Figure Technology Solutions (FIGR) investor relations material

Business evolution and strategic direction

• Transitioned from direct HELOC originator to a capital markets platform focused on blockchain and real-world asset tokenization, processing $1.7 billion in monthly home equity volume with 500 partners.

• Achieved significant cost and time savings in loan origination, reducing costs from $12,000 to $1,000 and processing times from 45 to 5 days.

• Pursuing growth in core mortgage markets and expanding into auto and small business asset classes by standardizing third-party assets and offering capital markets as a service.

• Emphasizing a capital-light, exchange-like business model, leveraging first-mover advantage in home equity and expanding into tokenized capital markets.

• Building a competitive moat through standardization, liquidity, and partnerships, including with depositories and Fannie Mae ecosystem.

Growth drivers and partner ecosystem

• Growth fueled by B2B sales rigor, robust pipeline, and expansion across mortgage banks, servicers, depositories, small business lenders, fintech, and home improvement sectors.

• Announced partnership with Flagstar Bank, unlocking more depository relationships and expanding into small business lending with a $500 million run rate.

• Origination partner growth driven by both new and existing partners, with Figure Connect now accounting for 65% of volume and expected to rise.

• Large partners increasingly onboard directly to Figure Connect, attracted by its capital-light, high-margin model and improved partner economics.

• Ecosystem includes warehouse lenders like Texas Capital Bank and Western Alliance, making onboarding easier and supporting further Connect adoption.

Product diversification and acquisitions

• Diversification into asset classes like auto, SMB, DSCR, and RTL loans, primarily by standardizing and tokenizing third-party originated assets.

• Acquired Kiavi, a market leader in residential transition loans, to expand into investor-owned housing, with plans to integrate Kiavi’s products into Figure Connect.

• Kiavi acquisition expected to contribute $100 million EBITDA with under four-year payback, leveraging Figure’s marketplace approach for broader partner access.

• Over 50% of Kiavi’s customers are recurring, and the joint venture with Sixth Street enables capital-light origination and ecosystem fee generation.

• Announced partnership with Agora in auto, planning the first securitization of tokenized auto loans in early Q4 to lower cost of capital and set industry benchmarks.