"CEO Michael Tannenbaum told analysts on Friday that Figure's marketplace model extends beyond home equity and into the broader consumer ecosystem, capturing a larger share of the housing finance value chain. Third-quarter totals include $1.1 billion from Figure Connect, the platform launched in June 2024 that allows counterparties to buy and sell standardized, blockchain-native assets. That compares to $767 million in the second quarter."
"Originally, we used our balance sheet to bridge between our partners and the capital markets, but we began to move away from that in June of 2024 with the launch of Figure Connect, where we allow our origination partners to access capital market liquidity directly, Tannenbaum said. This fee-based model is more profitable for us and, in addition, does not require us to use our equity capital."
Figure expanded its marketplace model beyond home equity into the broader consumer ecosystem to capture more of the housing finance value chain. Third-quarter totals included $1.1 billion from Figure Connect, launched in June 2024 to enable counterparties to buy and sell standardized, blockchain-native assets, up from $767 million in Q2. The company shifted from bridging with its balance sheet to a fee-based model that lets origination partners access capital market liquidity directly, reducing use of equity capital. As of Sept. 30 borrowers had $41.2 million in undrawn HELOC commitments. Average Q3 rates were about 9% for Figure-branded HELOCs and 9.2% for partner-branded offerings. Figure reported 246 active ecosystem partners, completed a Nasdaq IPO raising $663 million, posted $90 million in net income, and saw adjusted EBITDA rise to $86 million.
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