Figma, Inc. Class A (FIG) AI Stock Analysis

• Market Cap: $11.99B
• Dividend Yield: N/A
• Average Volume (3M): 10.99M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,646
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 415,909,400
• 10 Day Avg. Volume: 16,879,258
• 30 Day Avg. Volume: 10,990,531
• PEG Ratio: 0.72
• Price to Book (P/B): 12.64
• Price to Sales (P/S): 18.09
• P/FCF Ratio: 77.56
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 11.15
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: -9.41
• 1Y Price Target: $40.25
• Price Target Upside: 54.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $24.50 ▼(-6.09% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by weak financial profitability (large recent GAAP losses) and bearish technicals (below major moving averages with negative MACD). These are partially offset by a strong earnings-call outlook with raised guidance, solid retention, and non-GAAP profitability/FCF metrics, while valuation support is limited due to a negative P/E and no stated dividend.

Positive Factors

Sustained Platform-Led Revenue Growth

Figma's re-accelerating revenue (≈+40% in 2025), >$1B ARR and elevated net dollar retention indicate durable platform-driven expansion. Cross-sell and platform adoption (70% use 3+ products) create repeatable revenue and higher lifetime value, supporting steady top-line growth.

Very High Gross Margins

Gross margins in the 80%+ range provide structural operating leverage: incremental revenue largely contributes to gross profit. This margin profile supports sustainable reinvestment into product and AI without immediate erosion of core profitability as scale increases.

Clean Balance Sheet and Liquidity

Minimal debt and a sizable equity base give Figma financial flexibility to fund AI R&D, M&A (Weavy) and product expansion without reliance on external debt markets. This liquidity buffer supports multi-quarter investments while preserving solvency and strategic optionality.

Negative Factors

Persistent GAAP Profitability Weakness

Despite strong top-line, GAAP profitability deteriorated sharply in 2024–2025 with extremely negative net margins and large operating losses. Persistent GAAP losses weaken return metrics and investor capital efficiency, creating a multi-quarter hurdle to demonstrating sustained profitability.

Volatile Cash Generation and Conversion

Operating and free cash flow improved in 2025 but have been inconsistent (strong in 2023, negative in 2024, positive in 2025). OCF covering only ~1/3 of net loss signals uneven earnings quality and raises risk that cash generation may not reliably fund growth or offset accounting losses in coming quarters.

Margin & Profit Pressure from AI Investments and SBC

Structural investment in AI (Figma Make), integration costs and elevated stock-based compensation are compressing margins and drove a GAAP loss. Management expects near-term FCF margin pressure, meaning multi-quarter investments may delay consistent GAAP profitability and margin normalization.

Figma, Inc. Class A Business Overview & Revenue Model

Company Description

Figma, Inc. develops a browser-based tool for designing user interfaces that helps design and development teams build various products. The company offers Figma Design, a collaborative design tool for teams that explore ideas and gather feedback, build realistic prototypes, and streamline product development with design systems; Dev Mode to inspect designs and translate them into code without changing the design file; FigJam to define ideas, align on decisions, and move work forward—all in one place; and Figma Slides, a presentation tool built for designers and their teams. It also provides Figma Draw to create expressive designs with illustration tools; Figma Buzz that publishes brand templates to create social media assets, display ads, one-pagers, and others; Figma Sites to design, prototype, and publish; and Figma Make, an AI tool to design and prompt way to a functional prototype. The company was incorporated in 2012 and is headquartered in San Francisco, California.

How the Company Makes Money

Figma, Inc. Class A Financial Statement Overview

Summary

Strong 2025 revenue re-acceleration (+40.4%) and very high gross margins (82%–91%) are positives, supported by low leverage. However, profitability is a major concern with very large net losses in 2024–2025 and volatile cash-flow history despite improved 2025 operating/free cash flow.

Income Statement

Revenue growth re-accelerated sharply in 2025 (+40.4% vs. ~0.5% in 2024), and gross margins are very strong (82%–91%), which supports long-term operating leverage. However, profitability deteriorated materially: net margin swung from +56.6% (2023) to deeply negative in 2024–2025 (about -98% and -118%, respectively), with very large operating losses in both 2024 and 2025. Overall, strong top-line and gross profit profile is outweighed by the magnitude and persistence of losses in the last two years.

Balance Sheet

Leverage is low, with debt-to-equity remaining modest (~0.01–0.04) and equity sizable ($1.51B in 2025), which provides financial flexibility. The main weakness is returns: return on equity moved from positive in 2023 (~27%) to meaningfully negative in 2024–2025 (about -55% to -83%), reflecting the earnings drawdown. Also, 2025 shows total assets reported as negative, which is unusual and raises data-quality or classification concerns, tempering confidence in balance-sheet trend analysis.

Cash Flow

Cash generation improved materially in 2025 with positive operating cash flow ($251M) and positive free cash flow ($246M), up ~20.6% year over year, following negative operating/free cash flow in 2024. That said, cash flow has been volatile (very strong in 2023, negative in 2024, positive again in 2025), and the ability of operating cash flow to cover accounting losses in 2025 is limited (operating cash flow is only about one-third of the net loss), indicating profitability and cash conversion are not yet consistently aligned.

Breakdown	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	1.06B	749.01M	504.87M
Gross Profit	870.26M	661.50M	460.37M
EBITDA	-1.27B	-869.74M	-64.96M
Net Income	-1.25B	-732.12M	285.86M
Balance Sheet
Total Assets	2.35B	1.79B	1.60B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.46B	1.42B
Total Debt	114.32M	28.77M	14.60M
Total Liabilities	837.57M	469.10M	558.77M
Stockholders Equity	1.51B	1.32B	1.04B
Cash Flow
Free Cash Flow	246.24M	-69.14M	1.04B
Operating Cash Flow	250.68M	-61.72M	1.05B
Investing Cash Flow	-371.41M	-784.26M	-57.34M
Financing Cash Flow	43.34M	62.45M	0.00

Figma, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADBE	74 Outperform	$108.03B	15.52	55.43%	―	10.53%	34.24%
PD	62 Neutral	$637.85M	4.18	70.46%	―	7.01%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$428.68M	-8.99	-26.69%	―	13.09%	32.34%
FIG	53 Neutral	$11.99B	-10.10	―	―	―	―