of ecosystem and technology fees, origination fees, gain on sale of loans, net and gain on servicing asset, net from our Condensed Consolidated Statements of Operations. These items represent revenue generated from Figure-branded and Partner-branded volume. Valuation changes in fair value of mortgage servicing rights, which we believe are not indicative of operating performance, and marketing expenses in our operating expenses are deducted. This net amount is divided by overall consumer loan marketplace volume for that period.
Previous wording
(8)For definitions of Adjusted Net Revenue and Adjusted EBITDA and reconciliations to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures.”
Current wording
(H)For definitions of Adjusted Net Revenue and Adjusted EBITDA and reconciliations to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures.”
Previous wording
(1)We define YLDS in Circulation as the total U.S. dollar equivalent value of unsecured face-amount certificates solely backed by the assets of Figure Certificate Company (FCC), which is the issuer of the certificates.
Current wording
(A)We define YLDS in Circulation as the total U.S. dollar equivalent value of unsecured face-amount certificates solely backed by the assets of Figure Certificate Company (FCC), which is the issuer of the certificates. This is reported as an end of period outstanding balance.
Previous wording
(2)We define Matched Offers as the U.S. dollar equivalent value of offers matched between borrower and lenders on the Democratized Prime platform.
Current wording
(B)We define Matched Offers as the U.S. dollar equivalent value of offers matched between borrower and lenders on the Democratized Prime platform. This is reported as an end of period outstanding balance.
Previous wording
(3)We define Borrower Demand as the U.S. dollar equivalent value that borrowers seek to borrow from the lending pool on the Democratized Prime platform.
Current wording
(C)We define Borrower Demand as the U.S. dollar equivalent value that borrowers seek to borrow from the lending pool on the Democratized Prime platform. This is reported as an end of period outstanding balance.
Previous wording
(4)We define Lender Supply as the U.S. dollar equivalent value that lenders have made available in the lending pool on the Democratized Prime platform.
Current wording
(D)We define Lender Supply as the U.S. dollar equivalent value that lenders have made available in the lending pool on the Democratized Prime platform. This is reported as an end of period outstanding balance.
Previous wording
We believe our performance depends, and will in the future depend, on many factors, including those described in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2025 Form 10-K, to which there have been no material changes.
Current wording
We believe our performance depends, and will in the future depend, on many factors, including those described in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2025 Form 10-K, to which there have been no material changes. Additionally, third party loans can be accessed on our Democratized Prime platform pursuant to strategic partnerships, which may affect our results of operations and liquidity.
Previous wording
The following table sets forth the weighted-average characteristics of loans we originated or purchased for the three months ended March 31, 2026 and 2025:
Current wording
The following table sets forth the weighted-average characteristics of loans we originated or purchased for the three and six months ended June 30, 2026 and 2025:
Previous wording
(1)HELOC loans subject to monthly, amortizing borrower payments and may be prepaid and redrawn within a limited period of time. Personal, mortgage, and other loans are not considered significant.
Current wording
(A)HELOC loans subject to monthly, amortizing borrower payments and may be prepaid and redrawn within a limited period of time. Personal, mortgage, and other loans are not considered significant.
Previous wording
(1)Loans collateralized by digital assets.
Current wording
(A)Loans collateralized by digital assets.
Previous wording
(2)Primarily contains residential transition loans, other mortgage loans, legacy mortgages and other unsecured loans.
Current wording
(B)Primarily contains residential transition loans, other mortgage loans, legacy mortgages and other unsecured loans.
Previous wording
(3)The loan counts as of December 31, 2025 have been corrected.
Current wording
(C)The loan counts as of December 31, 2025 have been corrected.
Previous wording
Our net revenue is primarily derived from ecosystem and technology fees, loan originations and sales, including interest income earned thereon, marketable securities and loan servicing.
Current wording
Our net revenue is primarily derived from ecosystem and technology fees, loan originations and sales, including interest income earned thereon, income earned on marketable securities, and loan servicing.
Previous wording
•Loans — We accrue interest income on loans we hold based on the UPB outstanding at contractual interest rates. We place loans on nonaccrual status when they become 90 days past due (30 days past due for collateralized personal loans) or when we doubt full recovery of interest and principal. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Interest income is subsequently recognized only to the extent cash payments are received or when the loan has been placed back in accrual status. Loans are restored to accrual status when the loan becomes current and we expect repayment of the remaining contractual principal and interest. We also recognize cash received on non-accrual loans as interest income after all contractual principal is repaid.
Current wording
•Loans — We accrue interest income on loans we hold based on the UPB outstanding at contractual interest rates. We place loans on nonaccrual status when they become 90 days past due (30 days past due for collateralized personal loans) or when we doubt full recovery of interest and principal. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Interest income is subsequently recognized only to the extent cash payments are received or when the loan has been placed back in accrual status. Loans are restored to accrual status when the loan becomes current and we expect repayment of the remaining contractual principal and interest. We also recognize cash received on nonaccrual loans as interest income after all contractual principal is repaid.
Previous wording
Operations and processing expenses primarily consist of payroll and other personnel-related costs, including stock-based compensation for personnel engaged in onboarding, loan servicing, customer support and other related operational teams.
Current wording
Operations and processing expenses primarily consist of payroll and other personnel-related costs, including stock-based compensation for personnel engaged in onboarding, loan servicing, customer support and other related operational teams. These expenses also include the costs of third-party systems and tools we use as part of the loan origination process, including information verification, fraud detection, and payment processing activities.
Previous wording
Other expense, net includes unrealized and realized gains (losses) resulting from transactions of certain digital assets, litigation settlements, adjustments to non-equity method investments, foreign exchange rate gains (losses) and other non-income based state and local taxes.
Current wording
Other income (expense), net includes unrealized and realized gains (losses) resulting from transactions of certain digital assets, litigation settlements, adjustments to equity and non-equity method investments, foreign exchange rate gains (losses) and other non-income based state and local taxes.
Previous wording
Ecosystem and technology fees increased $31.7 million, or 203.0%, primarily due to the 237.3% growth in Figure Connect Volume, as well as a $3.1 million increase in program fees due to a $941.8 million increase in the volume of securitizations for which we earn program fees. Our ecosystem fees are based on a sliding scale that decreases as higher volume tiers are reached, resulting in lower fee rates as an individual partners origination volume increases.
Current wording
Ecosystem and technology fees increased $44.7 million, or 158.9%, primarily due to growth of 261.7% in Figure Connect Volume, as well as a $4.6 million increase in program fees due to a $1.4 billion increase in the volume of securitizations for which we earn program fees. Our ecosystem fees are based on a sliding scale that decreases as higher volume tiers are reached, resulting in lower fee rates as an individual partner’s origination volume increases.
Previous wording
March 31, 2025, partially offset by a decrease of 5 basis points in the weighted average servicing fee rate from 33 basis points to 28 basis points.
Current wording
Servicing fees increased $3.8 million, or 51.4%, driven by a $6.8 billion, or 73.9%, increase in the weighted average unpaid principal balance of HELOC loans serviced, rising to $16.0 billion at June 30, 2026, from $9.2 billion at June 30, 2025, partially offset by a decrease of 5 basis points in the weighted average servicing fee rate from 33 basis points to 28 basis points.
Previous wording
Interest income increased $8.2 million, or 72.6%, primarily due to a $5.9 million increase in interest earned on cash balances, as well as a $2.2 million increase in interest earned on HELOCs.
Current wording
Interest income increased $19.0 million, or 81.9%, primarily due to a $11.3 million increase in interest earned on cash balances, as well as a $5.9 million increase in interest earned on HELOCs.
Previous wording
Net origination fees increased $10.7 million, or 85.4%, primarily due to a 45.5% increase in overall volume of transactions for which we earn origination fees, as well as higher weighted average origination fees driven by a change in mix from Figure-branded volume growing 99.0% year over year, for which we earn higher origination fees relative to Partner-branded volume.
Current wording
Origination fees increased $10.1 million, or 62.1%, primarily due to a 38.7% increase in overall volume of transactions for which we earn origination fees, as well as higher weighted average origination fees driven by a change in mix driven by Figure-branded volume growing 68.2% year over year, for which we earn higher origination fees relative to Partner-branded volume.
Previous wording
Gain on sale of loans inclusive of derivatives increased $19.6 million, or 65.7%, due to a $19.2 million increase in the total realized gains on loans as a result of an increase in the UPB of loans sold from $786.7 million to $1.8 billion, in addition to a 14.9% increase in the weighted average price of loans sold for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease in unrealized gains were primarily due to a $8.3 million decrease in the fair value of loans not yet sold driven by an increasing rate environment during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Due to changes in rates impacting our derivatives, we recognized realized gains on derivatives of $1.6 million and unrealized gains of $2.3 million for the three months ended March 31, 2026, respectively.
Current wording
Gain on sale of loans, net, increased $21.3 million, or 58.5%, primarily due to a $11.2 million increase in the realized gains on whole loan and securitized loan sales, driven by an increase in the UPB of loans sold from $1.1 billion to $2.5 billion, together with a 4.9% decrease in the weighted average price of loans sold for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Additionally, there was a $7.8 million increase in the fair value of loans not yet sold during three months ended June 30, 2026 compared to the three months ended June 30, 2025. Due to changes in rates impacting our derivative positions, we reco gnized realized gains on our derivatives of $5.7 million and unrealized losses of $4.9 million for the three months ended June 30, 2026.
Previous wording
Gain on servicing asset, net increased $12.5 million, or 3846.9%, primarily due to a $10.1 million increase in new servicing assets retained on the increase of UPB of loans sold from $786.7 million to $1.8 billion for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, as well as a $5.9 million increase resulting from changes in valuation inputs and assumptions, driven by an increasing rate environment in the current period compared to the prior period. Partially offsetting, there was a $3.4 million change due to the realization of cash flows derived from a larger servicing portfolio during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
Gain on servicing asset, net increased $27.2 million, primarily due to a $17.0 million increase in new servicing assets retained on the increase of UPB of loans sold from $1.1 billion to $2.5 billion for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, as well as a $14.2 million increase resulting from changes in valuation inputs and assumptions, driven by an increasing rate environment in the current period compared to a decreasing rate environment in the prior period. Partially offsetting, there was a $4.0 million change due to the realization of cash flows derived from a larger servicing portfolio during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Previous wording
Other revenue is immaterial overall and components of other revenue did not materially change as fees, and the net assets on which we charge those fees, were consistent during the three months ended March 31, 2026 and 2025. The growth in other revenue is representative of the overall growth in Figure.
Current wording
Other revenue is immaterial overall and components of other revenue did not materially change as fees, and the net assets on which we charge those fees, were consistent during the three and six months ended June 30, 2026 and 2025. The growth in other revenue is representative of the overall growth in Figure.
Previous wording
Partner-branded net revenue increased $41.6 million, or 114.1%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily attributable to ecosystem and technology fees, which increased by $31.0 million, or 206.5%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This was primarily due to a $32.1 million increase in revenue recognized from an increase in volume transacted on our Connect platform, for which minimal fees were earned in the prior year. Additionally, Partner-branded gain on sale of loans, net increased by $9.9 million, or 50.5%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, as a result of a 117% increase in Partner-branded volume, offset by a transition towards ecosystem and technology fee revenue as Partners transition to Connect.
Current wording
Partner-branded net revenue increased $53.1 million, or 99.1%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was primarily attributable to ecosystem and technology fees, which increased by $44.1 million, or 159.8%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This was primarily due to an increase in volume transacted on our Connect platform. Additionally, Partner-branded gain on sale of loans, net increased by $8.3 million, or 35.0%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, as a result of a 151% increase in Partner-branded volume, offset by a transition towards ecosystem and technology fee revenue as Partners transition to Connect.
Previous wording
General and administrative expense increased $26.8 million, or 142.0%. This primarily consisted of an increase in equity-based compensation expense of $21.8 million, due to the recognition of expense for stock-based compensation awards that satisfied the liquidity condition in connection with the IPO, additional grants associated with the IPO, and an increase in grants in the current year due to increased headcount. Professional services increased $2.2 million, or 37.1%, primarily due to an increase in legal and accounting fees.
Current wording
General and administrative expense increased $35.0 million, or 213.6%. This primarily consisted of an increase in stock-based compensation expense of $21.8 million, due to the recognition of expense for stock-based compensation awards that satisfied the liquidity condition in connection with the IPO, additional grants associated with the IPO, and an increase in grants in the current year due to increased headcount. Professional services increased $8.2 million, or 224.7%, primarily due to an increase in legal and accounting fees.
Previous wording
Technology and product development expense decreased $1.8 million, or 10.4%, primarily due to a $1.8 million, or 24.6%, decrease in compensation and benefits, primarily due to a 3.7% decrease in headcount. Additionally, there was a $1.6 million decrease in equity-based compensation expense primarily due to expense related to services exchanged for issuance of warrants in the prior year which were fully earned in the prior year and therefore had no expense in the three months ended March 31, 2026.
Current wording
Technology and product development expense decreased $0.5 million, or 2.9%, primarily due to a $1.8 million decrease in stock-based compensation expense related to services exchanged for the issuance of warrants in the prior year which were fully earned in the prior year and therefore had no impact in the three months ended June 30, 2026.
Previous wording
Operations and processing expense increased $8.8 million, or 69.2%, primarily due to a $5.8 million increase in processing fees due to a 112.6% increase in Consumer Loan Marketplace Volume. Additionally, compensation and benefits increased $2.9 million, or 59.7%, primarily due to a 54.6% increase in headcount.
Current wording
Operations and processing expense increased $23.2 million, or 85.7%, primarily due to a $16.7 million increase in processing fees due to a 123.6% increase in Consumer Loan Marketplace Volume. Additionally, compensation and benefits increased $6.4 million, or 62.1%, primarily due to a 49.3% increase in average headcount.
Previous wording
Sales and marketing expense increased $10.5 million, or 70.3%, primarily due to an $8.6 million increase in advertising and other costs driven by a 99.0% increase in Figure-branded volume, as well as a $1.6 million increase in compensation and benefits primarily due to a 59.4% increase in headcount.
Current wording
Sales and marketing expense increased $24.3 million, or 76.1%, primarily due to a $19.1 million increase in advertising and other expense driven by an 81.4% increase in Figure-branded volume, as well as a $4.0 million increase in compensation and benefits primarily due to a 93.9% increase in average headcount.
Previous wording
Interest expense increased $5.9 million, or 53.9%, primarily due to a $2.5 million, or 35.8%, increase related to the impact of higher average SOFR rates on warehouse facilities, a $1.7 million, or 73.7%, increase in interest expense related to the Retained Interest Facility warehouse, and a $1.6 million increase in interest related to YLDS holdings.
Current wording
Interest expense increased $13.2 million, or 56.6%, primarily due to a $14.0 million increase in interest expense related to Democratized Prime, a $4.9 million increase related to the Retained Interest Facility warehouse, and a $2.1 million increase in interest related to YLDS holdings, offset by a $6.3 million decrease in warehouse facilities and a $1.9 million decrease in interest on our MSR Facility.
Previous wording
Other expense, net increased $3.6 million, primarily driven by a $4.3 million increase in the change in fair value of digital assets held and $1.4 million decrease in the change in value of fund investments, partially offset by a $1.4 million decrease in staking rewards and gain on sale and usage of digital assets, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
Other income (expense), net decreased $0.4 million, or 6.7%, primarily driven by a $2.9 million decrease in the change in fair value of digital assets held and a $1.6 million decrease in staking rewards and gain on sale and usage of digital assets, partially offset by a $4.3 million increase in Other, largely due to a $5.9 million gain recognized on the disposal of our equity-method investment in Reflow Services, LLC, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Previous wording
Income tax expense decreased by $8.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The provision for income taxes includes U.S. federal, state and local taxes. The effective tax rate for the three months ended March 31, 2026 was approximately (18.2)%, compared to 199.4% for the three months ended March 31, 2025. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the three months ended March 31, 2026 primarily due to a discrete benefit arising from excess windfall benefit due to stock exercises during the quarter. The effective tax rate differed from the U.S. federal statutory rate for the three months ended March 31, 2025 of 21.0% primarily due to state tax expense attributable to FT Intermediate, Inc. filed on standalone basis, while Figure Markets Holdings, Inc. losses were not realizable prior to the Recombination. Refer to Note 13 in the Condensed Consolidated Financial Statements for further details.
Current wording
Income tax expense decreased by $7.8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The benefit for income taxes includes U.S. federal, state and local taxes. The effective tax rate for the three months ended June 30, 2026 was approximately (5.4)%, compared to 10.1% for the three months ended June 30, 2025. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the three months ended June 30, 2026 primarily due to discrete excess tax benefits associated with stock-based compensation during the period. The effective tax rate differed from the U.S. federal statutory rate for the three months ended June 30, 2025 of 21.0% primarily due to state tax expense attributable to FT Intermediate, Inc. filed on standalone basis, while Figure Markets Holdings, Inc. losses were not realizable prior to the Recombination.
Previous wording
Third-party investors hold interests in entities that we consolidate, and to whom we allocate the net income or loss of those entities. During the three months ended March 31, 2026 and 2025, we allocated aggregate net income or loss to those third-party investors.
Current wording
Third-party investors hold interests in entities that we consolidate, and to whom we allocate the net income or loss of those entities. During the three and six months ended June 30, 2026 and 2025, we allocated aggregate net income or loss to those third-party investors.
Showing the first 40 of 71 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Ecosystem and technology fees increased $76.4 million, or 174.7%, primarily due to growth of 252.3% in Figure Connect Volume, as well as a $7.7 million increase in program fees due to a $2.3 billion increase in the volume of securitizations for which we earn program fees. Our ecosystem fees are based on a sliding scale that decreases as higher volume tiers are reached, resulting in lower fee rates as an individual partners origination volume increases.
Current report — wording carried from elsewhere
Interest income increased $10.8 million, or 90.6%, primarily due to a $5.5 million increase in interest earned on cash balances, as well as a $3.7 million increase in interest earned on HELOCs.
Current report — wording carried from elsewhere
Origination fees increased $20.7 million, or 72.2%, primarily due to a 41.8% increase in overall volume of transactions for which we earn origination fees, as well as higher weighted average origination fees driven by a change in mix driven by Figure-branded volume growing 81.4% year over year, for which we earn higher origination fees relative to Partner-branded volume.
Current report — wording carried from elsewhere
Gain on servicing asset, net increased $39.8 million, primarily due to a $27.1 million increase in new servicing assets retained on the increase of UPB of loans sold from $2.4 billion to $4.3 billion for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, as well as a $20.1 million increase resulting from changes in valuation inputs and assumptions, driven by an increasing rate environment in the current period compared to a decreasing rate environment in the prior period. Partially offsetting, there was a $7.4 million change due to the realization of cash flows derived from a larger servicing portfolio during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Partner-branded net revenue increased $94.7 million, or 105.1%, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily attributable to ecosystem and technology fees, which increased by $75.1 million, or 176.3%, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. This was primarily due to an increase in volume transacted on our Connect platform. Additionally, Partner-branded gain on sale of loans, net increased by $18.2 million, or 41.9%, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, as a result of a 136% increase in Partner-branded volume, offset by a transition towards ecosystem and technology fee revenue as Partners transition to Connect.
Current report — wording carried from elsewhere
General and administrative expense increased $61.8 million, or 175.3%. This primarily consisted of an increase in stock-based compensation expense of $43.5 million, due to the recognition of expense for stock-based compensation awards that satisfied the liquidity condition in connection with the IPO, additional grants associated with the IPO, and an increase in grants in the current year due to increased headcount. Professional services increased $10.4 million, or 108.3%, primarily due to an increase in legal and accounting fees.
Current report — wording carried from elsewhere
Income tax expense decreased by $16.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The benefit for income taxes includes U.S. federal, state and local taxes. The effective tax rate for the six months ended June 30, 2026 was approximately (9.4)%, compared to 13.5% for the six months ended June 30, 2025. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the six months ended June 30, 2026 primarily due to discrete excess tax benefits associated with stock-based compensation during the period. The effective tax rate differed from the U.S. federal statutory rate for the six months ended June 30, 2025 of 21.0% primarily due to state tax expense attributable to FT Intermediate, Inc. filed on standalone basis, while Figure Markets Holdings, Inc. losses were not realizable prior to the Recombination.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
These expenses also include the costs of third-party systems and tools we use as part of the loan origination process, including information verification, fraud detection, and payment processing activities.
Previous report — wording carried elsewhere
On February 25, 2026, the Company’s Board of Directors authorized a Share Repurchase Program under which the Company may repurchase up to $200 million of its Class A common stock and Blockchain common stock over the next 12 months subject to market conditions, contractual restrictions and other factors.
Previous report — wording carried elsewhere
Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions, accelerated share repurchase transactions, or by other means in accordance with applicable securities laws and regulations. The timing, number of shares repurchased, and prices paid will depend on market conditions, share price, trading volume, corporate considerations, and other factors. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company also treats shares of common stock withheld for tax purposes on behalf of employees in connection with the vesting of RSUs as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are considered common stock repurchases under our authorized common stock repurchase program. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization.
Previous report — wording carried elsewhere
This Share Repurchase Program does not obligate the Company to acquire any particular amount of stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion.
Previous report — wording carried elsewhere
Our Condensed Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). In preparing our Condensed Consolidated Financial Statements, we make assumptions, judgments, and estimates that can have a significant impact on amounts reported in our Condensed