Figure Technology Solutions Inc. (NASDAQ:FIGR) shares rose nearly 6% in early trading Thursday after the blockchain-native capital marketplace’s third-quarter results topped estimates, with investors also cheering surging marketplace volume and the company’s fourth-quarter outlook. The stock had jumped more than 7% in premarket trading.
The company reported diluted earnings of 36 cents per share, beating the 27-cent estimate, while net revenue rose 84% year over year to $287.1 million, topping the $251.6 million estimate.
Profitability and Margins
Net income was $89.3 million, compared with $89.8 million a year earlier, while net income margin fell to 31% from 57%.
The prior-year quarter included a one-time $31 million tax benefit, primarily tied to deferred tax assets.
Adjusted net revenue increased 83% to $283.3 million. Adjusted EBITDA rose 91% to $163.6 million, while adjusted EBITDA margin expanded to 58% from 55%.
Marketplace Volume Surges
Loan Marketplace Volume climbed 135% to $5.8 billion, including $677 million from Kiavi following its Sept. 1 acquisition. Figure Connect Volume jumped 276% to $4.3 billion.
The volume growth came alongside lower take rates. Gross Take Rate declined to 3.9% from 5.2% a year earlier, while Net Take Rate fell to 3.5% from 4.4%.
Ecosystem and technology fees rose 208% to $109.8 million.
Figure ended the quarter with 612 standalone partners and 894 including Kiavi. SMB loan originations crossed a $500 million run-rate, while its Loan Officer Assistant processed about $260 million in funded loans and increased funded dollars per approval by 29%.
Kiavi Synergies and Capital Allocation
Figure said it actioned $30 million in initial cost synergies from Kiavi.
The board also increased its share repurchase authorization by $200 million, bringing the total authorization to $400 million.
Cash and cash equivalents totaled $1.59 billion as of Sept. 30.
“This was a record quarter for Figure, highlighted by another consecutive quarter of over 100% volume growth and the rapid expansion of our capital-light marketplace, with Figure Connect now making up 72% of our standalone volume,” CEO Michael Tannenbaum said.
Q4 Outlook
For the fourth quarter, Figure expects Loan Marketplace Volume of $6.2 billion to $6.7 billion and a Gross Take Rate of 3.1% to 3.4%.
FIGR Price Action: Figure Technology shares were up 5.77% at $25.59 at the time of publication Thursday, according to Benzinga Pro data.
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