Figure Technology seeks $508M in long-awaited IPO

Figure Technology Solutions has formally launched its long-awaited initial public offering that could bring over $508 million in gross proceeds to the company if the overallotment is exercised.

The company is offering over 21.46 million shares, with an overallotment of 3.95 million shares.

In addition, 4.85 million shares are being sold by existing stockholders in Figure, which will not receive any of the proceeds. The largest of those sellers, according to the S-1 prospectus filing are Ribbit Capital IV, selling 1.8 million of its 16.1 million shares; and Mike Cagney, Figure's co-founder and chairman, selling 1.5 million of his 12.7 million Class A shares. Expected pricing for the offering is between $18 per share and $20 per share.

But Cagney still owns all of the Class B stock in the company, which has 10 votes per share. As a result, after the IPO is completed, Cagney will have 69.2% of the voting power in Figure Technology.

The registration statement said Cagney will also be getting a "founder retention award" for four years after the IPO. "We firmly believe Mr. Cagney's retention is of paramount concern, with consideration given to his essential role in achieving our long-term strategy and our goal to deliver meaningful value to our stockholders," the S-1 said.

Figure has applied to Nasdaq to list the Class A stock using the FIGR ticker symbol.

Goldman Sachs & Co., Jefferies and B of A Securities are acting as joint lead bookrunning managers, while Societe Generale, Keefe, Bruyette & Woods and Mizuho are bookrunners for the proposed offering. Texas Capital Securities, Needham & Company, Piper Sandler, FT Partners, KKR and Roberts & Ryan are the co-managers.

Figure earned $29.4 million in the first half of 2025, following its full year 2024 net income of $20 million, the prospectus said. As of June 30, it had stockholders' equity of $404 million and an accumulated deficit (cumulative financial losses over its lifetime) of $292 million. In the first half of 2024, Figure lost $13.4 million.

The prospectus notes that Figure's revenue is substantially derived from its home equity line of credit product and its loan origination system technology offering. It originates HELOCs for both partners through a wholesale arrangement and its own brand. It also does private-label originations.

The road to going public has had its share of twists. In late 2022, Cagney started a special purpose acquisition company which signed a non-binding letter of intent to acquire a warehouse lender and bank holding company. But weeks later, the SPAC elected to wind-down operations as of the end of that year.

In July 2023, Cagney announced plans to do an IPO for its lending business sometime in 2024; the temporarily named "LendCo" would have a valuation of $2.5 billion.

In April 2024, reportedly as part of the IPO process, Figure Technology hired Michael Tannenbaum, a former Brex and SoFi executive as its new CEO. At that time, Cagney became executive chairman.

This followed a confidential filing of an S-1 with the Securities and Exchange Commission in March 2024. Just prior, Figure split out its lending unit into a stand-alone company.

Reportedly, a more stringent regulatory environment at that time contributed to the decision to postpone the IPO.

But a month ago, Figure disclosed it filed a new confidential S-1 registration statement, the first step in going public. Reversing its previous course, it recombined the lending business and the technology business.