Figure Technology Solutions: Poised For Growth Via Share Gains, TAM Expansion

Figure Technology Solutions (NASDAQ:FIGR) completed a $787.5 million IPO, drawing initial analyst coverage with BofA Securities initiating at Neutral ($41 PT) and Goldman Sachs at Buy ($42 PT). Analysts highlight FIGR's over 70% market share in tokenized private credit HELOCs and project its Figure Connect marketplace to drive 75% of revenue growth from 2024-2027, leveraging current market dynamics and blockchain efficiencies for expansion. Shares reacted positively to the news, rising 6.75% to $43.02.

Analysis

Blockchain-enabled Fintech lender Figure Technology Solutions Inc. (NASDAQ:FIGR) raised $787.5 million in its initial public offering on September 11. Here are some takeaways from analyst initiation notes: - BofA Securities analyst Craig Siegenthaler initiated coverage with a Neutral rating and price target of $41. - Goldman Sachs analyst James Yaro began coverage with a Buy rating and price target of $42. Check out other analyst stock ratings. BofA Securities: Figure Technology Solutions has become the leading non-bank provider of Home Equity Line of Credit (HELOC), with a market share of more than 70% in tokenized private credit, Siegenthaler said in his initiation note. With this, the company's future revenue growth is now tied to the success of Figure Connect (new marketplace), "which we expect to drive 75% of its total revenue growth from 2024 through 2027," he added. There are "key cyclical positives" for Figure Technology Solutions, as cash-out refinancing has become unattractive due to strong home price appreciation and high mortgage rates, plus there is less competition in the mortgage tech sector, the analyst stated. Goldman Sachs: Blockchain and other technologies help Figure Technology Solutions achieve efficiencies in origination and sales, which benefits borrowers, originators, and loan buyers, Yaro said. "We see share gains within its core home equity loan (HELOC) product, and TAM expansion into other consumer loans," he wrote. Figure Connect, which is a marketplace connecting buyers and sellers, has scaled from 0% of 2024 volume to 42% of volume in the second quarter of 2025 and this is expected to grow to 55% by 2027, the analyst stated. FIGR Price Action: Shares of Figure Technology Solutions had risen by 6.75% to $43.02 at the time of publication on Monday. Read More: Winklevoss Twins’ Gemini Hits $4.4 Billion Valuation In Strong Nasdaq Debut Photo: Shutterstock © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Figure Technology Solutions (FIGR) has entered the public market following a $787.5 million IPO, attracting divergent initial analyst coverage. The company holds a commanding position in the non-bank Home Equity Line of Credit (HELOC) market, with a reported market share exceeding 70% in tokenized private credit. This dominance is attributed by Goldman Sachs to efficiencies gained from blockchain and other technologies in loan origination and sales. The central pillar of FIGR's future growth is its Figure Connect marketplace, which BofA Securities projects will account for 75% of total revenue growth from 2024 to 2027. Goldman Sachs corroborates this rapid scaling, noting its contribution to volume is expected to grow from negligible in 2024 to 55% by 2027. The company's strategy is supported by favorable cyclical trends, as high mortgage rates and significant home price appreciation render traditional cash-out refinancing unattractive, channeling demand towards HELOCs. Despite these positives, analyst ratings are split, with Goldman Sachs issuing a Buy ($42 PT) based on market share gains and total addressable market expansion, while BofA Securities maintains a Neutral stance ($41 PT), underscoring the heavy dependence on the new marketplace's success. The market's initial reaction has been positive, with the stock climbing 6.75% to $43.02, trading above both price targets.

Key Decisions for Investors

• Investors with a bullish view on fintech disruption in consumer lending may consider FIGR a category leader, given its dominant HELOC market share and the rapid growth trajectory of its Figure Connect marketplace.
• Caution is warranted due to the significant execution risk and heavy reliance on the Figure Connect platform for future growth; the stock's price trading above initial analyst targets suggests that near-term optimism may already be priced in.
• Monitoring the persistence of macroeconomic tailwinds, such as high mortgage rates that favor the HELOC market, and tracking key performance indicators for the Figure Connect marketplace are critical, as its success is the central catalyst for the company's valuation.