February 17, 2026
In a year defined by elevated interest rates, tighter capital, and continued market volatility, Groundfloor surpassed $40 million in revenue and delivered 38.6% year-over-year growth.
Our full 2025 Momentum Report outlines the detailed performance metrics across both our investing and lending businesses. What follows here is the context behind those numbers and what they signal moving forward.
Those results reflect more than strong demand. They reflect a shift in investor priorities amid sustained rate pressure and tighter capital conditions, combined with deliberate adjustments to product positioning, risk management, and operating structure.
Private Credit Became Structural, Not Tactical in 2025
As public equity markets remained unpredictable and borrowing costs stayed elevated, investors increasingly prioritized opportunities with defined timelines, contractual returns, and collateral-backed structures.
Our Notes product resonated with investors seeking short-term, fixed-rate opportunities with clear duration. In 2025 alone, Notes returned $8.4 million in interest to investors and have delivered positive returns since inception, with every payment of principal and interest paid as scheduled.
At the same time, more investors allocated to our Flywheel Portfolio as they sought diversified exposure to private real estate debt through an actively managed strategy designed for long-term compounding. Participation increased as investor expectations aligned more closely with how the product was designed to perform.
According to Robert Varghese, Head of Investments at Groundfloor:
“Over the past year, we’ve worked intentionally to clarify how each of our products is positioned and for whom they are designed. That alignment has reduced investor mismatch and helped attract capital that understands the time horizon and risk profile of the underlying assets.”
Operational Discipline Strengthened Execution
On the lending side, performance expanded across nearly every major metric in 2025. To support that demand, we reorganized into two focused business units, separating investing and lending operations so each could move faster while maintaining consistent standards across the company.
The results were measurable:
- Loan applications increased 50.7%
- Total loan volume grew 48.3%
- Average loan size rose 25.9%
- Unique borrowers grew 27.6%
DSCR lending saw significant expansion, growing 381.9% year-over-year as rental-focused investors sought financing solutions that could maintain stable cash flow even as financing costs rose.
Importantly, this expansion was not driven by relaxed standards. It was supported by clearer accountability and stronger coordination as demand increased.
Patrick Donoghue, VP & GM of Lending, said:
“Creating a more focused lending unit allowed us to move faster and operate with clearer accountability across the borrower lifecycle. That clarity improved execution and strengthened coordination as demand increased. The growth we saw in 2025 reflects both market demand and the operational discipline supporting it.”
Institutional Participation Reinforced the Model
As we grew, we deepened relationships with institutional capital partners who conduct rigorous diligence on asset-selection, structure, and performance.
Institutional investors don’t allocate capital lightly. Their participation reflects confidence in our standards and long-term approach, reinforcing the framework that supports consistent, long-term performance across the company.
What This Means for 2026
2025 was not an endpoint. It confirmed that our model performs under pressure.
Private markets continue to evolve. More investors are seeking access to income-producing, real-world assets outside traditional public markets. At the same time, borrowers need capital partners who understand execution risk and can operate with speed and certainty.
In 2026, we are focused on:
- Continuing to refine risk management practices
Investing in greater transparency and portfolio tools - Expanding access to additional institutional-quality private market opportunities beyond real estate debt
Our approach remains consistent: build durable products, operate with focus, and expand access responsibly.
Brian Dally, Co-Founder and CEO of Groundfloor, said:
“The movement of retail investor capital into private markets is not a temporary response to volatility. It represents a structural shift in how capital is accessed and allocated. The heritage and essence of our platform were built to support that shift through a responsible, investor-first approach grounded in discipline and long-term thinking.
As we grow, we remain focused on capital efficiency, underwriting rigor, and enterprise value creation. Sustainable scale comes from doing the fundamentals well, consistently, across cycles. We are building for retail investors and institutional capital alike, on equal footing.”
The People Behind the Momentum
Behind every metric is a team operating with intention.
Throughout 2025, our underwriting, capital markets, investments, product, engineering, compliance, customer support, and marketing teams focused on strengthening processes, improving coordination, and enhancing the investor and borrower experience.
Sustained performance is not accidental. It is the result of consistent execution, careful risk management, and long-term thinking. The results reflected in our Momentum Report are a direct outcome of that work.
Building for the Long Term
Momentum only matters if it lasts.
2025 demonstrated that Groundfloor can scale during uncertainty without compromising standards or investor trust. We enter 2026 focused, measured, and committed to building long-term value for investors, borrowers, shareholders, and the team building alongside them.
