Figure Technology Solutions Inc. (FIGR) was named the top FinTech stock on Needham’s conviction list, with analyst Kyle Peterson initiating coverage at Buy and setting a $55 price target.
The upgrade follows investor meetings at the 8th Annual Needham FinTech and Digital Transformation Conference, where Peterson highlighted Figure’s blockchain-based lending platform and strategic acquisition strategy. The company’s shares were trading at $36.85 at the time of the note.
Peterson pointed to a 131% year-over-year surge in second-quarter volumes as a key driver of the upgrade. Blockchain data for the week ended August 16, 2026, showed $411 million in volume, a 120% increase from the prior year. The analyst emphasized Figure’s balance sheet-light model, which relies on whole loan sales, securitizations, and partnerships to scale without adding balance sheet intensity.
The Kiavi acquisition, expected to close by year-end 2026, is projected to contribute over $345 million in revenue and more than $0.20 to GAAP EPS in fiscal 2027. Peterson noted that Sixth Street will effectively assume the balance sheet for the deal, allowing Figure to focus on integrating volumes into its blockchain loan ecosystem. The acquisition is expected to add a conservative $9.2 billion in volume.
Figure’s largest asset class is home equity lines of credit (HELOCs), with additional scaling in auto loans, debt service coverage ratio (DSCR) loans, and small and medium-sized business (SMB) loans. The company’s blockchain infrastructure is cited as reducing fraud risk, lowering audit fees, and cutting origination costs while accelerating loan close times.
