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Figma, Inc. Class A
(NYSE:FIG)
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Rating:62Neutral
Price Target:
$26.00
▲(23.11% Upside)
Action:Reiterated
Date:06/05/26
The score is supported most by a strong earnings-call outlook (raised revenue and non-GAAP operating income guidance alongside strong retention and AI-driven adoption). This is tempered by mixed underlying financial performance with large recent GAAP losses and uneven cash-flow history, neutral-to-mixed technicals versus longer-term averages, and a weak valuation signal due to negative earnings and no provided dividend yield.
Positive Factors
Revenue acceleration & high retention
Re-accelerating top-line growth (Q1 +46% YoY) combined with very high net-dollar retention (139%) indicates durable subscription economics and effective expansion within existing customers. High NDR increases revenue visibility, drives LTV expansion and reduces dependence on new-customer acquisition over the medium term.
Negative Factors
Large GAAP losses & negative returns
Steep GAAP losses and materially negative returns on equity in 2024–2025 demonstrate persistent profitability challenges. Continued large accounting losses raise questions about sustainable earnings conversion, heighten dilution or financing risk, and make long-term shareholder returns contingent on margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue acceleration & high retention
Re-accelerating top-line growth (Q1 +46% YoY) combined with very high net-dollar retention (139%) indicates durable subscription economics and effective expansion within existing customers. High NDR increases revenue visibility, drives LTV expansion and reduces dependence on new-customer acquisition over the medium term.
Read all positive factors
Figma, Inc. Class A (FIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.08B
Dividend YieldN/A
Average Volume (3M)21.15M
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth41.42%
EPS Growth-88.39%
CountryUS
Employees1,886
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-2.94
Shares Outstanding445,682,600
10 Day Avg. Volume21,588,101
30 Day Avg. Volume21,152,743
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)12.64
Price to Sales (P/S)18.09
P/FCF Ratio77.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$29.50Price Target Upside39.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.27
Revenue Forecast (FY)$1.44B
Figma, Inc. Class A Business Overview & Revenue Model
Company Description
Figma, Inc. develops and sells a collaborative, browser-based platform for designing, prototyping, building digital experiences, and subscriptions for access to its platform. The company offers Figma Design, a collaborative design tool for teams t...
Figma, Inc. Class A Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum: robust revenue acceleration (+46% YoY), improved retention (NDR 139%), large customer and seat expansion, significant AI-driven adoption (Make, MCP, Weave) and an initial successful move to monetize AI credits. Management raised revenue and operating income guidance and showed healthy profitability and cash balances. Key risks highlighted were AI-related cost pressure and gross margin uncertainty as usage scales, early-stage nature of AI monetization (timing risk), one-time bonus impacts to cash flow, and competitive pressures from hyperscalers and AI providers. On balance, the positive growth, product adoption and guidance raises notably outweigh the risks discussed.Positive Updates
Revenue Growth and Acceleration
Total revenue of $333 million in Q1 2026, up 46% year-over-year and accelerating from 40% in the prior quarter and 38% in Q3; exceeded the high end of guidance.
Negative Updates
AI-Related Cost and Gross Margin Uncertainty
Management noted increased inference and AI costs as AI usage ramps and indicated gross margin durability is uncertain; while Q1 gross margin was 82%, management declined to provide a firm long-term gross margin floor as AI scale is variable.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Acceleration
Total revenue of $333 million in Q1 2026, up 46% year-over-year and accelerating from 40% in the prior quarter and 38% in Q3; exceeded the high end of guidance.
Read all positive updates
Company Guidance
Figma guided Q2 revenue of $348–350 million (implying ~40% year‑over‑year growth at the midpoint) and raised full‑year revenue to $1.422–1.428 billion (≈35% growth at the midpoint, a $55 million increase versus prior outlook), while raising full‑year non‑GAAP operating income to $125–135 million (about a 9% non‑GAAP operating margin at the midpoint, a $25 million raise); the guidance follows Q1 results of $333 million revenue (46% YoY) and reflects management’s view that increased paid conversion, broad seat expansion and stronger AI credit utilization, retention and add‑on purchases will drive the year, with Q2 being the company’s first full quarter of AI credit monetization and Config historically impacting Q2 operating income and free cash flow.Figma, Inc. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 1.16B | 1.06B | 749.01M | 504.87M |
| Gross Profit | 926.29M | 870.26M | 661.50M | 460.37M |
| EBITDA | -1.39B | -1.21B | -785.38M | 954.42M |
| Net Income | -1.47B | -1.25B | -732.12M | 285.86M |
Balance Sheet | ||||
| Total Assets | 2.29B | 2.35B | 1.79B | 1.60B |
| Cash, Cash Equivalents and Short-Term Investments | 1.64B | 1.66B | 1.46B | 1.42B |
| Total Debt | 56.16M | 114.32M | 28.77M | 14.60M |
| Total Liabilities | 833.83M | 837.57M | 469.10M | 558.77M |
| Stockholders Equity | 1.46B | 1.51B | 1.32B | 1.04B |
Cash Flow | ||||
| Free Cash Flow | 237.41M | 246.24M | -69.14M | 1.04B |
| Operating Cash Flow | 250.81M | 250.68M | -61.72M | 1.05B |
| Investing Cash Flow | -420.11M | -371.41M | -784.26M | -57.34M |
| Financing Cash Flow | -44.54M | 43.34M | 62.45M | 0.00 |
Figma, Inc. Class A Technical Analysis
Positive
21.12
Price Trends
44.24
Negative
Market Momentum
-1.52
Negative
50.77
Neutral
63.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIG, the sentiment is Positive. The current price of 21.12 is below the 20-day moving average (MA) of 36.91, below the 50-day MA of 44.24, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.52 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIG.
Figma, Inc. Class A Risk Analysis
Figma, Inc. Class A disclosed 62 risk factors in its most recent earnings report. Figma, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Third-party AI agents and tools that operate on or through our platform may circumvent our pricing and packaging models, increase our costs, and adversely affect our business, operating results, financial condition, and future prospects. Q1, 2026
Figma, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $104.71B | 14.24 | 62.39% | ― | 11.49% | 11.45% | |
75 Outperform | $829.84M | 4.93 | 76.52% | ― | 3.69% | ― | |
69 Neutral | $530.13M | -13.17 | -19.29% | ― | 12.27% | 37.41% | |
62 Neutral | $13.08B | -8.30 | -101.33% | ― | 41.42% | -88.39% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FIG
Figma, Inc. Class A
23.76
-98.24
-80.52%
ADBE
Adobe
247.90
-109.79
-30.69%
PD
PagerDuty
10.37
-5.75
-35.67%
SPT
Sprout Social
8.47
-8.68
-50.61%
Figma, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Figma Holds 2026 Annual Meeting, Elects Board and Auditor
Positive
Jun 4, 2026
On June 2, 2026, Figma, Inc. held its 2026 annual meeting of stockholders, where investors voted on the election of directors and the ratification of the company’s independent auditor. The company’s dual-class share structure gave Clas...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.