Figure hits $29M Profit as Top HELOC Lender

Figure Technology Solutions, a blockchain-based lender, has filed for an initial public offering (IPO) on Nasdaq under the symbol "FIGR," with Goldman Sachs, Jefferies, and BofA Securities leading the offering.

According to its SEC filings, Figure reported a 22% increase in revenue to $191 million for the first half of 2025 and achieved a net profit of $29 million, reversing a $13 million loss from the same period the previous year.

The company has originated over $16 billion in blockchain-based loans and is now considered the largest non-bank provider of home equity lines of credit (HELOCs) in the United States.

Key Insights for Alternative Business Lenders

Figure Technology Solutions' August 2025 IPO filing represents a watershed moment for alternative lending, demonstrating that non-bank lenders can achieve massive scale, consistent profitability, and access public capital markets. Figure's revenue rose 22.4% to $191 million in the six months ended June 30, 2025, with a profit of $29 million compared to a $13 million loss in the prior year. This performance validates alternative lending models at institutional scale and sets critical benchmarks for the sector.

Market Validation: Proof of Scale and Profitability

Financial Performance That Matters

Figure has established itself as the largest non-bank HELOC lender, having originated over $16 billion in home equity loans since inception. The company's trajectory from loss to profitability while maintaining strong growth provides a roadmap other alternative lenders can study:

• Revenue Growth: 22% year-over-year increase to $191M in H1 2025

• Profitability Turnaround: From $13M loss to $29M profit year-over-year

• Scale Achievement: Over $6 billion in HELOC originations supporting 85,000+ households

• Market Position: Figure ranks as the 6th largest HELOC lender overall with 2.4% market share, the only non-bank in the top 25

Competitive Intelligence: Untapped Market Opportunities

Figure's success in HELOCs reveals significant opportunities for alternative lenders to dominate underserved niches:

Market Size: U.S. mortgage holders have $11.2 trillion in tappable equity, but only $400 billion exists in second lien products like HELOCs. This massive gap represents opportunity for alternative lenders willing to build the infrastructure.

Traditional Bank Retreat: Non-bank lenders account for only 3.7% of the HELOC market, with banks dominating because they keep lines on their books. Figure's securitization capabilities demonstrate how alternative lenders can compete by creating liquidity through capital markets.

Capital Markets Access: Opening Public Market Doors

IPO Market Momentum

Figure's public filing aligns with a broader crypto and fintech IPO wave that's creating new pathways for alternative lenders:

Successful Precedents: Circle's IPO soared 168% on debut, while Bullish raised $1.1 billion and spiked 84% on first trading day. These successes demonstrate investor appetite for profitable fintech models.

Valuation Benchmarks: Figure's IPO targets a $3.3 billion valuation and plans to raise $400 million, with Goldman Sachs, Jefferies, and BofA Securities as lead bookrunners.

Capital Market Infrastructure

Figure closed its first rated HELOC securitization led by Jefferies, Goldman Sachs, and J.P. Morgan, with Class A and B notes rated AAA and A(low) by DBRS Morningstar. This establishes precedent for alternative lenders to access institutional capital through rated securitizations.

Technology Adoption: Blockchain's Operational Impact

Quantified Efficiency Gains

Figure's blockchain implementation delivers measurable operational benefits that alternative lenders should evaluate:

Cost Savings: Figure's first blockchain securitization generated over 100 basis points of savings, representing potential savings of over $30 billion to the $3 trillion annual securitization market.

Operational Speed: Figure's technology standardization and automation save hundreds of dollars per loan compared to traditional securitization and manual processes. The integration of technology and automation has increased efficiency, speeding up the funding process from weeks to just days.

Process Benefits: Provenance offers benefits that can lower costs, improve security and mitigate risk through a distributed immutable ledger that stores data which can never be altered, only amended.

Technology Infrastructure

Figure's platform partners with more than 160 institutions for loan origination and is now available in 49 states. The scalability demonstrates how technology can enable rapid geographic and partner expansion.

Regulatory Precedent: Navigating Growth Without Blowback

Compliance While Scaling

Figure's path provides a blueprint for alternative lenders to achieve growth while maintaining regulatory compliance:

Regulatory Environment: The regulatory environment has become more favorable under the current administration, creating an ideal backdrop for crypto and fintech firms to venture into public capital markets.

Institutional Acceptance: Figure has successfully engaged established industry players including Jefferies, Goldman Sachs, J.P. Morgan, and WSFS Bank, proving that blockchain-based lending can integrate into existing business models.

Market Positioning Strategy

Figure co-founder Mike Cagney previously built SoFi into a multi-billion-dollar business, and Figure last raised $200 million in 2021 at a $3.2 billion valuation. This track record helped establish credibility with institutional partners and regulators.

Strategic Implications for Alternative Lenders

Partnership Model

Figure's HELOC technology is privately labeled for over 100 originators and broker partners, with partnerships including six of the top non-bank lenders in major markets. This B2B2C model enables rapid scale without direct consumer acquisition costs.

Capital Efficiency

Since its founding, Figure has grown capital-efficiently and achieved strong profitability. The company demonstrates how alternative lenders can achieve scale without constant equity dilution.

Technology Investment ROI

Figure has funded hundreds of thousands of homeowners and processed over $12.5 billion in home equity through its technology platform. The scale validates significant technology investments for operational efficiency.

_Sources

1. _{TechCrunch: Figure's IPO filing marks Mike Cagney's return to public markets}

2. _{CoinTelegraph: Blockchain-focused Figure Technology joins crypto IPO wave with SEC filing}

3. _{CryptoNews: Figure Technology Files for US IPO Following 22% Revenue Spike}

4. _{Business Wire - Blockchain Securitization: Figure Achieves Breakthrough With Completion of First Asset-Backed Securitization on Blockchain}

5. _{Business Wire - HELOC Partnerships: Figure Expands Reach of HELOC Products Through Four New Partnerships}

6. _{Business Wire - Rated Securitization: Figure Announces Close of First Rated HELOC Securitization led by Jefferies, Goldman Sachs, and J.P. Morgan}

7. _{The Truth About Mortgage: The Largest HELOC Lenders in the Nation}

8. _{Business Wire - Company Merger: Figure Technology Solutions and Figure Markets Merge to Transform Capital Markets via Blockchain}

9. _{CNBC - IPO Market: Tech IPOs Bullish, Figma, Circle roaring after 'years of Prohibition'}

10. _{CoinDesk - Bullish IPO: Bullish (BLSH) Price News: Shares Soar Following IPO}

11. _{Forge Global: Figure Upcoming IPO & Private Stock Price}

12. _{Coin Gabbar: Figure Technologies IPO Filing Targets $400M Nasdaq Debut}

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