Figure Technology Solutions, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page No. Reports of Independent Registered Public Accounting Firm 124 Consolidated Balance Sheets 125 Consolidated Statements of Operations 126 Consolidated Statements of Stockholders’ Equity 127 Consolidated Statements of Cash Flows 129 Notes to Consolidated Financial Statements 130 Note 1 - Business and Organization 130 Note 2 - Significant Accounting Policies 131 Note 3 - Investments 148 Note 4 - Servicing 153 Note 5 - Loans 154 Note 6 - Debt 156 Note 7 - Equity 160 Note 8 - Net I ncome (Loss) Per Share 168 Note 9 - Variable Interest Entities 168 Note 10 - Commitments and Contingencies 170 Note 11 - Related Party Transactions 172 Note 12 - Fair Value Measurements 174 Note 13 - Income Taxes 178 N ote 14 - Subseque nt E vents 180 123 KPMG LLP Suite 1400 55 Second Street San Francisco, CA 94105 Report of Independent Registered Public Accounting Firm To the Board of Directors of Figure Technology Solutions, Inc: To the Board of Directors Figure Technology Solutions, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Figure Technology Solutions, Inc. and subsidiaries (the Company) as of December 31, 2025 and December 31, 2024, the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and December 31, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Change in Accounting Principle As discussed in Note 2 to the consolidated financial statements, the Company has elected to change its method of accounting for payment stablecoins to classify them to cash equivalents as of December 31, 2023 and December 31, 2024. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ KPMG LLP We have served as the Company’s auditor since 2022. San Francisco, California March 13, 2026 124 FIGURE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) December 31, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,198,141 $ 289,670 Restricted cash 68,637 57,777 Loans held for sale, at fair value 404,337 395,922 Digital assets ($ 84,867 and $ 73,942 at fair value) 96,558 75,448 Accounts receivable, net 52,016 20,998 Other current assets 41,518 14,875 Total current assets 1,861,207 854,690 Loan servicing asset, at fair value 113,064 88,497 Marketable securities, at fair value 273,151 163,489 Digital assets, non-current 3,644 9,704 Loan to related parties — 9,372 Deferred income taxes, net 26,037 — Other non-current assets 40,420 33,826 Total assets $ 2,317,523 $ 1,159,578 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 29,501 $ 37,217 Payables to third-party loan owners 383,772 212,619 Debt, current ($ 100,519 and $ — at fair value) 160,959 305,294 Debt, current to related parties ($ 166,135 and $ — at fair value) 166,135 — Other current liabilities 105,642 70,401 Total current liabilities 846,009 625,531 Debt, non-current 230,143 167,882 Lease liability, non-current 4,173 2,790 Total liabilities 1,080,325 796,203 Stockholders' equity: Convertible preferred stock — no shares authorized, issued and outstanding at December 31, 2025; $ 0.00001 par value per share: 115,983,447 shares authorized, 111,900,495 shares issued and outstanding at December 31, 2024, liquidation preference $ 528,566,000 — 2 Common stock — no shares authorized, issued and outstanding at December 31, 2025; $ 0.00001 par value per share: 240,820,153 shares authorized, 69,300,284 issued and outstanding at December 31, 2024 — 2 Preferred stock — $ 0.0001 par value per share: 100,000,000 shares authorized, no shares issued and outstanding at December 31, 2025 and 2024 — — Class A common stock — $ 0.0001 par value per share: 1,000,000,000 shares authorized, 178,485,407 shares issued and outstanding at December 31, 2025; no shares authorized, issued and outstanding at December 31, 2024 19 — Class B common stock — $ 0.0001 par value per share: 200,000,000 shares authorized, 37,893,047 shares issued and outstanding at December 31, 2025; no shares authorized, issued and outstanding at December 31, 2024 4 — Blockchain common stock — $ 0.0001 par value per share: 500,000,000 shares authorized, no shares issued and outstanding at December 31, 2025 and 2024 — — Additional paid-in capital 1,415,804 675,945 Accumulated deficit ( 186,993 ) ( 320,851 ) Total Figure Technology Solutions, Inc. stockholders' equity 1,228,834 355,098 Noncontrolling interests in consolidated subsidiaries 8,364 8,277 Total stockholders' equity 1,237,198 363,375 Total liabilities and stockholders' equity $ 2,317,523 $ 1,159,578 The accompanying notes are an integral part of these Consolidated Financial Statements. 125 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Years Ended December 31, 2025 2024 2023 Net revenue: Ecosystem and technology fees $ 120,808 $ 28,314 $ 10,628 Servicing fees 31,540 25,245 18,620 Interest income 74,810 48,207 48,155 Origination fees 72,536 64,867 58,546 Gain on sale of loans, net 180,024 140,353 50,343 Gain on servicing asset, net 24,567 32,637 22,083 Other revenue 2,580 1,262 1,174 Total net revenue 506,865 340,885 209,549 Expenses: General and administrative 131,971 104,251 58,794 Technology and product development 64,922 62,657 49,154 Operations and processing 65,056 44,452 38,930 Sales and marketing 76,094 55,657 52,761 Interest expense 48,870 56,415 49,200 Other expense 2,425 8,218 10,148 Total expenses 389,338 331,650 258,987 Operating income (loss) 117,527 9,235 ( 49,438 ) Other (expense) income, net ( 3,852 ) 12,857 ( 2,903 ) Income (loss) before income taxes 113,675 22,092 ( 52,341 ) Income tax (benefit) provision ( 20,606 ) 2,177 102 Net income (loss) 134,281 19,915 ( 52,443 ) Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries 423 2,701 ( 4,508 ) Net income (loss) attributable to Figure Technology Solutions, Inc. $ 133,858 $ 17,214 $ ( 47,935 ) Net income (loss) per share of Class A and Class B common stock Basic $ 0.54 $ — $ ( 0.93 ) Diluted $ 0.44 $ — $ ( 0.93 ) Weighted-average Class A and Class B common shares outstanding Basic 114,435,259 65,020,119 51,305,065 Diluted 141,802,002 72,637,457 51,305,065 The accompanying notes are an integral part of these Consolidated Financial Statements. 126 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in thousands, except share and per share data) Convertible Preferred Stock Common Stock Class A Common Stock Class B Common Stock Additional Paid-In Capital Accumulated Deficit Total Figure Technology Solutions, Inc. Stockholders’ Equity Noncontrolling Interests in Consolidated Subsidiaries Total Stockholders’ Equity Shares Amount Shares Amount Shares Amount Shares Amount Balance at December 31, 2022 104,575,110 $ 1 51,035,303 $ 1 — $ — — $ — 540,540 $ ( 289,823 ) $ 250,719 $ 9,500 $ 260,219 Exercise of stock options and warrants — — 582,905 — — — — — 1,143 — 1,143 — 1,143 Stock compensation expense — — — — — — — — 13,450 — 13,450 — 13,450 Dilution — — — — — — — — — ( 307 ) ( 307 ) 361 54 Net loss — — — — — — — — — ( 47,935 ) ( 47,935 ) ( 4,508 ) ( 52,443 ) Balance at December 31, 2023 104,575,110 1 51,618,208 1 — — — — 555,133 ( 338,065 ) 217,070 5,353 222,423 Issuance and exchange of equity — — 16,498,104 1 — — — — — — 1 — 1 Issuance of Series E preferred stock, net of issuance costs 7,325,385 1 — — — — — — 71,773 — 71,774 — 71,774 Issuance of preferred stock warrants — — — — — — — — 9,542 — 9,542 — 9,542 Common stock repurchase and retirement — — ( 186,054 ) — — — — — ( 1,001 ) — ( 1,001 ) — ( 1,001 ) Exercise of stock options and warrants — — 1,370,026 — — — — — 3,037 — 3,037 — 3,037 Stock compensation expense — — — — — — — — 38,726 — 38,726 — 38,726 Noncontrolling interest investment in subsidiary — — — — — — — — — — — 290 290 Dividends & redemptions of subsidiaries — — — — — — — — ( 1,265 ) — ( 1,265 ) ( 67 ) ( 1,332 ) Net income — — — — — — — — — 17,214 17,214 2,701 19,915 Balance at December 31, 2024 111,900,495 $ 2 69,300,284 $ 2 — $ — — $ — $ 675,945 $ ( 320,851 ) $ 355,098 $ 8,277 $ 363,375 Vesting of preferred stock warrants — — — — — — — — 9,499 — 9,499 — 9,499 Exercise of stock options and warrants 2,010,410 1 1,006,731 — 1,238,709 2 — — 12,756 — 12,759 — 12,759 Stock compensation expense — — — — — — — — 62,922 — 62,922 — 62,922 127 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in thousands, except share and per share data) Dividends & redemptions of subsidiaries — — — — — — — — — — — ( 436 ) ( 436 ) Other equity contributions — — — — — — — — — — — 100 100 Settlement of restricted stock units — — — — 2,690,220 — — — — — — — — Issuance and conversion of common stock in connection with initial public offering, net of offering costs and commissions — — ( 70,307,015 ) ( 2 ) 98,538,620 10 — — 654,682 — 654,690 — 654,690 Conversion of convertible preferred stock to common stock in connection with initial public offering ( 113,910,905 ) ( 3 ) — — 113,910,905 11 — — — — 8 — 8 Conversion of Class A Common Stock to Class B Common Stock — — — — ( 37,893,047 ) ( 4 ) 37,893,047 4 — — — — — Net income — — — — — — — — — 133,858 133,858 423 134,281 Balance at December 31, 2025 — $ — — $ — 178,485,407 $ 19 37,893,047 $ 4 $ 1,415,804 $ ( 186,993 ) $ 1,228,834 $ 8,364 $ 1,237,198 The accompanying notes are an integral part of these Consolidated Financial Statements. 128 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, 2025 2024 2023 Operating activities: Net income (loss) $ 134,281 $ 19,915 $ ( 52,443 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Gain on servicing asset, net ( 24,567 ) ( 32,637 ) ( 22,083 ) Gain on sale of loans, net ( 173,732 ) ( 140,353 ) ( 50,343 ) Loss (gain) on sale of digital assets 3,215 ( 10,381 ) ( 4,689 ) Income (loss) from fund and equity method investments 1,246 ( 3,466 ) 8,189 Amortization of deferred financing costs 1,020 1,035 330 Amortization of internally developed software 16,254 17,113 19,384 Impairment of internally developed software costs — 8,591 — Impairment of digital assets — 5,859 572 Other asset impairment charge — 4,970 — Services exchanged for issuance of warrants 9,499 6,584 — Noncash dissolution of subsidiary — — 402 Stock-based compensation expense 62,364 38,726 13,450 Losses on repurchased loans 2,425 8,218 10,148 Deferred income taxes, net ( 26,037 ) — — Net change in operating assets and liabilities: Proceeds from loan sales, net of repurchases 6,617,808 4,666,503 3,255,155 Originations of loans held for sale ( 3,620,890 ) ( 3,164,966 ) ( 1,981,195 ) Purchases of loans held for sale ( 3,269,400 ) ( 1,974,701 ) ( 1,541,757 ) Principal payments on loans held for sale 429,151 422,910 315,274 Accounts receivable, net ( 33,042 ) ( 3,697 ) ( 7,102 ) Other assets ( 28,097 ) ( 11,382 ) 7,741 Accounts payable and other liabilities ( 38,930 ) 14,147 ( 4,385 ) Net cash provided by (used in) operating activities 62,568 ( 127,012 ) ( 33,352 ) Investing activities: Capitalization of internally developed software costs ( 20,649 ) ( 16,628 ) ( 17,262 ) Investment contributions ( 2,477 ) ( 3,314 ) — Purchases of digital assets ( 5,734 ) ( 11,558 ) ( 817 ) Proceeds from sales of digital assets 11,347 3,279 — Note receivable issued to related parties — ( 2,030 ) ( 4,028 ) Payment on note receivable from related parties — 809 — Realized losses on futures ( 6,292 ) — — Purchases of marketable securities ( 102,174 ) ( 25,222 ) — Proceeds from sale of marketable securities — 872 602 Principal payments on marketable securities 63,907 15,347 3,882 Other investing activities 797 1,000 — Net cash used in investing activities ( 61,275 ) ( 37,445 ) ( 17,623 ) Financing activities: Proceeds from debt 5,886,495 4,623,817 2,781,230 Proceeds from debt, related party 152,139 — 10,000 Principal payments on debt ( 5,953,760 ) ( 4,438,785 ) ( 2,768,598 ) Principal payments on debt, related party — — ( 10,000 ) Payments of deferred financing costs ( 1,319 ) ( 2,083 ) ( 616 ) Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions 663,443 — — Proceeds from servicing activity on behalf of third-party loan owners 167,202 81,881 52,974 Fees paid in connection with the initial public offering ( 8,761 ) — — Net Proceeds from issuance of preferred stock — 71,775 — Distributions to shareholders — ( 2,765 ) — Common stock repurchase and retirement — ( 1,001 ) — Proceeds from exercises of stock options 12,759 3,037 1,143 Other financing activities ( 160 ) 248 ( 345 ) Net cash provided by financing activities 918,038 336,124 65,788 Net increase in cash, cash equivalents, and restricted cash 919,331 171,667 14,813 Cash, cash equivalents, and restricted cash, beginning of period 347,447 175,780 160,967 Cash, cash equivalents, and restricted cash, end of period $ 1,266,778 $ 347,447 $ 175,780 Supplemental cash flow disclosure: Cash paid during the period for interest $ 49,892 $ 55,107 $ 44,833 Cash paid during the period for income taxes 10,403 48 30 Non-cash investing and financing activities: Non-cash principal payments on debt $ ( 14,513 ) $ — $ — Non-cash principal payments on debt, related parties ( 286 ) — — Receipt of liquidity pool tokens ( 25,073 ) — — Sale of liquidity pool tokens 1,554 — — Related party debt issued at receipt of liquidity pool tokens 14,280 — — Loan to related party settlement 10,187 — — Right of use assets obtained in exchange for operating lease liabilities 2,765 — — Unrealized losses on futures 113 — — Distributions from Onshore Solana Fund 2,042 547 — Stock-based compensation included in capitalized internally developed software 558 530 — Marketable securities retained in securitization transactions ( 54,874 ) ( 116,335 ) ( 42,061 ) Transfers from held for investment to held for sale — 58,835 53,241 Other non-cash investing and financing activities — 25 399 Contribution from related party — 1,500 — Other capital contributions — 2,958 — Other capital charges — 4,970 — Transfers from held for sale to held for investment — — 22,279 The accompanying notes are an integral part of these Consolidated Financial Statements. 129 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) NOTE 1 – BUSINESS AND ORGANIZATION Figure Technology Solutions, Inc. (“FTS”, “Figure”, or the “Company”) is a financial technology company that has built a suite of blockchain-based products and solutions centered around the vision of promoting efficiency and liquidity in financial markets. The Company offers a technology-enabled loan origination system and pairs this system with a distribution marketplace, Figure Connect, providing access to a deep and broad pool of capital markets partners (together, the “Technology Offering”). In addition, the Company has utilized blockchain technology to develop an exchange for digital assets and credit, with new product offerings including providing interest-bearing stablecoin deposits. Reorganization Prior to a change in corporate structure on March 18, 2024, the consolidated financial statements were under the former parent company, Figure Technologies, Inc. ("FT"). On March 18, 2024, FT, FT Intermediate, Inc. (“FTI”), and Figure Markets Holdings, Inc. (“FMH”) and other entities under common control consummated a reorganization (the “Reorganization”) whereby FT contributed assets and liabilities to FTI and subsequently, FT consummated a reverse merger with a subsidiary of FTI. Each outstanding share of common stock of FT converted into one share of common stock of FTI, whereby FTI (a) contributed assets and liabilities applicable to the FMH business and (b) 100 % of the equity interest to FT's successor. FT then ratably distributed 74.1 % of FMHs' common stock to third-party shareholders and 25.9 % to related parties in exchange for their FTI common stock. As a result of the Reorganization, there were two affiliated corporations under common control. Each of the following two corporations was owned either directly or indirectly by its controlling shareholder, Michael Cagney (“Controlling Party”): • FTI was formed on March 18, 2024 as a Delaware corporation and primarily operates through its wholly-owned subsidiary, Figure Lending Corp. (“Lending”). Lending offers Figure Connect which generates ecosystem and technology fees, and originates, sells, and securitizes home equity line of credit (“HELOC”) loans that it services. • FMH was formed on January 25, 2024 as a Delaware corporation. FMH utilized blockchain technology to develop an exchange for digital assets and credit, with new product offerings including providing interest-bearing stablecoin deposits. In May 2025, both FTI and FMH redomiciled from the State of Delaware to the State of Nevada. Recombination On August 29, 2025 (“Recombination Date”), FTI and FMH recombined the businesses through a series of transactions (the “Recombination”) and FMH became a wholly-owned subsidiary of FTI. Approximately five outstanding shares of FMH common or preferred stock, options, or warrants converted into one share of common or preferred stock, options, or warrants of FTI (“Conversion Rate”). Upon the consummation of the Recombination, FTI changed its name to Figure Technology Solutions, Inc. (“FTS”). The Recombination was a reorganization of entities under common control as FTI and FMH were owned, either directly or indirectly, by the Controlling Party before and after the Recombination. As a result, the Recombination is accounted for in a manner similar to a pooling of interests with the assets and liabilities of the parties to the Recombination carried over at their historical amounts. Therefore, the accompanying Consolidated Financial Statements have been retrospectively recast to reflect the results as if FTI and FMH were a single consolidated entity as of the earliest period presented. Initial Public Offering (“IPO”) On September 12, 2025, the Company completed its IPO of 36,225,000 shares of its Class A common stock, including 7,993,395 shares sold by selling stockholders and 4,725,000 sold by the Company pursuant to the exercise of the underwriters’ over-allotment option which was exercised in full, at a public offering price of $ 25.00 per share. The IPO resulted in net proceeds to the Company of $ 663.4 million after deducting the underwriting discounts and commissions and before deducting offering costs of $ 8.8 million, which were charged to additional paid-in capital as a reduction of the net proceeds received from the IPO. In connection with the IPO, all shares of outstanding convertible preferred stock, including 2,010,410 shares of Series E preferred stock issued upon the exercise of outstanding warrants, automatically converted to 113,910,905 shares of Class A common stock, and a total of 39,393,047 shares of our Class A common stock held by the Controlling Party and his 130 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) permitted transferees were converted into an equivalent number of shares of Class B common stock, of which 1,500,000 shares were subsequently converted back to Class A and sold in connection with the IPO. In connection with the IPO, the Company filed its Second Amended and Restated Certificate of Incorporation (the “Charter”), which authorizes a total of 1,000,000,000 shares of Class A common stock, par value $ 0.0001 (“Class A Common Stock”), 200,000,000 shares of Class B common stock, par value, $ 0.0001 (“Class B Common Stock”), 500,000,000 shares of Blockchain common stock, par value, $ 0.0001 (“Blockchain Common Stock”), and 100,000,000 shares of preferred stock, par value $ 0.0001 (“Preferred Stock”). NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The financial statements for the years ended December 31, 2025, 2024 and 2023 reflect the recast consolidated statements of FTS to give effect to the Recombination of entities under common control to the earliest period presented. The Consolidated Financial Statements include the accounts of the Company and the combined wholly-owned subsidiaries over which the Company controls significant operating, financial, and investing decisions of the entity as well as those entities deemed to be variable interest entities (“VIEs”) in which the Company is determined to have a controlling financial interest. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows have been included and are of a normal and recurring nature. All intercompany balances and transactions have been eliminated. Change in Accounting Principle Accounting for payment stablecoins Effective December 31, 2025, the Company voluntarily elected to change its method of accounting for payment stablecoins to classify them as cash equivalents. The Company believes the reclassification of payment stablecoins to cash equivalents is preferable because it better reflects their economic substance and the manner in which it is utilized by the Company. Payment stablecoins are readily convertible to known amounts of cash, allowing for near-instant, one-to-one redemption of the payment stablecoins for U.S. dollars. Furthermore, the underlying reserves backing payment stablecoins, comprising cash in segregated accounts titled for benefit of payment stablecoin holders and a government money market fund that holds cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements, exhibit the risk and liquidity characteristics of cash equivalents as defined in ASC 230, Statement of Cash Flows . This change in accounting principle has been applied retrospectively to all periods presented, including in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows and had no effect on previously reported total assets, total liabilities, equity, net income, or earnings per share for any period presented. The following table presents the impact to the Consolidated Balance Sheets as a result of this change to the prior period: December 31, 2024 As Reported Adjustment Recast Cash and cash equivalents $ 287,256 $ 2,414 $ 289,670 Digital assets 77,862 ( 2,414 ) 75,448 Total assets $ 1,159,578 $ — $ 1,159,578 The following table presents the impact to the Consolidated Statements of Cash Flows as a result of this change to the year ended December 31, 2024; there was no impact to the Consolidated Statements of Cash Flows beyond the line items shown below. There was no impact to the year ended December 31, 2023. Year Ended December 31, 2024 As Reported Adjustment Recast Investing activities: Purchases of digital assets $ ( 26,785 ) $ 15,227 $ ( 11,558 ) Proceeds from sales of digital assets 16,092 ( 12,813 ) 3,279 131 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Change in Statement of Cash Flow Presentation Related to Retained Beneficial Interests in Loan Securitizations The Company previously presented certain retained beneficial interests in loan securitization transactions within “Net cash provided by (used in) operating activities” on the Consolidated Statements of Cash Flows. The Company originates loans and sells or transfers loans into securitization vehicles while retaining beneficial interests. When the Company contributes loans to the securitization, it generally does not result in the receipt or payment of cash by the Company at the time of securitization. Upon further assessment, the Company determined that the transfer of loans in securitization transactions and the related retention of beneficial interests should be disclosed as non-cash investing activities in accordance with ASC 230, Statement of Cash Flows . As a result, the Company corrected the presentation by removing the non-cash securitization activity from operating cash flows for the periods presented in these Consolidated Financial Statements. Additionally, the cash activity related to the purchases and sales of loans in securitization transactions has been reclassified from operating cash flows to investing cash flows for the periods presented in these Consolidated Financial Statements. The correction did not impact the Company’s consolidated statements of operations, consolidated balance sheets, total cash, cash equivalents, or restricted cash. The correction represents a presentation reclassification only in the Consolidated Statements of Cash Flows. The Company evaluated the materiality of this correction and concluded that it was not material to previously issued financial statements. Accordingly, the Company has revised the comparative cash flow presentation to reflect the corrected presentation. The non-cash securitization activity will be disclosed as a non-cash investing activity within the supplemental cash flow disclosures and the cash securitization activity will be disclosed as investing cash flows. The following table presents the impact to the Consolidated Statements of Cash Flows as a result of the correction for the years ended December 31, 2024 and 2023; there was no impact to the Consolidated Statements of Cash Flows beyond the line items shown below. Year Ended December 31, 2024 Year Ended December 31, 2023 As Reported Adjustment As Corrected As Reported Adjustment As Corrected Operating activities: Proceeds from loan sales, net of repurchases $ 4,782,838 $ ( 116,335 ) $ 4,666,503 $ 3,297,216 $ ( 42,061 ) $ 3,255,155 Purchases of marketable securities ( 141,557 ) 141,557 — ( 42,061 ) 42,061 — Proceeds from sale of marketable securities 872 ( 872 ) — 602 ( 602 ) — Principal payments on marketable securities 15,347 ( 15,347 ) — 3,882 ( 3,882 ) — Net cash provided by (used in) operating activities ( 136,015 ) 9,003 ( 127,012 ) ( 28,868 ) ( 4,484 ) ( 33,352 ) Investing activities: Purchases of marketable securities — ( 25,222 ) ( 25,222 ) — — — Proceeds from sale of marketable securities — 872 872 — 602 602 Principal payments on marketable securities — 15,347 15,347 — 3,882 3,882 Net cash used in investing activities (A) ( 30,856 ) ( 9,003 ) ( 39,859 ) ( 22,107 ) 4,484 ( 17,623 ) Non-cash investing and financing activities: Marketable securities retained in securitization transactions $ — $ ( 116,335 ) $ ( 116,335 ) $ — $ ( 42,061 ) $ ( 42,061 ) (A) Net cash used in investing activities “As Corrected” represents the impact from this adjustment only and does not tie to the Consolidated Statements of Cash Flows for the year ended December 31, 2024 as it does not include the impact from the presentation change disclosed in “Change in Accounting Principle” in Note 2. 132 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Emerging Growth Company The Company is an “Emerging Growth Company” (“EGC”), as defined in Section 2(a)(19) of the Securities Act and modified by the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”), reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an EGC can elect to opt out of the extended transition period and comply with the requirements that apply to non-EGCs, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when an accounting standard is issued or revised and it has different application dates for public and private companies, the Company, as an EGC, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s Consolidated Financial Statements with another public company that is neither an EGC nor an EGC that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Consolidation Variable Interest Entities A VIE is a legal entity in which (i) equity at risk investors do not have the characteristics of a controlling financial interest, (ii) the entities do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties, or (iii) substantially all of the activities of the entity are performed on behalf of the party with disproportionately few voting rights. The Company’s variable interest arises from contractual, ownership, or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The determination of whether or not to consolidate a VIE under GAAP requires a significant amount of judgment concerning the degree of control over an entity by its holders of variable interests. To make these judgments, management conducts an analysis, on a case-by-case basis, on whether the Company is the primary beneficiary, the party who has the power to direct the activities of a VIE that most significantly impacts its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, and are therefore required to consolidate the entity. In circumstances where an entity does not have the characteristics of a VIE, the Company would consolidate the entity if the Company owns a majority of the equity interest and has control over significant operating, financial and investing decisions of the entity. For entities over which the Company exercises significant influence, but which do not meet the requirements for consolidation, the Company applies the equity method of accounting whereby it records its share of the underlying income of such entities. The Company records its share of income and losses in “Other (expense) income, net” in the Consolidated Statements of Operations. Distributions from equity method investments are classified as investing activities in the Consolidated Statements of Cash Flows. The Company applies the measurement alternative for entities in which the Company holds non-security interests and over which the Company does not exercise significant influence. Under the measurement alternative, investments are measured at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer in the current period. The carrying value is not adjusted for the Company’s investment if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment. See Note 3 for additional information regarding the Company’s measurement alternative and equity method investees. 133 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Management continually reconsiders whether the Company should consolidate a VIE or not; upon the occurrence of certain events, management will reconsider its conclusion regarding the status of an entity as a VIE. See Note 9 for additional information regarding the VIEs that the Company consolidates. Noncontrolling Interests in Consolidated Subsidiaries Noncontrolling interests represent the portion of subsidiaries’ net assets the Company consolidates but does not own. The Company recognizes each noncontrolling holder’s respective share of the net assets at the date of formation or acquisition. Noncontrolling interests are subsequently adjusted for the noncontrolling holder’s share of additional contributions, distributions, and their share of the net earnings or losses of each respective consolidated entity. The Company allocates net income or loss to noncontrolling interests based on the weighted-average ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in “Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries” in the Consolidated Statements of Operations. The Company does not recognize a gain or loss on transactions with a consolidated entity in which it does not own 100% of the equity, but the Company reflects the difference in cash received from, or paid to, the noncontrolling interests as adjustments to its carrying amount offset by additional paid-in-capital adjustments. Segments As detailed in Note 1, the Recombination that was effective on August 29, 2025 recombined FTI and FMH through a series of transactions into a single operating entity. Prior to the Recombination, the Company operated and managed its business through FTI and FMH, including their respective subsidiaries, as two distinct legal entities and disclosed operating segments based on each legal entity. Following the Recombination, the Company operates as a single operating and reportable segment. The legacy executive management teams have been consolidated into one executive team, and the Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM evaluates performance and allocates resources using consolidated net income (loss) as reported in the Consolidated Statements of Operations. Significant expense categories and revenue streams reviewed by the CODM are presented on the face of the Consolidated Statements of Operations. The CODM does not review assets, liabilities, or capital expenditures at a more granular level; accordingly, no such disclosures are presented. Total consolidated assets are presented on the Consolidated Balance Sheets. Substantially all of the Company’s revenues and long-lived assets are located in the United States, and the Company does not have any customers that represent more than 10% of consolidated revenues. The change in segment reporting did not have an impact on the Company’s consolidated financial position, results of operations, cash flows, or stockholders’ equity. Risks and Uncertainties In the course of its business, the Company primarily encounters two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on the Company’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, or other market factors, including risks that impact the value of the collateral underlying the Company’s marketable securities, loans, servicing, and digital assets. To the extent the Company originates, invests in, or services loans concentrated in certain geographic locations, disruptions to those locations may cause material risks to the Company despite favorable macroeconomic conditions. Changes in federal, state, or international tax laws or tax rulings could adversely affect the Company’s effective tax rate and its operating results. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make subjective estimates, judgments, and assumptions that affect the reported amounts in these Consolidated Financial Statements and accompanying notes, including assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated 134 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and estimates may change as the Company obtains new information. Management uses historical experience, current events, and other factors to develop estimates and assumptions that management reviews periodically. The Consolidated Financial Statements reflect the effects of estimate revisions in the period in which such revisions occur. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the Consolidated Financial Statements. Significant estimates include the determination of the prepayment rates, discount rates, default rates, and servicing costs (as applicable) used in determining the fair value adjustments for loans held for sale, held for investment, and servicing assets; valuation allowance for deferred tax assets; fair value of warrants; stock-based compensation, including the grant date fair value of the related common stock and employee awards of the Company, and other employee-related costs; inputs for capitalized internal use software and the related useful life for amortization. Fair Value ASC 820, Fair Value Measurements (“ASC 820”), requires the categorization of the fair value of assets and liabilities into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. Level Measurement 1 Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. 2 Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the asset or liability. 3 Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The Company follows this hierarchy for its assets and liabilities, with classifications based on the lowest level of input that is significant to the fair value measurement. The following summarizes the Company’s assets and liabilities within the fair value hierarchy at December 31, 2025 and 2024: 135 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Level Assets and Liabilities Measurement 1 Cash, cash equivalents and restricted cash Estimates of fair value are measured using observable, quoted market prices, or Level 1 inputs. Digital assets and digital asset collateral held Estimates of fair value are measured using observable, quoted digital asset prices within the Company’s principal market at the time of measurement as Level 1 inputs. Treasury Note Futures Estimates of fair value are measured using observable, quoted market prices, or Level 1 inputs. 2 Cash equivalents Estimates of fair value are based on quoted prices of similar assets. Marketable securities Estimates of fair value are measured based upon observable market data of similar instruments. Certificate repayment obligation Estimates of fair value are measured based upon observable market data of similar instruments. 3 Marketable Securities —Residual Interest Securities Estimates of fair value are measured based upon discounted expected future cash flows arising from the securitization collateral cash flows after payments of principal and interest to senior noteholders and other fees, incorporating assumptions of scheduled principal and interest collections; prepayment and default rates; and debt-to-income and loan-to-value ratios. Loans Estimates of fair value are measured based upon discounted expected future contractual loan cash flows, incorporating assumptions of scheduled principal and interest collections; prepayment and default rates; and debt-to-income and loan-to-value ratios. Loan servicing assets Estimates of fair value are measured based upon discounted expected future cash flows arising from the market fees earned to service underlying similar loans, net of market servicing costs, of the forecasted loan balances, incorporating scheduled principal and interest collections as well as prepayment and default rates. Significant Inputs — For the assets and liabilities measurements above, the Company uses the following significant inputs: • Conditional Prepayment Rate (“CPR”) — The percentage per annum of a pool of loans expected to voluntarily repay principal in advance of scheduled, contractual payment terms based on available market data for similar loan types and prepayment statuses. • Constant Default Rate (“CDR”) — The percentage per annum of a pool of loans expected to experience delinquency of greater than 90 days based on available market data for similar loan types and delinquency statuses. • Servicing Rates — Servicing rates used by the Company are based on available market data for similar loan types and delinquency statuses. • Discount Rate — Expected future cash flows are discounted at a rate derived from market data for similar financial instruments or related collateral. Fair Value Option — The fair value option election per ASC 825, Financial Instruments (“ ASC 825”), provides the Company with an irrevocable option to elect fair value as an alternative measurement for selected financial instruments upon initial recognition of an asset or liability, which the Company is then required to carry at fair value and reflect changes thereon in earnings. The Company elected the fair value option for marketable securities, including retained security interests, publicly-traded face-amount certificate liabilities related to the interest-bearing stablecoin (“YLDS”), digital financial assets acquired and corresponding financial liabilities assumed in connection with secured borrowing transactions, and loans as management believes incorporating current market conditions in the carrying value of these financial instruments provides better information regarding the Company’s economic exposure to these assets. Valuation Process — On a quarterly basis, with assistance from an independent valuation firm, management estimates the fair value of the Company’s Level 3 assets and liabilities. The Company’s determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are management’s best estimates after considering a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of an asset or liability in the form of a range, management selects a value within the range provided by the independent valuation firm to assess the reasonableness of management’s estimated fair value for that asset or liability. At 136 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) December 31, 2025, the Company’s valuation process for Level 3 measurements, as described below, was conducted internally or by an independent valuation firm and reviewed by management: • Marketable Securities — Residual Interest Securities — Management generally classifies the Company’s investments in the residual interests of securitizations collateralized by loans as Level 3 assets in the fair value hierarchy given such assets lack sufficient observable market activity to classify as Level 2. The Company also holds marketable securities in certain securitizations with recent similar transactions in active markets to derive the fair value of those securities as Level 2 assets. • Loans — Management generally considers the Company’s loans as Level 3 assets in the fair value hierarchy as such assets are illiquid investments that are specific to the loan product, for which there is limited market activity. On a quarterly basis, management engages an independent valuation firm to estimate the fair value of each loan categorized as a Level 3 asset. • Loan Servicing Asset — Management generally considers the Company’s servicing assets as Level 3 assets in the fair value hierarchy given such assets are illiquid contracts that are specific to the loan pool serviced. Servicing fees earned, and costs incurred, are derived from various loan types and are adjusted for the loans the Company services. • Other Valuation Matters — For Level 3 assets acquired, and liabilities assumed, during the calendar month immediately preceding a quarter end that were conducted in an orderly transaction with an unrelated party, management generally believes that the transaction price provides the most observable indication of fair value given the illiquid nature of these assets or liabilities unless management is aware of any circumstances that may cause a material change in the fair value through the remainder of the reporting period. For instance, significant changes in a counterparty’s intent or ability to make payments on a financial asset may cause material changes in the fair value of that financial asset. See Note 12 for additional information regarding the valuation of the Company’s assets and liabilities. Transfers and Servicing In situations where the Company is the transferor of financial assets to an entity that it does not consolidate, the Company assesses whether the transfer of the underlying assets would qualify for sale accounting or should be accounted for as secured borrowing. A special purpose entity (“SPE”) is an entity designed to fulfill a specific limited need of the company that organized it. SPEs are often used to facilitate transactions that involve securitizing financial assets or resecuritizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity, or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and, depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company generally securitizes loans if possible. The Company may periodically enter into transactions in which it transfers assets to a third party. Upon a transfer of financial assets, the Company may retain or acquire subordinated interests in the related assets. In such circumstances, the Company determines whether it has surrendered control over the transferred financial assets, considering its continuing involvement in the transferred financial asset through arrangements or agreements made contemporaneously with, or in contemplation of, the transfer. If the Company surrenders control of the financial assets, including legal isolation of the financial asset and ability of the transferee to pledge or exchange the transferred assets without constraint, the Company accounts for the transfer as a sale and (a) recognizes the financial and servicing assets it acquired or retained and the liabilities it has incurred, (b) derecognizes financial assets it has sold and liabilities extinguished, (c) recognizes a gain (loss) for the fair value of 137 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) servicing assets (liabilities), if any, obtained as “Gain on servicing asset, net” in the Consolidated Statements of Operations, and (d) for loans sold, recognizes a realized gain or loss for the difference between the cash proceeds from the sale of loans and the carrying value of the loans sold as “Gain on sale of loans, net” in the Consolidated Statements of Operations. If the Company has not transferred the entire original financial asset to an entity that is not consolidated and/or when the transferor has continuing involvement with the transferred financial asset that precludes treating the transfer as a sale, the Company retains the financial assets with a related secured borrowing liability for the collateral pledged and does not recognize any gain or loss. Leases The Company recognizes right-of-use assets (“ROU”) and lease liabilities for operating leases at the commencement date of the lease based on the present value of remaining fixed and determinable lease payments over the lease term. The Company calculates the present value of future payments by using an estimated incremental borrowing rate, which approximates the rate at which the Company would borrow on a secured basis and over a similar term, and recognizes lease expense for operating leases on a straight-line basis over the lease term. ROU assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company uses the incremental borrowing rate on the commencement date in determining the present value of the lease payments. Derivatives Treasury Note Futures Contracts The Company enters into long and short treasury note futures contracts to manage its interest rate risk and, from time to time, enhance investment returns. The Company’s derivatives are recorded as either assets or liabilities in the Consolidated Balance Sheets and measured at fair value. The Company’s derivative financial instrument contracts are not designated as accounting hedges under GAAP; accordingly, all changes in fair value are recognized in earnings and are reported as adjustments to net income within operating cash flows in the Consolidated Financial Statements. Any results from settlement of non-designated hedging derivatives are included as realized gains or losses from futures in cash flows from investing activities. The Company estimates the fair value of its derivative instruments as described in Note 12 of these Consolidated Financial Statements. The Company recorded aggregate net realized and unrealized gains (losses) for derivative assets and liabilities within “Gain on sale of loans, net” in the Consolidated Statements of Operations of $( 6.2 ) million and $ 0.3 million for the years ended December 31, 2025 and 2024, respectively. The Company did not have any outstanding futures contracts during the year ended December 31, 2023. Any results from the settlement of the Company derivative financial instruments are included as “Realized losses on futures” as an investing cash flow within the Consolidated Statements of Cash Flows. The Company records derivative assets and liabilities within “Other current liabilities” and “Other current assets” in the Consolidated Balance Sheets. As of December 31, 2025 and December 31, 2024, we recorded the following balances, respectively: Notional December 31, 2025 December 31, 2024 Other current asset: Treasury note futures $ 159,800 $ 442 $ 329 Other current liability: Treasury note futures $ — — — Net $ 442 $ 329 Digital Asset Collateral Digital asset collateral received in exchange for personal loans is evaluated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 815, Derivatives and Hedging (“ASC 815”) to assess whether such arrangements represent hybrid instruments containing embedded derivative features. The Company’s obligation to return such noncash collateral is therefore accounted for as a hybrid derivative instrument, that is not designated as a hedging instrument, and consists of (i) a liability host contract representing the Company’s obligation to return the crypto assets to the counterparty and (ii) an embedded derivative feature indexed to changes in the fair value of 138 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) the underlying crypto asset. The debt host contract and fair value of the embedded derivative are recorded in “Other current liabilities” on the Consolidated Balance Sheets. Changes in the fair value of the collateral asset are offset by changes in the fair value of the embedded derivative and are included within “Other (expense) income, net” and do not have a material effect on the Consolidated Statements of Operations. The Company has elected the fair value option for its fiat-based loan arrangements, including digital asset-backed personal loans, in accordance with ASC 825. As a result of this election, the identified liability host contract is measured at fair value. In accordance with ASC 815-10, an embedded derivative is not required to be bifurcated from its host contract if the hybrid instrument is measured at fair value because the effects of changes in the fair value of the underlying crypto asset are already reflected in the overall fair value remeasurement of the obligation. Personal loans are generally originated at loan-to-value (“LTV”) ratios ranging from approximately 50 % to 75 %. If LTV ratios increase beyond established thresholds, including as a result of declines in crypto asset prices, borrowers may be required to pledge additional collateral or the loans may be subject to liquidation in accordance with contractual terms. The collateral is in the Company’s control and the Company has the ability to rehypothecate, stake, lend or otherwise use for liquidity, trading or economic participation purposes; however, the Company does not have a practice of using the collateral for these purposes. The primary risks of the host contracts relate to credit exposure secured by the collateral, and changes in the value of the collateral affect only the performance of the lending arrangements through loan-to-value thresholds, margin requirements, and liquidation provisions. Income Taxes Income taxes are accounted for using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted statutory tax rates and laws applicable to future years in which those temporary differences are expected to be realized or recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as an income tax expense (benefit) in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to the amount the Company believes is more-likely-than-not to be realized based on all positive and negative evidence, including consideration of historical and projected taxable income, the expected timing of the reversals of existing temporary differences, and tax planning strategies. If the Company determines all, or part of the net deferred tax assets are not realizable in the future, the Company will record an adjustment to the valuation allowance and a corresponding charge to earnings in the period such determination is made. The Company recognizes the effect of income tax positions in the consolidated financial statements only if those positions are more-likely-than-not to be sustained upon audit. Recognized income tax positions are measured at the largest amount of tax benefit that is more than 50% likely to be realized upon settlement. Changes in recognition or measurement are recorded in the period in which the change in judgment occurs. The Company records interest and penalties, if any, on income tax uncertainties are classified within income tax expense in the income statement. The Company determines on a regular basis the amount of undistributed earnings that will be indefinitely reinvested in non-US operations. This assessment is based on the cash flow projections and operational needs of our foreign subsidiaries. The Company intends to permanently reinvest all foreign earnings. See Note 13 for additional information regarding the Company’s income taxes. Balance Sheet Measurement Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with maturities less than 90 days when purchased to be cash equivalents, which are primarily money market funds, short dated treasury securities, overnight repurchase agreements and payment stablecoins for the Company. Substantially all amounts on deposit with federally insured financial 139 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) institutions exceed insured limits. Restricted cash represents cash held on behalf of third parties, primarily principal and interest collected on behalf of loan investors as part of the Company’s servicing operations and held in restricted accounts. The Company considers payment stablecoins cash equivalents as they are readily convertible to known amounts of cash, allowing for near-instant, one-to-one redemption of the payment stablecoins for U.S. dollars. Furthermore, the underlying reserves backing payment stablecoins, comprising cash in segregated accounts titled for benefit of payment stablecoin holders and a government money market fund that holds cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements, exhibit the risk and liquidity characteristics of cash equivalents as defined in ASC 230, Statement of Cash Flows . The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the same amounts shown in the Consolidated Statements of Cash Flows: December 31, 2025 December 31, 2024 Cash and cash equivalents $ 1,159,597 $ 287,256 Payment stablecoins 38,544 2,414 Restricted cash 68,637 57,777 Total cash, cash equivalents and restricted cash $ 1,266,778 $ 347,447 Accounts receivable, net The following table presents the components of “Accounts receivable, net” reported in the Consolidated Balance Sheets: December 31, 2025 December 31, 2024 Trade accounts receivable $ 30,627 $ 2,159 Interest receivable 4,440 3,214 Subservicer receivable (A) 6,914 5,313 Other accounts receivable 10,355 10,312 Less: Allowance for credit losses ( 320 ) — Accounts receivable, net $ 52,016 $ 20,998 (A) Subservicer receivable consists of loan principal and interest payments collected on behalf of the Company by a subservicer that have not yet been remitted to the Company. The Company recognizes an allowance for trade accounts receivable based on expected credit losses. The allowance for credit losses is measured based upon the lifetime expected credit loss which is based on the number of days that billings are past due, customer payment behavior, and other customer-specific information. The Company is exposed to credit risk related to trade accounts receivable. In order to manage credit risk, the Company generally has the right to withhold amounts due from transaction proceeds paid to the customer. At December 31, 2025, trade accounts receivable from four customers individually accounted for approximately 28.8 %, 18.6 %, 16.8 %, and 14.8 % of trade accounts receivables. No other customer accounted for 10% or more of trade accounts receivable. Investments Marketable Securities Upon securitization of loans that the Company originates or purchases in transactions that qualify as sales, the Company is required to retain a certain portion of the securitization trusts into which the loans are sold in the form of debt securities and/ or beneficial or other interests to satisfy risk retention regulations. In each case, the Company elected the fair value option, where applicable, for the securities and other interests acquired at the time of sale, and it carries those securities and other interests at their fair values. Realized and unrealized changes in fair value are recorded as components of “Gain on sale of loans, net” in the Consolidated Statements of Operations resulting in a total increase (decrease) of $ 3.9 million, $ 1.1 million and $( 2.9 ) million for the years ended December 31, 2025, 2024, and 2023, respectively. Digital Assets Held as Collateral The Company holds digital assets held as collateral against personal loans that the Company originates. Recognized customer assets and liabilities comprise customer custodial funds and corresponding customer custodial liabilities that 140 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) represent the Company’s obligation to return these assets to customers. The digital asset collateral is recognized if the Company obtains control of the collateral. Certain other digital asset collateral is not within the Company’s control, and is therefore not recognized on the Company’s Consolidated Balance Sheets. While the collateral is in the Company’s control, the Company has the ability to use the collateral for loan, margin, rehypothecation, or other similar activities to which the Company or its affiliates are a party; however, the Company chooses not to do so without the customer’s consent. Digital Assets Held The Company holds and transacts in various digital assets which are homogeneous in their form and represent tokenized, blockchain-enabled technology with utility on distributed ledger networks. The Company’s digital assets are presented within “Digital assets” and “Digital assets, non-current” on the Consolidated Balance Sheets. Primarily, digital assets held by the Company represent contractual rights to receive cash or other financial assets and therefore fit the US GAAP definition of a financial instrument. Such financial instruments are classified as assets or liabilities and are accounted for in accordance with ASC 825 when the fair value option is elected, as well as other relevant US GAAP topics. Certain digital assets qualify for classification as crypto-assets under ASC 350-60, Crypto Assets (“ASC 350-60”), and are recorded and subsequently remeasured at fair value, with gains and losses recorded in earnings. Generally, realized gains and losses on disposition of digital assets held are recognized on a first-in-first-out basis which are influenced by the volume and mix of digital assets received and used, in addition to the timing of asset turnover. Cash flows from digital assets held are generally recorded as supplemental non-cash investing or financing activities in the Consolidated Statements of Cash Flows. The Company participates in native staking activities when depositing certain crypto-assets directly into blockchain-native staking protocols. In these arrangements, the Company retains control of the deposited crypto-assets and may withdraw them at its discretion in accordance with protocol rules. Therefore, such assets are not derecognized and continue to be reported in “Digital assets” at fair value on the Company’s Consolidated Balance Sheets. Staking rewards earned from native staking activities are generated through participation in network validation and are recognized as “Other (expense) income, net” in the Consolidated Statements of Operations when earned and available. Staking rewards are not material for the years ended December 31, 2025 and 2024. The Company deploys certain digital financial assets in the form of payment stablecoins into programmatic lending protocols that operate with native functionality. By supplying digital financial assets to lending pools, the Company participates as a liquidity provider and earns interest income based on overall utilization and prevailing protocol interest rates; as such, the Company retains unilateral rights to withdraw supplied assets at its discretion and subject to protocol withdrawal conditions. Therefore, the supplied assets remain reported within “Cash and cash equivalents” in the Consolidated Balance Sheets consistent with applicable accounting policy. Interest income earned in connection with participation in the protocol is recognized in “Other (expense) income, net” in the Consolidated Statements of Operations when earned. The Company participates in decentralized liquidity protocols by supplying digital financial assets to liquidity pools in exchange for receipt tokens. These transactions are accounted for as secured borrowings under ASC 860, Transfers and Servicing , as the Company maintains effective control over the transferred assets. Digital financial assets in the form of payment stablecoins pledged as collateral remain classified within “Cash and cash equivalents”. The Company recognizes a financial digital financial asset for the receipt tokens received, classified within “Digital assets”, and a corresponding financial liability to redeem such tokens, classified within “Other current liabilities”. The Company has elected the fair value option under ASC 825 for both the receipt token assets and the related redemption liabilities. These instruments are initially measured at transaction price and subsequently remeasured to fair value at each reporting date. Unrealized gains and losses from remeasurement, including transaction-based fees earned by the pool, are recorded as adjustments to the carrying amounts of the asset and liability. In accordance with the economic substance of these arrangements, cumulative gains and losses are recognized in earnings upon redemption and final settlement of the liquidity position. See Notes 3 and 12 for additional information regarding the Company’s investments and related valuation, respectively. Servicing Rights Servicing rights represent the contractual right to service the loan that the Company either originates and sells or purchases and sells. Upon loan sale, the Company recognizes a servicing asset at fair value, with realized and unrealized changes in fair value recorded as components of “Gain on servicing asset, net” in the Consolidated Statements of Operations. Realized gains (losses) on servicing rights represent the excess (deficient) expected benefits of servicing that are greater (less) than 141 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) market compensation for servicing obligations, based on the estimated fair value of servicing rights retained. Servicing rights are aggregated into pools as applicable, and each pool of servicing rights is accounted for in the aggregate as a servicing asset and reported as Loan servicing asset, at fair value in the Consolidated Balance Sheets. After the sale of loans that the Company services, the Company recognizes the monthly contractual servicing fees it earns, gross of subservicing fees paid to a third party subservicer, based upon the unpaid principal balance (“UPB”) of the underlying loans as revenue, presented as “Servicing fees” in the Consolidated Statements of Operations. See Notes 4 and 12 for additional information regarding the Company’s servicing rights and valuation, respectively. Loans The Company’s loan portfolio primarily consists of originated or purchased HELOC loans classified as held for sale when management intends to sell the loans. Additionally, the Company originates personal loans collateralized by digital assets. Upon origination or purchase, the Company elects the fair value option for all loans, except for those made to related parties, and carries those loans at their fair value. Realized and unrealized changes in fair value are recorded as components of “Gain on sale of loans, net” in the Consolidated Statements of Operations, resulting in a net gain (loss) of $ 3.7 million, $ 16.5 million and $( 3.3 ) million for the years ended December 31, 2025, 2024 and 2023, respectively. Interest receivable of $ 4.4 million and $ 3.2 million as of December 31, 2025 and 2024, respectively, is recorded as a component of “Accounts receivable, net” in the Consolidated Balance Sheets. The Company recognizes loan discounts, if any, on the loans it originates as “Origination fees” in the Consolidated Statements of Operations at time of origination. See Notes 5 and 12 for additional information regarding the Company’s loans and related valuation, respectively, and see Note 10 for information regarding the Company’s commitments and obligations related to loans the Company holds and sells. Debt The Company primarily finances its operations using (a) warehouse credit facilities secured by the loans it originates or acquires (“Funding Debt”), (b) repurchase agreements for the securities it retains upon securitization of those loans, excluding residual interests therein (“Retained Interest Facility”), and (c) a promissory note under a senior secured financing facility whereby the Company pledges certain eligible loan servicing rights, net of expected costs (“MSR Note”). Each of these borrowing arrangements are treated as collateralized financing transactions and carried at their contractual amounts, excluding accrued interest, as specified in the respective agreements. The carrying amount of the Company’s secured financing agreements and warehouse credit facilities approximates fair value as they are either short-term and/or mark-to-market facilities. The Company pledges certain securities, loans, or other assets as collateral under secured financing agreements and warehouse credit facilities with financial institutions, the terms and conditions of which are governed by each respective lender agreement. Such collateralized financing arrangements generally provide the counterparty the right to rehypothecate the underlying collateral, and the Company discloses in the notes to the financial statements the extent to which such collateral has been pledged. The related collateral and corresponding repurchase liabilities are presented on a gross basis in the financial statements whereby the repurchase liabilities equal the carrying value of the collateral, and any associated interest expense is recognized on a basis consistent with the Company’s other financing arrangements. If the collateral is rehypothecated, the counterparty is obligated to return substantially similar assets upon settlement of the repurchase agreement. The amounts available to be borrowed under repurchase agreements and warehouse credit facilities are dependent upon the fair value of the securities, or unpaid principal balance of loans pledged as collateral, which can fluctuate with changes in interest rates, type of security, and liquidity conditions within the banking, mortgage finance, and real estate industries. The Company manages credit, market, and liquidity risks related to these agreements by sourcing funding from a diverse group of counterparties, providing a range of assets as collateral, and actively monitoring and maintaining margin requirements. The Company capitalizes and amortizes deferred debt facility costs incurred when entering financing agreements on a straight-line basis over the expected term of term facilities or weighted-average life of the expected principal repayments for revolving credit facilities. The Company recognizes amortization of deferred debt facility costs, as well as deferred amounts written off and contractual interest and fees owed as incurred, as interest expense in its Consolidated Statements of Operations, which does not materially differ from the effective interest method applied to such facilities. 142 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Interest payable on debt of $ 1.4 million and $ 2.1 million as of December 31, 2025 and 2024, respectively, is recorded as a component of “Accounts payable and accrued liabilities” in the Consolidated Balance Sheets. The Company also consolidates the Figure Certificate Company (“FCC”) that issues face-amount certificates that trade on blockchain as an interest-bearing stablecoin (“YLDS”), which the Company carries at fair value and expenses financing costs as incurred. See Note 6 for additional information regarding the Company’s debt. Other Assets and Liabilities At December 31, 2025 and 2024, (a) Other current assets primarily included prepaid expenses, distressed asset claims, and exchange market loans receivable, and (b) Other non-current assets primarily included right-of-use lease assets, internally developed software, and other investments. At December 31, 2025 and 2024, Other current liabilities primarily included digital asset collateral repayment obligations, loan indemnification reserve, and other payables. During the year ended December 31, 2024, the Company expensed $ 5.0 million of costs it capitalized as other assets in anticipation of raising capital once the Company determined that it was unlikely such costs would provide future benefit. See Notes 3 and 12 for further information on the digital asset collateral repayment obligation. Income Recognition Revenue Recognition The Company’s revenues are substantially comprised of ecosystem and technology fees, loan originations and sales gains or losses, interest income earned on those loans, and loan servicing. Within Note 2, see “Loans” for a discussion of revenues recognized as “Origination fees” and “Gain on sale of loans, net”, and see “Servicing” for a discussion of revenue recognized as “Servicing fees” and “Gain on servicing asset, net”, respectively, in the Consolidated Statements of Operations. Ecosystem and Technology Fees The following table presents the components of “Ecosystem and technology fees” in the Consolidated Statements of Operations: Years Ended December 31, 2025 2024 2023 Ecosystem and technology fees: Technology offering fees (A) $ 50,646 $ 20,188 $ 10,215 Ecosystem fees (B) 56,817 122 — 107,463 20,310 10,215 Program fees (C) 13,345 8,004 413 Total ecosystem and technology fees $ 120,808 $ 28,314 $ 10,628 (A) Technology o ffering fees include fees that are accounted under ASC 606 as well as $ 20.6 million for the year ended December 31, 2025 that are in the scope of ASC 310. All technology fees recorded for the years ended December 31, 2024 and 2023 were within the scope of ASC 606. (B) Ecosystem fees include fees that are accounted for under ASC 606 as well as $ 26.9 million for the year ended December 31, 2025 that are in the scope of ASC 310. All ecosystem fees recorded for the years ended December 31, 2024 and 2023 were within the scope of ASC 606. (C) Program fees are not in the scope of ASC 606 . The Company recognizes ecosystem and technology fees in accordance with FASB ASC 606, Revenue from Contracts with Customers or ASC 310, Receivables . When the Company is contractually required to purchase a loan on which it earns ecosystem or technology fees, it recognizes the revenue in accordance with ASC 310 upon purchase, or origination if the loan seller originates a loan using the Company’s platform, as the Company elects the fair value option for those loans. When the Company does not purchase the loan, it recognizes the revenue in accordance with ASC 606 upon invoicing as the Company elected the practical expedient to recognize revenue in the amount to which the Company has the right to invoice. 143 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) At the Company’s discretion and subject to its right of first refusal, the Company may purchase loans originated using its Technology Offering and account for such purchases in accordance with ASC 860, Transfers and Servicing, classified as Loans held for sale, at fair value in the Consolidated Balance Sheets as the Company intends to resell these loans to third-party loan investors while retaining servicing rights. Ecosystem Fees The Company provides certain loan originators access to its custom-built marketplace platform to facilitate the origination, buying, and selling of standardized assets originated through its loan origination system in exchange for fees to use its technology for origination. The provision of continuous stand-ready access to this platform is the Company’s only performance obligation. Accordingly, the performance obligation is satisfied when each loan is originated and the Company has the right to invoice the loan originator upon origination. Loan originators can access the platform until their status is terminated via written notice by either the loan originator or the Company. The Company elected to use the as-invoiced practical expedient to recognize revenue associated with this subscription as the invoiced amount directly corresponds to the value to the loan originator of the Company’s performance obligation completed to date since the platform no longer provides any further utility to the loan originator after loan origination. Ecosystem fees are one-time fees applied on a loan-by-loan basis, and invoiced monthly based on the monthly funded volume the loan originator originated in the previous complete calendar month. The fees are based on a sliding scale that decreases as higher volume tiers are reached, with some loan originators subject to a minimum fee threshold applicable to higher volume tiers. The Company assesses the tiered volume on a month-to-month basis and volume applied to tiers reached in any given month does not apply to future periods. Technology Fees The Company earns volume-based technology and processing fees, based on the principal balance of each loan originated from our originator partners, excluding wholesale brokers, using the Technology Offering, access to which represents the Company’s sole performance obligation that is satisfied upon each loan transaction, as well as a fee associated with the execution of loan sales. The Technology Offering enables partners, who are retail and wholesale lenders, to originate loans branded under each partner’s name, through access to a suite of services such as loan application, submission and verification, risk underwriting, and electronic loan offer and documentation delivery for borrower execution. The Company bills a fixed percentage for each loan originated and generally bills associated fees on a monthly basis with customary payment terms. As such, the Company’s contracts with customers do not include a significant financing component. Program Fees The Company earns a fee for arranging and facilitating the transfer of financials assets through the securitization of HELOCs, for which the Company accounts under ASC 860. This fee is based on the outstanding principal balance of the transferred HELOC and is fully earned and paid on the securitization closing date. Interest Income The Company earns interest income primarily from the following sources: • Loans — The Company accrues interest income on loans it holds based on the UPB outstanding at contractual interest rates, reported as “Interest income” in the Consolidated Statements of Operations. Loans are placed on nonaccrual status when they become 90 days past due (30 days past due for collateralized personal loans) or when management doubts full recovery of interest and principal. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Interest income is subsequently recognized only to the extent cash payments are received or when the loan has been placed back in accrual status. Loans are restored to accrual status when the loan becomes current and management expects repayment of the remaining contractual principal and interest. The Company also recognizes cash received on non-accrual loans as interest income after all contractual principal is repaid or expects collection of the remaining UPB. 144 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) • Marketable Securities — The Company recognizes interest income on debt securities where the Company expects to collect all contractual cash flows, and the debt security cannot be contractually prepaid in such a way that the Company would not recover substantially all of its recorded investment based on the stated coupon rate and the outstanding principal amount of the debt security. The Company recognizes interest income on beneficial interests based on the investment’s accretable yield, which represents the difference between the expected undiscounted cash flows and the carrying value of the investment. The Company recognizes the accretable yield as interest income on a prospective level yield basis over the life of the expected cash flows. Changes in the amount or timing of actual or expected cash flows may change the accretable yield, and the Company adjusts interest income recognized in future periods using a recalculated level yield applied to the then-current carrying value. Increases (decreases) in the amount of cash flows or acceleration (deceleration) of cash flows, in isolation, generally increase (decrease) the interest income recognized in future periods. • Cash and Cash Equivalents — The Company accrues interest income for cash held at depository institutions and investments in short-term instruments, such as money-market funds and U.S. Treasury Bills, and through repurchase agreements that are collateralized by U.S. Treasury Bills. Other Revenue Other revenue primarily consists of gains (losses) on the Company’s investments in certain entities and fees earned on marketing services provided for partners during the years ended December 31, 2025, 2024 and 2023. See Note 3 for additional information regarding the Company’s equity method investments. Expense Recognition Due to the nature of its business model, the Company does not present cost of revenue as a separate line item on the Consolidated Statements of Operations. Costs attributable to ASC 606 revenue generation are limited to those directly incurred as a result of revenue transactions accounted for in accordance with ASC 606 and are included within “Operations and processing”. Other costs, such as cloud hosting fees, amortization of capitalized software, and compensation are not considered cost of revenue as they are not incurred solely as a result of ASC 606 revenue-generating activity and would be incurred regardless of such transactions. Operating Costs The Company presents stock-based compensation, software costs, and other operational expenses within the following functional groups based on the headcount allocable to each group and the specific operation of each group: • General and Administrative — Corporate activities not allocable to the other groups • Technology and product development — Development and maintenance of the Technology Offering • Operations and processing — Loan underwriting, origination, and servicing • Sales and marketing — Advertising, marketing, and sales Stock-Based Compensation The Company issues stock options and RSUs to employees and non-employees, including directors and consultants. Stock options are initially measured at fair value at the date of grant using a Black-Scholes option-pricing model, and RSUs are measured at the fair market value of the Company’s common stock at the grant date. For RSUs that include a market condition, the grant-date fair value is estimated using a Monte Carlo simulation model, which incorporates assumptions regarding the expected volatility of the Company’s common stock and other market-related factors. Compensation expense for such awards is recognized over the requisite service period, regardless of whether the market condition is ultimately satisfied. Stock-based compensation expense for options and RSUs is recognized based on the respective grant-date fair values. For awards that include a performance-based vesting requirement, the Company recognizes expense when it is probable that the performance-based condition is satisfied and the award has satisfied other vesting conditions, if any. The Company recognizes compensation expense over the requisite service period, generally on a straight-line basis for awards that vest solely based on continued service, or immediately if there is no service period. 145 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The Company elects to account for forfeitures as they occur. See Note 7 for additional information regarding the Company’s stock-based compensation. Software Costs The Company incurs costs associated with the development, maintenance, purchase, and licensing of software. The Company expenses costs to maintain software, preliminary stage costs incurred before development commences, and other costs required by GAAP, presented as operating costs, aggregated by most closely associated functional group, in the Consolidated Statements of Operations. The Company capitalizes remaining costs as permitted by GAAP, including costs associated with substantively new software functionality for internal use and technologically feasible software for external use that the Company evaluates for impairment at least quarterly. Once internally-developed software is substantively complete and ready for intended use or upon release of software for external use, the Company amortizes capitalized costs over the estimated useful lives on a straight-line basis within “Technology and product development” expense in the Consolidated Statements of Operations as follows: Estimated Useful Life (Years) December 31, 2025 December 31, 2024 Internally developed software 3 $ 101,873 $ 80,664 Accumulated amortization (A) ( 73,704 ) ( 57,503 ) Net $ 28,169 $ 23,161 (A) The Company amortized $ 16.3 million, $ 17.1 million, and $ 19.4 million of capitalized internally-developed software costs during the years ended December 31, 2025, 2024 and 2023, respectively. During the year ended December 31, 2024, the Company impaired and wrote-off $ 6.3 million of software it developed that it intended to use to offer equity management services, but that the Company did not ultimately offer, as well as $ 2.3 million of software it purchased to administer its exchange platform, but that the Company no longer planned to use as intended since the seller subsequently provided enhanced technology services that made the impaired software obsolete. Accordingly, the Company recognized an aggregate impairment of $ 8.6 million in “Other (expense) income, net” in the Consolidated Statements of Operations in connection with this software during the year ended December 31, 2024, respectively. The Company had no related impairments as of the year ended December 31, 2025. Other Operational Costs In addition to stock-based compensation and software costs, the Company primarily incurs costs related to salaries and bonuses of its employees that it accrues on a quarterly basis, or annually for bonuses based on annual service requirements, as well as costs it expenses as incurred, including advertising and promotion; loan underwriting, origination, and servicing; legal, audit, and other professional services; rent; and other general and administrative costs. Sales and marketing costs, including marketing services, direct mail, and digital advertising campaigns, are expensed as incurred. Sales and marketing costs for the years ended December 31, 2025, 2024 and 2023 were $ 76.1 million, $ 55.7 million, and $ 52.8 million, respectively, which included $ 63.9 million, $ 50.1 million and $ 46.5 million of advertising expense, respectively. Other (expense) income, net For the years ended December 31, 2025 and 2024, “Other (expense) income, net” included changes in the fair value of digital assets, realized gains and losses incurred on the sale of digital assets held for sale, gains on legal settlement, and impairment of internally developed software. Recently Issued Accounting Standards With the exception of those discussed below, there have not been recent changes in accounting pronouncements issued by the FASB that are applicable to, or adopted by, the Company during the year ended December 31, 2025. 146 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Recently Adopted Accounting Standards Credit Losses In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which provides all entities a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company early adopted ASU 2025-05 as of October 1, 2025 on a prospective basis; adoption did not have a material impact on the Company’s Consolidated Financial Statements or related disclosures. Recently Issued Accounting Standards Not Yet Adopted In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), which clarifies the applicability of interim reporting guidance, establishes a comprehensive list of interim disclosures required under GAAP, and introduces a disclosure principle requiring entities to disclose events occurring after the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 also improves navigability by organizing interim disclosure requirements across the Codification and clarifies the form and content of interim financial statements, including the use of condensed statements and required accompanying notes. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027, for public business entities, and after December 15, 2028, for all other entities, with early adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-11 on its interim reporting disclosures. In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans (“ASU 2025-08”), which introduces the concept of purchased seasoned loans and expands use of the gross-up approach to a broader population of acquired loans. Under the amendments, loans (other than credit cards) that are acquired without significant credit deterioration since origination and meet seasoning criteria are accounted for using the gross-up approach at acquisition (that is, recognition of an allowance for credit losses with a corresponding increase to amortized cost). A loan generally is considered seasoned if it is obtained more than 90 days after origination and the transferee was not involved in the loan’s origination; the guidance provides indicators for assessing involvement and excludes certain assets (such as credit cards, debt securities, and Topic 606 trade receivables) from the purchased seasoned loans category. ASU 2025-08 also clarifies related measurement and interest income guidance for purchased seasoned loans and aligns various Topics (including business combinations, consolidations, and transfers and servicing) with the new model. ASU 2025-08 is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim periods within those annual periods, and is applied prospectively to loans acquired on or after the date of initial application; early adoption is permitted in an interim or annual period for which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the effect of adopting ASU 2025-08 on its financial statements. In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for a Share-Based Payment from a Customer in a Revenue Contract (“ASU 2025-07”). The ASU expands the population of contracts excluded from derivative accounting by excluding contracts whose underlyings are based on operations or activities specific to one of the parties to the contract. In addition, the ASU clarifies that a share-based payment received from a customer as consideration for goods or services should be accounted for under ASC 606’s share-based noncash consideration guidance, and that guidance in other topics should not be applied unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under ASC 606. ASU 2025-07 is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with earlier adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-07 on its financial statements. 147 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for software costs by removing references to prescriptive project stages and establishing a new recognition threshold. Under ASU 2025-06, entities are required to begin capitalizing internal-use software costs once management has authorized and committed to funding the project and it is probable that the project will be completed and the software will be used as intended. In assessing the probability threshold, entities must evaluate whether significant development uncertainty exists, including unresolved technological innovations or unproven features, or whether significant performance requirements have not been identified or continue to be substantially revised. The amendments also incorporate website development cost guidance into Subtopic 350-40, require property, plant, and equipment disclosures for capitalized internal-use software costs, and eliminate duplicative intangible disclosure requirements. ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual periods, with early adoption permitted. The Company is currently evaluating the effect of adopting ASU 2025-06 on its financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. ASU 2024-03 also requires a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclosure of the total amount of selling expenses, and in annual reporting periods. the Company’s definition of selling expenses. ASU 2024-03 is effective for public business entities’ annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of adopting ASU 2024-03 on its disclosures. In December 2023, the FASB issued ASU 2023‐09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. ASU 2023-09 is effective for public business entities’ annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, with retrospective application permitted. The Company is currently evaluating the effect of adopting ASU 2023-09 on its disclosures. NOTE 3 – INVESTMENTS The Company holds investments across three primary categories: marketable securities that represent the interests it is required to retain upon securitizing loans in transactions that are considered sales under GAAP; digital assets, in the form of cryptocurrencies or digital financial assets, held and held as collateral for personal loans; and investments in entities that the Company does not consolidate. 148 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Marketable Securities The following table summarizes the Company’s marketable securities at December 31, 2025 and 2024: December 31, 2025 Outstanding Face Amount (A) Net Fair Value Adjustment Carrying Value (B) Marketable securities, at fair value: Investment grade debt securities (C) $ 202,358 $ 1,500 $ 203,858 Below investment grade debt securities (D) 29,648 ( 521 ) 29,127 Residual interest securities (E) 40,803 ( 637 ) 40,166 Total marketable securities, at fair value $ 272,809 $ 342 $ 273,151 December 31, 2024 Outstanding Face Amount (A) Net Fair Value Adjustment Carrying Value (B) Marketable securities, at fair value: Investment grade debt securities (C) $ 121,278 $ ( 102 ) $ 121,176 Below investment grade debt securities (D) 7,897 ( 90 ) 7,807 Residual interest securities (E) 24,138 10,368 34,506 Total marketable securities, at fair value $ 153,313 $ 10,176 $ 163,489 (A) The total outstanding face amount represents the aggregate face amount of the debt securities outstanding at each period end. (B) The Company elected the fair value option for marketable securities; therefore, carrying value represents fair value. The total carrying value includes $ 231.8 million and $ 129.0 million of debt securities collateralized under repurchase agreements at December 31, 2025 and 2024, respectively. See Notes 6 and 12 for additional information regarding the retained interest facility and valuation of the Company’s marketable securities, respectively. (C) Represents debt securities rated A- or above by DBRS Morningstar or comparable rating by other rating agencies. (D) Represents debt securities rated below A- by DBRS Morningstar or comparable rating by other rating agencies. (E) Represents residual interests and non-rated securities in securitizations that are not considered debt securities, including 20 and 11 non-rated securities with aggregate outstanding face amounts of $ 20.9 million and $ 15.1 million at December 31, 2025 and 2024, respectively, and 15 and 6 interest-only securities based upon aggregate outstanding principal amounts of $ 19.9 million and $ 9.1 million at December 31, 2025 and 2024, respectively. Digital Assets Digital Assets Held as Collateral The Company records digital assets and the corresponding liability for digital assets held as collateral at fair value, and the Company does not consider the cost basis to be meaningful. While the collateral is in the Company’s control, the Company has the ability to use the collateral for loan, margin, rehypothecation, or other similar activities to which the Company or its affiliates are a party, however, chooses not to do so without the customer’s consent and such assets are held solely for the purpose of securing the related loans. Digital assets held for collateral are included in “Digital assets” in the Consolidated Balance Sheets. The Company originates loans collateralized by digital assets and recorded a corresponding $ 52.6 million and $ 64.4 million liability at December 31, 2025 and 2024, respectively, representing the fair value digital assets owed to the borrower in the event of loan repayment that is included in “Other current liabilities” in the Consolidated Balance Sheets. See Note 12 for additional information regarding the valuation of these assets and liabilities. 149 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table summarizes the significant digital assets held as collateral at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Units Fair Value Units Fair Value Digital assets held as collateral: Bitcoin (BTC) 527 46,119 531 $ 49,593 Ethereum (ETH) 2,173 6,450 4,457 14,846 Total digital assets held as collateral $ 52,569 $ 64,439 The Company engages a third party custodian to hold digital assets as collateral in an account in the Company’s name, and provide custodial services including holding the cryptographic key information and working to protect the digital assets from loss or theft. The Company maintains internal recordkeeping of the digital asset collateral, including the amount and type of digital asset owned by each borrower. Digital Assets Held Digital Assets Held at Fair Value The Company records digital assets held at fair value in both “Digital assets” and “Digital assets, non-current” in the Consolidated Balance Sheets, depending on the nature of the underlying asset and related restrictions. See Notes 2 and 12 for additional information regarding the classification and valuation of these assets. The following table summarizes digital assets held at fair value by the Company, and by third-party custodians on behalf of the Company, at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Units Cost Basis Fair Value Units Cost Basis Fair Value Digital assets held at fair value (A) : Solana (SOL) (B) 87,707 $ 10,731 $ 10,918 95,139 $ 10,110 $ 18,020 United States Dollar Tether (USDT) 958,734 959 959 1,002,506 1,003 1,003 Kamino Liquidity Pools Various 23,485 23,510 n.a. — — Other digital assets (C) Various 475 555 Various 184 184 Total digital assets held at fair value $ 35,650 $ 35,942 $ 11,297 $ 19,207 (A) The Company reclassified payment stablecoins from “Digital assets” to “Cash and cash equivalents”, which resulted in a $ 2.4 million decrease to the previously reported total digital assets held cost basis and fair value as of December 31, 2024. See Note 2, Change in Accounting Principle, for further details. (B) Includes 53,071 Solana (“SOL”) that are subject to a lock-up period through January 2028 and unlocked on a monthly basis based on a contractual schedule. The locked tokens are not accessible, are staked, and earn rewards during the lock up period. (C) Includes various other digital asset balances, none of which individually represented more than 5% of the fair value of total digital assets held at fair value. Digital Assets Held at Cost The Company records digital assets held at cost, net of impairment, in “Digital assets” in the Consolidated Balance Sheets. The following table summarizes digital assets held at cost by the Company, and by third-party custodians on behalf of the Company, at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Units Cost Basis Carrying Value Units Cost Basis Carrying Value Digital assets held at cost: HASH (A) 19,873,741,886 $ 11,691 $ 11,691 15,002,914,730 $ 1,506 $ 1,506 Total digital assets held at cost $ 11,691 $ 11,691 $ 1,506 $ 1,506 (A) Represents native utility tokens used by the Company as a medium of exchange (“HASH”), maintained by an affiliated entity. See Note 11 for additional information regarding the related party relationship. 150 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Digital Assets Activity The following table summarizes activities involving the Company’s digital assets for the years ended December 31, 2025 and 2024: Held as Collateral Held at Fair Value (A) Held at Cost Balance at December 31, 2023 $ — $ — $ 5,865 Purchases (B) — 11,558 — Sales (C) — ( 3,279 ) — Collateral received (D)(E) 57,503 — — Collateral returned (D)(E) ( 6,121 ) — — Gains (F) — 2,471 — Contribution from Related Party — — 1,500 Distributions from Fund I (G) — 547 — Impairment of digital assets — — ( 5,859 ) Change in fair value (E)(H) 13,057 7,910 — Balance at December 31, 2024 64,439 19,207 1,506 Purchases (B) — 26,943 3,864 Sales (C) — ( 8,922 ) ( 3,979 ) Collateral received (D) 63,724 — — Collateral returned (D) ( 71,500 ) — — Gains (F) — 5,872 113 Distributions from Fund I (G) — 2,042 — Provenance Blockchain Foundation term note settlement (I) — — 10,187 Change in fair value (H) ( 4,094 ) ( 9,200 ) — Balance at December 31, 2025 $ 52,569 $ 35,942 $ 11,691 (A) Period activity for the year ended December 31, 2024 has been recast to reflect the reclassification of payment stablecoins from “Digital assets” to “Cash and cash equivalents”. This change resulted in a $( 15.2 ) million change to Purchases activity and a $ 12.8 million change to Sales activity for the year ended December 31, 2024. See Note 2, Change in Accounting Principle, for further details. There was no impact to the balance at December 31, 2023. (B) Includes receipts of digital assets held for sale resulting from the disbursement of cash. (C) Includes transactions related to the settlement and transfer of digital assets held for sale in exchange for the receipt of cash. (D) Collateral received and returned includes movements impacting digital assets held as collateral associated with borrower personal loan activities which can include receipt of digital assets held as collateral related to loan originations, combined loan to value maintenance, and returns of collateral owed to the borrower once a loan has been repaid. (E) Change in fair value for digital assets held as collateral has been corrected to disclose the change in fair value for the year ended December 31, 2024 of $ 13.1 million. The correction resulted in a net decrease to collateral received and collateral returned for the year ended December 31, 2024 by the same amount. (F) Includes realized gains incurred on the sale of digital assets held for sale, and the recognition of income associated to blockchain staking rewards which are reflected in “Other (expense) income, net” in the Consolidated Statements of Operations. No realized gains were recorded for digital assets held as collateral, as the liquidation of collateral reduces the corresponding liability and cash proceeds are applied to the borrower’s personal loan balance. (G) Represents distributions of digital assets received from SOL Opportunity Fund L.P. (“Domestic Solana Fund”), a dom estic fund that invests primarily in SOL. (H) There is a corresponding liability to return digital assets held as collateral that is an embedded derivative. The embedded derivative and the host contract are reported within “Other current liabilities” on the Consolidated Balance Sheets. The change in the fair value of the embedded derivative and the change in the digital assets held as collateral have a naturally offsetting relationship and are recorded within “Other (expense) income, net” on the Consolidated Statements of Operations. (I) See Note 11 for information on the Provenance Blockchain Foundation term note settlement. 151 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Equity Investments The Company holds the following minority investments in certain entities not considered significant to the Company and recorded within “Other non-current assets” in the Consolidated Balance Sheets, with the Company’s share of net income of equity-method investees recorded as “Other revenue” in the Consolidated Statements of Operations. The following table presents the carrying value of these investments at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Equity method investees: Domestic Solana Fund (A) $ 2,104 $ 5,748 Reflow (B) 800 920 Fig SIX (C) 2,477 — 5,381 6,668 Measurement alternative investments: JAM FINTOP (D) 1,419 1,542 Total equity investments $ 6,800 $ 8,210 (A) Represents a 4.8 % equity interest in Domestic Solana Fund at December 31, 2025 and 2024. (B) Represents a 17.3 % interest in Reflow Services LLC (“Reflow”), an SEC-registered investment adviser, at December 31, 2025 and 2024. (C) Represents a 5.0 % equity interest in Fig SIX Mortgage, LLC (“Fig SIX”), a company domiciled in the United States of America, at December 31, 2025. (D) Represents a 1.0 % equity interest in JAM FINTOP Blockchain LP (“JAM FINTOP”), an investment company domiciled in the United States of America, at December 31, 2025 and 2024. The following table summarizes activities involving the Company’s equity investments: Equity Method Investees Measurement Alternative Investments Total Balance at December 31, 2023 $ 477 $ 1,542 $ 2,019 Share of investee earnings 3,698 — 3,698 Dividends received ( 854 ) — ( 854 ) Additional contributions 3,347 — 3,347 Measurement alternative adjustments n.a. — — Balance at December 31, 2024 $ 6,668 $ 1,542 $ 8,210 Share of investee earnings ( 1,246 ) — ( 1,246 ) Dividends received ( 2,643 ) — ( 2,643 ) Additional contributions 2,602 — 2,602 Measurement alternative adjustments n.a. ( 123 ) ( 123 ) Balance at December 31, 2025 $ 5,381 $ 1,419 $ 6,800 152 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) NOTE 4 – SERVICING The following table summarizes the Company’s servicing assets at December 31, 2025 and 2024: December 31, 2025 UPB of Underlying Loans Loan Count Carrying Value (A) HELOC loans $ 12,783,215 173 $ 111,211 Mortgage loans 147,268 270 1,853 Total servicing assets $ 12,930,483 173,270 $ 113,064 December 31, 2024 UPB of Underlying Loans Loan Count Carrying Value (A) HELOC loans $ 7,933,975 113,413 $ 86,465 Mortgage loans 162,908 294 2,032 Total servicing assets $ 8,096,883 113,707 $ 88,497 (A) The Company records loan servicing assets at fair value. The total carrying value includes $ 63.8 million and $ 69.5 million of collateralized loan servicing rights at December 31, 2025 and 2024, respectively. See Notes 6 and 12 for additional information regarding the MSR financing arrangement and valuation of the Company’s servicing rights, respectively. The following table presents a rollforward of the Company’s servicing assets for the years ended December 31, 2025 and 2024: Balance at December 31, 2023 $ 55,860 Change in fair value due to: Additions (A) 50,557 Realization of cash flows (B) ( 19,623 ) Change in valuation inputs and assumptions 1,703 Total impact of change to fair value 32,637 Balance at December 31, 2024 $ 88,497 Change in fair value due to: Additions (A) 60,713 Realization of cash flows (B) ( 28,207 ) Change in valuation inputs and assumptions ( 7,939 ) Total impact of change to fair value 24,567 Balance at December 31, 2025 $ 113,064 (A) Represents the fair value of servicing rights retained upon sale of originated and purchased loans. (B) Based on the paydown of the underlying loans. 153 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table summarizes the geographic concentration of the loans underlying the servicing rights at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 State Amount Outstanding (A) % of Total Amount Outstanding (A) % of Total California $ 3,239,619 25.1 % $ 2,146,371 26.5 % Florida 1,553,217 12.0 990,404 12.2 Arizona 634,623 4.9 429,469 5.3 Georgia 579,494 4.5 407,651 5.0 Washington 490,630 3.8 362,370 4.5 New Jersey 455,704 3.5 320,124 4.0 Ohio 414,065 3.2 227,069 2.8 Virginia 413,862 3.2 239,559 3.0 North Carolina 358,185 2.8 261,013 3.2 Colorado 338,515 2.6 241,844 3.0 Other (B) 4,452,569 34.4 2,471,009 30.5 Total $ 12,930,483 100.0 % $ 8,096,883 100.0 % (A) Represents the principal balance of the loans that the Company services. (B) The Company did not service loans in any state or U.S. territory contained in “Other” aggregating to more than 5% of the total amount outstanding of the loans that the Company services. As part of its servicing operations, the Company held principal, interest, and other borrower payments of $ 364.9 million and $ 198.8 million at December 31, 2025 and 2024, respectively, due to third-party loan buyers recorded as “Payables to third-party loan owners” in the Consolidated Balance Sheets. The Company makes payments on these arrangements by remitting amounts due from proceeds received from borrower payments on the underlying loans. Additionally, the Company has outstanding liability obligations to repurchase loans that are in early payment default status. At December 31, 2025 and 2024, the total obligation to repurchase loans associated with contractual arrangements was $ 17.7 million and $ 13.8 million, respectively, recorded in “Payables to third-party loan owners” in the Consolidated Balance Sheets. NOTE 5 – LOANS The following table summarizes loans held by the Company at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 UPB Carrying Value (A) UPB Carrying Value (A) Loans held for sale: HELOC loans (B) $ 312,401 $ 320,566 $ 359,155 $ 366,154 Personal loans (C) 79,350 79,113 24,975 24,975 Other (D) 4,724 4,658 4,977 4,793 Total loans held for sale $ 396,475 $ 404,337 $ 389,107 $ 395,922 (A) The Company records loans at fair value. See Note 12 for additional information regarding the valuation of these assets. (B) The total carrying value of HELOC loans includes $ 21.7 million and $ 313.4 million of collateralized HELOCs under repurchase agreements at December 31, 2025 and 2024, respectively, which are not for sale while collateralized. See Notes 6 and 12 for additional information regarding funding debt outstanding and valuation of the Company’s loans at fair value, respectively. (C) Loans collateralized by digital assets. (D) Primarily contains legacy mortgages and other unsecured loans. Loans are generally placed on non-accrual status when principal or interest is 90 days or more past due. The Company does not consider the average carrying values and interest income recognized (including interest income recognized using a cash-basis method) material for non-accrual loans. The Company placed loans held for sale with an aggregate UPB of $ 2.4 million and $ 1.2 million and fair value of $ 1.6 million and $ 0.8 million on non-accrual status at December 31, 2025 and 2024, respectively. The Company did not hold any loans as held for investment at December 31, 2025 or 2024. 154 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans held by the Company at December 31, 2025 and 2024. December 31, 2025 December 31, 2024 Payment Delinquency UPB Carrying Value (A) Carrying Value (A) Over (Under) UPB UPB Carrying Value (A) Carrying Value (A) Over (Under) UPB Loans held for sale: Current $ 374,842 $ 383,602 $ 8,760 $ 373,876 $ 383,551 $ 9,675 30 to 59 days 2,308 2,229 ( 79 ) 3,535 3,170 ( 365 ) 60 to 89 days 4,193 4,030 ( 163 ) 2,440 2,125 ( 315 ) 90 days or more 14,387 13,717 ( 670 ) 8,548 6,411 ( 2,137 ) Forbearance 745 759 14 708 665 ( 43 ) Total loans held for sale $ 396,475 $ 404,337 $ 7,862 $ 389,107 $ 395,922 $ 6,815 (A) The Company records loans at fair value. See Note 12 for additional information regarding the valuation of these assets. The following table summarizes the Company’s loan activity for the years ended December 31, 2025 and 2024: Loans Held for Sale Loans Held for Investment Balance at December 31, 2023 $ 255,516 $ 61,337 Transfers from Held for Investment to Held for Sale 58,835 ( 58,835 ) Purchases 1,972,209 2,492 Originations 3,164,966 — Sales, net of repurchases ( 4,659,777 ) — Principal payments ( 411,268 ) ( 11,642 ) Change in fair value (A) 4,778 6,648 Loans not yet repurchased 10,663 — Balance at December 31, 2024 $ 395,922 $ — Purchases 3,269,400 — Originations 3,706,733 — Sales, net of repurchases ( 6,515,155 ) — Principal payments ( 460,323 ) — Change in fair value (A) 3,808 — Loans not yet repurchased 3,952 — Balance at December 31, 2025 $ 404,337 $ — (A) Change in fair value of loans are reflected in “Gain on sale of loans, net” in the Consolidated Statements of Operations. The top five loan originators for the years ended December 31, 2025 and 2024 originated $ 2.4 billion and $ 1.4 billion unpaid principal balance of loans, or 77.8 % and 71.8 %, of total unpaid principal balance of loans purchased by the Company, whose “Gain on sale of loans, net” revenue represent 9.0 % and 11.5 % of total revenue, respectively. The top five loan purchasers for the years ended December 31, 2025 and 2024 purchased $ 4.2 billion and $ 4.1 billion unpaid principal balance of loans, or 46.8 % and 64.3 %, of total unpaid principal balance of loans sold by the Company, excluding $ 748.5 million and $ 456.2 million unpaid principal balance securitized, whose “Gain on sale of loans, net” revenue represent 21.4 % and 19.7 % of total revenue, respectively. 155 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) NOTE 6 – DEBT The following table summarizes the Company’s debt components: December 31, 2025 December 31, 2024 Carrying Value Facility Inception Date Final Stated Maturity (A) Weighted Average Funding Cost Collateral Carrying Value Carrying Value Debt carried at cost: Funding debt: Warehouse Facility 1 (B) $ — August 2020 July 2025 — % $ — $ 28,286 Warehouse Facility 2 (C) 2,904 November 2022 May 2026 6.8 4,686 61,007 Warehouse Facility 3 (D) — October 2023 October 2025 — — 26,227 Warehouse Facility 4 (E) 7,039 February 2023 January 2026 7.1 8,330 68,568 Warehouse Facility 5 (F) — October 2023 n.a. — — 21,697 REIT Warehouse (G) 750 October 2024 December 2026 9.1 560 99,204 Warehouse Facility 6 (H) — May 2024 May 2026 — — — Warehouse Facility 7 (I) — February 2023 August 2025 — — — Warehouse Facility 8 (J) — March 2022 n.a. — — — Warehouse Facility 9 (K) — March 2024 March 2025 — — 861 Warehouse Facility 10 (L) 1,700 April 2025 April 2026 7.4 2,190 — Warehouse Facility 11 (M) 6,063 July 2025 June 2027 6.3 5,886 — Digital Asset Loan Facility (N) 3,097 April 2025 October 2026 15.0 3,073 — 21,553 305,850 MSR financing: Lender 1 (O) 40,000 June 2024 June 2026 16.9 63,767 40,000 Financed retained interests: Retained Interest Facility (P) 231,633 April 2023 Various (Q) 6.4 231,788 129,005 Total debt carried at cost, gross 293,186 474,855 Unamortized deferred financing costs (R) ( 2,603 ) ( 1,679 ) Total debt carried at cost, net 290,583 473,176 Debt at fair value: FCC (S) 76,110 — Democratized Prime YLDS (T) 24,409 — 100,519 — Debt at fair value to related parties: FCC - related parties (S) 2,050 — Democratized Prime YLDS - related parties (T) 164,085 — 166,135 — Total debt carried at fair value 266,654 — Total debt $ 557,237 $ 473,176 (A) Debt obligations with a stated maturity through the date of issuance of the Consolidated Financial Statements were refinanced, extended or repaid. (B) Warehouse Facility 1 was closed in July 2025. (C) Warehouse Facility 2 bears interest at Secured Financing Overnight Rate (“SOFR”) plus a spread of 2.25 % at December 31, 2025. (D) Warehouse Facility 3 was paid down in September 2025 and subsequently reached maturity. The interest accrued on the loans was payable to the lender during the period the loans are held, and the Company paid a variable exit fee, which was determined on a quarterly basis as follows: (i) the first $ 50.0 million of principal balance repurchased is subject to a 0.5 % exit fee, and (ii) amounts in excess of $ 50.0 million are subject to an exit fee that are between 0.125 % to 1.50 % of the price at which the Company securitizes repurchased loans (or otherwise agreed between the Company and the lender for repurchased loans not securitized). 156 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) (E) Warehouse Facility 4 bears variable interest at SOFR plus a spread between 2.15 % and 5.50 % at December 31, 2025. A portion of the facility is also subject to a 0.5 % non-use fee. The facility was amended in January 2026 to extend the maturity date; see Note 14 for additional information. (F) Warehouse Facility 5 is an advance facility in which the lender earns carry on collateral in the facility. (G) Real Estate Investment Trust ("REIT") Warehouse bears interest at SOFR plus a spread of (i) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is greater than or equal to $ 100.0 million, 3.00 % or (ii) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is less than $ 100.0 million, 3.50 %. The facility also carries a 0.15 % exit fee on repurchased, non-securitized loans which in aggregate cannot exceed $ 0.5 million in a given calendar year. (H) Warehouse Facility 6 bears interest at SOFR, plus a spread of 3.5 % at December 31, 2025. The facility also carries a 0.5 % exit fee on all loans repurchased from the facility. (I) Warehouse Facility 7 was closed in August 2025. (J) Warehouse Facility 8 was closed in December 2024. (K) Warehouse Facility 9 was closed in March 2025. (L) Warehouse Facility 10 bears interest at SOFR, plus a spread of 2.35 %. (M) Warehouse Facility 11 bears interest at SOFR, subject to a 2.0 % floor, plus a spread of 1.75 %. (N) The Digital Asset Loan Facility bears interest at a rate of 13.5 %. (O) The MSR Note bears interest at 16.5 % per annum and secured by eligible servicing assets, which include servicing fees related to loan servicing rights owned by, or delegated to, the Company. (P) Under the Retained Interest Facility, the interest accrued on the securities and beneficial interests is payable to the lender during the period the loans are held plus a spread between 0.50 % and 0.55 %, depending on the tranche to which the Company pledges collateral. (Q) The maturities of financed retained interests align with the terms of the underlying securities. The financed retained interest have maturity dates through November 2055. (R) During the year ended December 31, 2025 and 2024, the Company amortized $ 1.0 million, and $ 1.0 million of deferred financing costs, respectively. (S) Interest accrues at a rate of SOFR less 35 basis points based on the face-amount certificates issued by FCC. Certificates mature 20 years from the issue date, but may be surrendered at any time by the holder at face amount, plus accrued interest minus any applicable expenses or fees. (T) Interest is accrued at an hourly rate that is agreed upon through a Dutch auction process; during the year ended December 31, 2025, the average interest rate was 8.7 %. YLDS can be redeemed by the holder at face amount, plus accrued interest minus any applicable expenses or fees on demand. Maturities Contractual maturities of recourse and nonrecourse debt obligations at December 31, 2025, are as follows: Years Ending December 31, Recourse Nonrecourse Total 2026 $ 49,943 $ 5,547 $ 55,490 2027 6,063 — 6,063 2028 — — — 2029 — — — 2030 — — — Thereafter — 231,633 231,633 $ 56,006 $ 237,180 $ 293,186 157 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Borrowing Capacity The following table represents borrowing capacity of committed debt facilities that have not matured at December 31, 2025: December 31, 2025 Borrowing Capacity Balance Outstanding Available Financing Funding Debt: Warehouse Facility 2 $ 150,000 $ 2,904 $ 147,096 Warehouse Facility 4 335,300 7,039 328,261 REIT Warehouse 200,000 750 199,250 Warehouse Facility 6 250,000 — 250,000 Warehouse Facility 10 300,000 1,700 298,300 Warehouse Facility 11 300,000 6,063 293,937 Digital Asset Loan Facility 30,000 3,097 26,903 MSR financing: Lender 1 40,000 40,000 — Financed retained interests: Retained Interest Facility 500,000 231,633 268,367 $ 2,105,300 $ 293,186 $ 1,812,114 Certain debt obligations are subject to customary loan covenants, such as minimum tangible net worth, minimum liquidity, maximum leverage ratios, required range of net income or loss during specified periods, periodic financial reporting requirements, and event of default provisions, including event of default provisions triggered by certain specified declines in the Company’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. The Company was in compliance with all of its debt covenants at December 31, 2025. Facilities The following summarizes the debt facilities that the Company entered into or amended during the years ended December 31, 2025 and 2024: Warehouse Facility 2 In December 2024, the Company amended Warehouse Facility 2 to reduce the borrowing limit to $ 250.0 million and to lower the interest rate from SOFR plus a spread of 4 % to SOFR plus a spread of 3 %. In May 2025, the Company and its lender amended Warehouse Facility 2 to reduce the borrowing capacity to $ 150.0 million, expand eligible collateral types, and reduce certain funding costs. The amended facility has an initial maturity date of May 2026, and borrowings under the facility bear interest at a rate of SOFR plus a spread of 2.25 %. Warehouse Facility 3 In February 2024, the Company amended Warehouse Facility 3 to temporarily increase the borrowing limit from $ 100.0 million to $ 200.0 million for the period February 1, 2024 through April 30, 2024. Warehouse Facility 4 In March 2024, the Company amended Warehouse Facility 4 to establish a second class of buyer under the facility. Borrowings to Class A and Class B Buyers were limited to $ 200.0 million and $ 37.5 million, respectively, with an aggregate borrowing limit of $ 237.5 million. In January 2025, the Company further amended Warehouse Facility 4 to increase the aggregate borrowing limit to $ 335.3 million and extend the maturity date to January 2026. 158 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) REIT Warehouse In October 2024, the Company entered into a secured warehouse credit facility with a borrowing limit of $ 150.0 million. In August 2025, the Company amended the REIT Warehouse to increase the borrowing limit to $ 200.0 million, extend the maturity date to December 2026, and add an exit fee of 0.15 % that is not to exceed $ 0.5 million in any calendar year. It also amended the interest rate to be SOFR plus a spread of (i) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is greater than or equal to $ 100.0 million, 3.00 % or (ii) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is less than $ 100.0 million, 3.50 %. Warehouse Facility 10 In April 2025, the Company entered into a master repurchase agreement with a major banking institution that contains customary debt covenants, a borrowing capacity of $ 300.0 million, including $ 1.0 million in committed capacity, and an initial maturity date in April 2026, with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR plus 2.35 %. Warehouse Facility 11 In June 2025, the Company executed a master repurchase agreement with a major banking institution that had a facility limit up to $ 100.0 million, with the option to temporarily upsize to $ 200.0 million and has an initial maturity date in June 2027 with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR, subject to a floor of 2.0 %, plus 1.75 % that results in a minimum rate of 3.75 %. In July 2025, the Company amended Warehouse Facility 11 to permanently increase the facility limit to $ 200.0 million. In December 2025, the Company amended Warehouse Facility 11 to increase the facility limit to $ 300.0 million. Digital Asset Loan Facility In April 2025, the Company executed a master participation agreement with an asset management firm that allows the Company to grant 100 % participation interest for digital asset backed loans it owns. The $ 30.0 million facility, with the ability to increase to a maximum facility size of $ 50.0 million, matures in October 2026, bears interest at a rate of 13.5 %, and has a purchase period through April 2026. MSR Note In June 2024, the Company entered into a loan and security agreement with Lender 1 under which the Company borrowed the MSR Note that had an initial borrowing limit of $ 30.0 million. In September 2024, the Company and Lender 1 amended the MSR Note to increase the borrowing limit to $ 40.0 million. Retained Interest Facility The Company amended the Retained Interest Facility to increase the borrowing limit from $ 250.0 million to $ 500.0 million, effective as of October 2025. 159 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) FCC At December 31, 2025, FCC had $ 76.1 million and $ 2.1 million outstanding face-amount certificates to third parties and related parties, respectively, redeemable upon redemption of YLDS. The certificates entitle the certificate owner to receive, at certificate maturity, a stated amount of money, interest, or credits declared from time to time by FCC, at its discretion. The certificates issued by FCC are not insured by any government agency or other entity. Democratized Prime YLDS At December 31, 2025, FCC had $ 24.4 million and $ 164.1 million outstanding face-amount certificates to third parties and related parties, respectively, redeemable upon redemption of YLDS. Democratized Prime YLDS represents liabilities where parties have lent YLDS to the Company through the Democratized Prime platform. The Company pays interest based on a rate agreed upon through a Dutch auction process defined within the pool and can be redeemed each hour for YLDS. The YLDS are collateralized by pools of HELOC loans and are not insured by any government agency or other entity. NOTE 7 – EQUITY On September 12, 2025, the Company completed its IPO, in which 36,225,000 shares of the Company’s Class A common stock were issued and sold, including the underwriters’ over-allotment option which was exercised in full, at a public offering price of $ 25.00 per share. The Charter authorizes a total of 1,000,000,000 shares of Class A common stock, par value $ 0.0001 , 200,000,000 shares of Class B common stock, par value, $ 0.0001 , 500,000,000 shares of Blockchain common stock, par value, $ 0.0001 , and 100,000,000 shares of preferred stock, par value $ 0.0001 . In connection with the IPO, all shares of outstanding convertible preferred stock automatically converted into a total of 113,910,905 shares of Class A common stock. Additionally, a total of 39,393,047 shares of Class A common stock held by the Controlling Party and his permitted transferees were converted into an equivalent number of shares of Class B common stock; 1,500,000 shares of Class B common stock were subsequently converted back to Class A common stock and sold as part of the IPO. The holders of Class A common stock are entitled to one vote for each share of common stock held. The holders of Class B common stock are entitled to ten votes for each share of common stock held. For periods prior to the IPO, references to ‘common stock’ refer to the single class of common stock outstanding prior to the IPO. The following table summarizes the Company’s equity instruments at December 31, 2025 and 2024: December 31, 2025 Authorized Shares Issued and Outstanding Shares Potential Common Shares (A) Warrants Options RSUs Class A Common Stock, $ 0.0001 par value per share 1,000,000,000 178,485,407 183,333 25,741,803 4,974,764 Class B Commons Stock, $ 0.0001 par value per share 200,000,000 37,893,047 — 7,760,846 5,134,845 Blockchain Common Stock, $ 0.0001 par value per share 500,000,000 — — — — Preferred Stock, $ 0.0001 par value per share 100,000,000 — — — — Total 1,800,000,000 216,378,454 183,333 33,502,649 10,109,609 December 31, 2024 Authorized Shares Issued and Outstanding Shares Potential Common Shares (A) Warrants Options RSUs (B) Common Stock, $ 0.00001 par value per share 240,820,153 69,300,284 — 32,030,416 5,874,850 Convertible Preferred Stock, $ 0.00001 par value per share 115,983,447 111,900,495 1,381,486 — — Total 356,803,600 181,200,779 1,381,486 32,030,416 5,874,850 (A) Includes the equity instruments of the 2018 Equity Incentive Plan, the 2024 Equity Incentive Plan, and the 2025 Incentive Award Plan. (B) RSUs at December 31, 2024 have been corrected, which resulted in a decrease of 39,098,606 potential common shares disclosed as of December 31, 2024. 160 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) In connection with the IPO, all outstanding shares of convertible preferred stock were converted into shares of Class A common stock on a one-to-one basis as of the date of the IPO. As such, there are no shares of preferred stock issued and outstanding as of December 31, 2025. The following table includes information regarding each series of convertible preferred stock as of December 31, 2024: December 31, 2024 Per Share Number of Shares Outstanding Liquidation Preference Liquidation Price Dividend Rate Conversion Price Series Seed 16,100,540 $ 16,947 $ 1.05 $ 0.08 $ 1.05 Series A 32,860,461 41,759 1.27 0.10 1.27 Series B 29,448,787 73,519 2.50 0.20 2.50 Series C 11,238,629 85,000 7.56 0.61 7.56 Series C-1 504,081 3,050 6.05 0.48 6.05 Series C-2 1,983,287 15,000 7.56 0.61 7.56 Series D 12,439,325 219,999 17.69 1.41 17.69 Series E 7,325,385 73,292 10.01 0.80 10.01 Total 111,900,495 $ 528,566 Warrants In March 2024, the Company issued warrants to purchase up to 411,219 , 411,219 , and 1,644,881 Series E convertible preferred shares to an existing convertible preferred shareholder in exchange for a software license, one year of software development services, and up to two years of other services, respectively, for a total of 2,467,319 shares. All of the warrants have been earned as of December 31, 2025 and upon consummation of the IPO became convertible into Class A common stock. As of December 31, 2025, 2,283,986 warrants have been exercised at an exercise price of $ 3.23 per share. The remaining 183,333 shares under the warrant agreement may be exercised at an exercise price of $ 3.23 per Class A common stock within a five-year period after issuance. During the years ended December 31, 2025 and 2024, the Company recognized equity-based expense within “Technology and product development” in the Consolidated Statements of Operations of $ 9.5 million and $ 6.6 million, respectively, related to the warrants. 161 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The warrants were valued at the grant date using the Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2025 Low High Weighted Average Expected Term (years) 1.3 6.0 2.7 Volatility 39.9 % 46.2 % 41.9 % Interest Rate 4.0 % 4.3 % 4.1 % Dividend Yield n.a. n.a. n.a. The following table summarizes the warrants activity during the years ended December 31, 2025 and 2024: Number of Warrants Weighted Average Exercise Price Fair Value on Grant Date Outstanding at December 31, 2023 — $ — $ — Granted 1,462,119 3.23 10,215 Exercised — — — Forfeited and cancelled — — — Outstanding at December 31, 2024 1,462,119 $ 3.23 $ 10,215 Granted 1,005,200 3.23 8,827 Exercised ( 2,283,986 ) 3.23 17,626 Forfeited and cancelled — — — Outstanding at December 31, 2025 (A) 183,333 $ 3.23 $ 1,416 Exercisable at December 31, 2025 (B) 183,333 $ 3.23 $ 1,416 (A) At December 31, 2025, the weighted-average grant date fair values for outstanding warrants and exercisable warrants were $ 1.4 million, and the intrinsic value for outstanding warrants and exercisable warrants was $ 6.9 million. (B) Outstanding and exercisable warrants have a weighted average exercise period of 3.2 years at December 31, 2025. Equity-Based Compensation The Company has granted equity-based compensation in the form of options and RSUs to its officers, employees, and other service providers under the terms of the applicable equity incentive plans for the purpose of providing incentives and rewards for service or performance that align the interest of grantees with the long-term growth and profitability of the Company. Prior to the IPO, RSUs granted under the plans vested based upon the satisfaction of both a service condition and a liquidity-event related performance condition. Both the service condition and liquidity-event related performance condition needed to be met for the expense to be recognized. For these RSUs outstanding at the time of the IPO, the liquidity-event related performance condition was met upon the completion of the IPO, and the Company began recognizing stock based compensation related to these awards. The Company expects to grant RSUs to employees and members of the board which would vest subject to either (i) continued service, or (ii) continued service and a market condition tied to the Company’s share price over defined performance periods. As of December 31, 2025, the Company has granted RSUs with a market condition that will vest only if the Company’s 10 -day average closing stock price at the end of each defined performance period equals or exceeds specified thresholds, in addition to the continuous service requirement through the service period of the award. The market-based RSUs were granted with an average grant date fair value of $ 21.87 and the target number of market-based RSUs granted was 2,133,961 . Any shares for which the market-based component is not achieved with respect to the performance dates of the awards shall remain outstanding and be eligible to be earned based on the applicable 10 -day average closing stock price for a subsequent period performance date (such that, for example, if the applicable 10 -day average stock price is not achieved in connection with the first performance date, but the applicable 10 -day average stock price for the second performance date is achieved in connection with the second performance date, one-half of the shares subject to the award would vest on the second performance date). The fair value of the market-condition RSU was estimated on the grant date using a Monte Carlo simulation that considered expected volatility, risk-free interest rate, dividend yield, expected term, and the effect of the market target. As the market condition is incorporated into the fair value, the Company recognizes the full compensation cost (based on that grant-date fair value) over the grantee’s requisite service period, even if the market conditions are ultimately not achieved. 162 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The Company records stock-based compensation for service-based RSUs on a straight-line basis over the requisite service period, which is generally the vesting period. The following table presents the amount of stock-based compensation expense related to equity-based compensation recognized in the Consolidated Statements of Operations: Years Ended December 31, 2025 2024 2023 General and administrative $ 59,113 $ 35,423 $ 8,296 Technology and product development (A) 12,036 9,363 3,994 Operations and processing 455 388 356 Sales and marketing 817 136 804 Total equity-based compensation expense $ 72,421 $ 45,310 $ 13,450 (A) Technology and product development includes $ 9.5 million, $ 6.6 million, and zero equity-based expense for warrants for the years ended December 31, 2025, 2024, and 2023, respectively. Equity Incentive Plans 2018 Equity Incentive Plan In 2018, the Company adopted the 2018 Equity Incentive Plan (“2018 Plan”) that authorized the Company to grant awards of up to 52,346,283 shares of common stock of FTS to FTS’ employees, non-employees, officers, and directors in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock and RSUs. Each award outstanding under the 2018 Plan continues to be governed by the terms and conditions of the 2018 Plan. In connection with the IPO, the 2018 Plan awards were amended to cover shares of Class A common stock (or, if determined by the plan administrator, Class B common stock). At December 31, 2025, 2024 and 2023 the Company had granted awards equivalent to 56,462,313 , 54,133,329 and 32,645,381 shares of common stock, respectively, gross of forfeited and cancelled shares that could be recycled back into authorized shares under the 2018 Plan. In connection with the IPO, the Company froze the 2018 Plan and no new awards will be granted under the 2018 Plan. In 2024, the Company modified awards under the 2018 Plan and extended the post-termination exercise period of vested options held by certain current and former employees, resulting in $ 0.7 million and $ 6.8 million of incremental equity-based compensation expense recognized during the years ended December 31, 2025 and 2024, respectively. The following table reflects the activities of stock options granted under the 2018 Plan for the years ended December 31, 2025, 2024 and 2023: Number of Options Weighted-Average Exercise Price (A) Remaining Life (Years) (B) Grant Date Fair Value (C) Outstanding at December 31, 2022 19,623,139 $ 3.79 8.2 $ 2.05 Granted 3,593,104 5.47 n.a. 3.26 Exercised ( 582,905 ) 1.94 n.a. 1.00 Forfeited and cancelled ( 2,801,990 ) 4.93 n.a. 2.70 Outstanding at December 31, 2023 19,831,348 $ 4.07 7.7 $ 2.14 Granted 15,613,098 4.71 n.a. 4.41 Exercised ( 1,153,803 ) 2.75 n.a. 1.49 Forfeited and cancelled ( 4,642,073 ) 4.11 n.a. 2.65 Outstanding at December 31, 2024 29,648,570 $ 4.45 6.1 $ 3.28 Granted 1,726,700 7.76 n.a. 4.43 Exercised ( 1,791,680 ) 2.69 n.a. 1.15 Forfeited and cancelled ( 1,467,371 ) 4.67 n.a. 2.30 Outstanding at December 31, 2025 28,116,219 $ 4.75 4.82 $ 3.54 At December 31, 2025 Options Exercisable 22,540,335 $ 4.57 4.57 $ 3.64 (A) The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the fair value of the issuing entity’s common shares, which was $ 36.09 per common share of FTS as of December 31, 2025. (B) Options expire on the 10 th anniversary of the original grant. 163 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) (C) For the year ended December 31, 2025, the Company used risk-free rates, estimated common stock volatility, expected term, and dividend yield as inputs and the fair value of the Company’s common stock as a key input to estimate the grant date fair value using the Black-Scholes method. The Company does not assume dividend payments, as it does not pay dividends, and estimates common stock volatilities using the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the option’s expected term. The Company estimates the grant-date fair value of awards using the contractual term of award, if any, including discounts for applicable post-vesting restrictions such as remaining in the service to the business except as otherwise amended estimated using Black-Scholes method. The fair value of each option grant is estimated as of the grant date using the Black-Scholes option pricing model. The fair values of options granted during the years presented were determined using the following weighted average assumptions as of the grant date: Years Ended December 31, 2025 2024 2023 Low High Weighted Average Low High Weighted Average Low High Weighted Average Expected Term 4.9 6.1 5.8 1.3 6.9 4.3 1.7 6.7 5.8 Volatility 57.3 % 59.4 % 57.5 % 41.9 % 59.2 % 53.0 % 45.5 % 64.3 % 54.2 % Interest Rate 3.7 % 4.5 % 4.2 % 3.8 % 4.4 % 4.2 % 0.3 % 4.3 % 2.0 % Dividend Yield n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fair Value $ 1.75 $ 7.21 $ 4.43 $ 2.83 $ 3.65 $ 3.35 $ 0.17 $ 3.81 $ 1.88 The following table reflects the activities of RSUs granted under the 2018 Plan for the years ended December 31, 2025 and 2024; there was no activity in the year ended December 31, 2023. Number of RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2023 — $ — Granted 5,874,850 4.82 Vested — — Forfeited and cancelled — — Unvested at December 31, 2024 5,874,850 4.82 Granted 602,284 10.48 Vested ( 2,251,468 ) 6.07 Forfeited and cancelled ( 30,000 ) 9.98 Unvested at December 31, 2025 4,195,666 $ 4.92 2024 Equity Incentive Plan As part of the Reorganization, FMH adopted the 2024 Equity Incentive Plan (“2024 Plan”) that authorized FMH to grant awards of up to 4,635,234 shares of common stock of FMH to FMH employees, non-employees, officers, and directors in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock and RSUs. As part of the Recombination, the Company assumed the 2024 Plan and all options outstanding thereunder as of the Recombination Date, and such outstanding options were converted to options of FTS based on the Conversion Rate. As of December 31, 2025 and 2024 the Company had granted option awards equivalent to 3,172,306 and 2,866,300 shares of common stock, respectively, gross of forfeited and cancelled awards under the 2024 Plan. There have been no RSUs granted under the 2024 Plan. In connection with the IPO, the Company froze the 2024 Plan and no new awards will be granted under it. 164 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table reflects the activities of stock options granted under the 2024 Plan for the years ended December 31, 2025 and 2024; there was no activity in the year ended December 31, 2023. Number of Options Weighted-Average Exercise Price (A) Remaining Life (Years) (B) Grant Date Fair Value (C) Outstanding at December 31, 2023 — $ — $ — $ — Granted 2,866,300 3.23 n.a. 1.54 Exercised ( 216,223 ) 3.23 n.a. 1.49 Forfeited and cancelled ( 268,231 ) 3.23 n.a. 1.59 Outstanding at December 31, 2024 2,381,846 3.23 9.6 1.54 Granted 306,006 5.13 n.a. 1.63 Exercised ( 180,184 ) 3.23 n.a. 1.84 Forfeited and cancelled ( 322,180 ) 3.93 n.a. 1.72 Outstanding at December 31, 2025 2,185,488 $ 3.39 5.6 $ 1.50 At December 31, 2025 Options Exercisable 1,176,697 $ 3.31 5.3 $ 1.21 (A) The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the estimated fair value of the issuing entity’s common shares, which was $ 37.45 per common share. (B) Options expire on the 10 th anniversary of the original grant. (C) For the year ended December 31, 2025, the Company used risk-free rates, estimated common stock volatility, expected term, and dividend yield as inputs and the fair value of the Company’s common stock as a key input to estimate the grant date fair value using the Black-Scholes method. The Company does not assume dividend payments, as it does not pay dividends, and estimates common stock volatilities using the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the option’s expected term. The Company estimates the grant-date fair value of awards using the contractual term of award, if any, including discounts for applicable post-vesting restrictions such as remaining in the service to the business except as otherwise amended estimated using Black-Scholes method. The grant date assumptions of the stock options are as follows: Year ended December 31, 2025 Year ended December 31, 2024 Low High Weighted Average Low High Weighted Average Expected Term 0.2 6.1 5.8 4.9 6.1 5.7 Volatility 33.0 % 58.5 % 58.3 % 44.9 % 45.9 % 45.3 % Interest Rate 4.0 % 4.5 % 4.1 % 3.7 % 4.3 % 4.2 % Dividend Yield n.a. n.a. n.a. n.a. n.a. n.a. Fair Value $ 0.18 $ 1.87 $ 1.63 $ 1.44 $ 1.59 $ 1.54 2025 Incentive Award Plan As part of the IPO, the Company adopted the 2025 Incentive Award Plan (“2025 Plan”) in order to facilitate the grant of equity incentives to directors, employees (including named officers), and consultants of the Company. The 2025 Plan authorizes the issuance of 22,985,926 of Class A or Class B common stock of FTS, subject to an automatic increase on January 1 of each calendar year from January 1, 2026 through and including January 1, 2035, by a number of shares equal to the lesser of (i) 5 % of the total shares of the aggregate number of shares of Class A common stock and Class B common stock outstanding (on an as-converted basis) as of the last day of the immediately preceding fiscal year and (ii) such smaller number of shares as determined by the board. Awards under the 2025 Plan may be granted in the form of incentive stock options, non-qualified stock options, stock appreciation rights, and restricted stock, RSUs, stock payments, and other incentive awards and cash awards. As of December 31, 2025, the Company had granted awards equivalent to 1,017,792 and 8,535,845 shares of Class A and Class B common stock, respectively, gross of forfeited and delivered awards under the 2025 Plan. 165 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table reflects the activities of stock options granted under the 2025 Plan for the year ended December 31, 2025; there was no activity in the years ended December 31, 2024 and 2023. Number of Options Weighted-Average Exercise Price (A) Remaining Life (Years) (B) Grant Date Fair Value (C) Outstanding at December 31, 2024 — $ — — $ — Granted 3,200,942 25.00 n.a. 14.26 Exercised — — n.a. — Forfeited and cancelled — — n.a. — Outstanding at December 31, 2025 3,200,942 $ 25.00 6.0 $ 14.26 At December 31, 2025 Options Exercisable 200,058 $ 25.00 6.0 $ 14.26 (A) The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the estimated fair value of the issuing entity’s common shares, which was $ 15.84 per common share of FTS, respectively, at December 31, 2025. (B) Options expire on the 10 th anniversary of the original grant. (C) For the year ended December 31, 2025, the Company used risk-free rates, estimated common stock volatility, expected term, and dividend yield as inputs and the fair value of the Company’s common stock as a key input to estimate the grant date fair value using the Black-Scholes method. The Company does not assume dividend payments, as it does not pay dividends, and estimates common stock volatilities using the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the option’s expected term. The Company estimates the grant-date fair value of awards using the contractual term of award, if any, including discounts for applicable post-vesting restrictions such as remaining in the service to the business except as otherwise amended estimated using Black-Scholes method. The grant date assumptions of the stock options granted under the 2025 Plan are as follows: Year ended December 31, 2025 Low High Weighted Average Expected Term 6.0 6.0 6.0 Volatility 57.3 % 57.3 % 57.3 % Interest Rate 3.7 % 3.7 % 3.7 % Dividend Yield n.a. n.a. n.a. Fair Value $ 14.26 $ 14.26 $ 14.26 The following table reflects the activities of RSU awards granted under the 2025 Plan for the year ended December 31, 2025; there was no activity in the years ended December 31, 2024 and 2023. Number of RSUs Weighted Average Grant Date Fair Value Unvested at December 31, 2024 — $ — Granted 6,352,695 26.95 Vested ( 438,752 ) 31.70 Forfeited and cancelled — — Unvested at December 31, 2025 5,913,943 $ 27.09 166 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) 2025 Employee Stock Purchase Plan (“ESPP”) In connection with the IPO, the Company adopted the ESPP under which eligible employees may purchase shares of Class A common stock of FTS, up to a maximum percentage of their eligible compensation (which shall be 20 % unless otherwise specified in an applicable offering document), subject to certain IRS and share purchase limitations, at 85 % of the lower of the closing price (fair market value) of a share of FTS on the first day of the offering period or the purchase date, whichever is lower. As of December 31, 2025, there have been no offering periods under the ESPP program. The maximum aggregate number of shares that may be subject to awards and sold under the ESPP is 2,133,961 shares, subject to an automatic annual increase on the first day of each calendar year beginning in 2026 and ending on and including January 1, 2035 in an amount equal to the lesser of (i) one percent ( 1 %) of the aggregate number of shares of Class A common stock and Class B common stock of FTS outstanding (on an as-converted basis) on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as determined by the Board. Unrecognized Compensation Expense At December 31, 2025, the Company has not yet recognized compensation expense for the following awards: Vesting Condition Weighted Average Recognition Period (Years) Shares Unrecognized Compensation Expense Options RSUs Total Options RSUs Time-based (A) 3.5 9,585,559 3,007,454 12,593,013 $ 63,081 $ 101,264 Multiple (A)(B) 1.1 — 6,512,752 6,512,752 — 49,550 Total 9,585,559 9,520,206 19,105,765 $ 63,081 $ 150,814 (A) Awards typically vest over a period of 1 to 4 years and most awards have a one year cliff vesting feature with quarterly vesting thereafter. (B) Awards include a service period vesting condition, as noted above, as well as market based and liquidity-based vesting conditions. The liquidity event for awards which have that feature has been satisfied in connection with the IPO as of December 31, 2025. Noncontrolling Interests in Consolidated Subsidiaries The following amounts relate to equity interests held by the third-party investors in a real estate investment trust subsidiary, Figure REIT, Inc. (“Figure REIT”) and the Figure Markets Offshore Opportunity Investment Fund L.P. (“Offshore Solana Fund”) both of which the Company consolidates, but does not wholly-own. The noncontrolling interests included in net income (loss) are computed as follows: Years Ended December 31, 2025 2024 2023 Net Income (Loss) Non-controlling Interest as a % of Total (A) Non-controlling Interest in Income of Consolidated Subsidiaries (B) Net Income (Loss) Non-controlling Interest as a % of Total (A) Non-controlling Interest in Income of Consolidated Subsidiaries (B) Net Income (Loss) Non-controlling Interest as a % of Total (A) Non-controlling Interest in Loss of Consolidated Subsidiaries (B) Figure REIT $ 1,302 45.0 % $ 584 $ 5,509 44.6 % $ 2,458 $ ( 9,989 ) 44.6 % $ ( 4,455 ) Offshore Solana Fund ( 5,729 ) 2.8 ( 161 ) 8,627 2.8 243 n.a. n.a. n.a. Total $ ( 4,427 ) $ 423 $ 14,136 $ 2,701 $ ( 9,989 ) $ ( 4,455 ) (A) Represents the weighted average percentage of total noncontrolling shareholders’ net income (loss) in consolidated subsidiaries throughout the period, which may not agree to the percentages as calculated based on the ending balances presented above. (B) Balances may not cross-foot due to rounding for presentation purposes in the Noncontrolling Interest as a Percent of Total shown. The noncontrolling interests in the equity of consolidated subsidiaries are computed as follows: December 31, 2025 December 31, 2024 Total Consolidated Equity Non-controlling Ownership Interest as a Percent of Total Non-controlling Interest in Equity of Consolidated Subsidiaries Total Consolidated Equity Non-controlling Ownership Interest as a Percent of Total Non-controlling Interest in Equity of Consolidated Subsidiaries Figure REIT $ 18,217 45.0 % $ 8,178 $ 18,261 44.6 % $ 7,769 Offshore Solana Fund 6,602 2.8 186 17,807 2.8 508 Total $ 24,819 $ 8,364 $ 36,068 $ 8,277 167 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Note 8 - NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) attributable to the Company by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to the Company by the weighted-average number of shares of common stock outstanding adjusted to give effect to potentially dilutive securities. Diluted net income (loss) per share reflects the dilutive effect of potential common shares from share-based awards, warrants and convertible preferred stock. The treasury stock method is used to calculate the dilutive effect of outstanding share-based awards and warrants, which assumes the proceeds upon vesting or exercise would be used to purchase common stock at the average price for the period. Net income (loss) per share is computed using the two-class method which is required for multiple classes of common stock and participating securities. In historical periods where the Company had outstanding convertible preferred stock, net income (loss) attributable to FTS is first allocated to the convertible preferred stock based on their dividend preference. Any remaining net income (loss) attributable to FTS is then allocated to common stockholders and preferred stockholders using the if-converted method. All preferred stock was convertible on a 1:1 basis to common stock. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis for those classes and the resulting net income (loss) per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis, and they have been combined as common shares below. The following table sets forth the calculation of basic and diluted net income (loss) per common share for the periods: Years Ended December 31, 2025 2024 2023 Numerator: Net income (loss) attributable to FTS $ 133,858 $ 17,214 $ ( 47,935 ) Less: Undistributed earnings attributable to convertible preferred stockholders ( 71,832 ) ( 17,214 ) — Net income (loss) attributable to common stockholders, basic and diluted $ 62,026 $ — $ ( 47,935 ) Denominator: Basic weighted average common shares attributable to FTS 114,435,259 65,020,119 51,305,065 Add: effect of dilutive securities related to share-based payment awards (A) 27,366,743 7,617,338 — Diluted weighted average common shares attributable to FTS 141,802,002 72,637,457 51,305,065 Net income (loss) per common share attributable to FTS, basic $ 0.54 $ 0.00 $( 0.93 ) Net income (loss) per common share attributable to FTS, diluted $ 0.44 $ 0.00 $( 0.93 ) (A) The dilutive impact of share-based payment awards and warrants for the years ended December 31, 2025, 2024, and 2023 comprised of 22,621,883 , 7,132,282 , and zero shares related to stock options, 959,984 , 485,056 , and zero shares related to warrants, and 3,784,876 , zero , and zero shares related to unvested RSUs, respectively. For the year ended December 31, 2024, 598,104 shares related to unvested RSUs were excluded from the dilutive impact as the issuance of those shares was contingent upon the satisfaction of a liquidity condition which was not satisfied as of the end of that period. As the fiscal year ended December 31, 2023 was in a net loss position, 3,609,301 potentially dilutive shares from share-based payment awards were considered, but would have been anti-dilutive and have been excluded from the computation of diluted earnings per share for that period. NOTE 9 – VARIABLE INTEREST ENTITIES Consolidated VIEs The Company consolidates VIEs in which the Company is deemed to have both the power to direct the most significant activities of the entities and the right to receive benefits, or the obligation to absorb losses, that could potentially be significant to the entities. 168 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The following table presents the carrying value and classification of the assets and liabilities of VIEs consolidated within the Consolidated Balance Sheets, after elimination of intercompany balances: December 31, 2025 December 31, 2024 Total Assets Total Liabilities Total Assets Total Liabilities Offshore Solana Fund $ 44,760 $ — $ 17,811 $ 4 Figure REIT 20,789 1,847 121,817 103,556 Figure Certificate Company 329,921 329,219 1,015 494 Total $ 395,470 $ 331,066 $ 140,643 $ 104,054 Additionally, the Company has wholly-owned consolidated VIEs that are formed to acquire, receive, participate, hold, release and dispose of participation interests for the Company’s warehouse facilities. The Company is the primary beneficiary of these VIEs, and retains the risks and benefits associated with the assets and liabilities transferred to the VIEs. See Note 6 for further discussion of the Company’s warehouse facilities. Offshore Solana Fund The Offshore Solana Fund was initially a wholly-owned subsidiary of the Company. In July 2024, the Company sold 2.8 % of the Offshore Solana Fund limited partnership interests to unrelated third parties. As of December 31, 2025, the Company holds a 97.2 % interest in the Offshore Solana Fund. Through its ownership of the general partner, the Company has the power to direct the activities that most significantly impact the economic performance of the Offshore Solana Fund and the Company has an obligation to absorb losses or receive returns of the Offshore Solana Fund. Third-party limited partners in the Offshore Solana Fund hold a ratable interest in the fair value of the Offshore Solana Fund’s net assets, and the Company presents such noncontrolling interests at fair value in the Consolidated Balance Sheets and reflects changes thereon in the Consolidated Statements of Operations. Figure REIT The Company holds all voting rights in Figure REIT, and it directs the activities that most significantly impact the economic performance of Figure REIT through an advisor. However, third parties own 45.0 % of the non-voting equity in Figure REIT at December 31, 2025. While the Company has economic exposure through its direct and indirect interest in Figure REIT, there is no recourse to the Company for Figure REIT’s liabilities. See Note 7 for further discussion of noncontrolling interests in the Offshore Solana Fund and Figure REIT. Figure Certificate Company FCC is a face-amount certificate company registered with the SEC. FCC was incorporated in April 2023 as a wholly-owned subsidiary of FT until the Reorganization in 2024. Subsequent to the Reorganization, FCC is a wholly-owned subsidiary of FMH. The Company holds all voting rights in FCC and it directs the activities that most significantly impact the economic performance of FCC. 169 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Non-Consolidated VIEs While the Company continues to be involved with securitizations considered VIEs in its role as the sponsor and the servicer of securitization transactions, the Company has determined that it is not the primary beneficiary of these entities and therefore does not consolidate these securitizations. These entities are established as grantor trusts for various securitization transactions. The activities that most significantly impact the economic performance of the VIE include servicing activities with respect to delinquent and defaulted loans, determined by a third-party special servicer that the Company may not remove without cause. Assets transferred into each securitization trust are legally isolated from the creditors of the Company, not available to satisfy obligations of the Company, and can only be used to settle obligations of the underlying trust in exchange for debt securities and beneficial interests sold. The following table summarizes the aggregate risk characteristics of the unconsolidated VIEs and the Company’s maximum exposure to loss at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 UPB of securitization collateral $ 4,595,629 $ 2,785,341 Face amount of debt held by third parties $ 4,805,192 $ 2,586,297 Maximum exposure (A) $ 347,793 $ 201,512 Weighted average delinquency (B) 0.8 % 0.4 % (A) Primarily represents the aggregate fair value of the Company’s investments in marketable securities and the servicing assets associated with underlying collateral of the securitizations. In certain cases, the Company is obligated to fund securitization reserve accounts. See Note 10 for further discussion regarding the Company’s reserve account funding obligations. (B) Represents the percentage of the UPB that is 60 + days delinquent. NOTE 10 – COMMITMENTS AND CONTINGENCIES Litigation — The Company is or may become, from time to time, involved in various disputes, litigation, arbitration, and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of matters the Company has been and currently is involved in, the outcome of these proceedings cannot be determined at this time, and it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. The Company is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible, but the Company may become involved in additional litigation in the ordinary course of the Company’s business in the future, including litigation that could be material to its business. The Company reviews the need for any loss contingency reserves and establishes reserves when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. Management, after consultation with legal counsel, believes that there are no known actions or threats that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. The Company is, from time to time, subject to inquiries by government entities, though the Company currently does not believe any of these inquiries would result in a material adverse effect on the Company’s business. Indemnifications — In the normal course of business, the Company and its subsidiaries enter into contracts that contain representations and warranties that provide general indemnifications in regards to legal proceedings. The Company’s maximum exposure under these arrangements is unknown as this would involve future legal claims that may be made against the Company that have not yet occurred. However, based on its experience, the Company expects the risk of material loss to be remote. Debt Covenants — Certain of the Company’s debt obligations are subject to loan covenants and event of default provisions. See Note 6 for further discussion of the Company’s debt obligations. Loan Purchase and Servicing Commitments — The Company enters into agreements with various loan origination partners to purchase and service the loans they originate through the Technology Offering. At December 31, 2025 and 2024, purchase commitments were not material. The Company does not record an asset or liability for purchase or servicing commitments since it expects such commitments to benefit the Company, the Company has not yet taken control of the underlying loans, and the commitments are not material. 170 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Loan Funding Obligations — The HELOC loans that the Company originates or purchases include terms that permit borrowers to draw amounts, or redraw previously repaid amounts, during a 4-year period after the original origination date. At December 31, 2025 and 2024, borrowers were able to borrow up to $ 105.1 million and $ 29.1 million on undrawn HELOC loans that the Company has committed to fund. Additionally, the Company has $ 16.9 million and $ 3.0 million in unfunded loan commitments at December 31, 2025 and 2024, respectively, related to loans originated or purchased near the end of each respective period, which were substantially settled within a week after each period end. Loan Repurchase Obligations — The Company has contractual agreements with certain loan buyers to repurchase or substitute loans where a borrower misses a payment within 30 to 90 days since the loan’s origination, though the Company indemnifies the loan buyer against future losses on such loans in certain cases. The repurchase price is equal to the original sale price to the loan purchaser and the Company recognizes a loss to the extent the repurchase price of the loan exceeds the estimated fair value on the repurchase date, further adjusted upon resale of the loan, if applicable. The Company generally continues to service the defaulting loan through a third-party subservicer. The Company repurchased loans for which it recognized gains (losses) of $( 2.4 ) million, $( 8.2 ) million and $( 10.1 ) million for the years ended December 31, 2025, 2024 and 2023, respectively, within “Other expense” in the Consolidated Statements of Operations. At December 31, 2025, the Company has contingent commitments to repurchase loans with an aggregate UPB of up to $ 1.8 billion for which the Company recorded repurchase obligations totaling $ 17.7 million within “Payables to third-party loan owners” in the Consolidated Balance Sheets. The Company recorded a reserve of $ 6.2 million within “Other current liabilities” in the Consolidated Balance Sheets, based on the Company’s estimate of expected future losses at December 31, 2025. Securitization Reserve Account Funding Obligations — The Company, in its capacity as servicer of certain securitizations, has committed to fund and replenish customary reserve accounts held by the securitization trust that the Company initially funds at the time of securitization in an amount based upon expected prepayments, delinquencies, defaults, and draws from borrowers for loans in the securitization. While the Company’s obligation to fund reserve amounts is not limited, and the Company cannot reliably estimate the long-term macroeconomic environment that may impact its maximum exposure for such obligations over the contractual life of the securitization, the Company does not expect to fund material amounts to its securitizations in excess of current balances at December 31, 2025. Capital Commitments — In February 2025, the Company entered into a joint venture agreement with a third party to finance loans originated or purchased by the Company. As part of that agreement, the Company committed to invest up to $ 10.5 million in exchange for a 5.0 % interest in the joint venture. The Company contributed capital of $ 2.5 million to the joint venture during the year ended December 31, 2025. Leases — The Company has non-cancellable leases on office spaces expiring through 2031 that it does not sublease. Rent expense totaled $ 2.7 million, $ 2.8 million and $ 2.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company has leases that include renewal options, leasehold improvement incentives, and escalation clauses. At December 31, 2025, the Company has not considered such renewal provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. The terms of the leases do not impose any financial restrictions or covenants. Operating lease ROU assets of $ 5.2 million are presented in “Other non-current assets”, and lease liabilities of $ 5.7 million are presented in “Other current liabilities” and “Lease liability, non-current”, in the Consolidated Balance Sheets at December 31, 2025. Future undiscounted, minimum lease payments for the Company’s non-cancellable operating leases are as follows: Years Ending December 31, December 31, 2025 2026 $ 2,022 2027 1,519 2028 1,337 2029 1,017 2030 988 Thereafter 83 Total undiscounted lease payments $ 6,966 Less: Imputed Interest ( 1,285 ) Operating Lease Liabilities $ 5,681 171 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) At December 31, 2025 and 2024, the weighted average remaining lease term for operating leases was 4.2 years and 1.2 years, respectively, and the weighted average discount rate was 1.0 % and 2.0 %, respectively. The Company paid $ 2.7 million and $ 3.0 million in cash included in the measurement of lease liabilities for the years ended December 31, 2025 and 2024, respectively. NOTE 11 – RELATED PARTY TRANSACTIONS Provenance Blockchain Foundation Term Note In July 2022, FT entered into an interest bearing term note with the Provenance Blockchain Foundation (“Provenance”), pursuant to which FT provided Provenance with a $ 5.0 million loan, which was subsequently amended on June 12, 2023, to increase the total principal amount to $ 9.1 million. The term note was held by FMH and was eligible to be settled in cash or an equivalent value of HASH at maturity. At December 31, 2024 the outstanding principal of the loan, including interest paid in-kind, was recorded at $ 9.4 million, as “Loan to related parties” in the Consolidated Balance Sheets. Interest accrued on the note was $ 0.7 million and $ 0.8 million for the years ended December 31, 2025 and 2024, respectively, recorded as “Interest income” in the Consolidated Statements of Operations. On December 31, 2025, the loan was settled in full. The total loan balance at the time of payoff, including all accrued interest, was $ 10.1 million. As allowed by the terms of the note, the payoff was satisfied through the transfer of 4,969,120,678 HASH tokens. The per token value of the HASH tokens was determined to be $ 0.00205 , based on a valuation report provided by an independent third party. This valuation resulted in a total transfer value of $ 10.2 million. As the transfer of HASH tokens resulted in an overpayment by Provenance of $ 0.1 million, the Company recorded a payable to related party of $ 0.1 million, representing 31,707,317 HASH tokens to be returned to Provenance. Gas Fee Service Provider In February 2025, FCC entered into a services agreement with Provenance whereby Provenance pays, on behalf of FCC, HASH to cover fees to network validators for processing and validating operations on the blockchain incurred in connection with the purchase or sale of the face-amount certificates issued by FCC and transacted on Provenance’s blockchain (“Provenance Blockchain”). FCC reimburses Provenance in cash in an amount equal to the then-current market value of HASH paid by Provenance. The Company recognized $ 1 thousand incurred under the services agreement for the year ended December 31, 2025, respectively, recorded as expense in “Operations and processing” on the Consolidated Statements of Operations. At December 31, 2025 the Company owed $ 1 thousand to Provenance recorded in “Accounts payable and accrued liabilities” in the Consolidated Balance Sheets. Signum Ltd. (dba Hastra) In December 2025, the Company entered into a Software License Agreement (the “Agreement”) with Signum Ltd.. (dba Hastra) (“Hastra”). Under the terms of the Agreement, the Company granted Hastra a nonexclusive, non-sublicensable, and nontransferable license to use certain proprietary software to support their protocol. In exchange for the license and ongoing maintenance and support services, Hastra pays the Company a royalty fee equal to 0.50 % ( 50 basis points) of the per-transaction revenue earned from the protocol. The initial term of the Agreement is three years , expiring in December 2028, with automatic one-year renewals thereafter. For the year ended December 31, 2025, the Company recognized no revenue related to this Agreement, and there were no outstanding receivables due from Hastra as of December 31, 2025. Additionally, Hastra holds YLDS as part of their protocol activity; the YLDS held by Hastra are recorded in “Debt, current to related parties” in the Consolidated Balance Sheets. Investments in Loan Securitizations The Company retains beneficial interests in loan securitization trusts that it sponsors. See Notes 3 and 9 for additional detail. 172 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Employee DSCR Loan In May 2025, the Company issued a debt-service coverage ratio (“DSCR”) loan to an employee. The principal amount of the loan was $ 0.1 million, with interest rate of 6.90 % per annum, and maturity in June 2055. On August 15, 2025, the employee repaid the loan in full in an amount equal to $ 0.1 million, including principal of approximately $ 0.1 million and total accrued unpaid interest of approximately $ 0.0 million. Transactions with Equity-Method Investees Reflow The Company holds a 17.3 % interest in Reflow contributed to the Company by the Controlling Party. The Company received distributed profits of $ 0.8 million, $ 0.9 million and $ 0.5 million for the years ended December 31, 2025, 2024 and 2023, respectively, recorded in “Other revenue” in the Consolidated Statements of Operations. See Note 3 for detail on the Company’s investment in Reflow. Domestic Solana Fund The Domestic Solana Fund acquired its investments in SOL primarily through auctions held through the FTX Trading Ltd. (“FTX”) bankruptcy proceedings through a purchase and sale agreement with Alameda Research and Maclaurin Investments. The Company recorded contributions, net of distributions, to the Domestic Solana Fund in “Other non-current assets” in the Consolidated Balance Sheets as follows: Years Ended December 31, 2025 2024 Contributions $ 150 $ 3,783 Distributions $ 1,774 $ 799 See Note 3 for detail on the Company’s investment in Domestic Solana Fund. Transactions with the Controlling Party The Company incurred $ 1.1 million, $ 0.6 million and $ 1.0 million for the years ended December 31, 2025, 2024 and 2023, respectively, in costs to arrange travel for the Controlling Party and other affiliates, recorded as “General and administrative” expense in the Consolidated Statements of Operations. As of December 31, 2025, the Controlling Party holds $ 0.4 million of YLDS issued by FCC, recorded as “Debt, current” on the Consolidated Balance Sheets. The Controlling Party’s holdings are on normal market terms and do not include any preferential terms, guarantees, or other arrangements with the Company. 173 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) NOTE 12 – FAIR VALUE MEASUREMENTS Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table summarizes information about the assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 and 2024: December 31, 2025 Carrying Value Fair value Level 1 Level 2 Level 3 (A) Total Assets: Cash and cash equivalents $ 1,198,141 $ 955,200 $ 242,941 $ — $ 1,198,141 Restricted cash 68,637 68,637 — — 68,637 Digital assets (B) 88,511 88,511 — — 88,511 Distressed asset claims (C) 3,068 — — 3,068 3,068 Marketable securities, at fair value (D) 273,151 — 232,985 40,166 273,151 Loans held for sale, at fair value (E) 404,337 — — 404,337 404,337 Loan servicing assets, at fair value (E) 113,064 — — 113,064 113,064 Treasury note futures (F) 442 442 — — 442 Total assets $ 2,149,351 $ 1,112,790 $ 475,926 $ 560,635 $ 2,149,351 Liabilities: Digital asset collateral repayment obligation (G) $ 52,569 $ 52,569 $ — $ — $ 52,569 Certificate repayment obligation (G) 266,654 — 266,654 — 266,654 Total liabilities $ 319,223 $ 52,569 $ 266,654 $ — $ 319,223 December 31, 2024 Carrying Value Fair value Level 1 Level 2 Level 3 (A) Total Assets: Cash and cash equivalents (H) $ 289,670 $ 289,670 $ — $ — $ 289,670 Restricted cash 57,777 57,777 — — 57,777 Digital assets (B)(H) 83,622 83,622 — — 83,622 Distressed asset claims (C) 7,589 — — 7,589 7,589 Marketable securities, at fair value (D) 163,489 — 128,983 34,506 163,489 Loans held for sale, at fair value (E) 395,922 — — 395,922 395,922 Loan servicing assets, at fair value (E) 88,497 — — 88,497 88,497 Total assets $ 1,086,566 $ 431,069 $ 128,983 $ 526,514 $ 1,086,566 Liabilities: Digital asset collateral repayment obligation (G) $ 64,447 $ 64,447 $ — $ — $ 64,447 Total liabilities $ 64,447 $ 64,447 $ — $ — $ 64,447 (A) There were no transfers of Level 3 instruments to, or from, other fair value levels during the periods presented. (B) Included in “Digital assets” and “Digital assets, non-current” in the Consolidated Balance Sheets and represents digital assets held for sale at fair value, and excludes digital assets held at cost that are considered intangible assets. (C) Included in “Other current assets” in the Consolidated Balance Sheets. (D) Residual interest securities and non-rated securities in securitizations not considered debt securities are included within Level 3 of the fair value hierarchy. (E) See Notes 4 and 5 regarding changes in the carrying values of servicing assets and loans, respectively. (F) Treasury note future assets are recorded in “Other current assets”, and treasury note future liabilities in “Other current liabilities" in the Consolidated Balance Sheets. (G) Included in “Debt, current” in the Consolidated Balance Sheets. (H) During the current period, we reclassified payment stablecoins from “Digital assets” to “Cash and cash equivalents”. Prior period amounts have been recast to conform to the current period presentation. This reclassification resulted in an increase to “Cash and cash equivalents” and a corresponding decrease to “Digital assets” of $ 2.4 million as of December 31, 2024. For further information, see Note 2, Change in Accounting Principle, to the Consolidated Financial Statements. 174 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Significant Valuation Inputs The Company used the following unobservable inputs that it considers significant to value the financial assets and liabilities carried at fair value and classified within Level 3 of the fair value hierarchy: December 31, 2025 Fair Value Discount Rate (A) (%) CPR (B) (%) CDR (C) (%) Servicing Rate (D) (%) Loss Severity (E) (%) Marketable securities: Residual interest securities $ 40,166 9.6 % - 25.8 % 15.7 % 16.2 % - 20.8 % 18.8 % — % - 2.4 % 1.2 % n.a. n.a. Servicing assets: HELOC loans $ 111,211 13.0 % - 13.0 % 13.0 % — % - 33.1 % 13.3 % — % - 4.8 % 0.8 % 0.3 % n.a - n.a n.a Mortgage loans 1,853 9.5 % - 10.5 % 10.3 % 3.5 % - 8.2 % 5.3 % — % - 10.5 % 0.4 % 0.3 % n.a. Total / Weighted average (F) $ 113,064 13.0 % 13.2 % 0.7 % 0.3 % Loans held for sale: HELOC loans (G) $ 320,566 5.7 % - 7.8 % 6.4 % 1.1 % - 47.4 % 17.8 % — % - 94.0 % 1.8 % n.a. — % - 99.1 % 25.4 % Personal loans (H) 79,113 8.9 % - 11.5 % 9.8 % — % - — % — % — % - — % — % n.a. — % - — % — % Other (I) 4,658 6.2 % - 12.0 % 7.6 % 4.6 % - 73.2 % 26.1 % 1.0 % - 62.8 % 9.6 % n.a. 88.0 % - 92.0 % 90.0 % Total / Weighted average (F) $ 404,337 6.5 % 18.0 % 1.9 % December 31, 2024 Fair Value Discount Rate (A) (%) CPR (B) (%) CDR (C) (%) Servicing Rate (D) (%) Loss Severity (E) (%) Marketable securities: Residual interest securities $ 34,506 14.5 % - 24.0 % 19.7 % 15.2 % - 20.1 % 17.7 % 1.5 % - 1.7 % 1.6 % n.a n.a Servicing assets: HELOC loans $ 86,465 13.0 % - 13.0 % 13.0 % 1.0 % - 33.0 % 14.4 % — % - 4.4 % 0.7 % 0.2 % n.a Mortgage loans 2,032 10.0 % - 11.0 % 10.8 % 3.9 % - 8.2 % 5.7 % — % - 1.0 % 0.2 % — % n.a Total / Weighted average (F) $ 88,497 12.9 % 14.2 % 0.7 % 0.2 % Loans held for sale: HELOC loans (G) $ 366,154 6.4 % - 10.1 % 7.6 % 1.3 % - 32.4 % 13.6 % 1.5 % - 1.7 % 1.6 % n.a 16.6 % - 44.2 % 32.4 % Other (I) 3,829 5.1 % - 8.7 % 6.9 % 17.9 % - 99.7 % 25.6 % 0.4 % - 10.2 % 7.7 % n.a 88.0 % - 92.0 % 90.0 % Total / Weighted average (F) $ 369,983 7.6 % 13.7 % 1.7 % (A) Significant increases (decreases) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. (B) Significant increases (decreases) in the CPR, in isolation, would result in a significantly lower (higher) fair value measurement. (C) Significant increases (decreases) in the CDR, in isolation, would result in a significantly lower (higher) fair value measurement. (D) Significant increases (decreases) in the servicing rate in excess of servicing costs, in isolation, would result in a significantly higher (lower) fair value measurement. Values represent the weighted average total mortgage servicing amount, net of subservicing costs. (E) Significant increases (decreases) in the severity, in isolation, would result in a significantly lower (higher) fair value measurement. (F) Unobservable inputs were weighted by respective fair value of each class. (G) HELOC loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a residential mortgage cash flow model. (H) Personal loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model. (I) Personal unsecured loans included in “Other” are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model. The Company uses an estimated recovery from collections and recent sales to fair value personal loans that are 30 days past due; the fair value of such loans at December 31, 2025 and 2024 were not material. 175 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Significant Valuation Input Sensitivity The following tables summarize the estimated change in fair value of assets carried at fair value and classified within Level 3 of the fair value hierarchy for the unobservable inputs in “—Significant Valuation Inputs” at December 31, 2025. Each of the following sensitivity analyses is hypothetical and is provided for illustrative purposes only. There are certain limitations inherent in the sensitivity analyses presented. In particular, the results are calculated by stressing a particular economic assumption independent of changes in any other assumption; in practice, changes in one factor may result in changes in another, which might counteract or amplify the sensitivities. Also, changes in the fair value based on the following variations in an assumption generally may not be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear. -2% -1% +1% +2% $ % $ % $ % $ % Discount rate: Marketable securities: Residual interest securities $ 1,408 7.7 % $ 659 3.6 % $ ( 653 ) ( 3.6 ) % $ ( 1,275 ) ( 7.0 ) % Servicing assets: HELOC loans 6,793 6.3 3,289 3.0 ( 3,105 ) ( 2.9 ) ( 6,025 ) ( 5.6 ) Mortgage loans ( 187 ) ( 10.1 ) ( 90 ) ( 4.8 ) 82 4.4 158 8.5 Loans held for sale: HELOC loans 16,724 3.7 12,418 2.7 ( 15,234 ) ( 3.3 ) ( 30,126 ) ( 6.6 ) Personal loans 15 1.1 7 0.5 ( 7 ) ( 0.5 ) ( 14 ) ( 1.0 ) -20% -10% +10% +20% $ % $ % $ % $ % CPR: Marketable securities: Residual interest securities $ 2,970 16.4 % $ 1,407 7.8 % $ ( 1,269 ) ( 7.0 ) % $ ( 2,814 ) ( 15.6 ) % Servicing assets: HELOC loans 6,815 6.3 3,299 3.1 ( 3,094 ) ( 2.9 ) ( 6,004 ) ( 5.6 ) Mortgage loans ( 98 ) ( 5.3 ) ( 48 ) ( 2.6 ) 46 2.5 90 4.9 Loans held for sale: HELOC loans 1,068 0.2 570 0.1 ( 813 ) ( 0.2 ) ( 1,636 ) ( 0.4 ) Personal loans — — — — — — — — CDR: Marketable securities: Residual interest securities 723 4.0 347 1.9 ( 388 ) ( 2.2 ) ( 743 ) ( 4.1 ) Servicing assets: HELOC loans — — — — — — — — Loans held for sale: HELOC loans 1,655 0.4 816 0.2 ( 930 ) ( 0.2 ) ( 1,820 ) ( 0.4 ) Personal loans — — — — — — — — Servicing rate: Servicing Assets HELOC loans 9,022 8.3 4,511 4.2 ( 4,511 ) ( 4.2 ) ( 9,022 ) ( 8.3 ) 176 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) Marketable Securities The following table summarizes activities involving the Company’s marketable securities that are measured at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2025 and 2024: Balance at December 31, 2023 $ 11,952 Purchases (A) 24,440 Sales ( 872 ) Principal payments ( 2,184 ) Change in fair value (B) 1,170 Balance at December 31, 2024 $ 34,506 Purchases (A) 15,968 Sales — Principal payments ( 11,582 ) Change in fair value (B) 1,274 Balance at December 31, 2025 $ 40,166 (A) Includes premiums paid on the purchased notes. (B) Included in “Gain on sale of loans, net” in the Consolidated Statements of Operations. Assets and Liabilities Not Measured at Fair Value on a Recurring Basis The following table summarizes information about the liabilities that are not measured at fair value on a recurring basis at December 31, 2025 and 2024: December 31, 2025 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Liabilities: Financed retained interests (A) $ 231,633 $ — $ 233,684 $ 39,467 $ 273,151 Total liabilities $ 231,633 $ — $ 233,684 $ 39,467 $ 273,151 December 31, 2024 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Liabilities: Financed retained interests (A) $ 128,101 $ — $ 127,327 $ — $ 127,327 Total liabilities $ 128,101 $ — $ 127,327 $ — $ 127,327 (A) Financed retained interests classified as Level 2 in the fair value hierarchy were valued with a discounted cash flow model using collateral contractual terms and discount rates of similar instruments that include default and prepayment expectations as observable inputs. Debt not carried at fair value, including financed retained interests, is presented at the face amount, net of debt issuance costs that are amortized over the contractual term using the effective interest method. The carrying value of debt associated with the warehouse facilities and servicing rights financing approximates the fair value due to their relatively short maturities. Assets Measured at Fair Value on a Non-recurring Basis Digital Assets The Company held HASH at cost, net of impairment, totaling $ 11.7 million and $ 1.5 million at December 31, 2025 and 2024, respectively, as intangible assets presented within “Digital assets” in the Consolidated Balance Sheets. In connection with a valuation that management performed with the assistance of a third-party specialist during the Reorganization, the Company determined an impairment indicator existed for the HASH it held. Therefore, the Company recognized an impairment charge of $ 5.9 million, equal to the difference between the fair value and cost basis of HASH, in “Other (expense) income, net” in the Consolidated Statements of Operations during the year ended December 31, 2024. There were no impairment charges during the year ended December 31, 2025 or 2023 . 177 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) NOTE 13 – INCOME TAXES Components of “Income (loss) before income taxes” in the Consolidated Statements of Operations is attributable to the following for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, 2025 2024 2023 U.S. $ 115,593 $ 22,092 $ ( 52,341 ) Foreign ( 1,918 ) — — Income (loss) before income taxes $ 113,675 $ 22,092 $ ( 52,341 ) The (benefit) provision for income taxes is presented within the “Income tax (benefit) provision” line item in the Consolidated Statements of Operations. The following table details the Company’s income tax (benefit) provision for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, 2025 2024 2023 Current: Federal $ 1,115 $ 943 $ — State 4,316 1,234 102 Foreign — — — Total current $ 5,431 $ 2,177 $ 102 Deferred: Federal $ ( 14,538 ) $ — $ — State ( 11,499 ) — — Foreign — — — Total deferred ( 26,037 ) — — Total (benefit) provision for income taxes $ ( 20,606 ) $ 2,177 $ 102 The Company’s income tax (benefit) provision for the years ended December 31, 2025, 2024 and 2023 is $( 20.6 ) million, $ 2.2 million, and $ 0.1 million, respectively. The income tax benefit in the current year is due to a partial release of the Company’s valuation allowance following the Recombination in the third quarter of 2025 and significant profits in the Company’s lending business. Tax Rate Reconciliation The following table is a reconciliation of the income taxes expected at the statutory federal income tax rate and the income tax (benefit) provision for the years ended December 31, 2025, 2024 and 2023: December 31, 2025 2024 2023 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit ( 4.1 ) 5.8 0.4 Permanent items 0.7 ( 5.3 ) — Nondeductible officers’ compensation 2.0 — — Change in valuation allowance ( 29.5 ) ( 6.9 ) ( 0.2 ) Stock-based compensation ( 4.6 ) 16.6 ( 2.2 ) Tax credits ( 5.0 ) ( 43.0 ) ( 4.1 ) Return to provision 0.2 18.0 ( 15.1 ) Rate change / state impact ( 0.2 ) ( 10.8 ) — Change in unrecognized tax benefits 2.4 12.9 — Other ( 1.0 ) 1.6 — Total ( 18.1 ) % 9.9 % ( 0.2 ) % 178 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) The components of the Company’s deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows: December 31, 2025 2024 Deferred tax assets: Net operating losses $ 51,541 $ 59,423 Tax credits 5,588 2,897 Loan sale indemnification reserve 1,571 1,520 Stock-based compensation 14,013 10,404 Intangible assets 5,557 5,334 Research and development capitalization 4,472 14,726 Lease liabilities 1,007 695 Other 3,617 823 Total deferred tax assets $ 87,366 $ 95,822 Deferred tax liabilities: Servicing asset and other fair value adjustments $ ( 28,718 ) $ ( 22,982 ) Unrealized gains (losses) (A) ( 2,486 ) ( 2,621 ) ROU assets ( 1,320 ) ( 611 ) Mark to market ( 4,161 ) — Total deferred tax liabilities $ ( 36,685 ) $ ( 26,214 ) Valuation allowance ( 24,644 ) ( 69,608 ) Net deferred tax assets $ 26,037 $ — (A) Primarily relates to unrealized gains from digital assets held for sale. In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on available objective evidence and the Recombination during 2025, Management believes it is more-likely-than-not that a significant portion of our deferred tax assets would be realizable as of the balance sheet date. Accordingly, the Company has released a significant portion of its valuation allowance in the current year. The valuation allowance decreased by $ 45.0 million and $ 1.5 million at December 31, 2025 and 2024, respectively, compared to the prior year. At December 31, 2025 and 2024, the valuation allowance was $ 24.6 million and $ 69.6 million, respectively. As of December 31, 2025 the Company has net operating losses for U.S. federal, state and foreign tax purposes of approximately $ 34.0 million, $ 21.8 million, and $ 0.3 million, respectively. Federal tax losses will carryforward indefinitely. For state purposes, such losses would begin to expire in 2029. As of December 31, 2025 the Company has federal and state research tax credit carryforwards of $ 11.4 million and $ 0.2 million, respectively. The federal credits have a 20-year carryforward period and will begin to expire in 2038 and the state credits may be carried forward indefinitely. The Company’s ability to utilize the net operating loss in the future may be subject to substantial restrictions in the event of past or future ownership changes as defined in Section 382 of the Internal Revenue Code and similar state tax laws. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition at the effective date to be recognized. At December 31, 2025, 2024 and 2023 the unrecognized tax benefits recorded were approximately $ 6.1 million, $ 3.0 million and $ 0.1 million respectively, that if recognized, would benefit the Company’s effective tax rate. The unrecognized tax benefits are netted against the respective deferred tax assets. The Company does not anticipate a significant change in the unrecognized tax benefits within the next 12 months. 179 Table of Contents FIGURE TECHNOLOGY SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in tables in thousands, except share and per share data, units, ratios or as otherwise noted) A reconciliation of the beginning and ending amounts of unrecognized tax benefit is as follows: December 31, 2025 2024 2023 Unrecognized tax benefits at beginning of year $ 3,045 $ 104 $ 104 Increases related to current year tax positions 1,245 716 — Increases related to prior year tax positions 2,269 2,225 — Decreases related to prior year tax positions ( 462 ) — — Settlements with tax authorities — — — Expiration of the statute of limitations — — — Unrecognized tax benefits at end of year $ 6,097 $ 3,045 $ 104 All tax years since inception are subject to examination by tax authorities. The Company is currently not under examination by any federal or state jurisdiction. NOTE 14 – SUBSEQUENT EVENTS The following events occurred subsequent to December 31, 2025 through March 13, 2026, the date at which the Company’s Consolidated Financial Statements were available to be issued. Debt Facilities In January 2026, the Company and its lender amended Warehouse Facility 4 to extend the facility maturity date to January 2027, and add a facility sub-limit of $ 50.0 million for certain loan products. No other terms of the facility were amended. Secondary Public Offering of Blockchain Common Stock In February 2026, the Company completed a secondary public offering of 4,375,000 shares of its Blockchain Common Stock ("Blockchain Stock"). The transaction was structured as a synthetic secondary offering in which underwriters purchased 4,375,000 existing shares of the Company’s Class A common stock from selling stockholders and sold them to the Company. The Company then sold newly minted Blockchain Stock to the purchasers. The Company received no cash proceeds from the sale of the Blockchain Stock. In connection with the offering, the Company utilized $ 10.0 million of cash on hand to repurchase 312,500 shares of its Class A common stock from the underwriters at the public offering price of $ 32.00 (the "Share Repurchase"). The shares acquired in the Share Repurchase are held in treasury. The completion of this transaction resulted in a $ 10.0 million reduction in cash and cash equivalents and a corresponding increase in treasury stock, with no net impact on the total number of common shares outstanding. Share Repurchase Program On February 25, 2026, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $ 200 million of its Class A and Blockchain common stock over the next 12 months subject to market conditions, contractual restrictions and other factors. Repurchases under the program may be made from time to time in the open market, through privately negotiated transactions, accelerated share repurchase transactions, or by other means in accordance with applicable securities laws and regulations. The timing, number of shares repurchased, and prices paid will depend on market conditions, share price, trading volume, corporate considerations, and other factors. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. 180 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS AND ACCOUNTING AND FINANCIAL DISCLOSURE None.