Figure Technology Solutions: Poised For Growth Via Share Gains, TAM Expansion

Core Insights - Figure Technology Solutions Inc. raised $787.5 million in its initial public offering on September 11 [1] Group 1: Market Position and Growth - Figure Technology Solutions has become the leading non-bank provider of Home Equity Line of Credit (HELOC), holding a market share of over 70% in tokenized private credit [2] - Future revenue growth is expected to be significantly driven by Figure Connect, which is projected to contribute 75% of total revenue growth from 2024 through 2027 [2] - Figure Connect's marketplace volume is anticipated to grow from 0% in 2024 to 42% in Q2 2025, reaching 55% by 2027 [5] Group 2: Industry Dynamics - Key cyclical positives for Figure Technology Solutions include unattractive cash-out refinancing due to strong home price appreciation and high mortgage rates, along with reduced competition in the mortgage tech sector [3] - The use of blockchain and other technologies is enhancing efficiencies in origination and sales, benefiting borrowers, originators, and loan buyers [4] Group 3: Analyst Ratings - BofA Securities initiated coverage with a Neutral rating and a price target of $41 [6] - Goldman Sachs initiated coverage with a Buy rating and a price target of $42 [6]