Shares of Figure Technology Solutions fell about 20% to $27.12 in morning trading on Friday after the blockchain-based consumer lending marketplace reported fourth-quarter results that missed earnings expectations, despite strong revenue growth.
For the quarter ended Dec. 31, Figure posted revenue of $159.9 million, nearly doubling from $83.9 million a year earlier. Net income rose to $15.1 million from $5.9 million in the same period of 2024. Earnings came in at $0.06 per diluted share, compared with zero a year earlier.
Analysts polled by Yahoo Finance had expected earnings of $0.18 per share on revenue of $157.7 million. While revenue modestly exceeded expectations, the earnings shortfall appeared to weigh heavily on sentiment.
The reaction suggests investors are focused less on top-line expansion and more on margin durability as funding conditions tighten and competition in digital lending intensifies.
Growth was driven by higher lending activity. Consumer Loan Marketplace volume — reflecting total loans originated and traded on the platform — reached $2.7 billion during the quarter, up from $1.2 billion a year earlier.
For the full year, net income totaled $134.3 million, compared with $19.9 million in 2024. Annual revenue rose to $506.9 million from $340.9 million a year earlier.
Alongside its earnings report, Figure authorized a share repurchase program allowing it to buy back up to $200 million of stock over the next 12 months. Buybacks can support share prices, but they rarely offset disappointment tied to forward expectations or margin pressure.
Figure began trading on the Nasdaq in September after pricing its initial public offering at $25 per share, raising nearly $800 million. The stock rose more than 24% on its first day and climbed to a high near $74 in January before retreating sharply.
The trajectory mirrors broader volatility across crypto-linked equities. Many of these stocks rallied strongly in late 2025 before giving back gains during the subsequent digital asset market pullback.
Gemini Space Station, which priced its IPO at $28 per share in September, briefly traded above $40 on its debut before falling to around $5.94. Stablecoin issuer Circle also experienced wide swings after going public in June. Circle sold 34 million shares at $31 each, raising $1.05 billion. The stock opened at $69 on its first day, climbed as much as 235% intraday, and later reached a high of $263.45 before retreating nearly 70% to around $83.
Figure operates at the intersection of blockchain infrastructure and consumer lending, sectors that benefited from renewed interest in digital assets last year. However, higher rates, funding costs, and market volatility can challenge loan performance and compress margins.
With marketplace volumes rising but earnings trailing expectations, the next phase for the company may depend on whether it can convert loan growth into stronger per-share profitability while navigating a more demanding capital market environment.
Friday’s sharp decline suggests investors are recalibrating expectations for fintech platforms that came public during the recent surge in crypto-related equities. Growth remains intact, but valuation multiples may hinge on clearer earnings delivery in upcoming quarters.
