Figure Technology Shares Plunge 20% After Mixed Q4 Earnings Report
By John Nada·Feb 28, 2026·5 min read
Figure Technology shares dropped 20% after a mixed Q4 earnings report, revealing challenges despite revenue growth. Missing earnings expectations raised investor concerns.
Shares of Figure Technology Solutions, a blockchain-based consumer lending marketplace, plunged on Friday after the company reported mixed fourth-quarter results the prior day, signaling a more difficult operating environment even as revenue continued to climb. For the quarter ended December 31, the company posted revenue of $159.9 million, up from $83.9 million a year earlier, and net income of $15.1 million, compared with $5.9 million in the same period of 2024. Earnings were $0.06 per diluted share, compared to zero a year earlier. Analysts polled by Yahoo Finance expected earnings of $0.18 per share on revenue of $157.7 million. This significant discrepancy between actual earnings and analyst expectations has contributed to the negative market reaction, highlighting a disconnect that investors are keenly observing.
Growth was driven by increased lending activity. Consumer Loan Marketplace volume, which reflects total loans originated and traded on the platform, reached an impressive $2.7 billion during the quarter, up from $1.2 billion a year earlier. This increase can be attributed to several factors, including a growing consumer base and enhanced platform capabilities, which have made Figure's offerings more attractive to potential borrowers. The substantial rise in lending activity underscores Figure's position in the market and its ability to scale operations effectively, even as it faces challenges in other areas.
For the full year, net income totaled $134.3 million, up from $19.9 million in 2024, while revenue reached $506.9 million, compared with $340.9 million a year earlier. This year-on-year growth indicates a robust upward trajectory for the company, showcasing its resilience in a competitive landscape. The consistent revenue increase points to a solid business model that is gaining traction, albeit with the caveat of recent market volatility.
The company also authorized a share repurchase program allowing it to buy back up to $200 million of its stock over the next 12 months. This move is typically seen as a sign of confidence by management in the company's long-term prospects, suggesting that they believe the stock is undervalued at current levels. However, the timing of this announcement, following a significant drop in stock price, raises questions about its effectiveness in stabilizing investor sentiment.
Shares fell about 20% to $27.12 in morning trading on Friday following the earnings release. This sharp decline can be attributed not only to the missed earnings expectations but also to broader trends in the market, particularly within the crypto-linked equities sector. Investors are increasingly cautious as they navigate a landscape characterized by heightened volatility and uncertainty, particularly in the wake of fluctuating crypto asset prices.
Figure began trading on the Nasdaq in September after pricing its initial public offering at $25 per share, raising nearly $800 million. The stock rose more than 24% on its first day of trading and climbed to a high near $74 in January, before retreating. This post-IPO trajectory mirrors volatility seen across other crypto-linked equities, many of which rallied sharply in late 2025 before surrendering gains amid the broader crypto market pullback. The initial enthusiasm surrounding Figure's IPO reflects a strong market appetite for blockchain-based financial solutions, but the subsequent pullback highlights the inherent risks associated with such investments.
The broader context of crypto-linked equities reveals a pattern of initial exuberance followed by significant corrections. For instance, shares of crypto exchange Gemini Space Station (GEMI) surged on its Nasdaq debut on September 12 after pricing its IPO at $28 per share. The stock briefly topped $40 on its first day of trading but has since fallen to around $5.94, at the time of writing. Such dramatic fluctuations are indicative of a market that is still finding its footing, which can be both an opportunity and a risk for investors.
Similarly, stablecoin issuer Circle experienced a volatile debut. The company went public on June 5, after upsizing its IPO to $1.05 billion, selling 34 million shares at $31 each, above its initial target of 24 million shares priced between $24 and $26. In its first day of trading, Circle’s shares surged 167%, opening at $69 and climbing as much as 235% intraday before closing at $82. The stock later reached an all-time high of $263.45 on May 25, then retraced nearly 70% to around $83, per Yahoo Finance data. These examples illustrate the unpredictable nature of the market, where initial investor enthusiasm can quickly turn to caution.
The mixed results from Figure Technology come amid a backdrop of growing concern about the sustainability of high growth rates in the fintech and blockchain sectors. As interest rates rise and economic conditions shift, companies like Figure may face increased pressure to maintain their growth trajectories. Investors are acutely aware of these dynamics, which may explain the swift sell-off following the earnings report. The market's reaction suggests that investors are not only focused on current performance but are also weighing the implications for future growth in a tighter economic environment.
Moreover, the competitive landscape for consumer lending is evolving rapidly. With traditional financial institutions and emerging fintech players vying for market share, Figure must continue to innovate and differentiate itself to capture consumer interest. The rise of alternative lending platforms and the integration of blockchain technology into financial services are reshaping the industry, presenting both challenges and opportunities for Figure.
In light of these factors, the company’s leadership will likely need to address investor concerns about growth sustainability in future earnings calls. Clear communication regarding strategies to navigate the current market challenges, along with a focus on innovation and customer acquisition, will be crucial for rebuilding investor confidence.