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Summary Figure Technology Solutions has experienced a sharp post-IPO decline, yet I reiterate a buy rating based on its differentiated blockchain innovation. FIGR is expanding beyond HELOCs into first-lien mortgages, with Q4 first-lien volumes up 3x y/y to $506 million, now 19% of originations. The 2026 roadmap includes entry into the $1.6 trillion auto lending market via Agora Data, leveraging Figure Connect to tokenize and securitize auto loans. Despite recent pessimism and a strong Q4 print, I view FIGR’s platform extensions and growth as compelling reasons to buy the current dip. Everywhere you look in today's stock market, it's difficult to escape the pessimism that has infected growth stocks, recent IPOs, the crypto market, and software industry. Figure Technology Solutions ( FIGR ), which went public last September at $25 per share, touches all of those themes: and needless to say it has crashed spectacularly over the past few months, as companies continue to view this blockchain pioneer as a crypto-adjacent name. Since the start of January alone, shares of Figure have lost ~20% of their value. Relative to peaks near $75 briefly notched in January, Figure is down more than 50%. The company's recent strong Q4 earnings print did little to quell the bearish frenzy. We have to ask ourselves now: at what point does the selloff become overdone? Data by YCharts I last wrote a buy article on Figure in the $70s . I've maintained that bullish outlook since the company's IPO. Even though I acknowledge that my January buy call was ill-timed (I certainly wasn't predicting the sharp selloff in tech that would ensue), my thesis on Figure remains sound. I view the company as an incredibly differentiated innovator in the blockchain that is poised to displace and take market share from incumbent lenders: not just in mortgage originations, but now in auto financing as well. I reiterate my buy rating here. Figure's immense growth within its existing consumer loan marketplace is astounding (more detail in the next section), but what investors should be aware of today is the fact that the company is planning a broad extension of its platform in 2026. Figure built its platform and its name brand around one type of loan, the HELOC (home equity line of credit). But in itself, HELOC loans are relatively niche product that form a very small share of overall borrowing. In 2026, the company is focused on expanding two loan types. The first is primary, first-lien mortgages. Already, the company is showcasing tremendous growth in first lien, with volumes rising roughly 3x y/y in the fourth quarter to $506 million. Still, first lien (standard mortgages) represents only 19% of the company's origination volume. Figure's management also notes that it typically is able to issue a standard mortgage with a total cost of under $1,000 (thanks to automating many manual portions of the underwriting process, and with higher credit accuracy) versus an industry average of $11,045, marking a clear advantage for lenders. Figure first lien issuance trends (Figure Q4 earnings deck) The next expansion area is completely beyond housing. Figure has struck a partnership with a company called Agora Data, which describes itself as an AI-powered intelligence platform for auto loan originators to predict performance of subprime auto loans and to connect lenders to capital. Agora gives Figure easy access to its base of auto lenders, marking its first foray into an auto lending TAM that is sized at a staggering $1.6 trillion. While Agora's platform is responsible for origination in this deal (which is Figure's role in home loans), Figure's role is to use its newly-launched Figure Connect to tokenize these loans into assets on the blockchain: which makes it easier and less costly for auto loan originators to securitize and sell their loans using the Figure platform. In my view, it's an excellent expansion of Figure's use cases, and a great utilization of Figure Connect. Figure auto lending (Figure Q4 earnings deck) In short, with so many tailwinds ahead for Figure in 2026, there is little reason for this stock to crash post-earnings. Take advantage of the dip as a buying opportunity. Q4 Download Let's now go through Figure's latest quarterly results in greater detail. The Q4 earnings summary is shown below: Figure Q4 results (Figure Q4 earnings deck) Figure's revenue grew 91% y/y to $159.9 million, beating Wall Street's expectations of $157.7 million (+88% y/y) by three-point margin. Important to note is the fact that Figure's revenue accelerated sharply from just 55% y/y growth in Q3. Similar to the prior quarter, Figure's y/y surge in revenue was driven primarily by Figure Exchange, the company's crypto trading platform which launched in midway through 2024 (revenue recorded in the "ecosystem and technology fees" line. Still, we note that crypto trading is only one-quarter of the company's overall revenue (despite now having negative associations with the crypto sector that has brought down Figure's stock tremendously). Core lines of business, meanwhile, also thrived. The chart below showcases the company's main business driver: the amount of loans originated through the company's platform. Consumer loan marketplace volume surged 131% y/y to $2.71 billion in Q4, which accelerated versus just 63% full-year growth across the entirety of FY25. Figure loan volumes (Figure Q4 earnings deck) Again, it's the expansion of loan types that is potentially feeding growth acceleration here, as the company focuses more on first-lien originations (which not only is a larger market than home equity lines, but also tend to have higher loan balances). The company's 2026 foray into auto loans should only serve to add fuel to recent growth trends. We note as well that Figure's take rates (its revenue as a percentage of origination volume) jumped 30bps y/y to 3.8%, which is a major tailwind for revenue growth. Revenue from the company's loan servicing arm grew 30% y/y to $9.0 million, while loan originations grew 65% y/y to $22.4 million. We focus on these core lending activities because they are Figure's "bread and butter" and provide recurring revenue for the company, even if Figure Exchange's crypto trading results become choppier heading into 2026. On the profitability front, Figure's adjusted EBITDA grew roughly 5x y/y to $81.3 million, representing a 51.6% margin that improved more than 30 points y/y. Figure adjusted EBITDA (Figure Q4 earnings deck) The company has a near-term goal of hitting 60% adjusted EBITDA margins, which it's driving via a greater mix of capital-light, third-party loans as well as efficiencies and automation applied to the company's own overhead. Per CFO Minchung Kgil's remarks on the Q4 earnings call: Our medium-term goal for adjusted EBITDA margin is to be above 60%, and our progress this quarter can be explained as follows: First, we are growing volume and assets in Figure Connect and democratized Prime that reduce balance sheet usage and improve contribution margins as more volume moves into our capital-light marketplace. Second, we are seeing our contribution margin from partner-branded volume continue to be around 80% as we have built out the core infrastructure that powers Figure Connect and our partner-branded initiatives. And third, we continue to execute on operating leverage across both fixed and variable expense categories, where our volume increased 131% and our operating expenses, excluding share-based compensation, increased 13% over the same period." Valuation And Key Takeaways Despite its rapid growth opportunities, we find that Figure also remains attractively valued. For most of last year, Figure traded at unjustifiable multiples of its bottom line; and now, after its stock price sank, we can no longer say the same. Data by YCharts As shown above, Figure takes at roughly 18x forward adjusted EBITDA. An exact peer set for Figure is tough since its business is so unique, but Figure trades in line with a number of adjacent peers. Coinbase ( COIN ), which is the number-two crypto exchange, trades at similar ~17x adjusted EBITDA levels to Figure after its recent selloff. Another interesting direct competitor in home lending is legacy incumbent Rocket Mortgage ( RKT ), which recently purchased Mr. Cooper and Redfin to become a one-stop shop consisting of a real estate brokerage, a mortgage originations platform, and a mortgage servicing arm. Against all of these peers, however, none can match Figure's ~2x y/y top-line growth and its incredible margin expansion trends. Stay long here and use the post-earnings dip as a buying opportunity.