Figure (FIGR) Stock Forecast & Price Target

Figure Technology Solutions Inc. demonstrated a remarkable 80.9% growth in consumer loan marketplace revenue in FY24, largely due to the addition of 73 funding partners and favorable home price appreciation that increased loan sizes. The company has maintained a strong start to FY25 while projecting a conservative growth rate of 24.6%, with expectations of continued revenue growth of 22.8% in FY26 and 22.5% in FY27, as take rates stabilize and partner addition continues. Furthermore, projected EBITDA margins are set to expand significantly, reaching 43% in FY25 and 52.9% in FY27, supported by solid unit economics and cost efficiencies associated with the company's blockchain technology.

Figure Technology Solutions Inc. faces a challenging outlook due to the potential cooling of the Home Equity Line of Credit (HELOC) market, especially if home prices decline or if first-lien mortgage activity increases, which may hinder growth. The company’s reliance on a limited 5% of originations on its balance sheet exposes it to risks in the credit market, where an increase in defaults and delinquencies could significantly diminish demand from funding partners and lead to reduced origination volumes. These factors together indicate a negative trajectory for Figure’s business, with the potential for a decrease in valuation reflected in its projected FY27 P/E multiple.