Figma (FIG) stock plunged over 13% in pre-market trading today after the company reported its first quarterly results since its IPO on July 31, 2025. The company missed both sales and earnings expectations for the second quarter of fiscal 2025, dragging down its shares.
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Figma is a cloud-based design platform primarily used for UI (User Interface) and UX (User Experience) design. FIG stock had a blockbuster IPO run, with shares skyrocketing more than 333% to $142.92 from the offering price of $33. However, as of today, the stock has declined 44.2% from its market debut.
Details of Figma’s Q2 Performance
In Q2, Figma’s sales increased 41% year-over-year to $249.64 million, slightly below the consensus estimate of $250 million. The company also reported break-even earnings per share, while analysts had projected a profit of $0.09 per share. In the prior year quarter, Figma posted a significant loss of $4.39 per share.
Despite the earnings miss, CEO Dylan Field remained optimistic, highlighting the company’s record Q2 revenue and the successful launch of four new products. He stated, “Looking ahead, we’re excited to keep building for our customers and help define the next era of digital products and experiences.”
Customer loyalty also remained strong. As of the end of Q2, Figma’s Net Dollar Retention Rate for customers with ARR (annual recurring revenue) of $10,000 or more was 129% an impressive figure for a company of its size. Figma also reported 11,906 paid customers with more than $10,000 in ARR and 1,119 paid customers with more than $100,000 in ARR.
Investor Concerns Around Guidance
For Q3, Figma expects sales between $263 million and $265 million, slightly above the consensus estimate of $262 million. Additionally, for full-year fiscal 2025, the company projects sales between $1.021 billion and $1.025 billion, aligned with the consensus estimate of $1.022 billion.
Is Figma Stock a Buy, Hold, or Sell?
While analysts acknowledge Figma’s strong position as a leader in UI/UX design software, they remain cautious about limited near-term upside given the current share price of around $70.
On TipRanks, FIG stock has a Hold consensus rating based on two Buys and seven Hold ratings. The average Figma price target of $74.29 implies 9% upside potential from current levels. Please note these ratings were issued before the Q2 report and could change once analysts update their forecasts.
