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

• Market Cap: $12.85B
• Dividend Yield: N/A
• Average Volume (3M): 6.39M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,646
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 415,909,400
• 10 Day Avg. Volume: 8,647,905
• 30 Day Avg. Volume: 6,393,407
• PEG Ratio: 0.11
• Price to Book (P/B): 39.10
• Price to Sales (P/S): 69.11
• P/FCF Ratio: -748.76
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 16.57
• Enterprise Value/Gross Profit: 20.07
• Enterprise Value/Ebitda: -11.80
• 1Y Price Target: $51.00
• Price Target Upside: 96.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $26.00 ▲(0.31% Upside)

The score is driven primarily by mixed financial performance: strong growth, high gross margins, and a low-debt balance sheet are offset by a severe 2024 profitability and cash flow deterioration. The earnings call is supportive with raised guidance and strong operating metrics, but technicals remain bearish with the stock trading well below key moving averages.

Positive Factors

Robust Revenue Growth

Sustained high revenue growth demonstrates strong product-market fit and expanding enterprise adoption. Over a multi-quarter horizon this supports continued investment in product and go-to-market, increases optionality for upsells, and underpins long-term scale economics.

Very High Gross Margins

Exceptionally high gross margins indicate scalable SaaS unit economics and pricing power that can fund R&D and go-to-market expansion. This structural margin advantage helps preserve profitability as revenue scales, even while investing in new AI features and integrations.

Conservative Balance Sheet

Minimal leverage and rising equity provide financial flexibility to absorb temporary cash burn or fund strategic M&A and AI investments without immediate refinancing pressure, supporting long-term investment in product and platform expansion.

Negative Factors

Large 2024 Profitability Deterioration

A swing this large materially weakens capital efficiency and return metrics, reducing internal funding capacity and raising the likelihood of dilutive financing or spending cuts if losses persist. It undermines multi-quarter confidence in GAAP profitability conversion.

Sharp Cash Flow Swing to Burn

The abrupt move from strong cash generation to negative operating and free cash flow constrains runway for sustained AI and product investment without external funding. It increases funding risk and limits strategic flexibility over the coming quarters if cash flow does not recover.

Ongoing Margin Pressure from AI Investment

Continued AI product investments and higher cost-to-serve create structural margin pressure that can persist for multiple quarters. Even with strong revenue, higher unit costs and one-time charges reduce sustainable free cash flow, complicating the path to consistent GAAP profitability.

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

Revenue growth and very high gross margins are strong positives, and the balance sheet is conservatively financed with very low leverage. However, 2024 saw a major deterioration in profitability (net income swing to a large loss) and a sharp reversal in cash generation (operating cash flow and free cash flow turning negative), which materially weakens the financial profile.

Income Statement

Revenue expanded strongly from $505M (2023) to $749M (2024), and gross margins remained exceptionally high (~88–91%), signaling solid unit economics. However, profitability deteriorated sharply in 2024: net income swung from +$286M (2023) to -$732M (2024), with deeply negative operating results (EBIT/EBITDA also materially negative). Overall, strong growth and gross profitability are outweighed by the magnitude and direction of the earnings decline.

Balance Sheet

The balance sheet looks conservatively financed, with very low debt relative to equity (debt-to-equity ~0.01–0.02) and equity rising from ~$1.04B (2023) to ~$1.32B (2024). Total assets also increased (~$1.60B to ~$1.79B). The key weakness is the 2024 loss driving a sharply negative return on equity, which pressures capital efficiency despite the low leverage.

Cash Flow

Cash generation weakened dramatically: operating cash flow fell from +$1.05B (2023) to -$62M (2024), and free cash flow turned negative (-$69M in 2024). While 2024 free cash flow was less negative than net income (suggesting some non-cash charges), the swing into cash burn is a major concern versus the prior year’s very strong cash generation.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	752.01M	749.01M	504.87M
Gross Profit	620.79M	661.50M	460.37M
EBITDA	-1.06B	-869.74M	-64.96M
Net Income	-1.09B	-732.12M	285.86M
Balance Sheet
Total Assets	2.07B	1.79B	1.60B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.46B	1.42B
Total Debt	61.24M	28.77M	14.60M
Total Liabilities	684.71M	469.10M	558.77M
Stockholders Equity	1.39B	1.32B	1.04B
Cash Flow
Free Cash Flow	204.23M	-69.14M	1.04B
Operating Cash Flow	210.79M	-61.72M	1.05B
Investing Cash Flow	-294.45M	-784.26M	-57.34M
Financing Cash Flow	-55.67M	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	$120.38B	17.56	55.43%	―	10.53%	34.24%
PD	62 Neutral	$972.83M	6.48	70.46%	―	7.01%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$535.84M	-10.73	-26.69%	―	13.09%	32.34%
FIG	54 Neutral	$12.85B	-11.96	―	―	―	―