Market Trends Bullish 7

Fintech and MedTech Lead Q4 2025 Growth as 'Capital-Light' Models Scale

The Q4 2025 earnings season has highlighted a decisive shift toward capital-light business models and AI-integrated product lines, with fintech and med-tech sectors leading the charge. While legacy firms face headwinds from ERP transitions and global tariffs, agile platforms like Figure and Butterfly Network are reporting record volumes and significant margin expansion.

· 4 min read · By Startup Intelligence Brief Editorial
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Key Takeaways

  • The Q4 2025 earnings season has highlighted a decisive shift toward capital-light business models and AI-integrated product lines, with fintech and med-tech sectors leading the charge.
  • While legacy firms face headwinds from ERP transitions and global tariffs, agile platforms like Figure and Butterfly Network are reporting record volumes and significant margin expansion.

Mentioned

Figure company FIGR Butterfly Network company BFLY OneSpan company OSPN Thryv company THRY Solventum company SOLV Michael Tannenbaum person Joseph M. DeVivo person Victor T. Limongelli person

Key Intelligence

Key Facts

  1. 1Figure reported 131% YoY growth in consumer loan volume, reaching $2.7 billion in Q4.
  2. 2Butterfly Network achieved record quarterly revenue of $31.5 million, up 41% year-over-year.
  3. 3OneSpan's Annual Recurring Revenue (ARR) reached $187 million, supported by three strategic acquisitions.
  4. 4Thryv's SaaS revenue grew 34.2% annually to $461 million, aided by the Keap acquisition.
  5. 5nLIGHT's Aerospace & Defense revenue surged 60% to a record $175 million for the full year.
  6. 6Solventum reported a negative $10 million free cash flow due to ERP implementation and separation costs.
Metric
Revenue Growth (Q4) 16% (Adj. Net) 41% 3%
Adj. EBITDA Margin 51.6% -10.1% (Improved) 31%
Key Growth Driver Figure Connect Platform Butterfly Embedded/AI Cybersecurity ARR
Tech Platform Outlook

Analysis

The Q4 2025 earnings cycle has highlighted a stark divide between companies successfully pivoting to capital-light, software-driven models and those struggling with the friction of legacy infrastructure and macroeconomic headwinds. At the forefront of this shift is Figure, which reported a staggering 131% year-over-year growth in consumer loan marketplace volume, reaching $2.7 billion. Figure’s success is increasingly tied to its Figure Connect platform, which now accounts for 54% of its volume. This model allows the company to scale without the heavy balance sheet requirements typically associated with lending, a strategy that venture capital investors are increasingly prioritizing in the current high-interest-rate environment. CEO Michael Tannenbaum’s focus on partner expansion—nearly doubling the partner count to 307 in six months—demonstrates a scalable infrastructure play that is yielding a 51.6% adjusted EBITDA margin.

Similarly, Butterfly Network has demonstrated the power of embedded strategies in the med-tech space. By reporting its highest quarterly revenue in history at $31.5 million, Butterfly is proving that its portable ultrasound technology is more than just a hardware play. The contribution of $6.8 million from its Butterfly Embedded segment, largely driven by a new partnership with Midjourney, suggests a new frontier for medical imaging: integrating diagnostic hardware directly into third-party AI and software ecosystems. This approach, supported by the launch of Compass AI, has driven a 50% growth in the enterprise pipeline. For startups, the lesson is clear: hardware is the entry point, but embedded software and AI are the primary drivers of valuation and margin expansion in 2026.

At the forefront of this shift is Figure, which reported a staggering 131% year-over-year growth in consumer loan marketplace volume, reaching $2.7 billion.

In the broader SaaS and cybersecurity space, OneSpan and Thryv are utilizing aggressive M&A to consolidate their market positions and transition away from legacy revenue streams. OneSpan’s completion of the Knock Knock and ThreatFabric deals, with the Build38 acquisition pending, underscores a strategic push to bolster its Annual Recurring Revenue (ARR), which grew 11.5% to $187 million. Meanwhile, Thryv’s acquisition of Keap highlights a focus on acquiring engineering talent and platform capabilities rather than just buying revenue. Thryv’s transition is bearing fruit, with 23% of its customer base now using multiple products, a key metric for reducing churn and increasing lifetime value in the small-to-medium business (SMB) segment. This trend of "acqui-hiring" for platform depth rather than just market share is a recurring theme among mid-cap tech leaders this quarter.

What to Watch

However, the quarter was not without its challenges, particularly for larger, more complex entities and those with significant physical supply chains. Solventum, the recent 3M spinoff, reported organic growth of 3.3% but saw its free cash flow hit by the heavy costs of ERP implementation and portfolio separation. This serves as a cautionary tale for large-scale corporate maneuvers; the hidden costs of technical debt and administrative decoupling can temporarily mask the underlying performance of the business units. Furthermore, companies like Acushnet and Wolverine are facing margin pressure from incremental tariff costs, which Acushnet estimated at $30 million for the full year. These macro pressures are forcing a disciplined approach to inventory management and supply chain reinvention, as seen in Perrigo’s Project Energize, which delivered $320 million in benefits to offset soft consumer demand.

For venture capital observers and startup founders, the takeaway from Q4 2025 is the market's intense reward for operating leverage. The ability to grow revenue significantly faster than expenses is the new gold standard. Figure’s expansion of its adjusted EBITDA margin and Butterfly’s 65% improvement in EBITDA loss are prime examples of this trend. As we move into 2026, the focus will likely remain on AI integration and the ability to navigate a complex global supply chain while maintaining the agility of a software-first business model. Investors should watch for further consolidation in the cybersecurity and med-tech sectors as leaders use their strong cash positions to snap up innovative but undercapitalized startups.

Cite This Page

"Fintech and MedTech Lead Q4 2025 Growth as 'Capital-Light' Models Scale." Startup Intelligence Brief, February 27, 2026. https://getstartupbrief.com/story/q4-2025-earnings-tech-growth-analysis

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