Price: $52.23 (1/13/26)
Market Capitalization: $11.2B
Enterprise Value: $10.8B
What the Company Does
Figure Technology Solutions (ticker: FIGR) claims to make borrowing money faster, cheaper, and safer by getting rid of the paperwork and the people who get paid just to move it around. FIGR’s proprietary loan origination system (LOS) digitizes key aspects of the underwriting process, allowing ~246 partners (i.e. banks, mortgage originators) to offer standardized loans to consumers ideally at a fraction of the cost and time available under legacy financing methods today. Loans originated using FIGR’s LOS are recorded and tokenized on the Layer 1 blockchain, Provenance, creating a verifiable digital paper trail and reducing the costs and complications of monitoring these loans. The company also operates its own Consumer Credit and Digital Assets marketplaces, which target home equity financing and various digital assets, respectively. FIGR generates revenue primarily via volume-based fees from partners and users transacting in their ecosystem.
Why We Own It
FIGR offers compelling growth prospects from a profitable, highly scalable business in large addressable markets that appear ripe for disruption. Management has framed a $185B market opportunity in front of them, as their flagship home equity line of credit (HELOC) product alone executes within a $36T home equity market. FIGR’s usage of blockchain technology as a shared system of record, tightly integrated with its proprietary LOS, creates a mutually beneficial proposition for both borrowers and capital providers. For consumers, this translates into materially faster loan approvals and less friction, with FIGR’s LOS funding a home equity loan at a median of 10 days, compared to the industry median of 42 days. For funding partners, on-chain loan registration and settlement eliminate reconciliation burdens, reducing third-party review costs by ~80%, and driving a ~93% reduction in total production costs compared to traditional mortgage origination.
FIGR already possesses a ~75% market share of tokenized private credit, but incremental platform liquidity is creating a self-reinforcing moat of network effects that could allow FIGR to gain scale and operating leverage. FIGR added 78 originating partners in 3Q25 alone (more than all of 2024 adds), partner-branded loan volumes have increased at a 74% compound annual growth rate (CAGR) since the end of 2020, and FIGR’s stablecoin, YLDS, has broadened capital access to popular digitally native blockchains Solana and Sui. Management sees Adjusted EBITDA margins scaling towards its long-term target of 60%+ (vs. 43% over last 12 months) via an ongoing mix shift towards its marketplace platforms, Figure Connect and Democratized Prime, which carry higher incremental margins. The company recently launched its OPEN network, which aims to replace the entire Depository Trust Company Clearing structure with blockchain technology, a roughly $10 trillion opportunity.
How Management Allocates Capital
Management’s top priorities are deepening their penetration of the HELOC mortgage space and diversifying into non-qualified mortgages and new blockchain products. With a net cash balance sheet and an ongoing mix shift to a capital-light marketplace model, management should have ample flexibility to fund FIGR’s robust organic growth outlook.
Stay connected with us for updates and insights. Subscribe.
Follow us here, here and here.