Figure Technology Solutions reported a 156% year-over-year jump in fourth-quarter net income to $15.1 million. The surge sharpens focus on whether its tokenized loan marketplace model is gaining institutional traction.
The Nasdaq-listed company posted $159.9 million in Q4 net revenue, within the $158 million to $162 million range disclosed in its recent S-1 filing, according to its earnings report. Adjusted EBITDA reached $81.3 million, a 52% margin, down from 55% in the prior quarter due to one-time post-IPO fixed costs. Shares closed 1.8% lower at $34.04, extending a 45.8% decline over the past month.
Is Figure Becoming A True Tokenized Marketplace?
Investor skepticism has centered on whether Figure is primarily a home equity line of credit software lender or a tokenized capital markets platform. But fourth-quarter data points to structural shifts in volume composition. Connect volume reached 54% of Consumer Loan Marketplace activity, up from 46% in the previous quarter, signaling progress toward tokenized distribution. Loan marketplace volume totaled $2.7 billion, rising 8% sequentially despite typical seasonal softness.
“We closed the year with strong fourth quarter results, with triple-digit year-over-year growth in Consumer Loan Marketplace volume, increased adoption of Figure Connect, and expanding activity within our blockchain ecosystem,” said Michael Tannenbaum, CEO of Figure, in the earnings release.
In a client note, Bernstein analysts led by Gautam Chhugani reiterated an outperform rating and a $72 price target, describing the results as “solid” and highlighting roughly $100 million in debt-service coverage ratio loans, about four times the prior quarter.
Beyond HELOCs, the company reported roughly 2x quarter-over-quarter growth in small-business loans and continued expansion in crypto-backed lending. The board also authorized a $200 million share-repurchase program and announced a partnership with Agora Data to onboard AI-originated U.S. auto loans as tokenized assets. Still, investors will watch whether Connect penetration continues rising and whether margin compression proves temporary in coming quarters.
