New York: Figure Technology Solutions reported a sharp rise in second-quarter profit as its consumer loan marketplace continued to expand, highlighting growing demand for its blockchain-based lending infrastructure.

The Nasdaq-listed financial technology company reported $4.26 billion in Consumer Loan Marketplace volume for the quarter ended June 30, marking a 132% increase from the same period last year and a 47% rise from the first quarter. Net income climbed 192% year-on-year to $87.4 million, while net revenue more than doubled to $225.6 million.

The results represent Figure’s strongest quarter since becoming a publicly traded company and underline the company’s strategy of shifting more lending activity towards a marketplace model that requires comparatively less balance-sheet capital.

Figure Connect drives loan marketplace growth

One of the biggest contributors to Figure’s growth was Figure Connect, the company’s blockchain-based marketplace that connects third-party loan sellers with buyers.

Figure Connect generated $2.77 billion in volume during the second quarter, accounting for about 65% of the company’s total Consumer Loan Marketplace volume. That compares with $767 million a year earlier. Connect volume therefore increased by 262% year-on-year.

The headline $4.26-billion marketplace figure, however, should not be interpreted as $4.26 billion worth of blockchain transactions. Figure’s Consumer Loan Marketplace volume also includes loans originated through its loan origination system, including home equity lines of credit, debt-service coverage ratio loans and personal loans.

This distinction is important because Figure is increasingly positioning its technology as infrastructure for other lenders rather than relying exclusively on loans held on its own balance sheet.

The company added 102 origination partners during the quarter, taking its active network to 489. The network includes mortgage banks, depositories, servicers and fintech companies. At the same time, operations and processing costs declined to about 67 basis points of marketplace volume, compared with 79 basis points a year earlier.

Profit grows faster than revenue

Figure’s second-quarter numbers also showed that profitability is growing faster than revenue.

Net revenue increased 113% year-on-year to $225.6 million, while net income rose from $30 million to $87.4 million. The company’s net income margin consequently expanded from 28.3% to 38.8%.

Operating income also increased significantly, rising to $77.7 million from $27.7 million a year earlier. This suggests that the improvement in net profit was supported by stronger underlying operations rather than being driven solely by items below operating income.

Adjusted EBITDA reached $119.4 million, an increase of 126%. The adjusted EBITDA margin improved to 54.6%, compared with 47.2% in the year-ago period.

Figure has set a medium-term target of a 60% adjusted EBITDA margin for 2026 through 2028. However, this remains a management target and is not a guarantee of future profitability.

The company’s balance sheet also expanded during the period. Cash and cash equivalents, excluding restricted cash, stood at around $1.4 billion at the end of June, up $239.4 million from the end of 2025. Loans held for sale increased 47.7% to $597 million.

Figure expands beyond home-equity lending

Figure’s growth story is no longer limited to its original home-equity lending business.

Small and medium-sized business loan volume increased 57% from the first quarter. Meanwhile, borrowing by third parties on the company’s Democratized Prime onchain lending marketplace reached approximately $170 million as of August 6. That figure was around 23 times its level at the end of 2025.

The company is also expanding its digital asset business. Its YLDS yield-bearing token had $556 million in circulation at June 30, compared with $328 million at the end of 2025.

Figure’s tokenised financial products have also expanded beyond its Provenance blockchain to the Sui network. This gives the company another route to develop blockchain-based financial products while broadening the infrastructure supporting its digital asset operations.

Kiavi acquisition could broaden Figure’s lending platform

Another important part of Figure’s growth strategy is its planned acquisition of real-estate lender Kiavi for $717 million.

The transaction is expected to add residential transition and debt-service coverage ratio loans to Figure’s marketplace. Figure said the deal remains on track to close during the second half of 2026, although completion remains subject to closing conditions and required regulatory approvals.

Figure also completed a $600-million offering of 8.5% senior notes due 2031 on July 14. The proceeds are intended partly to support the Kiavi transaction.

If completed, the acquisition could give Figure access to a larger pool of real-estate lending activity and further increase the number of loan products available through its technology and marketplace infrastructure.

Figure expects loan volume to rise again in Q3

Figure is also forecasting another strong quarter.

For the third quarter, the company expects Consumer Loan Marketplace volume to be between $4.8 billion and $5.2 billion. At the midpoint, that would represent roughly 102% year-on-year growth, according to the company’s investor presentation.

The guidance remains subject to lending demand, funding conditions and other operational factors, so the projected volume should not be treated as a guaranteed result.

CEO Michael Tannenbaum said weekly loan applications had crossed $1 billion in July, signalling continued demand entering the third quarter. He also highlighted the potential impact of the pending Kiavi acquisition, which Figure expects to expand its platform into additional asset classes.

The company’s next major milestones will include its weekly operating updates, third-quarter marketplace performance and the completion of the Kiavi acquisition.

Figure shares rise after strong earnings

Investors reacted positively to the results. Figure’s shares, trading under the ticker FIGR, closed at $31.88 on August 13, up 3.94% for the day. The stock traded between $29.50 and $33.77 during the session.

The market reaction reflects investor interest in Figure’s rapidly expanding marketplace model and its ability to generate higher revenue without relying entirely on balance-sheet lending.

The key question going forward will be whether Figure can maintain its rapid loan-volume growth while continuing to expand margins. Its increasing reliance on third-party originators, expansion into new lending categories and planned Kiavi acquisition could provide additional growth opportunities, but they also bring execution and integration risks.

Conclusion

Figure Technology Solutions’ second-quarter performance marks a significant step forward for the blockchain-focused lending company. Loan marketplace volume reached $4.26 billion, net revenue climbed to $225.6 million and net income surged to $87.4 million, while Figure Connect accounted for nearly two-thirds of marketplace activity.

With Q3 volume guidance of up to $5.2 billion and the Kiavi acquisition still ahead, Figure is positioning itself as a broader digital lending and tokenisation platform. Whether the company can sustain its rapid growth while reaching its 60% adjusted EBITDA margin target will be among the most important developments for investors in the coming quarters.