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Third-quarter 2025 earnings results revealed Friday (Nov. 14) that consumer loan marketplace volumes reached roughly $2.5 billion, up 70%.
CEO Michael Tannenbaum said during an earnings call that the consumer loan growth reflected “continued expansion across our origination partner network and increased utilization of Figure Connect for liquidity. As more partners leverage the platform to fund and sell loans, we’re seeing meaningful gains in both scale and efficiency.”
There was particularly notable growth across first lien lending, where volumes nearly tripled, he said. Figure Connect, a blockchain-based marketplace for private credit, also saw growth. New products, including blockchain-based solutions for cryptocurrency-backed loans and small- to medium-sized business (SMB) loans, contributed $80 million in third-quarter volume.
“Each of these products leverages the same origination and trading infrastructure that powers our core marketplace,” Tannenbaum said during the call.
As for the marketplace itself, Tannenbaum said the business-to-business-to-consumer (B2B2C) platform now has “nearly 250 third parties … who use our technology to originate blockchain-native assets.”
Adjusted net revenues were 42% higher year over year, to $156 million, according to an earnings presentation.
Figure shares were up 12% in early trading Friday.
Tannenbaum said during the call that digital asset and consumer activity were tied by Democratized Prime, the company’s decentralized short-term funding market.
“Democratized Prime connects lenders and borrowers directly, eliminating traditional intermediaries,” he said. “Importantly, it is not isolated from the rest of the platform. It can also finance the same loans originated by our consumer credit partners. These two marketplaces work together.”
The infrastructure “automatically verifies both income and property value by linking to the consumer’s bank account and third-party data sources. In nearly all cases, there’s no human touch.”
Overall partner-originated volumes have been growing at a 74% compound annual growth rate, he said.
Co-founder and Executive Chairman Mike Cagney said during the call that a larger trend in financial services is the “liability flight from banks to stablecoin, which will in turn drive demand for DeFi as alternative funding sources. We believe Democratized Prime is well-positioned to benefit from that flight. Democratized Prime competes directly with traditional capital allocators that intermediate between sources and uses of capital. Directly connecting borrowers and lenders introduces significant time and cost benefits.”
“Over time, we see Democratized Prime becoming the preferred liquidity venue not only for assets originated within our consumer credit network, but also for blockchain-native real-world assets more broadly…,” he added.
The company filed a confidential S-1 with the Securities and Exchange Commission for the launch of a blockchain-native equity share class, he said.
Chief Financial Officer Macrina Kgil said on the call that the fourth quarter’s macro trends indicate expected and historical seasonality in housing and other markets, as “demand for lending tends to moderate heading into the year-end holiday period and through the winter months. We see that consumers typically defer major financial decisions, such as home improvements or debt consolidation, during the late fall and winter, as household budgets shift toward holiday spending and travel.”
“As we continue to grow our partner networks and develop our decentralized finance capabilities, we expect to deliver sustained volume growth,” she added.
Asked on the call about demand from origination partners, Tannenbaum said that they “want to have conversations about our blockchain ecosystem more directly. They’re considering yields, our stablecoin and Democratized Prime, in addition to our tokenized loans. They see the connection between these things.”
“[W]e have a huge $185 billion-plus market opportunity in front of us,” Tannenbaum added. “We see all consumer credit and asset classes, … beyond consumer credit as addressable. From the core standpoint of our HELOC product, we’re executing into $35 trillion of home equity.”
