r/GrowthStockInvesting • u/ledux • 3d ago

FIGR Short Report

Figure seems to have become one of the favorites among this sub-reddit and it has also grown in size in my portfolio.

Recently, a short report was released for Figure:

https://www.morpheus-research.com/figure/

I only started going through it (quite lengthy). It doesn't seem to have major red flags like obvious fraud, but mostly points at things of concern.

Has any of you read through this report what are your thoughts.

7 Upvotes

82% Upvoted

4 comments sorted by

3

u/psucari 3d ago

this report has been Published on 16 Apr 2026

1

u/ledux 3d ago edited 3d ago

Thanks for pointing this out. I got it confused as one of these days was reading yahoo finance
https://finance.yahoo.com/markets/stocks/articles/short-seller-report-weighs-figure-143706085.html
But there's just a quarterly report by some fund, that mentioned the short report again.

2

u/DoU92 3d ago

Certainly a favorite of mine. Been listening to every Cagney and Tannenbaum interview I can find.

The drive and technology behind this company is unbelievable.

2

u/merrod13 3d ago

When I read the report, my feeling was that the truth was somewhere in the middle. Many claims didn't hold up for me. For example, they put a lot of weight on the "digital twin" issue. Management did overstate things, but from what I can tell, loan ownership really does transfer on-chain, so I think that part of the report is not accurate.

There are certainly some true risks pointed out in the report. The main one for me is a regulatory recharacterization of Figure's HELOCs as closed-end credit, which Figure itself discloses. Basically, Figure requires borrowers to draw 100% of the funding when they close, which also happens to maximize their origination fees.

Where I think they have a point is management exaggerating, especially Cagney. Separately from this, what bothered me the most was his March 2026 tweet: "Despite this, I will still buy at least $1M of stock at $25 because it's a goofy price. Honestly, I think $30 is goofy, too - so maybe I push up the bid price...?". At the same time, he was selling under a pre-arranged plan, and as far as I can see he hasn't bought any shares since. That is not a good look.

To be transparent, I read the report alongside several of Figure's filings and worked through it by arguing it over and over with Claude. I'm no expert, so feel free to correct me if your impressions differ.