Executive Summary

Figure delivered a materially stronger first quarter as a public company: Net Revenue $156.4M (+55% YoY), Net Income $89.8M (+227% YoY), and Adjusted EBITDA $86.4M with a 55.4% margin, reflecting operating leverage from its capital-light marketplace model .
Results significantly exceeded Wall Street consensus: Revenue $156.4M vs $119.4M estimate*, and Primary EPS $0.771 vs $0.155 estimate*, driven by volume strength and mix shift to Figure Connect; Adjusted EBITDA also outpaced typical expectations with $86.4M vs EBITDA consensus of $53.5M* *.
Figure Connect comprised 46% of Consumer Loan Marketplace volume ($1.1B), up from $767M in Q2, as institutional liquidity and standardized, on-chain assets improved execution and funding cost; management targets ~60% near-term mix .
Strategic catalysts: ongoing deployment of YLDS stablecoin across Sui and Solana ecosystems and a forthcoming blockchain-native equity share class, positioning Figure as a leader in RWA tokenization and DeFi-enabled capital markets .
Management noted typical Q4/Q1 seasonality in HELOC volumes (below annual average), but expects diversified partners and capital-light funding to mitigate impacts .

What Went Well and What Went Wrong

What Went Well

Marketplace scale and profitability: Adjusted EBITDA up 75% YoY to $86.4M; margin expanded >10 pts to 55.4%, underscoring automation, partner mix and reduced funding costs .
Connect momentum and product expansion: Figure Connect reached 46% of consumer marketplace volume ($1.1B), with new buyers and a sovereign wealth fund participating in securitizations; First-lien HELOC volume nearly tripled YoY .
Strategic innovation: YLDS deployments on Sui and Solana and planned blockchain-native equity share class; “This is a watershed moment … that will define how asset classes are created, financed, and traded” .

What Went Wrong

Take rate compression: Net take rate fell to 4.4% from 5.3% YoY as partner-branded and Connect volumes (with lower gross take rates) increased; mix shift raises investor questions on sustaining revenue yield .
Seasonality headwind ahead: Management cautioned Q4/Q1 volumes typically below average, creating near-term moderation risks despite broader partner momentum .
Regulatory/market risks: Company highlighted exposure to digital asset regulatory evolution, reliance on third-party vendors, and macro factors (interest rates, loan performance) in forward-looking disclosures .

Financial Results

Summary P&L vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Net Revenue ($USD Millions)	$101.0	$106.1	$156.4
Net Income ($USD Millions)	$27.4	$30.0	$89.8
Diluted EPS ($USD)	$0.09	n/a	$0.34

Non-GAAP metrics

Metric	Q3 2024	Q3 2025
Adjusted Net Revenue ($USD Millions)	$110.0	$156.0
Adjusted EBITDA ($USD Millions)	$49.4	$86.4
Adjusted EBITDA Margin (%)	44.9%	55.4%

Note on non-GAAP definitions: Adjusted Net Revenue excludes valuation changes in MSRs not reflective of operating performance; Adjusted EBITDA excludes non-cash items (stock comp, fair value changes), non-recurring items, and certain interest/taxes per reconciliation .

Revenue breakdown (GAAP)

Revenue Component ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Ecosystem & Technology Fees	$7.3	$28.1	$35.7
Servicing Fees	$6.5	$7.5	$7.9
Interest Income	$12.8	$16.0	$17.9
Origination Fees	$18.9	$16.3	$21.4
Gain on Sale of Loans, net	$57.4	$36.3	$63.6
Gain (Loss) on Servicing Asset, net	$(2.1)	$1.8	$9.3
Other Revenue	$0.1	$0.0	$0.6
Total Net Revenue	$101.0	$106.1	$156.4

KPIs

KPI ($USD Millions unless noted)	Q3 2024	Q2 2025	Q3 2025
Ecosystem Volume	$1,837	n/a	$2,538
Consumer Loan Marketplace Volume	$1,450	n/a	$2,469
Figure Connect Volume	n/a	$767	$1,131
Net Take Rate (%)	5.3%	n/a	4.4%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA Margin	Long-term	n/a	Target “annual margins above 60%”	Introduced
Figure Connect Mix of Volume	Near/Mid-term	n/a	~60% share “quite doable” near term	Introduced
Volume Seasonality (HELOC)	Q4 2025 & Q1 2026	n/a	Q4/Q1 typically below annual average; expect moderation	Maintained seasonal commentary
Revenue/EPS/OpEx/Tax Rate	FY/Q4 2025	Not provided	Not provided	No formal guidance

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Blockchain-native marketplace (standardization, transparency)	Connect launched June 2024; standardized on-chain origination across partners	Reinforced as core moat; 85 bps securitization cost savings; ~250 partners onboarding	Accelerating adoption
Figure Connect liquidity	Q2: $767M volume; institutional buyers joining programs	46% of CLM volume ($1.1B) in Q3; 7 new buyers incl. sovereign wealth fund	Expanding rapidly
First-lien HELOC	Early ramp in partner ecosystem (Q2)	Nearly 3x YoY; small-balance economics advantage (origination cost ~$1k vs ~$12k industry)	Strong growth
DeFi/Stablecoin (Democratized Prime, YLDS)	Foundational build; connectivity roadmap	YLDS on Sui & Solana; Demo Prime positioned for lower-cost warehousing vs bank lines	Building utility/liquidity
AI/process automation	Operational efficiency; fixed costs stable vs pre-IPO	Variable expenses fell from 36% to 28% of adj net revenue YoY; margin expansion	Efficiency improving
Regulatory/legal and macro	Ongoing risk factors in filings	Seasonality caution; deposit flight/stablecoin thesis for banks, YLDS defensive use case	Watchlist for 2026

Management Commentary

“Adjusted EBITDA … reached $86 million … and EBITDA margin reached 55% … Net income … nearly $90 million … Total consumer loan marketplace volume … almost $2.5 billion” .
“Figure Connect is transforming … into an always-on, data-transparent, and institutionally funded marketplace” .
“We see the opportunity to build a $100 billion or more market capitalization company … Democratized Prime … funding cost lower than traditional warehouse lines” .
“Yields … deployed on Solana … bridges traditional finance and decentralized systems” .
“We filed a confidential S-1 for … a blockchain-native equity share class … first public equity class to exist entirely on blockchain” .
“We are targeting annual margins above 60% … as more activity moves to Figure Connect and as Democratized Prime adoption grows” .

Q&A Highlights

Mix and roadmap: Management prioritizes First-lien HELOC (3x YoY) and expects Connect to reach ~60% of volume near term, citing institutional liquidity and partner economics .
DeFi strategy: Democratized Prime to serve warehousing needs with faster, cheaper financing; YLDS expansion aims to increase utility as yielding collateral across ecosystems and exchanges .
Bank opportunity: Tokenizing assets to access stablecoin liabilities; YLDS as a defensive tool against deposit flight; Demo Prime as alternative funding venue for regionals/super-regionals .
Competitive differentiation: Integration of on-chain origination with capital markets infrastructure yields unique cost/margin advantages; blockchain’s data immutability enhances lien perfection and diligence .
Seasonality: Q4/Q1 expected to moderate vs Q3; diversified partners and capital-light model should offset some impact .

Estimates Context

Q3 2025 vs consensus: Revenue $156.4M vs $119.4M estimate*; Primary EPS $0.771 vs $0.155 estimate*; EBITDA consensus $53.5M* vs company’s Adjusted EBITDA $86.4M (note company reports “Adjusted EBITDA,” not SPGI’s standard EBITDA) *.
Q4 2025 consensus outlook: Revenue $133.3M*, Primary EPS $0.150*, EBITDA $67.5M*; management highlighted typical Q4/Q1 seasonal moderation and ongoing mix shift to Connect *.

Metric	Q3 2025 Consensus	Q3 2025 Actual	Q4 2025 Consensus
Revenue ($USD Millions)	119.4*	156.4	133.3*
Primary EPS ($USD)	0.155*	0.771*	0.150*
EBITDA ($USD Millions)	53.5*	n/a (company discloses Adjusted EBITDA: 86.4)	67.5*
Target Price ($USD)	50.38*	50.38*	50.38*

Values marked with * retrieved from S&P Global.

Implication: Street models likely need to adjust upward for revenue and profitability assumptions, incorporating higher Connect mix, margin leverage, and non-HELOC product contributions, while tempering Q4/Q1 seasonality.

Key Takeaways for Investors

Figure executed a clear beat-and-raise narrative on operating quality: strong revenue/Primary EPS beats*, step-function profitability and margin expansion, supported by automation and capital-light funding *.
Mix shift to Figure Connect is accelerating; expect improved unit economics and lower funding costs, albeit with lower gross take rates—net effects are positive for margins .
Structural moats: standardized, on-chain origination and transparent data rails facilitate institutional liquidity and AAA-rated securitizations, reinforcing Figure’s RWA leadership .
Strategic catalysts in DeFi and tokenized finance (YLDS deployments, Demo Prime warehousing, blockchain-native equity class) broaden TAM and create optionality for fee-based growth .
Near-term: anticipate seasonal volume moderation in Q4/Q1; watch Connect mix trajectory toward ~60% and First-lien HELOC expansion to gauge margin durability .
Medium-term: management targets >60% annual Adjusted EBITDA margin; if Demo Prime funding scales and partner onboarding continues, sustained operating leverage is plausible .
Risk checks: monitor regulatory developments in digital assets, interest rate dynamics, and loan performance/default rates; these can affect funding access, take rates, and securitization outcomes .

Appendix: Additional Notes

No standalone press releases beyond the Q3 8-K Exhibit 99.1 were found in Q3’s window; related ecosystem updates appeared in earnings materials and subsequent transcripts/slides .
Non-GAAP reconciliations and definitions provided in the 8-K should be used when comparing profitability across periods; Street EBITDA estimates may not be directly comparable to company Adjusted EBITDA .

Figure Technology Solutions, Inc. (FIGR)·Q3 2025 Earnings Summary