Freedom Capital Markets initiates coverage of Figure Technology with Buy rating, $40 price target

Needham reduced its price target for Figure Technology (FIGR) to $50 from $55 but kept a Buy rating. The company's Q3 results exceeded expectations, with revenue growth of 103% over the last year. FIGR added New York Life and Nationwide as funding partners and increased its share repurchase authorization to $400 million. The stock is trading at $25.67, below Needham's revised target.

Figure Tech (FIGR) reported Q3 2026 earnings with $5.8B volume, up 107% YoY, and 58% EBITDA margin. The company processed $5.1B organically and $0.7B from Kiavi. Figure Connect accounted for 72% of volume. They added 612 partners, expanded SMB business to $500M run rate, and launched new AI-driven products. Kiavi acquisition added $8B volume and new asset classes, expected to be accretive. The company saw resilience in higher interest rates, with strong investor demand and securitizations.

Figure Technology Solutions (FIGR) forecasted Q4 marketplace volume of $6.2B-$6.7B, with a gross take rate of 3.1%-3.4%. Seasonality and Kiavi expenses may impact adjusted EBITDA margin, but margins are expected to improve by 2027. Figure Connect platform accounted for 74% of total volume. The company has 612 standalone partners and processed $2.7B in loan sales. Figure's cash reserves are $1.59B post-Kiavi acquisition. Executive Chairman Mike Cagney discussed Navra, a blockchain wallet venture.

Figure reported Q3 net revenue of $287M, up 84% YoY, with net income flat at $89.3M. Volume rose 135% to $5.8B, driven by Figure Connect. Adjusted EBITDA increased 91% to $163.6M. The Kiavi acquisition added $670M in volume. Figure expanded its partner network and introduced an AI loan officer assistant. The board authorized a $200M increase to its share repurchase program.

Figure Technology Solutions (FIGR) stock rose 7.1% premarket after Q3 2026 earnings beat estimates, with revenue at $287M (up 84% YoY) and EPS at $0.36. Loan Marketplace volume surged 135% to $5.8B. The company's shift to a capital-light model and Kiavi acquisition drove growth, despite mixed analyst reactions.

Figure secured a $465 million revolving credit facility, expandable to $750 million, maturing in 2029. The funds will be used for working capital and corporate purposes, with JPMorgan Chase as a counterparty. According to the company's SEC filing, the facility is secured by substantially all assets of Figure and its subsidiaries.