Core Insights - Expanding access to credit is a significant challenge in consumer finance, with legacy systems causing inefficiencies and limiting capital access [1][4] - Figure Technology Solutions aims to modernize consumer lending through AI and blockchain integration, enhancing loan origination, underwriting, and trading processes [1][3] Company Overview - Founded in 2018, Figure started with home equity lending and has developed a vertically integrated model encompassing origination, marketplace distribution, and capital markets execution [3] - The company is expanding its product offerings beyond home equity loans to include a variety of credit products and digital asset marketplaces [3][5] Market Potential - Figure estimates its addressable market in lending and capital markets at approximately $185 billion in annual revenue potential [5] - The asset tokenization market is projected to reach $16 trillion by 2030, while the stablecoin market could approach $5 trillion in the same timeframe [5] Operational Efficiency - The company claims to have achieved profitability with a capital-efficient model, generating revenue from fees on originations, servicing, and technology usage [6] - Partner-branded lending constitutes 77% of total originations, with 168 active partners as of mid-2025 [6] Regulatory Framework - Figure holds over 180 lending and servicing licenses, 48 money transmitter licenses, and SEC registration as a broker-dealer, which supports its scaling ambitions [7] Performance Metrics - For the 12 months ending June 30, 2025, Figure facilitated approximately $6 billion in HELOC lending, a 29% increase from the previous year, with a compound annual growth rate of 70% since mid-2021 [8] - The Figure Connect Marketplace processed $1.3 billion in loan volume in its first year, connecting originators and investors directly [8] Financial Performance - For the six months ending June 30, 2025, net revenue was $191 million, up from $156 million year-over-year, with net income of $29 million compared to a $13 million loss the previous year [12] - Adjusted EBITDA reached $83 million, more than double the prior year [12] Product Diversification - Although HELOCs currently account for 99% of originations, Figure is exploring new products such as debt service coverage ratio loans and digital asset-backed loans [12] - The company plans to use IPO proceeds to invest in new product development and expand its loan marketplace [12]