Figure posts strong Q1 on surge in blockchain lending activity

"Net revenue increased 98% to $167 million from $84.5 million a year earlier. Adjusted net revenue rose 92% to $166.8 million. The company posted diluted earnings per share of 18 cents, compared with a loss of 1 cent per share in the year-ago period. Net income margin reached 27%, compared with a negative 0.7% margin a year earlier. Adjusted EBITDA surged 192% to $82.7 million, while adjusted EBITDA margin expanded to 49.6% from 32.6%."

"CEO Michael Tannenbaum said the company's results reflected continued growth across its blockchain ecosystem and lending marketplace. We delivered exceptional first-quarter results, headlined by 113% year-over-year growth in our Consumer Loan Marketplace and the addition of a record 80 new partners, Tannenbaum said in a statement. Revenue was up 92% and adjusted EBITDA margin at 50% as we continued to see the benefits of our capital-light marketplace, Figure Connect, in the financials, Tannenbaum continued."

"Tannenbaum said Figure Connect grew to 56% of volume, up from 54% last quarter. Tannenbaum said Figure saw growth across all channels, most notably new partners, depository activity, business purpose, and partner growth via Figure Connect. The more volume that flows through Connect, the less we rely on balance sheet intermediation, he said. The model becomes more capital light, and our margins become more durable."

"Figure said ecosystem volume increased 136% year over year to $3.7 billion, while its net take rate improved to 3.8% from 3.6%. The company ended the quarter with $1.5 billion in cash and cash equivalents, excluding restricted cash, and $504 million in loans held for sale. Figure said its blockchain ecosystem also expanded sharply during the quarter. YLDS in circulation, Figure's blockchain-based yield-bearing digital asset, grew to $598 million in circulation as of March 31, up from $3 million a year earlier."

Net revenue increased 98% to $167 million and adjusted net revenue rose 92% to $166.8 million. Diluted earnings per share reached 18 cents versus a 1-cent loss in the prior year period. Net income margin improved to 27% from negative 0.7%. Adjusted EBITDA grew 192% to $82.7 million, and adjusted EBITDA margin expanded to 49.6% from 32.6%. Results reflected growth across a blockchain ecosystem and a lending marketplace, including 113% year-over-year growth in the Consumer Loan Marketplace and 80 new partners. Figure Connect contributed more volume, reaching 56% of volume, supporting a more capital-light model and more durable margins. Ecosystem volume rose 136% to $3.7 billion, with net take rate improving to 3.8%. Cash and cash equivalents totaled $1.5 billion, and loans held for sale were $504 million. YLDS in circulation increased to $598 million, and matched offers on the Democratized Prime platform reached $368 million.

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