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Figure Technologies reports jump in Q2 mortgage marketplace volume
Consumer loan marketplace volume hit $4.3 billion, and management said Figure Connect now drives 65% of total volume as it targets about 70% in the medium term.
Figure Technologies said its consumer loan marketplace scaled further in the second quarter, with consumer loan marketplace volume reaching $4.3 billion, up 132% year over year and about 4% ahead of the top end of guidance. The company tied the momentum to its shift of mortgage lending onto its tokenized marketplace, adding that volume, revenue, and profitability rose together rather than lagging.
In its reported results, adjusted net revenue increased 95% year over year to $218 million, while adjusted EBITDA climbed 126% to $119 million and the EBITDA margin rose to 55% from 47% a year earlier. Net income also jumped to $87 million from $30 million, with Figure Connect described as a key contributor to the improvement.
The company said Figure Connect, its capital-light marketplace where loans can trade directly between originators and buyers on chain, drove much of the growth. Connect volume rose to 65% of total marketplace volume from 42% a year earlier, and management expects that share to approach 70% in the medium term, above its prior 60% target.
Figure also reported partner growth to 489 from 387 last quarter, and said lending standards remained tight, including higher average FICO scores at origination, up from 737 in 2020 to 756 so far this year, and lower combined loan to value at 62.1%. It noted HELOC securitization spreads tightened to roughly 135 basis points across 22 priced deals, while the net take rate slipped to 3.6%, at the low end of its 3.5% to 4% guided range, and it expects it to stay there in the third quarter.