Figure Technology Stock: Not Just Another Crypto Play

Figure Technology Solutions (NASDAQ:FIGR), a blockchain platform for financial services, debuted on the public markets last week. While the company priced its initial public offering at about $25 per share, raising $787.5 million, shares closed at $31.11, about 24% above the IPO price on opening day. The stock currently trades at about $37 per share. Unlike many of the recent crypto focused market debuts which have focused on crypto treasury assets, Figure is positioning itself around using blockchain to solve real-world problems rather than just speculating on token prices. So does that make the stock attractive?

Blockchain Tech In Finance

Co-founded in 2018 by former SoFi chief executive Mike Cagney, Figure develops a blockchain-based lending platform designed to streamline consumer credit. The company began with home equity lines of credit (HELOCs), where blockchain dramatically speeds up the process of loan funding compared to traditional banks. Over time, Figure has broadened its scope, having funded more than $16 billion in loans via its blockchain infrastructure. Its product suite now spans partner-branded and direct-to-consumer HELOCs, crypto-backed loans, and a digital asset exchange, with ambitions to expand further into auto loans and small business financing.

Technology is central to the company’s pitch. Notably, Figure does not depend on cryptocurrencies like Bitcoin or Ethereum for its business. Instead, it uses its own Provenance Blockchain to process and record transactions. The blockchain acts as the infrastructure, enabling loan origination, funding, and securitization to be faster, cheaper, and more transparent. The company generates revenue through multiple streams: loan origination fees, servicing fees, gains on loan sales, and technology usage fees tied to its blockchain-based lending platform.

In effect, Figure earns revenue by taking a percentage of the loan volume it helps fund. To illustrate the value of its approach, Figure’s founder has pointed to the stock market as an analogy: in today’s system, up to seven different parties sit between buyers and sellers in a single trade, but blockchain might reduce that number to just two. That efficiency gain – cutting out intermediaries while preserving security and transparency – is largely what Figure is applying to consumer credit. The company is also layering in artificial intelligence, with OpenAI’s technology assisting in loan application evaluation.

Strong Financials

The company enters the public market with considerable momentum. For the first half of 2025, revenue came in at $190.6 million, up from $156 million a year earlier. Net income reached $29.1 million, a sharp turnaround from a $15.6 million loss in the prior-year period. Customers skew toward prime borrowers, with average FICO scores above 750, giving the platform a strong credit profile. For the twelve months ending June 30, 2025,

Figure facilitated approximately $6 billion of home equity lending, up 29% year-over-year. With a market cap of about $8 billion currently, the stock is trading at roughly 20x run rate revenues, based on H1 results. While this is an elevated valuation, the company’s technology and asset light model could allow it to scale considerably. There could be a considerable growth opportunity as well, given the  $35 trillion in outstanding U.S. home equity being a core growth driver.

The company frames its mission around the democratization of financial services – using blockchain to strip out inefficiencies, reduce costs, and expand access. But while the promise is compelling, risks remain. Regulatory scrutiny of blockchain-based lending and digital asset services has not yet evolved. As Figure expands into new markets like auto and small business loans, there could be considerable execution risk, especially with established banks and lenders. Macro headwinds such as higher interest rates or a potential economic downturn could weigh on consumer credit performance.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.