v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following table summarizes information about the assets and liabilities that are measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:
June 30, 2026
Carrying ValueFair value
Level 1Level 2
Level 3(A)
Total
Assets:
Cash and cash equivalents$1,437,511 $1,155,150 $282,361 $— $1,437,511 
Restricted cash95,887 95,887 — — 95,887 
Digital assets(B)
51,664 51,664 — — 51,664 
Distressed asset claims(C)
513 — — 513 513 
Marketable securities, at fair value(D)
354,007 — 319,220 34,787 354,007 
Loans held for sale, at fair value (E)
597,400 — — 597,400 597,400 
Loan servicing assets, at fair value (E)
155,024 — — 155,024 155,024 
Total assets $2,692,006 $1,302,701 $601,581 $787,724 $2,692,006 
Liabilities:
Digital asset collateral repayment obligation(F)
$21,125 $21,125 $— $— $21,125 
Certificate repayment obligation(G)
544,745 — 544,745 — 544,745 
Treasury note futures (H)
2,122 2,122 — — 2,122 
Total liabilities $567,992 $23,247 $544,745 $— $567,992 
December 31, 2025
Carrying ValueFair value
Level 1Level 2
Level 3(A)
Total
Assets:
Cash and cash equivalents$1,198,141 $955,200 $242,941 $— $1,198,141 
Restricted cash68,637 68,637 — — 68,637 
Digital assets(B)
88,511 88,511 — — 88,511 
Distressed asset claims(C)
3,068 — — 3,068 3,068 
Marketable securities, at fair value(D)
273,151 — 232,985 40,166 273,151 
Loans held for sale, at fair value (E)
404,337 — — 404,337 404,337 
Loan servicing assets, at fair value (E)
113,064 — — 113,064 113,064 
Treasury note futures (H)
442 442 — — 442 
Total assets $2,149,351 $1,112,790 $475,926 $560,635 $2,149,351 
Liabilities:
Digital asset collateral repayment obligation(F)
$52,569 $52,569 $— $— $52,569 
Certificate repayment obligation(G)
266,654 — 266,654 — 266,654 
Total liabilities $319,223 $52,569 $266,654 $— $319,223 
(A)    There were no transfers of Level 3 instruments to, or from, other fair value levels during the periods presented.
(B)    Included in “Digital assets” and “Digital assets, non-current” in the Condensed Consolidated Balance Sheets and represents all digital assets held which are measured at fair value.
(C)    Represents purchased interests in bankruptcy claims acquired on secondary markets which are included in “Other current assets” in the Condensed Consolidated Balance Sheets.
(D)    Residual interest securities and non-rated securities in securitizations not considered debt securities are included within Level 3 of the fair value hierarchy.
(E) See “Note 4—Servicing” and “Note 5—Loans” regarding changes in the carrying value of servicing assets and loans, respectively.
(F) Included in “Other current liabilities” in the Condensed Consolidated Balance Sheets.
(G) Included in “Debt, current” in the Condensed Consolidated Balance Sheets
(H)    Treasury note future assets and liabilities are recorded in “Other current assets”, and treasury note future liabilities in “Other current liabilities" in the Condensed Consolidated Balance Sheets. For further information, see “Note 2—Summary of Significant Accounting Policies”.

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Significant Valuation Inputs
The Company used the following unobservable inputs that it considers significant to value the financial assets and liabilities carried at fair value and classified within Level 3 of the fair value hierarchy:
June 30, 2026
Fair Value
Discount Rate (A) (%)
CPR (B) (%)
CDR (C) (%)
Cost of Servicing (D) (%)
Loss Severity (E) (%)
Marketable securities:
Residual interest securities$34,787 
5.0% - 26.4%
13.1%
16.2% - 20.8%
18.8%
—% - 2.4%
1.2%
n.a.n.a.
Servicing assets:
HELOC loans$153,102 
13.0% - 13.0%
13.0%
—% - 37.6%
12.9%
—% - 5.4%
0.8%
0.3%
n.a.
Mortgage loans1,922 
9.5% - 10.5%
10.3%
3.5% - 8.6%
4.3%
—% - 10.6%
0.3%
0.3%n.a.
Total / Weighted average(F)
$155,024 13.0%12.8%0.8%0.3%
Loans held for sale:
HELOC loans(G)
$537,159 
5.3% - 8.2%
6.5%
1.4% - 51.8%
18.7%
0.4% - 94.5%
1.9%
n.a.
—% - 99.8%
25.2%
Personal loans(H)
51,820 
8.9% - 11.5%
10.9%
—%
—%
n.a.
—%
Other(I)
8,421 
Total / Weighted average(F)
$597,400 6.9%17.0%1.7%
December 31, 2025
Fair Value
Discount Rate(A) (%)
CPR(B) (%)
CDR(C) (%)
Cost of Servicing (D) (%)
Loss Severity (E) (%)
Marketable securities:
Residual interest securities$40,166 
9.6% - 25.8%
15.7%
16.2% - 20.8%
18.8%
—% - 2.4%
1.2%
n.a.n.a.
Servicing assets:
HELOC loans$111,211 
13.0% - 13.0%
13.0%
—% - 33.1%
13.3%
—% - 4.8%
0.8%
0.3%n.a.
Mortgage loans1,853 
9.5% - 10.5%
10.3%
3.5% - 8.2%
5.3%
—% - 10.5%
0.4%
0.3%n.a.
Total / Weighted average(F)
$113,064 13.0%13.2%0.7%0.3%
Loans held for sale:
HELOC loans(G)
$320,566 
5.7% - 7.8%
6.4%
1.1% - 47.4%
17.8%
—% - 94.0%
1.8%
n.a.
—% - 99.1%
25.4%
Personal loans(H)
79,113 
8.9% - 11.5%
9.8%
—%—%n.a.—%
Other(J)
4,658 
6.2% - 12.0%
7.6%
4.6% - 73.2%
26.1%
1.0% - 62.8%
9.6%
n.a.
88.0% - 92.0%
90.0%
Total / Weighted average(F)
$404,337 6.5%18.0%1.9%

(A)    Significant increases (decreases) in the discount rate, in isolation, would result in a significantly lower (higher) fair value measurement.
(B)    Significant increases (decreases) in the Conditional Prepayment Rate (“CPR”), in isolation, would result in a significantly lower (higher) fair value measurement.
(C)    Significant increases (decreases) in the Constant Default Rate (“CDR”), in isolation, would result in a significantly lower (higher) fair value measurement.
(D)    Significant increases (decreases) in the cost of servicing reduces the servicing fee earned in excess of servicing costs and would result in a significantly (lower) higher fair value measurement of the servicing asset. Values represent the weighted average total mortgage servicing amount, net of subservicing costs.
(E)    Significant increases (decreases) in the severity, in isolation, would result in a significantly lower (higher) fair value measurement.
(F)    Unobservable inputs were weighted by respective fair value of each class.
(G)    HELOC loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a residential mortgage cash flow model.
(H)    Personal loans are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model.
(I)    Primarily contains residential transition loans, other mortgage loans, legacy mortgages and other unsecured loans. The Company reviews this loan pool each quarter for any material changes and fair values the assets if such changes exist; if no changes, the Company fair values this loan pool on a yearly basis.
(J)    Personal unsecured loans included in “Other” are measured at estimated fair value using a discounted cash flow valuation methodology, more specifically a loan cash flow model. The Company uses an estimated recovery from collections and recent sales to fair value personal loans that are 30 days past due; the fair value of such loans at December 31, 2025 were not material.
Significant Valuation Input Sensitivity
The following tables summarize the estimated change in fair value of assets carried at fair value and classified within Level 3 of the fair value hierarchy for the unobservable inputs in “—Significant Valuation Inputs” at June 30, 2026. Each of the following sensitivity analyses is hypothetical and is provided for illustrative purposes only. There are certain limitations inherent in the sensitivity analyses presented. In particular, the results are calculated by stressing a particular economic assumption independent of changes in any other assumption; in practice, changes in one factor may result in changes in another, which might counteract or amplify the sensitivities. The sensitivities presented below are calculated on the total fair value of the underlying tranches and do not reflect adjustments for the Company’s ownership share. Accordingly, the percentage changes shown should be applied to the Company’s retained (ownership-adjusted) position to determine the estimated impact on Figure's holdings. Also, changes in the fair value based on the following variations in an assumption generally may not be extrapolated because the relationship of the change in the assumption to the change in fair value may not be linear.
-2%-1%+1%+2%
$%$%$%$%
Discount rate:
Marketable securities:
Residual interest securities$21,411 3.3 %$10,468 1.6 %$(9,799)(1.5)%$(19,212)(2.9)%
Servicing assets:
HELOC loans9,109 6.3 4,425 3.1 (4,165)(2.9)(8,100)(5.6)
Mortgage loans200 10.4 96 5.0 (86)(4.5)(171)(8.9)
Loans held for sale:
HELOC loans12,914 2.5 10,499 2.0 (16,100)(3.1)(32,163)(6.2)
Personal loans332 0.6 176 0.3 (179)(0.3)(356)(0.7)
-20%-10%+10%+20%
$%$%$%$%
CPR:
Marketable securities:
Residual interest securities$50,736 7.7 %$24,023 3.7 %$(21,478)(3.3)%$(41,029)(6.3)%
Servicing assets:
HELOC loans8,590 6.0 4,151 2.9 (3,906)(2.7)(7,581)(5.3)
Mortgage loans77 4.0 377 19.6 (36)(1.9)(71)(3.7)
Loans held for sale:
HELOC loans2,604 0.5 1,368 0.3 (1,402)(0.3)(2,789)(0.5)
Personal loans— — — — — — — — 
CDR:
Marketable securities:
Residual interest securities13,414 2.1 6,714 1.0 (6,432)(1.0)(12,812)(2.0)
Servicing assets:
HELOC loans— — — — — — — — 
Loans held for sale:
HELOC loans1,562 0.3 782 0.2 (752)(0.2)(1,508)(0.3)
Personal loans— — — — — — — — 
Cost of Servicing:
Servicing Assets
HELOC loans11,574 8.0 5,794 4.0 (5,794)(4.0)(11,574)(8.0)
Marketable Securities
The following table summarizes activities involving the Company’s marketable securities that are measured at fair value and classified within Level 3 of the fair value hierarchy for the six months ended June 30, 2025 and 2026:
Balance at December 31, 2024$34,506 
Purchases(A)
9,322 
Principal payments(7,359)
Change in fair value(B)
1,730 
Balance at June 30, 2025$38,199 
Balance at December 31, 2025$40,166 
Purchases(A)
8,309 
Sales(C)
(8,958)
Principal payments(2,622)
Change in fair value(B)
(2,108)
Balance at June 30, 2026$34,787 
(A)    Includes premiums paid on the purchased notes.
(B)    Included in “Marketable securities income, net” in the Condensed Consolidated Statements of Operations.
(C)    Represents marketable securities held by Figure REIT, Inc. that were included in the deconsolidation of Figure REIT, Inc. See “Note 7—Equity—Noncontrolling Interests in Consolidated Subsidiaries”, for further discussion.
Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
The following table summarizes information about the liabilities that are not measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025:
June 30, 2026
Carrying ValueFair Value
Level 1Level 2Level 3Total
Liabilities:
Financed retained interests(A)
$317,664 $— $310,397 $— $310,397 
Total liabilities $317,664 $— $310,397 $— $310,397 
December 31, 2025
Carrying ValueFair Value
Level 1Level 2Level 3Total
Liabilities:
Financed retained interests(A)
$231,633 $— $233,684 $39,467 $273,151 
Total liabilities $231,633 $— $233,684 $39,467 $273,151 
(A)    Financed retained interests classified as Level 2 in the fair value hierarchy were valued with a discounted cash flow model using collateral contractual terms and discount rates of similar instruments that include default and prepayment expectations as observable inputs.
Debt not carried at fair value, including financed retained interests, is presented at the face amount, net of debt issuance costs that are amortized over the contractual term using the effective interest method. The carrying value of debt associated with the warehouse facilities and servicing rights financing approximates the fair value due to their relatively short maturities.