Figure Technology Solutions delivered exceptional financial results for the second quarter, with net revenue more than doubling to $225.6 million, representing an 113% increase from the same period last year. According to reports from Figure, net income climbed 192% to $87.4 million, or 38.8 cents per diluted share, while adjusted EBITDA more than doubled to $119.4 million. The strong performance reflects the company's successful transition to blockchain-based lending infrastructure and growing adoption of its digital lending solutions. The results mark Figure's strongest quarter since becoming a public company, with the net income margin expanding from 28.3% to 38.8%. Operating income also rose to $77.7 million from $27.7 million, showing the profit increase was not solely the result of below-the-line accounting items.
The company's Consumer Loan Marketplace emerged as the primary growth driver, with volume reaching $4.3 billion, up 132% from a year ago and 47% from the first quarter. As reported by Figure, Figure Connect, the marketplace connecting loan originators with capital providers, accounted for $2.77 billion, or about 65%, of that total. The platform added 102 loan-origination partners during the quarter, bringing the total to 489 across mortgage lenders, banks and fintech firms. CEO Michael Tannenbaum noted that weekly loan applications surpassed $1 billion in July, indicating sustained momentum in the digital lending market. Figure Connect volume rose 262% year over year in Q2, with the marketplace launched in June 2024 connecting third-party loan sellers and buyers using Figure's blockchain-based infrastructure.
Figure's blockchain-focused products continued to expand significantly during the quarter. According to Figure reports, Circulation of YLDS, its yield-bearing stablecoin, rose to $556 million at the end of June from $328 million at the end of 2025. The company's Democratized Prime marketplace reached about $170 million as of Aug. 6, roughly 23 times its year-end level. For the third quarter, Figure expects Consumer Loan Marketplace volume of $4.8 billion to $5.2 billion, representing roughly 102% growth from a year earlier. The shift toward third-party activity supports Figure's push for a business requiring less balance-sheet capital, with ecosystem and technology fees rising to $72.9 million from $28.1 million and gain on loan sales increasing to $57.6 million from $36.3 million.
Figure's acquisition of real estate lender Kiavi is advancing as planned, with completion expected in the second half of 2026, pending regulatory approvals and customary closing conditions. The deal is poised to expand Figure's footprint in residential real estate lending, complementing its existing consumer loan offerings. Figure closed a $600 million offering of 8.5% senior notes due 2031 on July 14, with proceeds intended in part to fund the Kiavi transaction. The acquisition remains on track to close during the second half of 2026, with Figure saying the pending Kiavi acquisition 'will significantly grow our platform into adjacent asset classes'. The balance sheet also expanded, with cash and cash equivalents reaching $1.4 billion at June 30, up $239.4 million from year-end.
Investors responded positively to the earnings results, with FIGR closing at $31.88 on August 13, up 3.94% after trading between $29.50 and $33.77 during the day. The company set a medium-term adjusted EBITDA margin target of 60% for 2026 through 2028, with the current adjusted EBITDA margin expanding to 54.6% from 47.2%. Operations and processing costs fell to roughly 67 basis points of marketplace volume from 79 basis points one year earlier. Figure's growth is increasingly coming from products outside its original home-equity business, with small and medium-sized business loan volume growing 57% from the first quarter. The next milestones include Figure's weekly operating updates, Q3 marketplace performance, and completion of the Kiavi acquisition.
