Investment Case Update: June 23, 2026
Price: $27.98 (3/23/26)
Market Capitalization: $6.2B
Enterprise Value: $4.9B
What the Company Does
Figure makes 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 ~387 partners (i.e. banks, mortgage originators etc.) to offer standardized loans to consumers 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. FIGR also operates its own Consumer Credit and Digital Assets marketplaces, which target home equity financing and various digital assets, respectively. FIGR recently launched OPEN, a blockchain-based alternative trading system, that enables public equities to trade and settle outside the traditional Depository Trust Company clearing and custody system. FIGR generates revenue primarily via volume-based fees from partners and users transacting in their ecosystem.
Why We Own It
As the leader in bringing blockchain technology to outdated lending and servicing processes, FIGR offers compelling growth prospects from a profitable, scalable business targeting large markets ripe for disruption. Management has framed a $785B market opportunity in front of them, as their flagship home equity line of credit (HELOC) product alone executes within a $35T 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 43 days. For funding partners, on-chain loan registration and settlement eliminate reconciliation burdens, reducing third-party review costs by ~80%, and driving a ~94% 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 allows FIGR to gain scale and operating leverage. Originating partners on FIGR’s platform have more than doubled since 1Q25, partner-branded loan volumes have increased at a 95% CAGR since the end of 2023, and FIGR’s stablecoin YLDS has broadened capital access to popular digitally native blockchains Solana and Ethereum. Management sees Adjusted EBITDA margins scaling towards its medium-term target of 60% (vs. ~49% in ‘25) via an ongoing mix shift towards its marketplace platforms, Figure Connect (56% of consumer loan marketplace volume in 1Q26) and Democratized Prime, which carry higher incremental margins. Despite this robust growth and profitability outlook, shares trade at a forward (FY27) EV/EBITDA multiple of 9.4x, a ~29% discount to the S&P 500 multiple.
How Management Allocates Capital
Management is deploying capital to scale its mortgage ecosystem through organic growth, targeted acquisitions, and increased third-party capital participation on the platform. With a net cash balance sheet and scaling profitability, management should have ample flexibility to reinvest in the business and opportunistically tap into its $200MM share buyback program (3.2% of market cap).
We originally posted our investment case for FIGR on January 26, 2026.
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