v3.26.1
DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
The following table summarizes the Company’s debt components:
June 30, 2026December 31, 2025
Carrying ValueFacility Inception Date
Final Stated Maturity(A)
Weighted Average Funding CostCollateral Carrying ValueCarrying Value
Debt carried at cost:
Funding debt:
Warehouse Facility 1(B)
$2,500 November 2022May 20275.9 %$3,335 $2,904 
Warehouse Facility 2(C)
884 February 2023January 20276.2 1,689 7,039 
Warehouse Facility 3(D)
— October 2023n.a.— — — 
REIT Warehouse(E)
— October 2024December 2026— — 750 
Warehouse Facility 5(F)
6,190 April 2025July 20266.0 6,521 1,700 
Warehouse Facility 6(G)
66,123 July 2025June 20275.4 67,901 6,063 
Warehouse Facility 7(H)
29,263 April 2026October 20277.6 29,094 — 
Digital Asset Loan Facility(I)
— April 2025October 2026— — 3,097 
104,960 21,553 
MSR financing:
Lender 1(J)
— June 2024June 2026— — 40,000 
Financed retained interests:
Retained Interest Facility(L)
317,664 April 2023
Various(K)
5.8 318,118 231,633 
Total debt carried at cost, gross422,624 293,186 
Unamortized deferred financing costs(M)
(4,374)(2,603)
Total debt carried at cost, net418,250 290,583 
Debt at fair value:
FCC(N)
78,727 76,110 
Democratized Prime YLDS(O)
41,378 24,409 
120,105 100,519 
Debt at fair value to related parties:
FCC - related parties(N)
118,293 2,050 
Democratized Prime YLDS - related parties(O)
306,347 164,085 
424,640 166,135 
Total debt carried at fair value544,745 266,654 
Total debt$962,995 $557,237 
(A)    Debt obligations with a stated maturity through the date of issuance of the Condensed Consolidated Financial Statements were refinanced, extended or repaid.
(B)    Warehouse Facility 1 bears interest at Secured Overnight Financing Rate (“SOFR”) plus a spread of 2.25% at June 30, 2026.
(C)    Warehouse Facility 2 bears variable interest at SOFR plus a spread between 2.15% and 5.50% at June 30, 2026. A portion of the facility is also subject to a 0.5% non-use fee.
(D)    Warehouse Facility 3 is an advance facility in which the lender earns carry on collateral in the facility.
(E)    Real Estate Investment Trust (“REIT”) Warehouse was the warehouse for Figure REIT, Inc. As of March 27, 2026, Figure REIT, Inc. merged with and into VS Evergreen Acquisition Co. L.P.. As a result of the merger, Figure REIT, Inc. is no longer controlled nor consolidated by FTS. See “Note 7—Equity—Noncontrolling Interests in Consolidated Subsidiaries”, for further discussion on the merger.
(F)    Warehouse Facility 5 bears interest at SOFR, plus a spread of 2.35%.
(G)    Warehouse Facility 6 bears interest at SOFR, subject to a 2.00% floor, plus a spread of 1.75%.
(H)    Warehouse Facility 7 bears interest at SOFR subject to a 2.00% floor plus a spread ranging from 3.50% up to 5.75% based on the quality of the pledged loans.
(I)    The Digital Asset Loan Facility bears interest at a rate of 13.5%.
(J) The MSR Note bears interest at 16.5% per annum and secured by eligible servicing assets, which include servicing fees related to loan servicing rights owned by, or delegated to, the Company. During June 2026, the MSR Note was fully repaid by the Company on its scheduled maturity date and closed.
(K)    The maturities of financed retained interests align with the terms of the underlying securities. The financed retained interest have maturity dates through June 2056.
(L)    Under the Retained Interest Facility, the interest accrued on the securities and beneficial interests is payable to the lender during the period the loans are held plus a spread between 0.50% and 0.55%, depending on the tranche to which the Company pledges collateral.
(M)    During the three and six months ended June 30, 2026 and 2025, the Company amortized $0.4 million, and $0.8 million, respectively, and $0.1 million and $0.3 million, respectively, of deferred financing costs.
(N)    Interest accrues at a rate of SOFR less 35 basis points based on the face-amount certificates issued by FCC. Certificates mature 20 years from the issue date, but may be surrendered at any time by the holder at face amount, plus accrued interest minus any applicable expenses or fees.
(O)    Interest is accrued using an interest rate that is determined by Figure’s utilization-based, real-time auction engine. YLDS can be redeemed by the holder at face amount, plus accrued interest minus any applicable expenses or fees on demand.
Maturities
Contractual maturities of recourse and nonrecourse debt obligations at June 30, 2026, are as follows:
Years Ending December 31, RecourseNonrecourseTotal
2026 (remainder)$— $6,190 $6,190 
202769,507 29,263 98,770 
2028— — — 
2029— — — 
2030— — — 
Thereafter— 317,664 317,664 
$69,507 $353,117 $422,624 
Borrowing Capacity
The following table represents borrowing capacity of committed debt facilities that have not matured at June 30, 2026:
June 30, 2026
Borrowing CapacityBalance OutstandingAvailable Financing
Funding Debt:
Warehouse Facility 1$100,000 $2,500 $97,500 
Warehouse Facility 2335,300 884 334,416 
Warehouse Facility 5300,000 6,190 293,810 
Warehouse Facility 6300,000 66,123 233,877 
Warehouse Facility 7250,000 29,263 220,737 
Financed retained interests:
Retained Interest Facility500,000 317,664 182,336 
Bridge Loan Facility600,000 — 600,000 
$2,385,300 $422,624 $1,962,676 
Certain debt obligations are subject to customary loan covenants, such as minimum tangible net worth, minimum liquidity, maximum leverage ratios, required range of net income or loss during specified periods, periodic financial reporting requirements, and event of default provisions, including event of default provisions triggered by certain specified declines in the Company’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. The Company was in compliance with all of its debt covenants at June 30, 2026.
Facilities
The following summarizes the debt facilities that the Company entered into or amended during the six months ended June 30, 2026 and the year ended December 31, 2025:
Warehouse Facility 1
In May 2025, the Company and its lender amended Warehouse Facility 1 to reduce the borrowing capacity to $150.0 million, expand eligible collateral types, and reduce certain funding costs. The amended facility has an initial maturity date of May 2026, and borrowings under the facility bear interest at a rate of SOFR plus a spread of 2.25%.
In May 2026, the Company and its lender amended Warehouse Facility 1 to reduce the borrowing capacity to $100.0 million and extend the maturity date to May 2027. No other terms of the facility were amended.
Warehouse Facility 2
In January 2026, the Company and its lender amended Warehouse Facility 2 to extend the facility maturity date to January 2027, and add a facility sub-limit of $50.0 million for certain loan products. No other terms of the facility were amended.
REIT Warehouse
In August 2025, the Company amended the REIT Warehouse to increase the borrowing limit to $200.0 million, extend the maturity date to December 2026, and add an exit fee of 0.15% that is not to exceed $0.5 million in any calendar year. It also amended the interest rate to be SOFR plus a spread of (i) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is greater than or equal to $100.0 million, 3.00% or (ii) if the average daily aggregate outstanding purchase price for all purchased mortgage loans subject to outstanding transactions during such pricing rate period is less than $100.0 million, 3.50%.
The REIT Warehouse was the warehouse for Figure REIT, Inc. As of March 27, 2026, Figure REIT, Inc. merged with and into VS Evergreen Acquisition Co. L.P. As a result of the merger, Figure REIT, Inc. is no longer controlled nor consolidated by FTS. See “Note 7—Equity—Noncontrolling Interests in Consolidated Subsidiaries”, for further discussion on the merger.
Warehouse Facility 5
In April 2025, the Company entered into a master repurchase agreement with a major banking institution that contains customary debt covenants, a borrowing capacity of $300.0 million, including $1.0 million in committed capacity, and an initial maturity date in April 2026, with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR plus 2.35%.
During April 2026, the Company executed an amendment to the master repurchase agreement to extend the maturity date by three months to expire in July 2026. No other terms of the facility were amended.
Warehouse Facility 6
In June 2025, the Company executed a master repurchase agreement with a major banking institution that had a facility limit up to $100.0 million, with the option to temporarily upsize to $200.0 million and has an initial maturity date in June 2027 with the option to renew at maturity. Borrowings under the facility bear interest at a rate of SOFR, subject to a floor of 2.0%, plus 1.75% that results in a minimum rate of 3.75%.
In July 2025, the Company amended Warehouse Facility 6 to permanently increase the facility limit to $200.0 million. In December 2025, the Company amended Warehouse Facility 6 to increase the facility limit to $300.0 million.
Warehouse Facility 7
In April 2026, the Company executed a master participation interest purchase and servicing agreement with a chartered banking institution, and will include other purchasers from time to time. The agreement allows the Company to sell 100% participation interests in digital asset backed loans in exchange for consideration and a pledge of the underlying loan as collateral. The aggregate facility limit as of June 30, 2026 is $250.0 million, with an option to increase available financing as agreed upon by both parties. Digital asset backed loans originated prior to March 31, 2026 are permitted to be sold under
the arrangement, which will ultimately terminate in April 2027. The applicable interest rate is driven by the quality of the pledged loans subject to a 2.00% floor and a spread that ranges from 3.50% to 5.75%.
Digital Asset Loan Facility
In April 2025, the Company executed a master participation agreement with an asset management firm that allows the Company to grant 100% participation interest for digital asset backed loans it owns. The $30.0 million facility, with the ability to increase to a maximum facility size of $50.0 million, matures in October 2026, bears interest at a rate of 13.5%, and has a purchase period through April 2026.
Retained Interest Facility
The Company amended the Retained Interest Facility to increase the borrowing limit from $250.0 million to $500.0 million, effective as of October 2025.
FCC
At June 30, 2026, FCC had $78.7 million and $118.3 million outstanding face-amount certificates to third parties and related parties, respectively, redeemable upon redemption of YLDS. At December 31, 2025, there were $76.1 million and $2.1 million outstanding face-amount certificates to third parties and related parties, respectively. The certificates entitle the certificate owner to receive, at certificate maturity, a stated amount of money, interest, or credits declared from time to time by FCC, at its discretion. The certificates issued by FCC are not insured by any government agency or other entity.
Democratized Prime YLDS
At June 30, 2026, FCC had $41.4 million and $306.3 million outstanding face-amount certificates to third parties and related parties, respectively, redeemable in cash upon redemption of YLDS. At December 31, 2025, there were $24.4 million and $164.1 million outstanding face-amount certificates to third parties and related parties, respectively. Democratized Prime YLDS represents liabilities where parties have lent YLDS to the Company through the Democratized Prime platform. Interest is accrued using an interest rate that is determined by Figure’s utilization-based, real-time auction engine. The YLDS are collateralized by pools of loans and are not insured by any government agency or other entity.
Bridge Loan Facility
On June 10, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Project Mason Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”), Kiavi, Inc., a Delaware corporation (“Kiavi”) and Fortis Advisors LLC, in its capacity as the lawful and exclusive representative, agent, proxy, and attorney-in-fact (with full power of substitution) for and on behalf of the security-holders of Kiavi, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub will merge with and into Kiavi (the “Merger”), with Kiavi surviving such Merger as a subsidiary of the Company.
Concurrently with the execution of the Merger Agreement, the Company entered into a commitment letter with Bank of America, N.A., BofA Securities, Inc. and Barclays Bank PLC, pursuant to which Bank of America, N.A. and Barclays Bank PLC committed, subject to the satisfaction of customary conditions, to provide the Company with a 364-day bridge loan facility in an aggregate principal amount not to exceed $600.0 million. As of June 30, 2026, there were no outstanding borrowings under the Bridge Loan Facility, and the entire amount remained available.
On July 14, 2026, the Company closed its previously announced offering of $600.0 million principal amount of 8.500% Senior Notes due 2031 (the “Notes”). Concurrently with, and as a result of, the issuance of the Senior Notes, the Company terminated the Bridge Loan Facility effective July 14, 2026. Prior to its termination, there were no outstanding borrowings under the Bridge Loan Facility, and no early termination penalties were incurred as a result of the cancellation.
Refer to “Note 10—Commitments and Contingencies” for more information regarding the proposed acquisition of Kiavi and “Note 14—Subsequent Events” for further details on the Senior Note issuance.