FIGR Q3 2026 earnings call transcript, November 12, 2026

Welcome to the FIGR Technology Center. Solutions, third quarter, 2026 earnings conference call. At this time, all participants have been placed in listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. To get as many questions as time permits, we kindly ask you to limit yourself to one question, and we will ask you to limit yourself to one question. One follow-up question. So others can hear your questions clearly, we ask that you pick up your handset for best sound quality. Lastly, today's call is being recorded. I would now like to turn the call over to Brian Michalewski, Head of Investor Relations.

Good morning, and welcome to FIGR's third quarter 2026 earnings call. I'm Brian Michalewski, Head of Investor Relations for FIGR. Joining me today is Mike Cagney, our Executive Chairman and Co-Founder. Michael Tannenbaum, our Chief Executive Officer. Macrina Gill, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion will include forward-looking statements within the meaning of federal securities laws. These statements are based on management current expectations and involve risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially from those expressed or implied. For discussion of these risks, please refer to the risk factors in our most recent 10-K, 10-Q, and other SEC filings. These statements reflect our views today, and we undertake no obligation to update them except as required by law. During the call, we will also refer to certain non-GAAP financial measures. These measures should not be considered in isolation or as a substitute for GAAP results. Reconciliations to the most directly comparable GAAP measures are included in the earnings release we issued earlier today and in appendix to our supplemental slide presentation. Both of which are available in the investor relations section of our website.

Good morning and thank you all for joining. Our third quarter was big for FIGR, financially and strategically. Our top and bottom line results again outperformed, demonstrating the durability and resilience of our model. Our FIGR Connect platform continues to gain momentum and the acquisition of takes us another big step closer to our vision of bringing the capital markets on chain. I'll cover each of these topics in my remarks, as well as provide more color on our margins and capital allocation as we build on the growth we've generated year to date. In Q3, we grew volume 107% year over year at 58% EBITDA margin with over 70% FIGR Connect mix and maintained a 3.7% net standalone take rate, exceeding everything. I said we'd do on our last call. First on volume, in another record for figure, our consumer loan marketplace process $5.1 billion on an organic basis. Kiavi closed on September 1st, so the reported 5.8 volume reflects that one-month contribution. Our ecosystem now produces approximately $30 billion annualized run rate volume, making us the largest credit tokenizer by over two times, achieving the scale and only... ...eight years. As projected last quarter, we saw 72% of our standalone volume on FigureConnect, reflecting the increasingly balance sheet-like nature of our business. This quarter saw another record number of partner additions, ending at 612 standalone and 894, including Kiavi's broker partners. In addition to all of the net new growth I just described, we're also seeing expansion from existing origination partners.

of the future. While continuing to work as hard as ever to grow figure, we get the best of both worlds. He'll also stay for the Q&A period. But first things first, Macrina, the floor is yours.

Thank you, Michael, and good morning, everyone. This was a great quarter. Growth continued across every part of the business. Loan marketplace volume was $5.8 billion, including Kiavi, up 135% year-over-year, as reported, and 107% on a fixed. Your standalone basis. On last quarter's call, we guided Q3 standalone volume to a range of $4.8 to $5.2 billion. We came in at $5.1 billion toward the upper half of that range. The Kiavi acquisition, which closed September 1st, contributed approximately $670 million of volume for the one month in our results this quarter. Figure Connect volume, including Kiavi, grew to 74% of overall volume. Up from 65% last quarter and from 46% a year ago. Ecosystem and technology fees are now roughly 40% of our revenue. These more than tripled since a year ago this quarter after becoming the single largest contributor to our P&L last quarter, and we expect that share to continue climbing as the business shifts further towards fee-based capital light volume. Prime, which... was previously known as Democratized Prime, ended the quarter with lender supply of $825 million and matched offers balance at $588 million, including third-party borrow of approximately $200 million. As with FigureConnect, every dollar of third-party demand on Prime is a dollar choosing our infrastructure over a traditional warehouse line, and we expect that to keep building. Net income was $89 million.

As a reminder, last year, primarily from a recent merger with FigureMarkets, we recognized a one-time $31 million tax benefit, which increased net income to $90 million. Adjusted EBITDA was $164 million, up 91% year-over-year, with margin expanding to 58% from 55% a year ago, continuing progress toward our medium-term 60% target. With acquisition of KIAVI in September, we expect near-term EBITDA margin to decline below FIGR standalone year-over-year margin growth, as KIAVI pre-FIGR was running at or below 40% adjusted EBITDA margin. As we head into 2027, we expect revenue synergies and operating leverage to kick in and normalize FIGR up to overall medium-term targets. TakeRate is an output of our channel and product mix, not a target we manage to, as Michael has discussed. We assess our marketplace partnerships and product diversification to contribution margin and to the benefit each brings to adjusted EBITDA. This quarter, I want to provide additional color on gross takeRate, especially for Connect, as we have shorter duration products, such as residential transition loans, starting in September. As a reminder, Connect volume carries no customer acquisition costs. That's why we're shifting our focus to gross takeRate going forward rather than net takeRate. We expect gross takeRate from shorter duration RTLs to be in the 1.5% to 2% range, whereas for longer duration Connect TLOC, we expect to be in the 2.9% to 3.4% range over the next 6 to 12 months.

Bigger Connect may carry a lower gross takeRate than our other channels. but has strong contribution margins and the lowest capital intensity. With higher volume year-over-year, adjusted EBITDA margin continues to expand even as takeRate decreased on Connect. Contribution margin is profit that each dollar of incremental revenue generates, taking into account operating leverage and efficiency. In future earnings calls, we plan to discuss contribution margin upfront with color on gross takeRate. To share with you net takeRate, what we had been reporting previously for one final time, net takeRate was 3.5%, including one month of QIABI results, and 3.7% standalone figure within the range we've discussed previously. In terms of additional expense from the QIABI acquisition, one-time M&A and restructuring costs were $22 million in total that were incurred in Q2 and Q3. Of the $35 million run rate cost synergy target we set at announcement, we've actioned $30 million at close, with the remainder to be actioned over the next 12 months. I'll keep you posted in future quarters with progress on cost synergy. Our cash position remains strong post-acquisition of QIABI, with $1.59 billion in cash and cash equivalents. We have been deliberate in building our capital toolkit, starting with our IPO. a year ago, and in Q3, we raised rated unsecured debt of $600 million. We are also closing on a $465 million revolving credit facility this month. This is in addition to our ability to generate cash flow each quarter from strong adjusted EBITDA. We approximate 50% or so of adjusted EBITDA converting to cash inflow, taking into account income tax payments and interest expense on unsecured.

Turning to other parts of our balance sheet, our loan receivables of $644 million include approximately $395 million of loans FIGR has placed as collateral on prime from the beginning of the year, as well as approximately $16 million of DSCR loans that we acquired from KIABI. Typically, loans held by FIGR stay on the balance sheet for a few weeks before being sold or securitized. And fluctuates as a percentage of volume during that month. On share repurchase and returning capital to our shareholders, we've continued our routine practice of retiring shares withheld for employee tax obligations on vested equity. $35 million this year, which is approximately 1.1 million shares. That is ordinary course and not part of the announced share repurchase program. As Michael outlined, we are beginning to... execute on share repurchases, including our entry into a 10B 5-1 plan to begin executing the up to $400 million authorization with cash flow we have generated this year and expect to in the future. Credit quality has remained stable across the first three quarters of the year. Underwriting discipline and portfolio performance held consistent quarter over quarter, even as volume scaled at triple-digit rates. Our underwriting and pricing platform that we offer to our partners is nimble. With HELOCs, our largest product, funding in a median of 10 days, we can reprice the loans as overall macro markets move faster than other lenders that funds on average in 45 days.

We also have been hedging rates for the loans that stay on our balance sheet for a few weeks before they are sold as whole loan sales interconnect or securitize. These actions have allowed us to continue to execute consistently through rate volatility for loan sales directly on Connect or via our securitization shelf. Looking ahead for the fourth quarter, we are establishing our Q4 loan marketplace volume guidance in the range of $6.2 to $6.7 billion and combined gross take rate guidance of 3.1 to 3.4%. I want to briefly touch on the overall Q4 outlook in terms of seasonality. and ongoing expenses coming from the Kiavi acquisition. As a reminder, our HELOC, RTL, and DSCR products experience seasonality, similar to the broader mortgage industry, and we have historically seen the winter months from November through February be slower than Q2 and Q3 volume levels, as much as 10% to 15% from Q3 to Q4 sequentially. Last Q4. was an exception as FIGR experienced an increase in volume sequentially from Q3. This was due to IPO tailwinds that helped us originate more FIGR direct-to-consumer volume, as well as the addition of more CONNECT partners, including a few whales earlier in the year that helped offset the natural seasonal decline. Returning to seasonal norms in this year's Q4 suggests lower sequential volumes from FIGR and QAVI, which would also result in lower... or adjusted EBITDA margin. Q4 will also be the first full quarter post-acquisition as one company. We expect to see incremental 18 to 23 million of adjusted expenses in Q4 from the acquisition as compared to Q3 with one month of expenses from legacy QAVI overhead. As a reminder, QAVI prior to FIGR acquisition was at or below 40% adjusted EBITDA margin.

Moving forward as seasonal pressures abate and as we execute unplanned revenue synergies in 27, we expect the adjusted EBITDA margin to improve meaningfully, reflecting the full benefits of the QAVI acquisition alongside continued rapid growth in our HELOC business. Before I go, I want to close with the same note I opened on. This was a genuinely strong quarter across volume revenue and margin and consistent credit quality. QAVI is integrating ahead of plan. Prime continues to build real third party demand, and our balance sheet is stronger and more diversified than it's ever been.

With that, I'll hand it over to our executive chairman, Mike Cagney, who'll share more on the longer term vision before we open the line for questions.

Thanks, Katrina.

Your line is open.

Hey, everyone. This is Juan Tongan for Ryan. Congrats on the stellar results. Just on supporting the third-party assets that aren't... ...originated through FIGRES LOS, particularly for those depositories you called out. Remind us again what sort of economics you're expecting from this. How do you expect to build out the investor demand for these third-party assets?

Thanks for the question, and thank you for the compliment. With third-party assets on FIGR, what we're doing is starting with Prime. So you've seen us take originators on HELOC and... ...as well as in the SMB space and as well as in auto. Those are all the categories that we announced. And we've shared already that the economics of Prime are roughly around 50 basis points. We also expect to do securitizations in those asset classes, which will bring additional ecosystem fees. And then we have banks and other non-bank originators that will use Figure Connect as a way to do whole loan sales and will extract ecosystem fees. From those transactions as well. So that's the rough economic model. And the reason why we started with those asset classes is we have some lighthouse originators that are participating. We bring on the investors, we bring on the securitization, and then we start to flow lots of volume through. And I think in the coming quarters, you'll see us talk more about that as we have more proof points and share more about what it means for economics long term. But as Macrina shared in her prepared remarks, most of that benefits. It is going to flow through that ecosystem to place the line item, which has been the priority for FIGR and again, reflects that balance sheet like business model. Okay, that's helpful. Just on this HELOC Connect and near term gross take rate outlook, guiding to roughly 2.9 to 3.4%. That seems to be a decline from recent trends. I know you called out that that's being driven by these large whales. So could you give us some context around what large?

Kind of whale pricing looks like and what that pipeline in New York looks like as well. Yeah, as we shared in the prepared remarks, our pricing doesn't reflect negotiated partner rates. So when we talk about whales and pricing, what we're talking about is an expectation that we hit high volume tiers or lower pricing quickly. And you've seen some of that variability in our take rates over the past couple quarters. And we give ourselves that flexibility, one, for those large whales that come on, right? We don't expect those to come on at worse economics than other large whales. But two, we also give, which relates to your first question, we also give us some room for banks, which may want to use our origination technology, but keep some of the loans on balance sheet. When they do that, they're not going to pay the same pricing. They're not necessarily going to securitize the loans. And they may, in fact, sometimes. And service their own loans. So because of that, we wanted to give that flexibility. But at the end of the day, as you've seen in recent quarters, Figure Connect take rate has been relatively steady. And we're feeling really good about where we stand economically in the coming months. Thank you. And thanks for taking your questions. Thank you. We will take our next question from Patrick Molle with Piper Sandler. Please go ahead.

Yeah.

Good morning.

And thanks for taking the question. So I just had one on the 4Q volume guide. The range looks consistent with a normal, you know, 10 to 15% seasonal decline that you described. But Michael, I think you also said that rates moved up sharply and you're feeling some of that in the consumer funnel. So is there any cushion in the 4Q guide for rates beyond seasonality? And then if you give us any update on, you know, what you're seeing, you know, beyond that in the fourth quarter, it'd be helpful as well. Thanks. So thank you. I'll turn it over to Macrina, but just to quickly address that comment, what we do see is when there are rate movements and there's been continued rate movements through this quarter, certainly at a greater velocity than has been in prior quarters, we're repricing loans all the time. That's a benefit of our platform. And most of our partners look to us to help on pricing, and that's a service we provide.

So when there is volatility in pricing, there's always going to be some near-term impact in the funnel. And that's what I meant in the prepared remarks. But in terms of volume, guidance, and seasonality, I'll turn it over to you, Makrina.

Good morning, Patrick.

Thank you, Mike and Macrina.

Thank you. We will take our next question from Craig Sigenthaler with Bank of America. Please go ahead.

Hey, good morning, everyone. Hope you're doing well. I wanted to start with the long-term growth one. How are you sizing your unique TAM for Figure Connect? Given that most of your partners are not in the bank channel and are not traditional HELOC originators.

Hi, Craig.

Thank you. So for us, we've often shared that we have 10 of the top 20 independent mortgage banks. And one of the reasons we share that stat candidly is because we don't have a large number of the top 10. And we do see, as I shared. In my prepared remarks, meaningful traction with some of the largest non-bank originators, as well as some of the largest depositories in the country. So for us, we see meaningful growth ahead there. I'll also point to a few other levers of growth that we've been sharing. One has been our SMB business, where we see a huge amount of white space. We actually have not yet brought an SMB originator onto Figure Connect. And what we've shown over the past two years is that when Figure Connect's involved, there's significant incentives for partners to do more volume with us. So we think there's significant upside there. We also have been building a lot in the home improvement space. And with the addition of Kiavi and the purchase technology I mentioned, we see a big amount of opportunity to combine our products that's there. And then lastly, I mentioned a few numbers in the call that I point you to. One is the $200 billion addressable. market just for DSCR and RTL. We think Yavi is the market-leading technology in that business and both of those businesses. So we expect significant upsell opportunity. Again, we've proven our ability to do that. And then lastly, I shared $500 billion in origination per HMDA data for our existing partners. That would include a significant amount of business that's addressable today, in particular First Lean, and in particular Purchase, which we've shared already a few calls ago.

Upholstered with KIAVI technology is a product we're launching in the near term.

Thanks. And just for my follow-up, I'm curious if you could provide an update on your ability to expand into other consumer loan segments post-KIAVI. And I'm specifically thinking about auto after the Agora partnership and non-prime auto. And, you know, I'm not that familiar with auto, but I think a lot of the relationships are at big banks' top of the house. Across auto brands. So how do you sort of break into auto and gain meaningful share if you don't sign up to big banks? In two ways. One, we have a partnership, I called it a lighthouse partnership in a previous answer, with Agora. And their role is to actually interface with a number of dealers. And they have significant amount of volume. Going through their platform. And what we're doing in the coming months is a securitization with them. And we also have significant amount of our existing whole loan investors that buy mortgages, but also buy auto. So we already have the pieces of that marketplace. And what Agora will do is start to originate more volume again, because they're on their capital markets and their ability to grow until that's why they came to figure. That's why they. See the opportunity in our capital market. Again, very similar to the people that came to us for HELOC, because there was no and is no Fannie Mae for home equity. People want liquidity. And so as we bring those investors, both in securitized and whole loan form, Agora can grow its business, working with getting more volume from their existing dealers. And that's a big factor in auto. And we're going to bring that standardization to the space, because ultimately, it's very difficult.

Especially outside of the banks, to your point, to build a non-bank capital markets business, but a huge amount of auto origination is non-bank. And we feel really good about our position there. Similarly, in SMB, I know you didn't ask about that, but it's a very similar market where we now have 150 different originators. Yes, they're doing our HELOC today, but they all have other whole loan products that they're looking for capital markets outtake. And we can again provide that standardization layer through Figure Connect, whole loan sales securitization, and we have a lot of momentum there. So look for more from us in the coming quarters. Great. Thank you. Thank you. Once again, if you would like to ask a question, please press star 1 on your telephone keypad now. We will take our next question from Dan Doliv with Mizuho. Please go ahead.

Hey, Michael, Macrina, really, really strong results here. Congrats. Well-deserved stock reaction. I wanted to ask about the partners and the year of the upsell. Maybe can you help us understand what you need to unlock within your partners to be successful in the year of the upsell and how did you size the opportunity in your partner set and congrats again.

Thank you, Dan.

For upselling the existing partner base, one, I'll just remind you, it's a motion that we are very familiar with. It's been a huge part of our success. I think last quarter we talked about a few originators that had been with us for years, like Mutual of Omaha, NAF, New America Funding. Those are originators that have been with us for many months and we unlocked them via Figure Connect and other upsell efforts. In Q2. So we've proven our ability to take what could look like, you know, I know our data is very transparent, relatively small originators and find bigger shares of wallet. So we've done that in HELOC. There's a lot more room in HELOC and I shared that in my prepared remarks. But we also now have the two very high quality products from Kiavi that are the closest thing to standardization and liquidity in both RTL and DSCR. Our partners do a lot of those. We have a waiting list. There's a lot of demand for those products. And at the same time, just as we've unlocked smaller balance refinance and cash out refinance with our home equity alternative, we're going to do something similar in the purchase space. And purchase volume has been resilient in this rate environment on a relative basis. So we see significant opportunity there. And that is why we're comfortable talking about 2027 as the year of the upsell. Great. Thanks. And congrats again. Thank you. We will take our next question from James Yarrow with Goldman Sachs. Please go ahead.

Good morning.

And thanks for taking the question. I was hoping you might be able to talk to the buyer base growth trends more recently, as well as the reactions from that cohort to the Kiavi product. Do they exhibit the same? Demand for the Kiavi loans is for the core figure HELOCs. Yes, happy to. Well, as you know, we worked on the transaction with Sixth Street, which had been a key player in our guarantor vehicle and was also a key buyer for Kiavi. So there is some overlap and there's overlap among other existing investors. And I also shared in my prepared remarks that with Kiavi, we brought on. New investors into our marketplace. And one of the benefits of the Figure Connect flywheel is that investors want to buy more when they work with us. And so we're confident that some of I think there's been at least a couple of hedge funds that are now on Connect that weren't previously that are now excited to buy more loans and securitize products from us. So what we've seen in the past quarter is and also all year has been really strong securitizations. I think we shared a little bit more in our new supplemental financial materials out this morning, but we've had really both robust, both securitization activity and whole loan activity. We feel strong about that activity continuing through the end of the year. And we've also seen even more foreign demand recently. So continue to look for us to have more capital markets milestones in the coming months. And we're feeling really good about our position, the liquidity that we bring to the marketplace.

That's

That's great. I wanted to touch maybe a little bit on Sierra, which I thought was an interesting product rollout. Could you just maybe expand a little bit on exactly how this works across the platform and what allowed it to drive the 29% increase in the funded dollars per loan approval?

Thank you for giving me that opportunity, James. We're really excited about this. It's only rolled out in a small portion of our business, and partners have been clamoring for this. It's very special for a couple reasons. One, as I shared, ultimately, and you saw this in the SaaS era, there's lots of mortgage SaaS that hasn't lowered the cost to originate. There's tons of SaaS out there, and at the same time, cost to originate a mortgage has gone to $12,000. We've obviously taken a very different approach with a very different cost profile. And the agentic era is going to bring the same problems. Just because you throw agents at the problem, that's not going to lower the cost. And what we've done is something a bit different, right? We have trained this Sierra agent on our specific business model, our marketplace, which is much simpler, and the outcomes, therefore, are much more dramatic. And another thing that we did is we specifically trained it on conversion, right? Lots of people. People will train things on volume. They want the box to make as many calls as possible. We trained it on conversion to optimize for that 29% that I shared. And as a result, we've done something really meaningfully different. And we are now hearing in many of our sales conversations, as I shared, that people want this. This is part of the buying criteria. And it's a real differentiated mode for figure. So we're really excited about it.

Thanks a lot. Very helpful. We will take our next question from Kyle Peterson with Needham. Please go ahead.

Great.

Good morning and nice results.

Thanks for taking the questions.

You know, wanted to start out a little bit and ask on, you know, the growth, particularly the different mix of assets now with Kyabi and the fold here. I guess, like, is there anything we should be mindful of on either the RTL or ESPN? We see our growth rates or interest rate sensitivity. Obviously, they're smaller businesses, so kind of law of numbers makes it so it should be easier to grow, but the momentum you guys have had in HELOC is so strong. So I guess just how should we think about the different kind of push-pull dynamics in the mix of the volume, at least in the near term? I'll start, and, Macrina, feel free to add. When we bought Kiavi, we assumed that we were in a very almost record-low housing inventory environment. So that was baked into the assumptions and that four-year payback. So any increase or improvement in the market will just be upside to that four-year payback that we've shared, that unlevered payback. So this is definitely a dynamic that we understood. At the same time, Kiavi has... had, at least prior to FIGR, its business model and approach was a direct-to-investor originating model. So they were really focused on taking their secret sauce, which is meaningful, their technology, and using it only for their own distribution and brand. We think the growth is going to come by taking that secret sauce and unlocking it for our very large and increasingly growing partner base that's eager to originate those assets.

So this is all part of our expectation and also is reflected in the guidance that we've shared. I'll let you add anything. Just one item to add. Historically, and we've mentioned this before, Kiavi had been growing at about 25% to 35% in terms of volume. That does not include the revenue synergies that Michael had mentioned. So we're optimistic about what's to come in 2020.

Great. That's really helpful. Thank you. And then I guess for my follow-up, I want to switch over to funding. There's been an area you guys really shined, but I guess how are you guys thinking about whether it's whole loan sales or securization, especially given there has been a little more volatility in the debt capital markets in the last few weeks? So I guess this is make whole loan sales. A little more attractive, or how are you guys thinking about kind of matching execution with investor demand for these assets? Yeah, liquidity and flexibility for both FIGR as well as for the FIGR Connect marketplace is our superpower. So what we're ultimately offering is permanent takeout to our partners, and they're looking for us to... standardize a capital market that has previously not been so. And as a result, we're always going to look at, and our partners are going to look at, best execution across securitization and loan sales. That's a very natural thing. And I think what you see both in the additional disclosure that we shared, what you saw in particular in Q3, and what you're hearing from both the tone of our voice as well as the information we've shared in the... We feel that this is a huge competitive advantage for FIGR. There is a lot of investor demand for what we do. We've been doing it for years with great ratings, strong credit performance, and a lot of work by our capital markets team to engage with investors and ensure that they're excited about the high-quality collateral that our marketplace partners produce. And so we're always going to have that flexibility, and it's a huge advantage of the marketplace that someone can look to the scuritization market.

We look to the whole loan market. We have increasing conversations, as I've shared, with depositories coming onto the marketplace that are liking the volume that we see. And one of the things that we even show is how many of our customers are their customers, right? A lot of the non-banks are originating customer transactions from consumers that are ultimately depository customers. And so when people see that, when depositories see that, it makes them think that they're going to have a lot of money. It makes them interested in the assets, and it makes them interested in engaging with us. And that's been a big shift we've seen as we've started to scale, and it's driven depository interest, which is just another lever that we have in the coming months, as well as insurance, right? And we shared two insurance names in our prepared remarks. We see more opportunity had pension funds as well. Thank you. I would just add that the securitization or whole loans or pre-funded deals, it really... depends on where the demand is and where the buyer market is. And the other part I would also add is that the players that are contributing to the securitization are either our origination partners who can make that decision themselves depending on what is more attractive to them, in addition to the whole loan buyers who bought in the past and then can contribute to these securitizations. Excellent.

Thank you very much.

Thank you for your question.

We will now take our next question from Brandy Benner with Texas Capital.

Hey, good morning.

That's actually well-timed. I'd like to follow up on the capital markets question. So I think it looks like you're back in the market with a securitization in the last few days. And so the question in kind of building off your comments on confidence in whole loan sales and securitization, and there's a good slide that's been included on that. You know, when credit markets got wider over the past month or so, were you kind of able to pivot to whole loan sales? And if so, can you speak a little bit to kind of that process and how, you know, like what the frictions are or how easy it is to pivot if that's the way you kind of can handle markets when they get a little bit wider? Yeah. Well, to start, we are in the market and we do see some some recent strong triple A prints. So expect that despite the interest rate volatility and just the overall amount of noise in the capital market figure has done about 20 securitizations to date. And we expect many more in the in the coming months. We also do not see just to address your question, any friction between moving from a hold on sale to a securitization at the end of the. day figure connect is a marketplace. And what you see is auctions that people are running and they're always getting feedback on where the market is. And at the same time, you know, there's going to be times where hold on sales and investor demand there is going to be stronger. It's a dynamic market. And especially as new investors come on the platform there, you know, that will change those dynamics at any one time. And I think it's it's really important to share two things.

One is Macrina just talked about those pre-funded securitizations. And what that shows you is there is so much investor demand for the standardized product. And we're really one of the I think we're the only non-government agency that's been ever able to pull something like that off. And we have more capital markets milestones coming. And we also ultimately have really significant permanent capital demand. Right. That's at the end of the day, whether the loans are going whole. Or whether they're going to securitize form. At the end of the day, there's been this huge rise of insurance companies and asset management, non-bank financial institutions seeking yield. There's retirement. All sort of the tailwinds that have been growing that business. We see none of that changing. And if anything, this is something we shared previously, the diversification that we bring with high quality consumers at high FICO with lots of home equity behind them is increasing. All right. Great.

Thanks for the response.

If I could just squeeze one other one in. The G&A expense line just continues to outperform, at least in my model. And I know you have a very scalable platform there that's been built over time. I guess the question is, as we think about it, G&A expenses are the largest expense line in the income statement. Revenue, I mean, does it get a lot better than this? Just how do you think about that kind of expense control margin, which has been really good, you know, kind of going into 27? I'd just be kind of interested in thoughts on that.

Sure. And good morning, Randy. Just a few items on the G&A expense line item. We do have the QIAVI-related M&A. costs flowing through there for the most part. There's a lot of legal and accounting fees that went through. I mentioned on the call it was about $22 million in Q2 and Q3. So you're seeing a large number there coming across. The other part is that there's some stock compensation expenses for a lot of the executives are going through the G&A line item as well. And so you're seeing that pretty much stable across 2026. We expect that to... to continue as a percentage of revenue stock compensation expense is going down because the absolute dollar value is pretty stable. I would highlight those two items. At the end of the day, this is our second year as our public company, we will continue to look at optimization. But this year, I would say we also have stocks controls going in. So we have some additional professional fees coming through. Okay, that's helpful. Thank you.

Thank you for your question.

Our next question comes from Dan Fannin with Jeffries.

This concludes today's figure...

Technology Solutions 3rd Quarter 2026 Earnings Conference Call. Please disconnect your line at this time, and have a wonderful day.

Everyone else has left the call.