Figure's Loan Marketplace Volume Jumps 132%, but Take Rate Stays at 3.6%

Figure's Q2: Volume Up 132% and Net Income Up 192% as Take Rate Holds at 3.6%

Figure Technology Solutions delivered rapid second-quarter volume growth, but its net take rate remained fixed at 3.6% as more business moved through the asset-light Figure Connect marketplace and into lower-take-rate first-lien loans. Net income rose 192% year over year to $87.4 million, while net revenue climbed 113% to $225.6 million.

Consumer Loan Marketplace volume reached $4.3 billion, up 132% from the prior-year period and 4% above the top end of the company's second-quarter guidance. Application volume passed $1 billion per week for the first time in early July, and Figure ended the quarter with 489 origination partners, 102 more than in the first quarter.

On the earnings call, CEO Michael Tannenbaum attributed the stable take rate to three forces: large partners moving directly onto Figure Connect, higher interest rates reducing gain-on-sale economics, and a threefold increase in first-lien loan volume, which carries a lower take rate. CFO Macrina Kgil noted that Figure Connect climbed to 65% of marketplace volume from 42% a year earlier.

Figure guided to $4.8 billion to $5.2 billion of Consumer Loan Marketplace volume for the third quarter, with the midpoint roughly 10% above KBW's estimate and 12% above consensus. The company also said its pending acquisition of Kiavi remains on track to close by year-end, expected to add about 40% to volume and $100 million in EBITDA.

Why Figure's Take Rate Held Flat and What the 70% Connect Mix Means

Tannenbaum's three take-rate pressures

The 3.6% net take rate is best understood as a product of mix, not weak demand. The CEO's explanation pairs each pressure with a concrete tradeoff: large partners going direct to Figure Connect lowers revenue per dollar of volume but improves asset-light economics; higher rates compress gain on sale; and first-lien volume tripled while carrying structurally lower take rates. This matters because it means the take rate may stay flat or drift modestly lower even as revenue grows.

The Connect shift is deliberate, not accidental

Figure's strategy emphasises contribution margin rather than a target take rate. Figure Connect generated $2.8 billion in volume, up 72% sequentially, and management now expects it to approach 70% of volume in the medium term, up from a prior estimate of 60%. Because Connect uses less balance sheet and produces fee-based revenue, Kgil's data point that ecosystem fees became the largest revenue line supports the flywheel argument. The benefit, however, depends on partner growth and fee economics compensating for lower take rates.

Kiavi and guidance set up the second half

Third-quarter volume guidance of $4.8 billion to $5.2 billion suggests management confidence in continued partner ramp. The Kiavi transaction would add roughly 40% to volume and $100 million in EBITDA while expanding into residential transition loans. That broadens Figure's revenue base beyond current consumer lending products, but closing and integration remain execution risks because the article indicates only that the deal is on track, not that it has closed.

The EBITDA quality caveat

Adjusted EBITDA reached $119.4 million, just below KBW's $121 million estimate but above consensus of $110.4 million. The headline 55% adjusted EBITDA margin included a $5.9 million realized gain from the sale of a minority business interest. Excluding that gain, the margin was about 52%, which widens the gap to management's reiterated medium-term target of 60%.

What Figure's Q2 Signals for Partners, Investors and the Kiavi Timeline

Figure's Q2 data gives market participants several specific signposts to watch rather than generic patience.

• Investors: Compare Q3 volume against the $4.8 billion to $5.2 billion guidance and track whether Figure Connect moves toward the new ~70% medium-term mix expectation. Also note that the headline 55% adjusted EBITDA margin was lifted by a $5.9 million gain; the underlying margin was about 52%, leaving a gap to the reiterated 60% target.
• Origination partners: Figure added 102 partners in the quarter and new partners contributed 60% of the $2.1 billion increase in partner-branded volume. Evaluate Figure Connect economics on contribution margin, because Figure has explicitly moved away from managing the business to a take-rate goal.
• Analysts and competitors: With application volume topping $1 billion per week in early July, Figure's partner flywheel is accelerating. The relevant risk is not volume but whether fee income offsets the lower take rate from large partners going direct and from first-lien growth.
• Figure watchers: The pending Kiavi acquisition is the next major catalyst. Management expects it to add about 40% to volume and $100 million in EBITDA and to expand the platform into residential transition loans, targeted to close by year-end.