Aug 13, 2026 earnings call — Figure Connect growth and Kiavi acquisition
Figure generated $4.3 billion of consumer loan marketplace volume, up 132% year-over-year.
Revenue $0.2B (est $0.2B) · EPS $0.37 (est $0.24) · Next-quarter revenue outlook $4.8B–$5.2B
Key quotes
"We now have 489 partners on our platform, up 102 from last quarter, with growth across all segments, including independent mortgage banks, servicers, depositories and fintech SMB."
"Adjusted EBITDA was $119 million, up 126% year-over-year from $53 million with a margin of 55% versus 47% a year ago."
"This was a very attractive transaction with an under 4-year unlevered payback period and adds 40% to our volume as well as $100 million of EBITDA."
Analyst Q&A 6
Q3 origination assumptions and new partners
Q (Patrick Moley · Piper Sandler): He asked what assumptions underlie the 3Q origination volume guidance and how the new partners added in Q2 should be viewed by size and contribution.
A: Management said they are confident in the guided range. They noted July was $1.7 billion and they considered business days in August and September, which supports being comfortable around the $5 billion midpoint. They also said the 102 partners are broad-based across banks, IMBs, credit unions and fintechs, and include a range of sizes.
"Of that 102, it's pretty broad-based around the different segments of the market, meaning independent mortgage banks, banks and credit unions, IMBs, fintechs, et cetera." — Michael Tannenbaum (CEO)
Buyers on platform and take rate drivers
Q (James Yaro · Goldman Sachs): He asked what types of buyers are being added and what percent buy via Figure Connect. He also asked if the lower take rate came from pricing cuts or a product mix shift and whether pricing cuts are a near-term risk.
A: Management said all buyers buy through Figure Connect and the new buyers are Connect-first. They listed buyer types like insurance companies, asset managers and credit funds. They clarified the lower take rate is not from pricing cuts but from more partners using Connect, which has a lower take rate, and they do not see partner pressure forcing cuts.
"We don't see take rate as the take rate performance in this quarter coming from price cuts." — Michael Tannenbaum (CEO)
Lowest pricing tier on Connect and mix impact
Q (Ryan Tomasello · KBW): He asked where the pricing floor is on Connect, given tiered volume discounts, and why the company expects the low end of the take-rate guide when many smaller partners are off Connect.
A: Management said their pricing is set as ecosystem fees and top volume tier pricing aligns with the bottom of the take-rate range. They said pricing is set on contribution margin. They also said 65% of volume is already on Figure Connect and they see that percentage increasing, which explains the move toward the lower end of the take-rate range.
"65% of the volume is already on Figure Connect." — Michael Tannenbaum (CEO)
Why ecosystem fees lag Connect volume; $600 million loans
Q (Robert Wildhack · Autonomous): He asked why ecosystem and tech fees are not keeping pace with Figure Connect volumes and what drives the decline in ecosystem fees per volume. He also asked about the $600 million loans on the balance sheet and the strategy there.
A: Management said servicing fees are a separate line and GAAP fair value items are adjusted out in adjusted net revenue, so the GAAP mix can obscure the take-rate components. They said declines in ecosystem fees per volume come from partners hitting higher volume tiers that reduce their pricing. On loans, they said balance-sheet loans were about $600 million at quarter end, with about $360 million of Democratized Prime supported by Figure borrower demand, and many loans are held 3 to 4 weeks before sale to aggregate.
"So balance sheet loans was about $600 million at the end of the quarter." — Minchung Kgil (CFO)
SMB and home improvement strategy
Q (Dan Dolev · Mizuho): He asked for details on the SMB home improvement diversification and what this strategy does for Figure.
A: Management said customers use home equity to fund small business loans and home improvement loans, and this new vertical has grown meaningfully since launch about a year ago. They said Figure is signing partners who were not in mortgage before, making it simple and capital-light for them to join Figure Connect, and they are focusing on depositories within the new vertical approach.
"And it's already grown to a meaningfully significant portion of our volume." — Michael Tannenbaum (CEO)
Rate impact on gain on sale and ramp timing for assets
Q (Kyle Peterson · Needham): He asked how much higher interest rates hurt gain on sale and push take rate toward 3.5%, and whether that headwind will ease if rates stabilize. He also asked typical ramp time to scale new asset classes or originators.
A: Management said gain on sale is impacted by interest-rate moves: wider rates mean less gain on sale and tighter rates mean more, and that gain on sale is more volatile than ecosystem and tech fees. They said Figure Connect offers more stability and capital-light economics. For new asset classes, they said opening a new asset class is larger work than onboarding a new originator, AI can shorten integration work, and future plans include making Connect work for permanent sale and securitization to accelerate the flywheel.
"When rates are wider, then we are going to have a little bit less of a gain on sale." — Minchung Kgil (CFO)