Figure shares rise as early Q4 results top expectations alongside secondary stock sale
Figure Technology Solutions' shares increased after preliminary Q4 revenue surpassed estimates, coinciding with a secondary stock offering.Summary
Shares of Figure Technology Solutions (FIGR) rose approximately 2% following the release of better-than-expected preliminary fourth-quarter results, which showed expected revenue between $158 million and $162 million, exceeding the $154 million Wall Street estimate. This news coincided with the announcement of a secondary stock offering where existing shareholders plan to sell up to 4.23 million shares. Despite the offering, Figure plans to use cash on hand to repurchase up to $30 million of stock from underwriters, a move seen as supportive. The company also reported strong growth in its consumer loan marketplace, with quarterly volumes up 131% year-over-year. Figure is positioning itself as a key player in blockchain-based credit infrastructure, with analysts expecting near-term performance to be driven by its onchain credit marketplace, while newer blockchain initiatives like the OPEN network are viewed as longer-term opportunities.
(Source：The Block)