Figure Technology Solutions, Inc. 10-Q

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 16, 2026 (the “2025 Form 10-K”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should read the section titled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report and “Risk Factors” in our 2025 Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. U.S. Dollars appearing in tables are presented in thousands unless otherwise indicated. Business Overview Figure is building the future of capital markets using blockchain-based technology. Financial services have historically been and are still trust-based markets, which require intermediation. Large institutional companies have been built around this. Blockchain-based technology has the power to distill these multi-party marketplaces down to just two: buyer and seller. Blockchain can do more than disrupt existing markets. By taking historically illiquid assets, such as loans, and putting these assets and their performance history on-chain, blockchain is able to bring liquidity to historically static markets. That liquidity, coupled with the ability to achieve true digital perfection and control, opens previously inaccessible financing opportunities that were not accessible before. We believe there are three core benefits blockchain delivers to the capital markets. The first is transactional: the reduction of audit, quality control, third-party review and other expenses. The second is liquidity: the ability to support 24x7, real-time bilateral marketplaces. The third is financing: the democratization of capital access through programmable smart contracts that enable peer-to-peer funding and real time loan perfection. Figure’s proprietary technology powers next-generation lending, trading and investing activities in areas such as consumer credit and digital assets. Our application of the blockchain ledger allows us to better serve our end-customers, increase speed and efficiency, and enhance standardization and liquidity. Using our technology, we continue to develop dynamic, vertically-integrated marketplaces. Recent Developments OPEN Launch In February 2026, we launched the On-Chain Public Equity Network (“OPEN”), a blockchain-based network designed to modernize the underlying infrastructure that supports the issuance, trading, custody and lending of public equity securities. OPEN enables companies to issue their equity natively on the Provenance Blockchain and make it available for secondary market trading on our ATS. OPEN is designed to reduce reliance on traditional centralized market infrastructure and to provide new capabilities for public companies and shareholders. These capabilities are anticipated to include lower costs and capital requirements compared to existing clearing and settlement models, greater access to trading through self-custody and self-settlement mechanisms that can reduce the need for custodial intermediaries, and portfolio margining across digital and tokenized assets. We support frictionless two-way exchangeability between our securities issued on OPEN and our listed Class A common stock, a capability that we expect to make available to future OPEN issuers. This exchangeability is intended to promote liquidity and prices near par between blockchain securities and securities listed on national market exchanges. Blockchain Common Stock Offering In February 2026, the Company successfully completed a secondary public offering of 4,375,000 shares of its Series A Blockchain Common Stock ("Blockchain Stock"). The selling stockholders in the offering agreed to sell 4,687,500 shares of Class A common stock to the underwriters. The Company did not raise proceeds through this offering. In conjunction 40 Table of Contents with the offering, the Company repurchased 312,500 of our Class A common stock, subsequently held in treasury, that were subject to the offering at an aggregate amount of approximately $10 million at $32.00 per share. The Blockchain Stock is a new class of equity security that trades exclusively on the Company’s ATS, allowing for trading 24 hours per day, 7 days per week. The Blockchain Stock provides the ability for holders to lend their stock transparently and utilize cross-asset collateralization through DeFi protocols. The offering served as the foundational launch of OPEN. 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 common stock and Blockchain common stock over the next 12 months subject to market conditions, contractual restrictions and other factors. Repurchases under the Share Repurchase 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 Share Repurchase 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. Key Operating Metrics We review several key performance measures, discussed below, to evaluate our business and results, measure performance, identify trends, formulate plans, and make strategic decisions. We believe that the presentation of such metrics is useful to our investors and counterparties because they are used to measure and model the performance of companies similar to us using similar metrics. The following tables set forth key performance measures that we use to evaluate our business for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (In thousands, except percentages) 2026 2025 Ecosystem volume (1) : $ 3,720,418 $ 1,577,710 Consumer loan marketplace volume (2) : 2,902,378 1,365,136 Partner-branded volume (3) 2,265,341 1,045,059 Figure-branded volume (4) 637,037 320,077 Digital asset marketplace volume (5) 818,040 212,574 Figure connect volume (6) 1,611,840 477,904 Net take rate (7) 3.8 % 3.6 % Net revenue 167,007 84,510 Net income (loss) 45,047 (613) Adjusted net revenue (8) 166,843 86,982 Adjusted EBITDA (8) 82,696 28,344 _______________ (1) Ecosystem Volume consists of Consumer Loan Marketplace Volume and Digital Asset Marketplace Volume. (2) We define Consumer Loan Marketplace Volume as the total U.S. dollar equivalent value of originations of HELOCs, DSCR, and personal loans on our LOS, as well as the volume of third-party loans traded on Figure Connect. We believe this measure is an indication of our scale and represents a potential revenue opportunity from the technology used for consumer credit loan originations. (3) We define Partner-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our partners’ brands. Partner-branded volume is inclusive of Figure Connect Volume. (4) We define Figure-branded Volume as the total U.S. dollar equivalent value of loans originated using our LOS under our brand. (5) We define Digital Asset Marketplace Volume as the total U.S. dollar equivalent value of matched trades transacted between a buyer and seller through Figure Exchange. We believe this measure is an indication of our scale and represents a potential opportunity for our digital asset offering. (6) We define Figure Connect Volume as the total U.S. dollar equivalent value of Consumer Loan Marketplace Volume originated by third-party sellers through our Figure Connect marketplace. We believe this measure is a reflection of the underlying growth of our Figure Connect ecosystem. (7) Net Take Rate is derived from the sum of ecosystem and technology fees, origination fees, gain on sale of loans, net and gain on servicing asset, net from our Condensed Consolidated Statements of Operations. These items represent revenue generated from Figure-branded and Partner-branded 41 Table of Contents volume. Valuation changes in fair value of mortgage servicing rights, which we believe are not indicative of operating performance, and marketing expenses in our operating expenses are deducted. This net amount is divided by overall consumer loan marketplace volume for that period. (8) For definitions of Adjusted Net Revenue and Adjusted EBITDA and reconciliations to our most directly comparable financial measures calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures.” As of (In thousands) March 31, 2026 March 31, 2025 YLDS in circulation (1) : $ 598,047 $ 2,700 Democratized Prime: Matched offers balance (2) 367,932 n.m. Borrower demand (3) 376,429 n.m. Available lender supply (4) 452,778 n.m. _______________ (1) We define YLDS in Circulation as the total U.S. dollar equivalent value of unsecured face-amount certificates solely backed by the assets of Figure Certificate Company (FCC), which is the issuer of the certificates. (2) We define Matched Offers as the U.S. dollar equivalent value of offers matched between borrower and lenders on the Democratized Prime platform. (3) We define Borrower Demand as the U.S. dollar equivalent value that borrowers seek to borrow from the lending pool on the Democratized Prime platform. (4) We define Lender Supply as the U.S. dollar equivalent value that lenders have made available in the lending pool on the Democratized Prime platform. Trends and Other Factors Affecting Our Performance We believe our performance depends, and will in the future depend, on many factors, including those described in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2025 Form 10-K, to which there have been no material changes. Loan Characteristics The following table sets forth the weighted-average characteristics of loans we originated or purchased for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 HELOC Loans (1) : Partner-branded: Loan term (in months) 295 309 Customer interest rate 8.7 % 9.8 % Customer FICO score 754 756 Loan balance (in thousands) $ 98 $ 95 Figure-branded: Loan term (in months) 294 296 Customer interest rate 8.4 % 9.6 % Customer FICO score 750 748 Loan balance (in thousands) $ 101 $ 85 (1) HELOC loans subject to monthly, amortizing borrower payments and may be prepaid and redrawn within a limited period of time. Personal, mortgage, and other loans are not considered significant. The following table summarizes loan counts held by the Company at March 31, 2026 and December 31, 2025: March 31, 2026 December 31, 2025 (3) Count of loans held for sale: HELOC loans 4,990 3,928 Personal loans (1) 925 1,116 Other (2) 150 169 Total loan count held for sale 6,065 5,213 (1) Loans collateralized by digital assets. (2) Primarily contains residential transition loans, other mortgage loans, legacy mortgages and other unsecured loans. (3) The loan counts as of December 31, 2025 have been corrected. 42 Table of Contents Components of Results of Operation Net Revenue Our net revenue is primarily derived from ecosystem and technology fees, loan originations and sales, including interest income earned thereon, marketable securities and loan servicing. Ecosystem and technology fees Through our Partner-branded channel, we earn volume-based technology and processing fees, based on the principal balance of each loan originated on our LOS and the principal balance of loans transacted on Figure Connect. Such fees arise from contracts entered into with partners to provide access to a cloud-based lending marketplace platform that is developed by us. Our platform enables partners, who are retail and wholesale lenders, to originate loans branded under the partners’ name, by having access to a suite of services such as submission of loan applications, verifying information provided within submitted applications, risk underwriting, delivery of electronic loan offers, and electronic loan documentation signed by the borrower. We also earn a fee for arranging and facilitating the securitization of HELOCs based on the outstanding principal balance of the transferred HELOCs, which is fully earned on the securitization closing date. Program fees are paid by the trust as the fees are earned and paid upon closing. Origination fees Origination fees consist of the fees that we earn from originating loans upon the customer’s initial loan draw. Origination fees include loan origination fees and other fees collected from the customer at the time a loan is funded. Origination fees are currently calculated as a percentage of the customer’s initial loan balance and are recognized as revenue at a specified point in time, once a customer’s loan application has been approved, a credit decision has been reached, and the loan has been funded and processed. These fees are earned through both our Figure-branded channel as well as our Partner-branded channel through wholesale brokers. Servicing fees Servicing fees and other revenue consist of the fees that we earn from managing loan portfolios on behalf of the owners of those portfolios. Servicing fees are calculated based on a contractual percentage of the outstanding principal under servicing arrangements and are charged monthly pursuant to our servicing agreements for activities we perform throughout the loan term, including collection, processing and reconciliations of payments received, investor reporting, and customer support. We act as servicer for the majority of the loans facilitated through our platform. Gain on sale of loans, net Gain on sale of loans consists of the net proceeds from the difference between the proceeds received at the sale of loans to third-party buyers, and the unpaid principal balance of such loans, including adjustments for changes in fair value for loans sold during the period. These realized and unrealized gains or losses and fair value adjustments are recognized through both our Figure-branded and Partner-branded channels based on the fair value of the loan originated by us, or purchased from partners, generally represented by the consideration paid relative to the loans’ estimated fair value at each quarter end or consideration received upon sale. We have elected the fair value option for both the Figure-branded loans we originate as well as the Partner-branded loans we purchase from our partners that we hold for sale. Loans held for sale consist of loans we intend to sell, including HELOCs, personal loan products, and mortgage loans we previously originated or purchased. HELOCs and mortgage loans are secured by first or junior liens on customers’ real property. Any changes in fair value relating to loans held for sale are included in our results of operations as net fair value adjustments. Interest income We earn interest income primarily from the following sources: • Loans — We accrue interest income on loans we hold based on the UPB outstanding at contractual interest rates. We place loans on nonaccrual status when they become 90 days past due (30 days past due for collateralized personal loans) or when we doubt 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 43 Table of Contents 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 we expect repayment of the remaining contractual principal and interest. We also recognize cash received on non-accrual loans as interest income after all contractual principal is repaid. • Cash and Cash Equivalents — We accrue interest income monthly 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. Gain on servicing asset, net We routinely sell HELOCs, and in the past we have also sold personal loans, mortgage loans and Figure Pay credit loans, with servicing rights retained. Figure Pay credit loans are short duration, installment loans that consumers can use at their discretion. Loan servicing activities include account maintenance, collections, processing payments from customers, and distributions to third-party loan owners. During each reporting period, a servicing asset is recognized when the benefits of servicing are determined to be greater than adequate compensation for the servicing activities that we perform, and conversely, a servicing liability is recognized if the benefits of servicing are determined to be less than adequate compensation for the servicing activities that we perform. We carry servicing assets at fair value. Any changes in the fair value are included in our results of operations as net fair value adjustments. These gains are recognized through both our Figure-branded and Partner-branded channels. Marketable securities income, net We recognize interest income on the debt securities we hold where we expect to collect all contractual cash flows, and the debt security cannot be contractually prepaid in such a way that we would not recover substantially all of our recorded investment, based on the stated coupon rate and the outstanding principal amount of the debt security. We recognize 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. We recognize 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 we adjust 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. We carry marketable securities at fair value. Any changes in the fair value are included in our results of operations as net fair value adjustments. 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. Operating Expenses Operating expenses consist of general and administrative, technology and product development, operations and processing, sales and marketing, and interest expenses. General and administrative General and administrative expenses primarily consist of payroll and other personnel-related costs, including stock-based compensation, for legal and compliance, finance and accounting, human resources and facilities teams; professional services fees; facilities and travel expenses. Technology and product development Technology and product development expenses primarily consist of payroll and other personnel-related costs, including stock-based compensation, for our product, engineering, and design team, which is responsible for maintenance, bug fixes and software updates among others, as well as the costs of systems and tools used by these personnel. Operations and processing Operations and processing expenses primarily consist of payroll and other personnel-related costs, including stock-based compensation for personnel engaged in onboarding, loan servicing, customer support and other related operational teams. 44 Table of Contents These expenses also include the costs of third-party systems and tools we use as part of the loan origination process, including information verification, fraud detection, and payment processing activities. Sales and marketing Sales and marketing expenses primarily consist of costs incurred across various advertising channels, including expenses associated with advertising campaigns, and building overall brand awareness. Sales and marketing expenses also include payroll and other personnel-related costs, including stock-based compensation expense, for our sales and marketing personnel. Interest expense Interest expense consists of the costs we incur on our borrowings, amortization of fees, and other costs associated with our debt obligations. It also includes interest accrued and paid to holders of YLDS in the form of additional YLDS, in addition to interest accrued and paid to Democratized Prime lenders. Other expense We have contractual agreements with loan buyers to repurchase loans under certain circumstances, including in the event of borrower delinquencies within the first 30 to 90 days of loan origination. We record a loss on those loans based on the fair value at the date on which we identify the repurchase obligation. Other expense, net Other expense, net includes unrealized and realized gains (losses) resulting from transactions of certain digital assets, litigation settlements, adjustments to non-equity method investments, foreign exchange rate gains (losses) and other non-income based state and local taxes. 45 Table of Contents Results of Operations Condensed Consolidated Statements of Operations The following table sets forth our Condensed Consolidated Statements of Operations for the periods presented: Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Net revenue: Ecosystem and technology fees $ 47,306 $ 15,613 $ 31,693 203.0 % Servicing fees 9,825 7,191 2,634 36.6 Interest income (A) 19,376 11,224 8,152 72.6 Origination fees 23,130 12,477 10,653 85.4 Gain on sale of loans, net (A) 49,356 29,792 19,564 65.7 Gain on servicing asset, net 12,867 326 12,541 3846.9 Marketable securities income, net (A) 3,660 7,613 (3,953) (51.9) Other revenue 1,487 274 1,213 442.7 Total net revenue 167,007 84,510 82,497 97.6 Expenses: General and administrative 45,595 18,840 26,755 142.0 Technology and product development 15,605 17,416 (1,811) (10.4) Operations and processing 21,447 12,678 8,769 69.2 Sales and marketing 25,483 14,967 10,516 70.3 Interest expense 16,889 10,972 5,917 53.9 Other expense 47 1,565 (1,518) (97.0) Total expenses 125,066 76,438 48,628 63.6 Operating income 41,941 8,072 33,869 419.6 Other expense, net (3,839) (7,455) 3,616 (48.5) Income before income taxes 38,102 617 37,485 6075.4 Income tax (benefit) provision (6,945) 1,230 (8,175) n.m. Net income (loss) 45,047 (613) 45,660 n.m. Net income attributable to noncontrolling interests in consolidated subsidiaries 102 207 (105) (50.7) Net income (loss) attributable to Figure Technology Solutions, Inc. $ 44,945 $ (820) $ 45,765 n.m. (A) During the current period, we voluntarily elected to change the income statement presentation for net gains and losses on the change in fair value of marketable securities, and the interest income earned on marketable securities, by reclassifying them into a separate line item, “Marketable securities income, net”. Previously, these amounts were included within “Gain on sale of loans, net” and “Interest income”, respectively. The change in classification has been applied retrospectively to all periods presented. This presentation change resulted in a $2.2 million decrease to “Gain on sale of loans, net” and a $5.4 million decrease to “Interest income” for the three months ended March 31, 2026. For further information, see Note 2, Change in Financial Statement Presentation, to the Condensed Consolidated Financial Statements. Net Revenue Ecosystem and technology fees Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Technology offering fees $ 17,296 $ 7,895 $ 9,401 119.1 % Ecosystem fees 24,419 5,212 19,207 368.5 Program fees 5,591 2,506 3,085 123.1 Total ecosystem and technology fees $ 47,306 $ 15,613 $ 31,693 203.0 % Ecosystem and technology fees increased $31.7 million, or 203.0%, primarily due to the 237.3% growth in Figure Connect Volume, as well as a $3.1 million increase in program fees due to a $941.8 million increase in the volume of securitizations for which we earn program fees. Our ecosystem fees are based on a sliding scale that decreases as higher volume tiers are reached, resulting in lower fee rates as an individual partners origination volume increases. Servicing fees Servicing fees increased $2.6 million, or 36.6%, due to a $6.1 billion, or 72.0%, increase in the weighted-average servicing portfolio unpaid principal HELOC loan balance of $14.6 billion serviced at March 31, 2026, compared to $8.5 billion at 46 Table of Contents March 31, 2025, partially offset by a decrease of 5 basis points in the weighted average servicing fee rate from 33 basis points to 28 basis points. Interest income Interest income increased $8.2 million, or 72.6%, primarily due to a $5.9 million increase in interest earned on cash balances, as well as a $2.2 million increase in interest earned on HELOCs. Origination fees Net origination fees increased $10.7 million, or 85.4%, primarily due to a 45.5% increase in overall volume of transactions for which we earn origination fees, as well as higher weighted average origination fees driven by a change in mix from Figure-branded volume growing 99.0% year over year, for which we earn higher origination fees relative to Partner-branded volume. Gain on sale of loans, net Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Realized gain (loss): Whole loan sales $ 43,442 $ 18,182 $ 25,260 138.9 % Securitized loans — 6,023 (6,023) n.m. Derivatives 1,619 (1,300) 2,919 n.m. 45,061 22,905 22,156 96.7 Unrealized gain (loss): (A) Loans 1,949 10,263 (8,314) (81.0) Derivatives 2,346 (3,376) 5,722 n.m. 4,295 6,887 (2,592) (37.6) Total gain on sale of loans, net $ 49,356 $ 29,792 $ 19,564 65.7 % (A) During the current period, we voluntarily elected to change the income statement presentation for the net change in fair value of marketable securities by reclassifying them into a separate line item, “Marketable securities income, net”. The change in classification has been applied retrospectively to all periods presented. This presentation change resulted in a $2.2 million decrease to “Gain on sale of loans, net” as of March 31, 2025. For further information, see Note 2, Change in Financial Statement Presentation, to the Condensed Consolidated Financial Statements. Gain on sale of loans inclusive of derivatives increased $19.6 million, or 65.7%, due to a $19.2 million increase in the total realized gains on loans as a result of an increase in the UPB of loans sold from $786.7 million to $1.8 billion, in addition to a 14.9% increase in the weighted average price of loans sold for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease in unrealized gains were primarily due to a $8.3 million decrease in the fair value of loans not yet sold driven by an increasing rate environment during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Due to changes in rates impacting our derivatives, we recognized realized gains on derivatives of $1.6 million and unrealized gains of $2.3 million for the three months ended March 31, 2026, respectively. Gain on servicing asset, net Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Additions $ 20,352 $ 10,269 $ 10,083 98.2 % Realization of cash flows (8,669) (5,240) (3,429) 65.4 Change in valuation inputs and assumptions 1,184 (4,703) 5,887 n.m. Total gain on servicing asset, net $ 12,867 $ 326 $ 12,541 3846.9 % Gain on servicing asset, net increased $12.5 million, or 3846.9%, primarily due to a $10.1 million increase in new servicing assets retained on the increase of UPB of loans sold from $786.7 million to $1.8 billion for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, as well as a $5.9 million increase resulting from changes in valuation inputs and assumptions, driven by an increasing rate environment in the current period compared to the prior period. Partially offsetting, there was a $3.4 million change due to the realization of cash flows derived from a larger servicing portfolio during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. 47 Table of Contents Marketable securities income, net Marketable securities income, net decreased $4.0 million, or 51.9%, primarily due to a loss on the change in fair value of $2.5 million for the three months ended March 31, 2026, compared to a gain on the change in fair value of $2.2 million for the three months ended March 31, 2025. Other revenue Other revenue is immaterial overall and components of other revenue did not materially change as fees, and the net assets on which we charge those fees, were consistent during the three months ended March 31, 2026 and 2025. The growth in other revenue is representative of the overall growth in Figure. Figure-branded revenue Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Ecosystem and technology fees $ 1,227 $ 578 $ 649 112.3 % Origination fees 20,675 10,682 9,993 93.5 Gain on sale of loans, net 19,754 10,129 9,625 95.0 Total Figure-branded net revenue $ 41,656 $ 21,389 $ 20,267 94.8 % Figure-branded net revenue increased $20.3 million, or 94.8%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This was primarily due to a $10.0 million, or 93.5%, increase in Figure-branded origination fees as a result of a 99.0% increase in Figure-branded volume. Additionally, gain on sale of loans, net, increased $9.6 million, or 95.0%, as a result of an increase in the UPB of loans sold. Partner-branded revenue Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Ecosystem and technology fees $ 46,079 $ 15,035 $ 31,044 206.5 % Origination fees 2,455 1,795 660 36.8 Gain on sale of loans, net 29,602 19,663 9,939 50.5 Total Partner-branded net revenue $ 78,136 $ 36,493 $ 41,643 114.1 % Partner-branded net revenue increased $41.6 million, or 114.1%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily attributable to ecosystem and technology fees, which increased by $31.0 million, or 206.5%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This was primarily due to a $32.1 million increase in revenue recognized from an increase in volume transacted on our Connect platform, for which minimal fees were earned in the prior year. Additionally, Partner-branded gain on sale of loans, net increased by $9.9 million, or 50.5%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, as a result of a 117% increase in Partner-branded volume, offset by a transition towards ecosystem and technology fee revenue as Partners transition to Connect. Operating Expenses General and administrative Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Compensation and benefits $ 8,071 $ 6,501 $ 1,570 24.2 % Equity-based expense 23,474 1,723 21,751 1262.4 Professional services 8,170 5,961 2,209 37.1 Other expense 5,880 4,655 1,225 26.3 Total general and administrative expense $ 45,595 $ 18,840 $ 26,755 142.0 % General and administrative expense increased $26.8 million, or 142.0%. This primarily consisted of an increase in equity-based compensation expense of $21.8 million, due to the recognition of expense for stock-based compensation awards that satisfied the liquidity condition in connection with the IPO, additional grants associated with the IPO, and an increase in 48 Table of Contents grants in the current year due to increased headcount. Professional services increased $2.2 million, or 37.1%, primarily due to an increase in legal and accounting fees. Technology and product development Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Compensation and benefits $ 5,505 $ 7,305 $ (1,800) (24.6) % Equity-based expense 1,841 3,440 (1,599) (46.5) Amortization 4,712 3,936 776 19.7 Software 3,119 2,582 537 20.8 Other expense 428 153 275 179.7 Total technology and product development expense $ 15,605 $ 17,416 $ (1,811) (10.4) % Technology and product development expense decreased $1.8 million, or 10.4%, primarily due to a $1.8 million, or 24.6%, decrease in compensation and benefits, primarily due to a 3.7% decrease in headcount. Additionally, there was a $1.6 million decrease in equity-based compensation expense primarily due to expense related to services exchanged for issuance of warrants in the prior year which were fully earned in the prior year and therefore had no expense in the three months ended March 31, 2026. Operations and processing Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Compensation and benefits $ 7,855 $ 4,919 $ 2,936 59.7 % Equity-based expense 152 77 75 97.4 Processing fees 13,440 7,682 5,758 75.0 Total operations and processing expense $ 21,447 $ 12,678 $ 8,769 69.2 % Operations and processing expense increased $8.8 million, or 69.2%, primarily due to a $5.8 million increase in processing fees due to a 112.6% increase in Consumer Loan Marketplace Volume. Additionally, compensation and benefits increased $2.9 million, or 59.7%, primarily due to a 54.6% increase in headcount. Sales and marketing Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Compensation and benefits $ 3,410 $ 1,777 $ 1,633 91.9 % Equity-based expense 411 79 332 420.3 Advertising and other expense 21,662 13,111 8,551 65.2 Total sales and marketing expense $ 25,483 $ 14,967 $ 10,516 70.3 % Sales and marketing expense increased $10.5 million, or 70.3%, primarily due to an $8.6 million increase in advertising and other costs driven by a 99.0% increase in Figure-branded volume, as well as a $1.6 million increase in compensation and benefits primarily due to a 59.4% increase in headcount. Interest expense Interest expense increased $5.9 million, or 53.9%, primarily due to a $2.5 million, or 35.8%, increase related to the impact of higher average SOFR rates on warehouse facilities, a $1.7 million, or 73.7%, increase in interest expense related to the Retained Interest Facility warehouse, and a $1.6 million increase in interest related to YLDS holdings. 49 Table of Contents Other expense, net Three Months Ended March 31, Change (In thousands, except percentages) 2026 2025 $ % Change in fair value of digital assets held $ (4,130) $ (8,448) $ 4,318 (51.1) % Changes in value of fund investment (653) (2,061) 1,408 (68.3) Staking rewards and realized gains 597 1,953 (1,356) (69.4) Other 347 1,101 (754) (68.5) Total other (expense) income, net $ (3,839) $ (7,455) $ 3,616 (48.5) % Other expense, net increased $3.6 million, primarily driven by a $4.3 million increase in the change in fair value of digital assets held and $1.4 million decrease in the change in value of fund investments, partially offset by a $1.4 million decrease in staking rewards and gain on sale and usage of digital assets, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Income Tax Provision Income tax expense decreased by $8.2 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The provision for income taxes includes U.S. federal, state and local taxes. The effective tax rate for the three months ended March 31, 2026 was approximately (18.2)%, compared to 199.4% for the three months ended March 31, 2025. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the three months ended March 31, 2026 primarily due to a discrete benefit arising from excess windfall benefit due to stock exercises during the quarter. The effective tax rate differed from the U.S. federal statutory rate for the three months ended March 31, 2025 of 21.0% primarily due to state tax expense attributable to FT Intermediate, Inc. filed on standalone basis, while Figure Markets Holdings, Inc. losses were not realizable prior to the Recombination. Refer to Note 13 in the Condensed Consolidated Financial Statements for further details. Noncontrolling Interests in Consolidated Subsidiaries Third-party investors hold interests in entities that we consolidate, and to whom we allocate the net income or loss of those entities. During the three months ended March 31, 2026 and 2025, we allocated aggregate net income or loss to those third-party investors. 50 Table of Contents Changes in Financial Position The following table sets forth a summary of selected line items from our Condensed Consolidated Balance Sheets for the periods indicated, and the changes between such periods. These selected line items have been prepared on the same basis as our Condensed Consolidated Financial Statements. In the opinion of management, the financial information set forth in the table below reflects all normal recurring adjustments necessary for the fair statement of changes in the selected line items for these periods. The following selected line items should be read together with our Condensed Consolidated Financial Statements and related notes. (In thousands, except percentages) March 31, 2026 December 31, 2025 $ Change % Change ASSETS Current assets: Cash and cash equivalents $ 1,464,643 $ 1,198,141 $ 266,502 22.2 % Restricted cash 71,947 68,637 3,310 4.8 Loans held for sale, at fair value 503,900 404,337 99,563 24.6 Digital assets 74,313 96,558 (22,245) (23.0) Accounts receivable, net 65,330 52,016 13,314 25.6 Loan servicing asset, at fair value 125,931 113,064 12,867 11.4 Marketable securities, at fair value 298,428 273,151 25,277 9.3 Digital assets, non-current 1,967 3,644 (1,677) (46.0) LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current liabilities: Payables to third-party loan owners 451,393 383,772 67,621 17.6 Debt, current 228,505 160,959 67,546 42.0 Debt, current to related parties 376,526 166,135 210,391 126.6 Other current liabilities 86,601 105,642 (19,041) (18.0) Debt, non-current 262,223 230,143 32,080 13.9 Assets Cash, cash equivalents and restricted cash Cash and cash equivalents increased by $266.5 million, or 22.2%, as of March 31, 2026 compared to December 31, 2025, and restricted cash increased $3.3 million, or 4.8%. Refer to “—Liquidity and Capital Resources—Cash Flows” for the drivers in the change of cash, cash equivalents and restricted cash provided by operating, investing and financing activities during the period. Loans held for sale, at fair value Loans held for sale, at fair value increased by $99.6 million, or 24.6%, as of March 31, 2026 compared to December 31, 2025, primarily due to originations of $1.2 billion and purchases of $1.0 billion offset by loan sales, net of repurchases, of $1.9 billion and principal payments of $191.2 million. We generally hold loans for a short period of time and the timing of loan sales and securitizations may impact the amounts carried at each period-end. Typically, the loan volumes we experience include seasonal variation that impact the growth of loans on our balance sheet during a fiscal year. Digital assets, current and non-current Digital assets, current and non-current, decreased $23.9 million, or 23.9%, as of March 31, 2026 compared to December 31, 2025, which represents the fair value change in digital assets we hold for sale and the gross change of digital assets we hold as collateral. We recognize offsetting liabilities and changes for digital assets held as collateral and do not record any net assets, gains, or losses thereon unless we are unable to liquidate collateral timely and are otherwise unable to collect amounts owed. We have not experienced any such losses to date. Digital assets held as collateral, gross of offsetting liabilities, decreased $21.4 million during the three months ended March 31, 2026 due to a decrease of $19.7 million in Bitcoin holdings as a result of decreases in both the quantity and price of Bitcoin, and a $1.7 million decrease in Ethereum holdings due to a decrease in the price of Ethereum. Digital assets held at fair value decreased $2.7 million at March 31, 2026 primarily due to a $3.3 million decrease in the fair value of Solana holdings compared to the prior year. 51 Table of Contents Digital assets held at cost increased $0.2 million at March 31, 2026 primarily due to an increase in the quantity of HASH held. See Note 3 in the Condensed Consolidated Financial Statements for further discussion on digital assets. Accounts receivable, net Accounts receivable, net increased $13.3 million, or 25.6%, as of March 31, 2026 compared to December 31, 2025, primarily driven by a $6.8 million increase in trade accounts receivable, which is driven by overall increased Partner-branded volume. Management continues to monitor customer credit exposure and collection trends. Loan servicing asset, at fair value Loan servicing asset, at fair value, increased $12.9 million, or 11.4%, as of March 31, 2026 compared to December 31, 2025, reflecting a $20.4 million increase, or 98.2%, in the unpaid principal balance of loans serviced during the three months ended March 31, 2026, and a $1.2 million increase in the estimated fair value of servicing assets held based upon changes in valuation assumptions, partially offset by an $8.7 million decrease in servicing fee collections. See Note 4 in the Condensed Consolidated Financial Statements for further discussion on loan servicing assets. Marketable securities, at fair value Marketable securities, at fair value increased $25.3 million, or 9.3%, as of March 31, 2026, compared to December 31, 2025, primarily due to an increase in the volume of new securitizations that closed during the year in which the Company generally retained 5% of the total fair value contributed into securitizations, in the form of marketable securities. The newly retained marketable securities are partially offset by the scheduled paydown of existing marketable securities. Liabilities Payables to third-party loan owners Payables to third-party loan owners increased $67.6 million, or 17.6%, as of March 31, 2026 compared to December 31, 2025, due to an increase in our servicing portfolio. The overall balance may fluctuate based on timing of collections and payments to third-party loan owners. Debt, current and non-current Total debt, current and non-current, including related party debt, increased by $310.0 million, or 55.6%, primarily due to an increase of $284.5 million in debt at fair value as a result of the growth in YLDS at FCC and Democratized Prime. Other current liabilities Other current liabilities decreased $19.0 million, or 18.0%, as of March 31, 2026 compared to December 31, 2025, primarily driven by a decrease of $21.4 million on crypto collateral held due to a decrease in both the quantity and price of crypto assets held as collateral, partially offset by a $2.3 million increase in liabilities due to the growth of deposit activity on Democratized Prime. Liquidity and Capital Resources Sources and Uses of Funds We maintain a capital-efficient model by utilizing a diverse set of funding sources. When we originate a loan directly or purchase a loan originated by our origination partners, we often utilize warehouse credit facilities with certain lenders to finance our lending activities or loan purchases. We sell the loans we originate or purchase from our origination partners to whole loan buyers and securitization investors through Figure Connect, and earn servicing fees from continuing to act as the servicer on the loans. We proactively manage the allocation of loans on our platform across various funding channels based on several factors including, but not limited to, internal risk limits and policies, capital market conditions and channel economics. Our excess funding capacity and long-term relationships with a diverse group of existing funding partners help provide flexibility as we optimize our funding to support the growth in loan volume. For those loans sold through Figure Connect, we also collect fees as a source of funds. Our principal sources of liquidity are cash and cash 52 Table of Contents equivalents, digital assets, available for sale securities, available capacity from warehouse and revolving credit facilities, securitization trusts, forward flow loan sale arrangements, and cash flows from our operations. As of March 31, 2026, we had $1.5 billion in cash and cash equivalents, $71.9 million in restricted cash, $45.1 million in digital assets, excluding digital assets held as collateral, and $1.6 billion in available Funding Debt capacity, excluding purchase commitments from third-party loan buyers. As of December 31, 2025, we had $1.2 billion in cash and cash equivalents, $68.6 million in restricted cash, $47.6 million in digital assets held, excluding digital assets held as collateral, and $1.8 billion in available Funding Debt capacity, excluding purchase commitments from third-party loan buyers. Our restricted cash primarily relates to cash held by us on behalf of third-party loan sellers or buyers that represent collection of principal and interest from loan borrowers that we remit to those third parties as servicer of those loans. Based on our current business plan and revenue prospects, we believe that our existing cash and cash equivalents, our anticipated cash flows from operations, and our available Funding Debt capacity will be sufficient to meet our working capital and operating resource expenditure requirements for at least the next 12 months from the date of this Quarterly Report. Beyond the next 12 months, we expect our long-term liquidity needs to consist primarily of working capital requirements and ongoing investments to support growth. We intend to maintain a strong liquidity position to provide flexibility to pursue strategic opportunities and manage potential variability in operating cash flows. As a result, we do not currently expect to require additional external financing to support our business operations over the long term. Other Funding Sources In connection with asset-backed securitizations, we sponsor and establish trusts (deemed to be VIEs) to ultimately purchase loans facilitated by our platform. Securities issued from our asset-backed securitizations are senior or subordinated, based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. We consolidate securitization VIEs when we are deemed to be the primary beneficiary and therefore have the power to direct the activities that most significantly affect the VIEs’ economic performance and a variable interest that could potentially be significant to the VIE. Where we consolidate the securitization trusts, if any, the loans held in the securitization trusts are included in loans held for investment, and the notes sold to third-party investors are recorded in notes issued by securitization trusts in the consolidated balance sheets. We did not consolidate any securitization VIEs at March 31, 2026 or December 31, 2025. Refer to Note 9 in the Condensed Consolidated Financial Statements for further details. Debt Obligations Warehouse Credit Facilities We fund substantially all of the loans we close on a short-term basis primarily through our warehouse credit facilities and from our operations. Loan production activities generally require short-term liquidity in excess of amounts generated by our operations. The loans we originate are financed through several warehouse credit facilities. Our borrowings are in turn generally repaid with the proceeds we receive from loan sales. We maintain warehouse credit facilities with separate third-party lenders through FL LLC, Figure Markets Credit LLC, and their subsidiaries. Our warehouse credit facilities are primarily in the form of master repurchase agreements and loan participation agreements. Loans financed under these facilities are generally financed at approximately 80% to 100% of the principal balance of the loan (although certain types of loans are financed at lower percentages of the principal balance of the loan). Loans financed at less than 100% of the principal balance require us to fund the balance from cash generated from our operations. Once closed, the underlying loan that is held for sale is pledged as collateral for the borrowing or advance that was made under our warehouse credit facilities. In most cases, the loans will remain in one of the warehouse credit facilities for only a short time, generally less than one month, until the loans are sold. During the time the loans are held for sale, we earn interest income from the customer on the underlying loan. This income is partially offset by the interest and fees we pay due to borrowings from the warehouse credit facilities. 53 Table of Contents Borrowing capacity of committed debt facilities as of March 31, 2026 include the following: March 31, 2026 (In thousands) Final Stated Maturity Borrowing Capacity Balance Outstanding Available Financing Funding Debt: Warehouse Facility 1 May 2026 $ 150,000 $ 2,482 $ 147,518 Warehouse Facility 2 January 2027 335,300 441 334,859 Warehouse Facility 4 May 2026 250,000 — 250,000 Warehouse Facility 5 April 2026 300,000 973 299,027 Warehouse Facility 6 June 2027 300,000 10,349 289,651 Digital Asset Loan Facility October 2026 30,000 598 29,402 MSR financing: Lender 1 June 2026 40,000 40,000 — Financed retained interests: Retained Interest Facility Various 500,000 263,796 236,204 $ 1,905,300 $ 318,639 $ 1,586,661 Refer to Note 6 in the Condensed Consolidated Financial Statements for further details on our Warehouse Facilities and borrowing capacity. Other than as noted above, our warehouse credit facilities bear floating interest rates, are payable on a monthly basis, and contain certain financial covenants, such as minimum tangible net worth, minimum liquidity, maximum leverage ratios, required range of net income or loss during specified periods, and periodic financial reporting requirements. Failure to comply with these covenants may result in an acceleration of payment on outstanding principal and accrued interest. As of March 31, 2026 and December 31, 2025, we were in compliance with the applicable covenants under each of our warehouse credit facilities. Our future capital requirements will depend on many factors, including, but not limited to, our continued access to debt facilities on terms that are favorable to us, our growth, our ability to attract and retain customers, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform and the expansion of sales and marketing activities. Further, we may in the future enter into arrangements to acquire or invest in businesses, products, services, and technologies. From time to time, we may explore additional financing sources and means to lower our cost of capital, which could include equity, equity-linked, and debt financing. We cannot assure you that any additional financing will be available to us on acceptable terms, or at all. If we raise additional funds by issuing equity or equity-linked securities, the ownership of our existing stockholders will be diluted. Cash Flows The following table summarizes our consolidated cash flows for the periods indicated: Three Months Ended March 31, (In thousands) 2026 2025 Net cash provided by (used in) operating activities (A) $ (37,818) $ (140,273) Net cash used in investing activities (A)(B) (53,593) (16,127) Net cash provided by financing activities 361,223 196,032 (A) As of December 31, 2025, we corrected the presentation of retained beneficial interests in loan securitization transactions in the Condensed Consolidated Statements of Cash Flows. Prior period amounts have been recast to conform to the current period presentation. For further information, see Note 2 to the Condensed Consolidated Financial Statements. (B) As of December 31, 2025, we reclassified USDC stablecoins from “Digital assets” to “Cash and cash equivalents” on the Condensed Consolidated Balance Sheets. Prior period amounts have been recast to conform to the current period presentation. For further information, see Note 2 to the Condensed Consolidated Financial Statements. Net Cash from Operating Activities Net cash used in operating activities was $37.8 million for the three months ended March 31, 2026, which consisted of net income of $45.0 million, working capital adjustments of $62.6 million, and non-cash adjustments of $(20.3) million. The working capital adjustments were driven by originations of loans held for sale of $1.2 billion and purchases of loans held for sale of $1.0 billion, partially offset by proceeds from loan sales, net of repurchases of $2.0 billion and principal payments on loans held for sale of $187.0 million. Additionally, working capital adjustments were impacted by changes in 54 Table of Contents accounts receivable of $8.4 million and accounts payable and other liabilities of $4.6 million. The non-cash adjustments were primarily driven by gain on sale of loans, net, of $53.3 million, and gains on servicing assets, net, of $12.9 million, partially offset by $25.9 million in stock based compensation, $8.2 million in interest expense, and $4.7 million in amortization of internally developed software. Net cash used in operating activities was $140.3 million for the three months ended March 31, 2025, which consisted of a net loss of $0.6 million, working capital adjustments of $126.7 million, and non-cash adjustments of $12.9 million. The working capital adjustments were driven by originations of loans held for sale of $680.4 million and purchases of loans held for sale of $516.9 million, partially offset by proceeds from loan sales, net of repurchases of $978.2 million and principal payments on loans held for sale of $96.0 million. The non-cash adjustments were primarily driven by gain on sale of loans, net, of $29.8 million, and gains on servicing assets, net, of $0.3 million, partially offset by $2.4 million in stock based compensation, $3.9 million in amortization of internally developed software, services exchanged for the issuance of warrants of $2.9 million, and losses on repurchased loans of $1.6 million. Net Cash from Investing Activities Net cash used in investing activities was $53.6 million for the three months ended March 31, 2026, primarily due to $51.6 million in purchases of marketable securities, $11.7 million related to the deconsolidation of a subsidiary, $13.0 million in partner prefunding, and $6.4 million in capitalization of internally developed software, partially offset by $18.1 million of principal payments on marketable securities, $10.5 million of partner prefunding repayments, and $1.6 million of realized losses on futures. Net cash used in investing activities was $16.1 million for the three months ended March 31, 2025, primarily due to $15.2 million in purchases of marketable securities, $4.4 million in capitalization of internally developed software costs. and $1.6 million in purchases of digital assets, partially offset by $2.6 million of proceeds from digital asset sales and $2.5 million of principal payments on marketable securities. Net Cash from Financing Activities Net cash provided by financing activities was $361.2 million for the three months ended March 31, 2026, during which we received total proceeds from debt of $2.2 billion, partially offset by $1.9 billion related to total principal payments on debt. Additionally, financing activities were impacted by $68.5 million in proceeds from servicing activity on behalf of third-party loan owners and $8.8 million in proceeds from stock option exercises, partially offset by $9.7 million in common stock repurchases and $8.5 million in taxes paid related to net share settlement of equity awards. Net cash provided by financing activities was $196.0 million for the three months ended March 31, 2025, during which we received proceeds from debt of $1.0 billion , partially offset by $891.4 million related to principal payments on debt. Additionally, financing activities were impacted by $49.9 million in proceeds from servicing activity on behalf of third-party loan owners. Other Changes in Financial Position Noncontrolling interest in consolidated subsidiaries was $1.0 thousand at March 31, 2026, a decrease of $8.4 million from December 31, 2025, primarily due to the deconsolidation of Figure REIT, Inc. in March 2026. For further information on the deconsolidation, see Note 7, “Noncontrolling Interests in Consolidated Subsidiaries”, in the Condensed Consolidated Financial Statements. Other Factors Affecting Liquidity and Capital Resources Operating Lease Obligations Our operating lease obligations consist of our lease of real property from third parties under noncancellable operating leases, including the lease of its current office spaces. Operating lease expense for our office space was $0.7 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively. Our office leases are scheduled to expire between 2026 and 2031. Available Liquidity and Capital Resources As of March 31, 2026, our cash, cash equivalents, and restricted cash was $1.5 billion, which included $434.5 million of cash held for the benefit of third parties. As of December 31, 2025, our cash, cash equivalents, and restricted cash was $1.3 billion, which included $364.9 million of cash held for the benefit of third parties. The restricted cash held by us primarily 55 Table of Contents relates to cash held by us on behalf of third-party loan sellers or buyers that represent collection of principal and interest from loan borrowers that we remit to those third parties as servicer of those loans. Issuer Purchases of Equity Securities In connection with Figure’s secondary public offering in February 2026, the Company utilized approximately $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 an approximately $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. 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 common stock and Blockchain common stock over the next 12 months subject to market conditions, contractual restrictions and other factors. Repurchases under the Share Repurchase 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 also treats shares of common stock withheld for tax purposes on behalf of employees in connection with the vesting of RSUs as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are considered common stock repurchases under our authorized common stock repurchase program. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This Share Repurchase 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. As of March 31, 2026, Figure repurchased no shares and has $200.0 million remaining authorized under the repurchase program. Non-GAAP Financial Measures In order to better help understand our financial performance, we use several key performance metrics that should be viewed independently of GAAP items, as these metrics are not intended to be combined with those items. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP. Adjusted Net Revenue Adjusted Net Revenue is a non-GAAP financial measure used by our management to evaluate operating performance. Accordingly, we believe this measure provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, Adjusted Net Revenue provides a useful measure for period-to-period comparisons of our business, as it removes the effect of a non-cash, non-realized adjustment that is included in net revenue. Adjusted Net Revenue is defined as net revenue excluding the change in fair value of MSR and change in fair value of marketable securities associated with changes in our estimates that management has determined are not reflective of our operating performance, and net of interest paid to holders of YLDS. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures used by our management to evaluate operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, these measures provide useful information for period-to-period comparisons of our business, as it removes the effect of certain non-cash items, variable charges, non-recurring items, unrealized gains or losses or other similar non-cash items that are included in net income or expenses associated with the early stages of the business that are expected to ultimately terminate, pursuant to the terms of certain existing contractual arrangements or expected to continue at levels materially below the historical level, or that otherwise do not contribute directly to 56 Table of Contents management’s evaluation of its operating results. Adjusted EBITDA is defined as net income excluding interest expense incurred in connection with our debt obligations other than debt associated with our funding of loans held for sale, income taxes, amortization and depreciation expense, stock-based compensation expense, non-cash changes in certain financial instruments, and other items that management has determined are not reflective of our operating performance. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by adjusted net revenue. The most directly comparable GAAP measure is net income margin (calculated as net income divided by total net revenue). The Company added valuation changes in the fair value of marketable securities and YLDS funding costs to its definition of Adjusted Net Revenue, and valuation changes in the fair value of marketable securities, to its definition of Adjusted EBITDA effective March 31, 2026. Management excludes period-to-period changes in the fair value of marketable securities from Adjusted Net Revenue and Adjusted EBITDA because they reflect non-cash, unrealized mark-to-market fluctuations driven by external market factors, including changes in discount rates, prepayment speeds, and credit spreads, that are not reflective of the Company's underlying operating performance. The Company’s economic benefit from YLDS is the 35 basis point spread it retains on outstanding balances, regardless of the total amount of YLDS in circulation. Management therefore presents YLDS-related interest expense net of associated interest income within Adjusted Net Revenue, as it believes this net spread is the most meaningful measure of the YLDS's contribution to operating performance. The following table presents a reconciliation of net revenue to adjusted net revenue, net income to adjusted EBITDA, and net income margin to adjusted EBITDA margin for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (In thousands) 2026 2025 Total net revenue $ 167,007 $ 84,510 Adjusted for: Valuation changes in fair value of MSRs (1,184) 4,703 Valuation changes in fair value of marketable securities (A) 2,468 (2,231) YLDS funding costs (A) (1,448) — Adjusted net revenue $ 166,843 $ 86,982 Net income (loss) $ 45,047 $ (613) Adjusted for: Valuation changes in fair value of MSRs (1,184) 4,703 Valuation changes in fair value of marketable securities (A) 2,468 (2,231) Change in fair value of digital assets and related investments 4,783 9,962 Services exchanged for issuance of warrants (B) — 2,927 Registration costs 2,318 1,519 Restructuring costs 26 758 Stock-based compensation expense (B) 25,878 2,414 Amortization of internally developed software costs (B) 4,712 3,943 Non-funding interest expense 5,593 3,732 Income tax provision (6,945) 1,230 Adjusted EBITDA $ 82,696 $ 28,344 Net income margin 27.0 % (0.7) % Adjusted EBITDA margin 49.6 % 32.6 % (A) The Company added valuation changes in the fair value of marketable securities and YLDS funding costs to its definition of Adjusted Net Revenue, and valuation changes in the fair value of marketable securities to its definition of Adjusted EBITDA effective March 31, 2026. These adjustments have been applied retrospectively to all periods presented. (B) The Company has made immaterial adjustments, with no individual adjustment greater than $43 thousand, to correct the presentation of services exchanged for issuance of warrants, stock-based compensation expense, and amortization of internally developed software costs for the three months ended March 31, 2025. Critical Accounting Policies and Estimates Our Condensed Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). In preparing our Condensed Consolidated Financial Statements, we make assumptions, judgments, and estimates that can have a significant impact on amounts reported in our Condensed 57 Table of Contents Consolidated Financial Statements. We evaluate our estimates and assumptions on an ongoing basis. We base our assumptions, judgments, and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. Our significant accounting policies are described in Item 8, “Financial Statements and Supplementary Data,” Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably could have been used, or if changes in the estimate that are reasonably possible could materially impact the financial statements. We highlighted those policies that involve a higher degree of judgment and complexity with further discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K. There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026, as compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We believe these policies are the most critical to aid in fully understanding and evaluating our financial condition and results of operations. Recent Accounting Pronouncements See Note 2 to our Condensed Consolidated Financial Statements for recently issued accounting pronouncements not yet adopted as of the dates of the statement of financial position. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There have been no material changes in our market risk from the disclosure included under “Quantitative and Qualitative Disclosures of Market risk” in our Annual Report on Form 10-K for the year ended December 31, 2025.