We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Figure Q3 Earnings Call Highlights Marketplace Growth and Kiavi Plans
Read MoreHide Full Article
Key Takeaways
FIGR's Q3 marketplace volume jumped 135% to $5.8 billion, with Figure Connect driving capital-light growth.
FIGR forecasts Q4 marketplace volume of $6.2B-$6.7B, amid seasonality and higher acquisition-related costs.
FIGR targets Kiavi revenue synergies, broader partner distribution and improved operating leverage in 2027.
Figure Technology Solutions, Inc. (FIGR - Free Report) emphasized accelerating marketplace adoption, expanding lending products and improving capital efficiency during its third-quarter 2026 earnings call. Management highlighted the integration of Kiavi and growing institutional participation as priorities for sustaining growth.
The company also outlined expectations for seasonal volume pressures and acquisition-related expenses in the fourth quarter, while positioning 2027 as a period of expanded product distribution.
Third-quarter revenues of $283.3 million beat the Zacks Consensus Estimate of $249.5 million. The quarterly earnings of 36 cents per share also surpassed the Zacks Consensus Estimate of 31 cents.
Figure Technology Solutions, Inc. Price, Consensus and EPS Surprise
CEO Michael Tannenbaum highlighted the continued shift toward Figure Connect, which represented 72% of standalone marketplace volume, reinforcing the company's focus on fee-based, capital-light operations.
Standalone loan marketplace volume reached $5.1 billion, increasing 107% year over year. Including Kiavi, reported volume totaled $5.8 billion, up 135%.
Tannenbaum emphasized expanding partner participation, with 612 standalone partners and 894 including Kiavi. Existing partners generated more than 40% additional volume compared with the prior-year quarter.
FIGR Sets Q4 Volume Expectations
CFO Macrina Kgil established fourth-quarter marketplace volume guidance of $6.2 billion to $6.7 billion, alongside a combined gross take rate expectation of 3.1% to 3.4%.
Kgil cautioned that normal mortgage seasonality could reduce sequential volumes by 10% to 15%. Higher interest rates also affected borrower demand, although management highlighted the platform's rapid loan repricing capabilities.
The acquisition introduces additional expense pressure. Management expects $18 million to $23 million in incremental adjusted expenses during the fourth quarter, temporarily weighing on EBITDA margins before anticipated improvements in 2027.
Figure Targets Kiavi Revenue Synergies
Tannenbaum described Kiavi as a major expansion opportunity, adding residential transition loans and debt service coverage ratio loans across an addressable market exceeding $200 billion.
The acquisition contributed approximately $677 million in September marketplace volume. Management has already actioned $30 million of its $35 million targeted annual cost synergies.
During the Needham Q&A, Tannenbaum emphasized distributing Kiavi's lending technology through Figure's existing partners rather than relying exclusively on its historical direct-origination model. Kgil noted Kiavi's historical volume growth of 25% to 35%, excluding potential revenue synergies.
FIGR Defends Marketplace Economics
Management emphasized contribution margins rather than take rates as the primary consideration when evaluating marketplace growth.
Kgil projected gross take rates of 2.9% to 3.4% for Figure Connect HELOCs and 1.5% to 2% for shorter-duration residential transition loans over the coming six to 12 months.
During questioning from Piper Sandler, Kgil explained that additional contribution-margin disclosures would follow as Kiavi's operations mature. Adjusted EBITDA reached $164 million, with a 58% margin, supporting management's medium-term 60% objective.
Figure Expands Institutional Reach and AI Adoption
Tannenbaum highlighted increased institutional participation, including New York Life and Nationwide Insurance, alongside $2.7 billion in loan sales and eight securitizations during the quarter.
The company also introduced an AI-powered loan officer assistant developed with Sierra. Management reported a 29% increase in funded dollars per loan approval and approximately $260 million in funded loans involving the technology.
During Goldman Sachs' questioning, Tannenbaum attributed the improvement to training the system around loan conversion outcomes. Management expects broader partner deployment to support marketplace expansion.
FIGR Maintains Focus on Growth and Capital Allocation
Management's overarching message centered on expanding marketplace reach while maintaining operating discipline. The enlarged $400 million share repurchase authorization reflects its stated approach to balancing shareholder returns with growth opportunities.
Tannenbaum characterized 2027 as a year focused on upselling existing partners through additional lending products. Management continues prioritizing volume expansion, distribution partnerships and improved operating leverage.
Zacks Rank and Style Scores Signal Caution
FIGR currently carries a Zacks Rank #4 (Sell), indicating an unfavorable earnings-estimate revision outlook. The stock’s Value Score of C reflects average valuation characteristics, while its Growth Score of F points to weak growth-style attributes under the Zacks methodology.
The Momentum Score of B indicates comparatively favorable price momentum. However, the VGM Score of D reflects an unfavorable combined value, growth and momentum profile. The Zacks Rank can change as analysts revise earnings estimates following the recently reported quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
Figure Q3 Earnings Call Highlights Marketplace Growth and Kiavi Plans
Key Takeaways
Figure Technology Solutions, Inc. (FIGR - Free Report) emphasized accelerating marketplace adoption, expanding lending products and improving capital efficiency during its third-quarter 2026 earnings call. Management highlighted the integration of Kiavi and growing institutional participation as priorities for sustaining growth.
The company also outlined expectations for seasonal volume pressures and acquisition-related expenses in the fourth quarter, while positioning 2027 as a period of expanded product distribution.
Third-quarter revenues of $283.3 million beat the Zacks Consensus Estimate of $249.5 million. The quarterly earnings of 36 cents per share also surpassed the Zacks Consensus Estimate of 31 cents.
Figure Technology Solutions, Inc. Price, Consensus and EPS Surprise
Figure Technology Solutions, Inc. price-consensus-eps-surprise-chart | Figure Technology Solutions, Inc. Quote
Figure Connect Drives Capital-Light Expansion
CEO Michael Tannenbaum highlighted the continued shift toward Figure Connect, which represented 72% of standalone marketplace volume, reinforcing the company's focus on fee-based, capital-light operations.
Standalone loan marketplace volume reached $5.1 billion, increasing 107% year over year. Including Kiavi, reported volume totaled $5.8 billion, up 135%.
Tannenbaum emphasized expanding partner participation, with 612 standalone partners and 894 including Kiavi. Existing partners generated more than 40% additional volume compared with the prior-year quarter.
FIGR Sets Q4 Volume Expectations
CFO Macrina Kgil established fourth-quarter marketplace volume guidance of $6.2 billion to $6.7 billion, alongside a combined gross take rate expectation of 3.1% to 3.4%.
Kgil cautioned that normal mortgage seasonality could reduce sequential volumes by 10% to 15%. Higher interest rates also affected borrower demand, although management highlighted the platform's rapid loan repricing capabilities.
The acquisition introduces additional expense pressure. Management expects $18 million to $23 million in incremental adjusted expenses during the fourth quarter, temporarily weighing on EBITDA margins before anticipated improvements in 2027.
Figure Targets Kiavi Revenue Synergies
Tannenbaum described Kiavi as a major expansion opportunity, adding residential transition loans and debt service coverage ratio loans across an addressable market exceeding $200 billion.
The acquisition contributed approximately $677 million in September marketplace volume. Management has already actioned $30 million of its $35 million targeted annual cost synergies.
During the Needham Q&A, Tannenbaum emphasized distributing Kiavi's lending technology through Figure's existing partners rather than relying exclusively on its historical direct-origination model. Kgil noted Kiavi's historical volume growth of 25% to 35%, excluding potential revenue synergies.
FIGR Defends Marketplace Economics
Management emphasized contribution margins rather than take rates as the primary consideration when evaluating marketplace growth.
Kgil projected gross take rates of 2.9% to 3.4% for Figure Connect HELOCs and 1.5% to 2% for shorter-duration residential transition loans over the coming six to 12 months.
During questioning from Piper Sandler, Kgil explained that additional contribution-margin disclosures would follow as Kiavi's operations mature. Adjusted EBITDA reached $164 million, with a 58% margin, supporting management's medium-term 60% objective.
Figure Expands Institutional Reach and AI Adoption
Tannenbaum highlighted increased institutional participation, including New York Life and Nationwide Insurance, alongside $2.7 billion in loan sales and eight securitizations during the quarter.
The company also introduced an AI-powered loan officer assistant developed with Sierra. Management reported a 29% increase in funded dollars per loan approval and approximately $260 million in funded loans involving the technology.
During Goldman Sachs' questioning, Tannenbaum attributed the improvement to training the system around loan conversion outcomes. Management expects broader partner deployment to support marketplace expansion.
FIGR Maintains Focus on Growth and Capital Allocation
Management's overarching message centered on expanding marketplace reach while maintaining operating discipline. The enlarged $400 million share repurchase authorization reflects its stated approach to balancing shareholder returns with growth opportunities.
Tannenbaum characterized 2027 as a year focused on upselling existing partners through additional lending products. Management continues prioritizing volume expansion, distribution partnerships and improved operating leverage.
Zacks Rank and Style Scores Signal Caution
FIGR currently carries a Zacks Rank #4 (Sell), indicating an unfavorable earnings-estimate revision outlook. The stock’s Value Score of C reflects average valuation characteristics, while its Growth Score of F points to weak growth-style attributes under the Zacks methodology.
The Momentum Score of B indicates comparatively favorable price momentum. However, the VGM Score of D reflects an unfavorable combined value, growth and momentum profile. The Zacks Rank can change as analysts revise earnings estimates following the recently reported quarterly results.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.