Figure Technology Stock Plunges 20% After Mixed Q4 Earnings

Figure Technology Solutions saw its stock plunge approximately 20% to $27.12 on Friday after the blockchain-based consumer lending marketplace delivered mixed fourth-quarter results. Revenue nearly doubled year over year, but the company's earnings-per-share figure badly missed analyst expectations, triggering a selloff.

Q4 Revenue Doubles but EPS Misses Estimates

Figure Technology posted fourth-quarter revenue of $159.9 million for the period ending December 31, nearly doubling the $83.9 million generated a year earlier. Net income rose to $15.1 million from $5.9 million. However, diluted earnings came in at just $0.06 per share, according to the company's earnings release, significantly trailing the $0.18 that analysts surveyed by Yahoo Finance had projected.

Despite topping the consensus revenue estimate of $157.7 million, the earnings miss suggested rising costs accompanied the company's rapid growth. Shares tumbled roughly 20% to $27.12 in Friday morning trading.

Why Did Figure Technology Stock Crash Despite Record Growth?

Wall Street weighed profitability shortfalls more heavily than headline revenue gains. Figure Technology's Consumer Loan Marketplace volume reached $2.7 billion during the quarter, doubling the $1.2 billion recorded a year earlier.

For the full 2025 fiscal year, net income totaled $134.3 million, up from $19.9 million in 2024, while annual revenue climbed to $506.9 million versus $340.9 million the prior year. The board also authorized a $200 million share repurchase program over the next 12 months.

From IPO Highs to Earnings Lows

Figure Technology debuted on the Nasdaq in September after pricing its IPO at $25 per share and raising close to $800 million. The stock surged more than 24% on its first trading day and climbed to a peak near $74 in January before pulling back. Friday's drop brought shares close to their original IPO price.

Broader Crypto IPO Volatility

Figure Technology is not alone. Gemini Space Station surged past $40 on its Nasdaq debut on September 12 after pricing at $28 per share, but has since cratered to roughly $5.94, according to market data.

Circle underwent an equally turbulent debut, going public on June 5 after upsizing its IPO to $1.05 billion by selling 34 million shares at $31 each, above its initial target of $24 to $26. Shares surged 167% on day one, opening at $69 and spiking 235% intraday before closing at $82. The stock later reached $263.45 on May 25 before retracing nearly 70% to around $83, per Yahoo Finance data.

What This Means Going Forward

Figure Technology's earnings miss underscores that rapid revenue growth does not guarantee stock appreciation when profitability lags expectations. The $200 million buyback could provide a floor, but investors will watch whether the company converts surging loan volumes into stronger per-share earnings. With crypto-linked equities broadly under pressure after late-2025 rallies, the company must demonstrate its blockchain lending model can deliver sustainable margin improvement.