Figure Technology Solutions saw its shares rise approximately 6% to reach $36.10 during early trading on Friday. This surge followed the company’s release of preliminary fourth-quarter results that exceeded what analysts had anticipated.
The firm expects revenue for the quarter to be between $158 million and $162 million, surpassing the consensus estimate of $154 million. Similarly, adjusted EBITDA is projected to fall between $80 million and $83 million, aligning closely with industry forecasts.
Significantly, consumer loan originations on Figure’s marketplace surged by 131% year-over-year, indicating robust performance in its onchain credit platform, the main driver of its revenue.
As part of this announcement, Figure also shared plans for a secondary share offering, allowing existing shareholders to divest up to 4.23 million shares. Additionally, the company is set to buy back up to $30 million in stock from underwriters.
Investors are closely monitoring Figure's ongoing growth in blockchain-based lending while also keeping an eye on future initiatives. These include the OPEN network aimed at onchain equity issuance, which is still in the works, as well as efforts to transition stock lending processes to blockchain technology to diminish reliance on traditional prime brokers.
A formal announcement detailing earnings and updated guidance is anticipated later this month.