Figure Technology Solutions saw its shares climb 3.7% in premarket trading Tuesday after reporting first-quarter results that reignited the growth debate. The consumer loan marketplace volume hit a record $2.9 billion, up 113% year over year, while net revenue surged 98% to $167 million. Net income came in at $45 million, and adjusted EBITDA jumped 192% to $83 million.
The company guided second-quarter consumer loan marketplace volume to between $3.8 billion and $4.1 billion, well above the $3.2 billion Jefferies had anticipated. Jefferies subsequently raised its price target on the stock to $43 from $37, though it maintained a Hold rating, reflecting a wide dispersion in analyst views. Targets range from $31 to $75, underscoring the lack of consensus on valuation despite strong growth.
Figure Connect, the firm's loan marketplace, drove 56% of total volume at $1.6 billion. The company ended the quarter with 387 active partners, adding a record 80 new ones. First-lien production now represents 20% of total production, signaling an expansion beyond home-equity lending. CEO Michael Tannenbaum described the results as proof of the resilience of the company's capital-light model, which allows growth without piling loans onto its own balance sheet.
The net take rate—the amount Figure pockets per dollar of loan volume—stood at 3.8%. Cash and equivalents totaled $1.5 billion at quarter end, providing ample liquidity. If Q2 volume reaches the upper end of the guidance range, Q1 may well serve as a reset point for the growth story rather than a one-off.
Bears remain cautious, pointing to Figure's heavy reliance on home-equity lines of credit (HELOCs), which are sensitive to property prices, borrower quality, and warehouse funding costs. The stock has traded between $25 and $78 over the past 52 weeks, highlighting its volatility. With Fed rate-cut odds remaining slim—Polymarket pricing in a 96.8% chance of no change in June—lending and funding costs are unlikely to get a near-term boost from policy shifts.
Peer comparisons are mixed. SoFi hit new highs in lending and member additions but disappointed on its outlook. Affirm posted strong volumes but faced scrutiny on credit health. Upstart, in the same digital-lending space, faces similar headwinds. What sets Figure apart is that it provided forward guidance on growing volumes, not just past performance.
Figure went public in September, pricing shares at $25 and raising $787.5 million at a $5.29 billion valuation. The company's pitch—originating home-equity loans in 10 days versus the industry average of 42 days—remains a core differentiator. Investors will now focus on the earnings call at 8:30 a.m. Eastern for details on Q2 guidance, take rate trends, first-lien margin implications, and credit quality.
