Figure (FIGR) Stock Forecast & Price Target

Figure Technology Solutions Inc. has demonstrated strong financial performance, with consumer loan marketplace revenue growing by an impressive 80.9% in FY24, driven by an increase in funding partners and home price appreciation. Although a more conservative growth rate of 24.6% is projected for FY25 due to challenging comparisons and pricing initiatives, the company is expected to maintain strong revenue growth, with forecasts of 22.8% and 22.5% growth in FY26 and FY27, respectively. Additionally, EBITDA margins are anticipated to expand significantly, reaching 43% in FY25 and continuing to rise to 52.9% by FY27, reflecting the company’s robust unit economics and cost efficiencies.

Figure Technology Solutions Inc faces significant challenges that could hinder its growth trajectory, particularly if the home equity line of credit (HELOC) market declines due to adverse market conditions such as a decrease in home prices or an increase in first-lien mortgage activity. The company holds approximately 5% of its origination volume on its balance sheet due to regulatory requirements, which poses a vulnerability in a potentially weakening credit market, where reduced demand from funding partners could adversely affect originations. Furthermore, rising defaults and delinquencies signal deterioration in credit conditions, which could substantially impact Figure’s business performance and financial projections.