Figure's Q3 Loan Volume Jumps 135% to $5.8B as Kiavi Deal Reshapes Marketplace

How Figure Doubled Its Loan Volume and Absorbed Kiavi

Figure Technology Solutions reported a record third quarter, with Loan Marketplace volume reaching $5.8 billion for the three months ending Sept. 30 — a 135% increase from $2.5 billion a year earlier. The blockchain-based lending platform attributed much of the surge to Figure Connect, its capital-light marketplace, which generated $4.3 billion in quarterly volume, up 276% year over year and representing 72% of standalone volume. The Kiavi acquisition, which closed Sept. 1, contributed $677 million in just one month.

Net revenue rose 84% to $287 million, while net income was essentially flat at $89.3 million compared with $89.8 million a year earlier. Net income margin fell to 31% from 57%, largely because the year-ago quarter included a one-time $31 million tax benefit. Adjusted EBITDA, a non-GAAP measure, climbed 91% to $163.6 million, with margin expanding to 58% from 55%. CEO Michael Tannenbaum called it a record quarter, noting over 100% volume growth for another consecutive period and a 3.7% net standalone take rate.

The Kiavi deal expands Figure's presence in investor-focused mortgage lending, adding residential transition loans (RTLs) and debt-service-coverage ratio (DSCR) loans. Management said the acquisition brought $8 billion in annualized volume and $30 million in initial cost synergies, and diversified the platform beyond HELOC into what Tannenbaum described as a $200 billion-plus addressable market. Figure also reported its small- and medium-sized business lending operation surpassed a $500 million annualized run rate with more than 150 active partners, and its partner network grew to 894 including Kiavi.

Looking ahead, Figure guided fourth-quarter Loan Marketplace volume to $6.2–6.7 billion with a gross take rate of 3.1% to 3.4%. The board authorized a $200 million increase to its share repurchase program, bringing the total to $400 million. Tannenbaum said the company will be opportunistic about buybacks while continuing to pursue organic growth and inorganic opportunities that accelerate marketplace reach.

What Figure's Capital-Light Pivot Means for the Lending Stack

Figure Connect Is Now the Engine, Not a Sidecar

Figure Connect's rise to 72% of standalone volume — up from 46% a year ago — is the most consequential number in this report. It signals that Figure is successfully shifting from a balance-sheet-intensive lending model to a marketplace model where capital partners fund the loans. That shift matters because it lowers Figure's capital requirements, improves scalability, and makes revenue less sensitive to interest-rate swings. The 276% year-over-year growth in Connect volume, even as overall standalone volume grew 107%, shows the marketplace is growing faster than the legacy book.

Kiavi Adds Product Depth and Investor Reach

The Kiavi acquisition does more than add $677 million in one month of volume. It brings RTL and DSCR loan products, which serve real estate investors rather than traditional homeowners. That expands Figure's addressable market beyond HELOC into a segment Tannenbaum sized at over $200 billion. Kiavi also brought new full-loan and securitized investors — a critical asset for a marketplace platform that depends on capital partners to fund loans. The $30 million in initial cost synergies and ahead-of-schedule close suggest integration is proceeding smoothly, though one month of data is too early to judge retention or cross-sell success.

Margin Compression Is Mostly Optical

Net income margin falling to 31% from 57% looks alarming at first glance, but the year-ago quarter included a one-time $31 million tax benefit. Adjusted EBITDA margin actually expanded to 58% from 55%, and adjusted EBITDA rose 91% to $163.6 million. The real story is that Figure is growing revenue at 84% while keeping profitability essentially flat — a deliberate trade-off as it invests in marketplace expansion and absorbs Kiavi. The 3.7% net standalone take rate, maintained even as volume doubled, suggests pricing power is holding.

Stablecoin and AI Bets Are Optionality, Not Yet Core

Figure's $YLDS stablecoin reached $504 million in circulation, up from $328 million at year-end 2025, with 28 participants using it for marketplace transactions. The AI-powered loan officer assistant, built with Sierra, has processed approximately $260 million in funded loans and increased funded dollars per loan approval by 29%. Both are early-stage but point to a strategy of embedding Figure deeper into the transaction flow — the stablecoin for settlement efficiency, the AI tool for conversion. Neither is material to current financials, but both could become competitive differentiators if they scale.

Buyback Signals Confidence, but Growth Remains the Priority

The expanded $400 million buyback, starting the day after the announcement, reflects strong cash generation and balance-sheet liquidity. Tannenbaum framed it as opportunistic rather than a shift in strategy, explicitly noting that Figure still sees huge organic growth and will look at inorganic opportunities. For investors, the buyback provides a floor under the stock, but the real value driver remains marketplace volume growth and take-rate stability. The Q4 guidance of $6.2–6.7 billion implies continued sequential acceleration, though the gross take rate of 3.1–3.4% is slightly below the 3.7% net standalone rate, likely reflecting product mix with Kiavi.

What to Watch as Figure Scales Past $6 Billion

Figure's Q3 shows the marketplace model is working: volume doubled while take rate held, and Kiavi adds a new growth vector in investor lending.

For investors and competitors in the lending technology space, the key takeaway is that Figure's capital-light strategy is scaling faster than its balance-sheet business, which should improve returns on equity over time. The Kiavi integration is ahead of schedule and already contributing volume, but watch for any disruption to partner retention or take rate as the product mix shifts toward RTL and DSCR loans.

• Near term (0–6 months): Track Q4 volume against the $6.2–6.7 billion guidance and the gross take rate of 3.1–3.4%. A miss on either would signal integration friction or pricing pressure. Also watch the pace of the $400 million buyback — aggressive repurchases at current levels would suggest management sees the stock as undervalued.
• Medium term (6–24 months): Monitor whether Figure Connect sustains its 70%+ share of standalone volume and whether Kiavi's RTL and DSCR products gain traction with the new securitized investors. The $500 million SMB run rate and 894-partner network are leading indicators of marketplace liquidity.
• Long term (2–5 years): The stablecoin and AI loan assistant are small today but could become structural advantages if they drive settlement efficiency and higher conversion. Watch for regulatory clarity on stablecoins, which would affect $YLDS adoption.

Metrics to watch: Figure Connect volume as a percentage of total; net standalone take rate; adjusted EBITDA margin; Kiavi contribution to volume and synergies realized; Q4 volume and take rate versus guidance.