TLDR
- Figure Technology (FIGR) stock rose about 6% to $25.59 on Thursday after Q3 results topped estimates.
- Net revenue jumped 84% to $287.1 million, above the $251.6 million estimate.
- Loan Marketplace Volume hit $5.8 billion, up 135%, with $677 million from Kiavi.
- The board added $200 million to its buyback, bringing the total to $400 million.
- Q4 guidance calls for $6.2 billion to $6.7 billion in marketplace volume.
Figure Technology (FIGR) stock was trading near $25.59 on Thursday, up about 6%. It had jumped more than 7% in premarket trading before easing a bit.
Figure Technology Solutions, Inc. Class A Common Stock, FIGR
The move came after the company posted third-quarter numbers that beat on both the top and bottom line. The broader market did not help, since the S&P 500 and Nasdaq were both lower.
Diluted earnings came in at 36 cents per share. Analysts had expected 27 cents, though some earlier previews were as low as 19 cents.
Net revenue rose 84% from a year ago to $287.1 million. The Street was looking for about $251.6 million.
Adjusted net revenue climbed 83% to $283.3 million. Adjusted EBITDA rose 91% to $163.6 million.
Volume Jumps, Margins Tell a Different Story
Loan Marketplace Volume grew 135% to $5.8 billion. That total includes $677 million from Kiavi, which Figure bought on Sept. 1.
Figure Connect volume did even better, up 276% to $4.3 billion. It now makes up 72% of standalone volume, up from 65% the quarter before.
More volume came with thinner pricing. Gross take rate slid to 3.9% from 5.2%, and net take rate fell to 3.5% from 4.4%.
Net income was $89.3 million, close to last year’s $89.8 million. The net income margin dropped to 31% from 57%.
That gap has a simple cause. The year-ago quarter included a one-time $31 million tax benefit.
Adjusted EBITDA margin moved the other way, rising to 58% from 55%. Ecosystem and technology fees leapt 208% to $109.8 million.
Kiavi Savings, Buybacks and Partners
Figure said it has already acted on $30 million in initial cost savings from the Kiavi deal. The board also raised its buyback authorization by $200 million, to $400 million in total.
Cash and equivalents stood at $1.59 billion as of Sept. 30. The company also filed a Form 8-K tied to the earnings release.
Figure ended the quarter with 612 standalone partners, or 894 counting Kiavi. Its SMB loan originations passed a $500 million run rate.
The Loan Officer Assistant tool handled about $260 million in funded loans. Funded dollars per approval rose 29%.
CEO Michael Tannenbaum called it a record quarter. He pointed to a second straight quarter of volume growth above 100%.
Analyst views were mixed going in. Zacks Research cut its rating to Hold, and Keefe, Bruyette & Woods trimmed its price target before the report.
For the fourth quarter, Figure expects Loan Marketplace Volume of $6.2 billion to $6.7 billion. It also sees a gross take rate of 3.1% to 3.4%.
