Figure Technology Solutions, Inc.

Of course. Here is a comprehensive analysis of FIGR.

**Technical & Momentum Analysis**

FIGR exhibits explosive momentum, surging 33% in one month and significantly outperforming the market. However, this strength is a double-edged sword. Trading near its 52-week high with a very high beta of 2.4, the stock is extremely volatile and appears overbought after its rapid ascent. The substantial 31% drawdown from its peak last year confirms this volatility, indicating high risk for new entrants at current levels.

**Fundamental Health Check**

FIGR's fundamentals show a mixed picture. Profitability is strong, with net margins above 50%, and the company maintains good short-term liquidity. However, deeper concerns exist, including negative cash flow and only modest returns on equity and assets. The low asset turnover ratio suggests the company is not efficiently using its capital to generate sales, which is a yellow flag for operational execution.

**Valuation & Risk Assessment**

Valuation is FIGR's most significant hurdle. Its sky-high price-to-sales (77) and price-to-earnings (134) ratios demand near-perfect execution of future growth. The extreme volatility (beta of 2.4) and past large drawdowns underscore substantial risk. While the low PEG ratio suggests growth could justify the premium, the stock is highly sensitive to any negative news or failure to meet lofty expectations.

**Investment Recommendation**

Based on the analysis, FIGR is a HOLD for current investors but too risky for new buyers. The stock's trajectory is entirely dependent on fulfilling aggressive growth expectations priced in by its extreme valuation. Any stumble could lead to a sharp correction. Investors should wait for a more attractive entry point or clearer evidence that operational efficiency is improving to justify the current premium.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, here is the 12-month outlook for FIGR ($56.28):

12-Month Outlook for FIGR

The primary positive catalyst for FIGR will be its ability to demonstrably exceed the aggressive growth expectations embedded in its valuation, particularly by improving operational efficiency (asset turnover) to justify its premium. However, the key risk is the stock's extreme sensitivity to any negative news or failure to meet these lofty expectations, given its high volatility (beta of 2.4) and history of significant drawdowns; a broader market pullback could trigger a sharp correction. With no specific analyst target price available, the outlook is highly speculative, but the stock's trajectory will likely remain binary—driven either by stellar execution validating its multiples or by a failure to do so, leading to a substantial re-rating. A prudent target range is difficult to establish, but a move is likely to be significant in either direction.

Wall Street Consensus

Most Wall Street analysts are optimistic about Figure Technology Solutions, Inc.'s 12-month outlook, with consensus target around $73.91, indicating expected upside potential.

Overall, FIGR has investment potential but also faces challenges. Here are key factors to weigh before investing.

FIGR has demonstrated exceptionally strong performance with significant recent momentum driving substantial gains.

The stock has delivered impressive short-term returns, surging 33.84% over one month and 17.18% over three months, significantly outperforming the market by 13.81% during the latter period. This robust performance, combined with a beta of 2.4, indicates the stock has exhibited high volatility while delivering substantial upside.

Currently trading near its 52-week high of $59.40 and well above its low of $30.01, FIGR appears overbought given its recent rapid ascent and proximity to resistance. The maximum drawdown of -31.38% over the past year underscores the stock's volatile nature, suggesting caution despite the strong upward momentum.

FIGR Q3 2025 Fundamental Analysis

Revenue & Profitability FIGR demonstrates exceptional profitability metrics with a gross profit margin of 100% in Q3 2025, indicating no cost of revenue. The company achieved a net profit margin of 57.3%, significantly higher than the operating income margin of 33.7%, primarily due to a substantial negative income tax expense that boosted bottom-line results. While revenue grew significantly quarter-over-quarter from $95 million to $156 million, the net income ratio improvement from 31.5% to 57.3% highlights enhanced profitability efficiency.

Financial Health The company maintains strong liquidity with a current ratio of 2.26 and quick ratio of 2.26, indicating good short-term financial stability. However, the debt ratio of 37.4% and debt-to-equity ratio of 69.1% suggest moderate leverage, while negative cash flow ratios (-2.32 operating cash flow to debt ratio) raise concerns about debt servicing capability. The cash ratio of 1.41 demonstrates adequate cash coverage for current liabilities, though the negative cash flow per share of -1.81 warrants monitoring.

Operational Efficiency FIGR shows mixed operational efficiency with a return on equity of 7.7% and return on assets of 4.2%, indicating reasonable but not exceptional capital utilization. The asset turnover ratio of 0.07 suggests inefficient use of assets to generate revenue, while the company equity multiplier of 1.85 indicates moderate financial leverage. The receivables turnover of 3.38 reflects acceptable collection efficiency, though overall operational metrics suggest room for improvement in asset utilization.

FIGR's valuation appears substantially elevated based on traditional metrics. The PE ratios of 134 (TTM) and 105 (forward) are extremely high, while the PB of 10.24 and PS of 77.02 suggest significant premium to asset and revenue bases. However, the PEG ratio of 0.53 indicates strong earnings growth expectations that could justify some premium, though the exceptionally high EV/EBITDA of 433 suggests current earnings power is minimal.

Without industry averages for comparison, it's impossible to determine how FIGR's valuation multiples relate to sector norms. This lack of benchmarking context makes conclusive valuation assessment challenging, though the raw multiples suggest a growth-oriented company trading at substantial premiums to current financial fundamentals.

Of course. Here is a risk analysis for FIGR.

Based on the Beta of 2.44, FIGR demonstrates extremely high volatility risk, being approximately 144% more volatile than the broader market. This indicates the stock is likely to experience significantly larger price swings, both upward and downward, compared to the market average. The substantial maximum drawdown of -31.38% over the past year confirms this high volatility, highlighting a period where investors faced considerable peak-to-trough losses.

While the absence of significant short interest suggests a lack of widespread negative sentiment from short sellers, this does not eliminate other risks. The combination of extreme volatility and a significant drawdown points to potential liquidity risk, where the stock may be less liquid and susceptible to sharp price movements from relatively small trades. This also implies elevated event risk, where company-specific news or market shifts could have an outsized impact on the stock's price.