Figure Technology Solutions, Inc. Class A Common Stock Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Figure Technology Solutions Q1 2026 Earnings Summary

Key Highlights

  • Strong Q1 2026 performance with consumer loan marketplace (CLM) volume reaching $2.9 billion, up over 110% year-over-year (YoY) from $1.4 billion in Q1 2025.
  • Rule of 140 achieved (92% adjusted net revenue growth + 50% adjusted EBITDA margin), significantly exceeding the traditional Rule of 40 benchmark.
  • Figure Connect grew to 56% of total volume (up from 54% in Q4 2025), supporting a capital-light model.
  • First lien volume reached 20% of total (up from 19% last quarter and 14% in Q1 2025), targeting the much larger sub-$300k loan segment.
  • Blockchain ecosystem expansion: Democratized Prime balances at $368 million and YLDS at $598 million, both up ~80% quarter-over-quarter (QoQ).

Financial Performance (Q1 2026 vs. Q1 2025)

  • Adjusted net revenue: $167 million, +92% YoY, driven by higher CLM volume, servicing, and interest income.
  • Adjusted EBITDA: $83 million, +190% YoY; margin expanded to 50% from 33% in the prior year period.
  • Net take rate: 3.8% (within prior guidance of 3.5%-4.0%).
  • GAAP net income: $45 million (including a $7 million one-time tax benefit from post-IPO option exercises).
  • Interest expense rose ~$2 million QoQ due to strategic retention of ~$350 million in loans for Democratized Prime collateral (expected to normalize).

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Operator: Welcome to the Figure Technology Solutions First Quarter 2026 Earnings Conference Call. [Operator Instructions] Lastly, today's call is being recorded. I'd like to now turn the call over to Bryan Michaleski, Head of Investor Relations. Please go ahead. Bryan Michaleski: Good morning. Welcome to Figure's First Quarter 2026 Earnings Call. My name is Bryan Michaleski, Head Investor Relations here at Figure. Joining me on today's call are Mike Cagney, Executive Chairman, Co-Founder, Figure; Michael Tannenbaum, our Chief Executive Officer; and Macrina Kgil, our Chief Financial Officer. Before we begin today, I'd like to briefly note that in today's call, we will refer to certain non-GAAP measures. These measures have been reconciled to their GAAP equivalents in the earnings release we issued today or yesterday as well as in the appendix to our supplemental slide presentation posted to our website. As a reminder, non-GAAP measures are not intended to be a substitute for GAAP results. I'd also highlight that certain comments made today may be considered forward-looking statements under federal securities law. The company cautions you that forward-looking statements involve substantial risks and uncertainties and a number of factors, many of which of are beyond the company's control, can cause actual results, events or circumstances to differ materially from those described in the statements. For more information, please refer to the risk factors we've identified in our mos

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