Figure Technology Solutions, Inc. (Ticker: FIGR) is a financial technology company that's building the future of how loans and other assets are created, funded, and traded, all powered by blockchain technology. Think of it as a digital marketplace for money.

1. The Business Model (How They Make Money)

Figure Technology Solutions operates as a "blockchain-native capital marketplace" for originating, funding, selling, and trading various digital assets. In simpler terms, they use advanced digital ledger technology (blockchain) to make the process of getting and selling loans faster, cheaper, and more transparent.

Their main way of making money comes from "ecosystem, technology, and origination fees" charged on transactions that happen on their platforms. They have a proprietary system for creating loans, and a key part of their business is called "Figure Connect."

Figure Connect is essentially a digital marketplace where different lenders (like banks and mortgage companies) and investors can come together to fund, trade, and sell loans. Figure earns fees for facilitating these transactions. This "capital-light" approach means they don't have to hold a lot of loans on their own books, which can be a more efficient way to grow.

While they offer various consumer and institutional lending products, including Home Equity Lines of Credit (HELOCs), cash-out refinance, and DSCR (Debt Service Coverage Ratio) loans, HELOCs made up over 99% of their total loan originations for the first six months of 2025.

Their business is rapidly shifting towards Figure Connect. In the second quarter of 2026, Figure Connect accounted for 65% of their Consumer Loan Marketplace volume, a significant increase from the prior quarter. Management expects this percentage to grow even higher, aiming for around 70% in the medium term.

Figure is also expanding its reach. They recently acquired Kiavi, a company specializing in residential transition loans, which will help them grow into investor-owned housing. This acquisition, which closed on September 1, 2026, is expected to contribute to their results starting in the third quarter of 2026. They are also looking to expand into auto loans and small business lending.

For the second quarter of 2026, Figure reported net revenue of $226 million, which was a 113% increase compared to the same period last year. Their adjusted net revenue for Q2 2026 was $218 million, up 95% from the second quarter of 2025. For the full fiscal year 2025, Figure reported annual earnings of $133.9 million.

2. The Metrics That Matter Most

For Figure Technology Solutions, given its focus on a growing blockchain-based marketplace and its expansion efforts, these performance metrics are particularly insightful:

• Revenue: This metric tells you the total amount of money Figure brings in from its business activities. For Figure, it's a direct measure of how much activity is happening on its loan origination system and its Figure Connect marketplace. As they grow their partner network and expand into new loan types, a rising revenue number shows that more people are using their platforms and generating fees for the company. In Q2 2026, Figure reported net revenue of $226 million.

• Net Income: This is the company's "bottom line" – the profit left over after all expenses, including taxes, have been paid. For Figure, a growing net income indicates that their business model is not only generating more sales but is also becoming more profitable overall. This is crucial for a company that has achieved profitability and is looking to sustain and grow it. Figure's net income for Q2 2026 increased by 192% to $87 million. For the full fiscal year 2025, their net income was $133.9 million.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): This metric helps investors understand the company's operating profitability by stripping out things like interest payments (which depend on how much debt they have), taxes, and non-cash accounting charges for wear and tear on assets (depreciation and amortization). For a growing technology company like Figure, which is investing in its platform and making acquisitions, EBITDA gives a clearer picture of the core business's cash-generating ability before these other factors come into play. Figure's adjusted EBITDA for Q2 2026 increased by 126% year-over-year to $119 million.

• Operating Margin: This percentage shows how much profit a company makes from each dollar of sales after covering its direct costs and operating expenses. For Figure, with its emphasis on a "capital-light" marketplace model, a healthy and potentially expanding operating margin indicates that they are efficiently managing their costs as their transaction volumes grow. It highlights the profitability of their core operations. Figure's adjusted EBITDA margin reached 54.6% in Q2 2026.

• Total Assets: This metric represents everything the company owns that has value. While Figure aims for a capital-light model, they are still involved in facilitating loans and managing tokenized assets. Understanding their total assets provides a snapshot of the resources they control to support their operations and growth. As of 2025, Figure's total assets were $2.32 billion.

3. How to Value This Company

For Figure Technology Solutions, the most relevant valuation metric is EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization).

Here's why:

EV/EBITDA helps you figure out if a company's stock is cheap or expensive by looking at its total value (Enterprise Value) compared to its core operating earnings (EBITDA). Enterprise Value is like the total price tag of the company, including its stock market value and its debt, but subtracting any cash it has. EBITDA, as explained above, shows the company's operating profit before accounting for financing costs, taxes, and non-cash charges.

For a company like Figure, which is in a growth phase, actively acquiring other businesses (like Kiavi), and investing heavily in its technology, EBITDA is a very useful measure of its operational performance. Different companies might have different amounts of debt or varying accounting methods for depreciation, which can make comparing their "Net Income" or "P/E ratio" tricky. EV/EBITDA helps to level the playing field by focusing on the core business's ability to generate cash from its operations.

So, when you look at Figure's EV/EBITDA, you're essentially asking: "How much am I paying for each dollar of this company's core operating earnings?" A lower EV/EBITDA ratio generally suggests the stock might be undervalued compared to its operating performance, while a higher ratio might suggest it's more expensive. This metric is particularly good for comparing Figure to other growing fintech companies, especially those that are also investing heavily or have different debt structures.