Figma Q2 2025 Earnings Release

Shares of Figma (FIG), the collaborative design software company that went public in July, experienced a sharp decline of 14% in after-hours trading Wednesday, following the release of its first earnings report as a public entity. The market reaction underscores the intense scrutiny faced by newly listed tech firms, particularly those operating in the increasingly competitive design and productivity software landscape.

The earnings report revealed a mixed picture, prompting investor recalibration:

• Earnings per share: Breakeven
• Revenue: $249.6 million vs. $248.8 million expected (LSEG consensus)

The company reported a 41% year-over-year increase in revenue for the second quarter, growing from $177.2 million in the prior year. This growth, while substantial, reflects the ongoing demand for collaborative design tools in a rapidly digitizing world. Figma had previously projected revenue in the range of $247 million to $250 million in a July filing.

Net income reached $846,000, a significant turnaround from the $827.9 million loss reported in the second quarter of 2024. Adjusted operating income came in at $11.5 million. These figures suggest that Figma is progressing towards profitability, a key metric for public market investors.

Looking ahead to the third quarter, Figma anticipates revenue between $263 million and $265 million, representing approximately 33% growth at the midpoint. This projection surpasses the LSEG consensus estimate of $256.8 million, signaling continued optimism from the company. For the full year, Figma forecasts adjusted operating income between $88 million and $98 million, and revenue exceeding $1.02 billion, implying about 37% growth and exceeding the $1.01 billion LSEG consensus.

During an interview, Figma co-founder and CEO Dylan Field attributed the expected moderation in revenue growth for the third quarter to the successful adoption of Dev Mode amongst existing customers. This feature, designed to streamline the transition from design to development, accelerated revenue recognition in earlier periods, creating a higher baseline for comparison.

Figma continued to innovate during the second quarter, launching Figma Make, an AI-powered tool that generates app and website designs from user descriptions, and Figma Sites, which transforms designs into functional websites. The company also strategically acquired vector graphics startup Modyfi and content management system startup Payload, further expanding its capabilities within the design ecosystem. These acquisitions point to Figma’s commitment to offering an all-encompassing design solution.

While Figma has not yet initiated full charges for its AI-powered features, it intends to monetize these capabilities by offering customers the option to purchase additional AI credits in the future, according to CFO Praveer Melwani. This approach allows Figma to strategically integrate AI into its revenue model without disrupting existing pricing structures.

Concerns about the potential displacement of designers by AI tools have been circulating within the software industry. However, Dylan Field maintained that AI will augment, not replace human designers. He emphasized that as software development becomes more accessible through AI, the creative and strategic input of designers will become increasingly crucial. Figma is already leveraging “vibe-coding tools” to enhance AI-driven software development.

Figma reported a net retention rate of 129%, indicating strong customer loyalty and expansion. While this represents a slight decrease from the 132% recorded in the first quarter, it remains a robust indicator of Figma’s ability to retain and grow its customer base.

Following its IPO, a lockup period for 25% of some employees’ stock is set to expire after market close on September 4. To provide greater clarity for investors, over half of Figma’s outstanding Class A stock is subject to an extended lockup agreement, with the final 35% of these shares scheduled to become available in August 2026.

On Wednesday, Figma’s stock closed at $68.13. The company priced its IPO at $33 per share and witnessed a surge to $115.50 during its market debut. This underlines the initial market enthusiasm for Figma’s vision and market position.

The company’s filing revealed that Figma had 1,119 customers generating more than $100,000 in annualized revenue, an increase from 1,031 in the March quarter. This demonstrates the growing adoption of Figma’s platform among larger enterprises.

Figma held approximately $1.6 billion in cash, cash equivalents, and marketable securities as of June 30, including $90.8 million allocated to a Bitcoin exchange-traded fund. Field clarified that this strategic allocation is part of a diversified treasury strategy and does not signify a shift toward becoming a Bitcoin-centric company.