Figure Technology Solutions (NASDAQ: FIGR) experienced a sharp 13.2% decline in its share price following the announcement of its fourth-quarter and full-year 2025 financial results, a strategic partnership to tokenize auto loans on blockchain, and the authorization of a $200 million share repurchase program. While the company reported robust revenue growth, triple-digit increases in loan marketplace volume, and expansion into new asset classes, investor reaction focused on an earnings per share miss, potential dilution concerns from recent offerings, and broader skepticism about adoption rates for blockchain-based financial infrastructure in traditional markets. The partnership with Agora Data marks a milestone in bringing tokenized real-world assets to the $1.6 trillion U.S. auto loan sector, but market sentiment has prioritized short-term pressures over long-term innovation potential.
Detailed Market Reaction and Financial Performance
Figure Technology Solutions, a pioneer in blockchain-native capital markets, saw its Class A common stock plunge amid mixed signals from its latest disclosures. The sell-off erased much of the recent gains, pushing shares toward levels not seen since earlier volatility periods tied to secondary offerings.
The company’s full-year 2025 results highlighted significant operational momentum. Revenue reached approximately $506.87 million, supported by strong growth in its core consumer loan marketplace. In the fourth quarter alone, net revenue came in near $160 million, reflecting a year-over-year increase of roughly 91%. Adjusted EBITDA for the quarter surged dramatically, achieving margins above 51% and demonstrating improved efficiency as the business shifts toward a more capital-light marketplace model.
A key driver was the explosive expansion in Consumer Loan Marketplace volume, which jumped 131% year-over-year to $2.7 billion in the fourth quarter. Figure Connect, the blockchain-based distribution platform connecting originators with institutional investors, played a central role, with its volume rising from minimal levels in the prior year to $1.5 billion. This reflects growing traction in Democratized Prime, the decentralized lending marketplace, where matched offers have scaled rapidly, reaching hundreds of millions in recent updates.
Despite these positives, the bottom line disappointed some expectations. Earnings per share came in below consensus estimates, contributing to the perception that profitability growth has not kept pace with revenue expansion. Concerns over elevated non-accrual assets and execution risks in scaling blockchain adoption among large institutions further pressured sentiment. Analysts from major firms adjusted price targets downward in response, citing hesitancy from traditional banks to fully embrace the technology.
Strategic Expansion into Auto Finance via Tokenization
In tandem with the earnings release, Figure unveiled a landmark partnership with Agora Data, an AI-powered auto fintech platform specializing in non-prime lending. This collaboration introduces the first blockchain-enabled platform to bring U.S. auto loans onto modern capital markets as tokenized real-world assets (RWAs).
Under the agreement, Agora-originated loans will be ingested into Figure’s system, undergo AI-enabled quality control for compliance, and then be tokenized on the Provenance Blockchain. Once on-chain, these assets gain access to Figure Connect’s full suite of capabilities, including DeFi-native warehouse funding, whole loan sales, securitization, and participation in Democratized Prime.
The move targets the massive $1.6 trillion U.S. auto loan market, extending Figure’s footprint beyond its traditional home equity focus into one of the largest consumer credit segments. Management expects the partnership to deliver tens of millions of dollars in auto finance assets to the marketplace in the coming months, all in a capital-light manner that avoids the need for Figure to build its own auto loan origination system.
This builds on Figure’s existing tokenization expertise, where loans are represented digitally on the blockchain for transparent, immutable ownership tracking and instantaneous transfers. The approach reduces inefficiencies in traditional asset transfers, such as manual errors or lost documentation, and enables broader liquidity through decentralized finance channels.
Share Repurchase Authorization and Blockchain Milestones
To counter dilution concerns and signal confidence, Figure’s board authorized a $200 million share repurchase program covering both Class A and blockchain common stock. The initiative, effective through February 2027, provides flexibility to buy back shares opportunistically amid market weakness.
The company also highlighted recent achievements in blockchain infrastructure, including the completion of the world’s first fully on-chain equity trades and the growth of its regulated stablecoin product YLDS, which saw substantial increases in balances.
Looking ahead, management outlined priorities for 2026 centered on marketplace scaling through Figure Connect, product diversification—including deeper penetration into first-lien mortgages and small business lending—and acceleration of the blockchain ecosystem with features like tokenization, atomic settlement, and decentralized finance integration. The auto finance entry represents a key step in monetizing third-party assets and expanding real-world asset tokenization.
