FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value

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 Value		Fair value
			Level 1		Level 2		Level 3(A)		Total
Assets:
Cash and cash equivalents	$	1,437,511	$	1,155,150	$	282,361	$	—	$	1,437,511
Restricted cash	95,887		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 Value		Fair value
			Level 1		Level 2		Level 3(A)		Total
Assets:
Cash and cash equivalents	$	1,198,141	$	955,200	$	242,941	$	—	$	1,198,141
Restricted cash	68,637		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”.

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 Value		Fair Value
			Level 1		Level 2		Level 3		Total
Liabilities:
Financed retained interests(A)	$	317,664	$	—	$	310,397	$	—	$	310,397
Total liabilities	$	317,664	$	—	$	310,397	$	—	$	310,397

	December 31, 2025
	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
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.

Schedule of Fair Value Measurement Inputs and Valuation Techniques

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 loans	1,922		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 loans	1,853		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.

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 loans	9,109		6.3		4,425		3.1		(4,165)		(2.9)		(8,100)		(5.6)
Mortgage loans	200		10.4		96		5.0		(86)		(4.5)		(171)		(8.9)
Loans held for sale:
HELOC loans	12,914		2.5		10,499		2.0		(16,100)		(3.1)		(32,163)		(6.2)
Personal loans	332		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 loans	8,590		6.0		4,151		2.9		(3,906)		(2.7)		(7,581)		(5.3)
Mortgage loans	77		4.0		377		19.6		(36)		(1.9)		(71)		(3.7)
Loans held for sale:
HELOC loans	2,604		0.5		1,368		0.3		(1,402)		(0.3)		(2,789)		(0.5)
Personal loans	—		—		—		—		—		—		—		—

CDR:
Marketable securities:
Residual interest securities	13,414		2.1		6,714		1.0		(6,432)		(1.0)		(12,812)		(2.0)
Servicing assets:
HELOC loans	—		—		—		—		—		—		—		—
Loans held for sale:
HELOC loans	1,562		0.3		782		0.2		(752)		(0.2)		(1,508)		(0.3)
Personal loans	—		—		—		—		—		—		—		—

Cost of Servicing:
Servicing Assets
HELOC loans	11,574		8.0		5,794		4.0		(5,794)		(4.0)		(11,574)		(8.0)

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

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.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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