Figure Technology Stock: Using Blockchain For Real World Problems?

Core Insights - Figure Technology Solutions (NASDAQ:FIGR) debuted on public markets with an IPO price of approximately $25 per share, raising $787.5 million, and closed at $31.11 on the first trading day, a 24% increase [2] - The stock is currently priced around $37 per share, indicating strong market interest [2] - Figure aims to utilize blockchain technology to address real-world financial issues rather than focusing solely on cryptocurrency speculation [2] Company Overview - Co-founded in 2018 by former SoFi CEO Mike Cagney, Figure is developing a blockchain-based lending platform that simplifies consumer credit, initially focusing on home equity lines of credit (HELOCs) [3] - The company has financed over $16 billion in loans through its blockchain system and plans to expand into auto loans and small business financing [3] Technology and Revenue Model - Figure employs its own Provenance Blockchain to manage transactions, enhancing the speed, affordability, and transparency of loan processes [4] - Revenue is generated through loan origination fees, servicing fees, profits from loan sales, and technology usage fees [4] - The company aims to reduce the number of intermediaries in loan transactions, improving efficiency while maintaining security [5] Financial Performance - For the first half of 2025, Figure reported revenue of $190.6 million, up from $156 million the previous year, and a net income of $29.1 million, recovering from a $15.6 million loss in the same period of the prior year [6] - The company facilitated nearly $6 billion in home equity lending, a 29% year-over-year increase [7] - With a market capitalization of around $8 billion, the stock trades at approximately 20 times the run-rate revenues based on the first half of the year [7] Market Potential - Figure's mission focuses on democratizing financial services by leveraging blockchain to eliminate inefficiencies and broaden access [8] - The U.S. home equity market, valued at $35 trillion, presents significant growth opportunities for the company [7]