Figure Technology Solutions reported a sharp increase in second-quarter revenue and net income as its consumer loan marketplace volume more than doubled from a year earlier. But analysts flagged a slight adjusted EBITDA miss and the company’s 3.6% net take rate.
To kick off its earnings call on Thursday morning, Figure CEO Michael Tannenbaum addressed the net take rate performance, offering three reasons for the result.
“We now have our largest partners going direct to Figure Connect, which is a favorable dynamic to our business, although at the tradeoff of take rate, and was not a dynamic we anticipated to accelerate this quickly when we gave the initial take rate range,” Tannenbaum said.
“Second, interest rates rose meaningfully in the quarter, which hurts our gain on sale and therefore impacts take rate. And third, we previously mentioned that first-lien loans typically have a lower take rate, and this quarter we saw a 3x growth year over year in first-lien volume.”
He added that as Figure expands its first-lien origination volumes, “it’s likely to be a modest headwind to this metric over time.”
The New York-based company reported that net income rose 192% to $87.4 million, up from $30 million during the same quarter last year. Net revenue increased to $225.6 million, up 113% year over year.
Adjusted net revenue increased 95% year over year to $218.4 million, compared with Keefe, Bruyette & Woods‘ estimate of 93% growth and consensus of 86%. Adjusted EBITDA was $119.4 million, slightly below KBW’s $121 million estimate but above the $110.4 million consensus estimate.
Figure’s Consumer Loan Marketplace volume reached $4.3 billion in the second quarter, a 132% increase from a year earlier. The company also beat the high end of its second-quarter volume guidance by 4%, according to KBW.
Earnings details, more partners
Tannenbaum called the quarter Figure’s “strongest ever” and said application volumes had surpassed $1 billion per week for the first time in early July.
“The continued rapid growth extends to our origination partner ecosystem as well,” Tannenbaum said. Figure ended the quarter with 489 partners, up 102 from the previous quarter. He said recently closed partners are ramping faster than the company has traditionally seen, helped by investments in AI-enabled onboarding processes.
The company guided to third-quarter 2026 Consumer Loan Marketplace volume of $4.8 billion to $5.2 billion. The midpoint is about 10% above KBW’s estimate and 12% above consensus. Figure reiterated its medium-term target of a 60% adjusted EBITDA margin.
Figure Connect, the company’s asset-light marketplace, generated $2.8 billion of volume in the quarter, up 72% from the first quarter and accounting for 65% of Consumer Loan Marketplace volume.
Tannenbaum said the company now expects Figure Connect to approach 70% of volume in the medium term, compared with its previous estimate of 60%.
“Each point of mix shift to Connect reduces balance-sheet usage, increases fee-based economics and builds toward our medium-term 60% EBITDA margin goal,” he said.
The company added 102 origination partners during the quarter, bringing its total to 489 active partners. KBW said partner growth accelerated to 191% year over year, compared with 169% in the first quarter, and represented a 26% sequential increase.
Figure said new partners accounted for about 60% of the $2.1 billion increase in partner-branded volume from a year earlier, with the remaining 40% coming from existing partners expanding their activity.
Company strategy
Tannenbaum said Figure focuses on contribution margin rather than managing the business to a specific take rate.
“When we set pricing with our customers, we focus on contribution margin, which includes operations and support costs, and therefore better reflects our total earnings power for each dollar of marketplace revenue,” he said.
He said the strategy is beginning to show up in Figure’s revenue mix, with ecosystem fees becoming the company’s largest revenue line for the first time.
“That’s consistent with our strategic focus on increasing our scale and the network effects from our flywheel,” Tannenbaum said.
Other areas of growth included first-lien volume, which increased threefold year over year, and small and medium business (SMB) loan volume, which rose 57% from the first quarter. Figure also launched SMB pools on its Democratized Prime platform during the quarter.
Third-party borrowing activity on Democratized Prime reached approximately $170 million as of Aug. 6, a roughly 23-fold increase from Dec. 31, 2025.
Chief financial officer Macrina Kgil said the company is seeing growth across the business, including a continued shift toward Figure Connect.
“This was a great quarter — growth across every part of the business,” Kgil said. She noted that Figure Connect increased to 65% of Consumer Loan Marketplace volume, up from 42% a year earlier, while partner-branded volume reached 83% of marketplace volume.
Adjusted EBITDA increased 126% year over year to $119 million, with a margin of 55%, compared with 47% a year earlier. Kgil said the quarter included a $5.9 million realized gain from the sale of a business in which Figure held a minority interest. Excluding that gain, the adjusted EBITDA margin would have been approximately 52%.
Figure’s pending acquisition of Kiavi remains on track to close by the end of the year, Tannenbaum said. The transaction is expected to add about 40% to Figure’s volume and $100 million in EBITDA while expanding the company’s platform into residential transition loans and other asset classes.
Figure’s cash and cash equivalents, excluding restricted cash, totaled $1.4 billion at the end of June, up 20% from the end of 2025. Loans held for sale totaled $597.4 million, up 47.7% from Dec. 31.
