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Figma, Inc. Class A (FIG)
NYSE:FIG
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Figma, Inc. Class A
(NYSE:FIG)
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Rating:52Neutral
Price Target:
$38.00
▲(4.40% Upside)
The score is held down primarily by the 2024 financial deterioration (large GAAP loss and cash flow swing to burn) and weak technical trend. Offsetting those risks, the latest earnings call was notably strong with raised guidance, improving retention, and positive non-GAAP profitability/adjusted free cash flow, while valuation remains constrained by losses and no dividend support.
Figma, Inc. Class A (FIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.50B
Dividend YieldN/A
Average Volume (3M)4.45M
Price to Earnings (P/E)―
Beta (1Y)-0.91
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,646
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding415,909,400
10 Day Avg. Volume4,016,657
30 Day Avg. Volume4,445,157
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)39.10
Price to Sales (P/S)69.11
P/FCF Ratio-748.76
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue31.92
Enterprise Value/Gross Profit38.67
Enterprise Value/Ebitda-22.73
Forecast
1Y Price Target
$53.13Price Target Upside45.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.26
Revenue Forecast (FY)$1.29B
Figma, Inc. Class A Business Overview & Revenue Model
Company DescriptionFigma, 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 forwardall 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Positive
Figma showcased strong revenue growth and successful product adoption, particularly with AI offerings like Figma Make. The company is expanding its platform and customer base, although gross margins are impacted by the cost of new AI products and stock-based compensation expenses. Despite these challenges, the overall financial and strategic position remains strong.Q3-2025 Updates
Positive Updates
Record Revenue and Growth
Figma reported Q3 revenue of $274 million, representing a 38% year-over-year growth, and crossed $1 billion in annual revenue run rate.
Net Dollar Retention Increase
Net dollar retention increased by 2 points to 131%, driven by faster customer adoption of new products and platform.
Launch of Figma Make
Figma Make saw 30% of customers with $100,000 or more in ARR using it weekly, becoming a core part of Figma's AI offerings.
Strong Customer Growth
Figma added over 90,000 paid teams in the past two quarters, reaching 540,000 total paid customers.
Positive Financial Metrics
Figma reported a non-GAAP operating margin of 12% and an adjusted free cash flow margin of 18%.
Platform Strategy Success
70% of customers are using three or more products, showcasing successful integration and adoption of Figma's platform strategy.
Weavy Acquisition
Announced acquisition of Weavy to enhance AI and creative capabilities, expanding Figma's reach into new creative domains.
Negative Updates
Impact on Gross Margin
The cost to serve new AI products like Figma Make impacted gross margin, currently at 86%, as investments in AI increase.
Stock-Based Compensation Expense
A large onetime stock-based compensation expense resulted in a GAAP net loss for Q3 due to liquidity condition on outstanding RSUs.
Free Cash Flow Margin Decline Expected
Q4 adjusted free cash flow margin expected to decline due to continued AI investments and some onetime tax payments.
Company Guidance
During Figma's Q3 2025 earnings call, the company provided strong financial guidance, surpassing expectations with a record quarter. They achieved a Q3 revenue of $274 million, marking a 38% year-over-year growth and exceeding their previous guidance. The company also reported a significant milestone by surpassing $1 billion in annual revenue run rate. Figma's net dollar retention increased by 2 points to 131%, driven by rapid customer adoption of new products and an expanding platform. Despite ongoing investments in product innovation, AI, and M&A, Figma maintained profitability, with a non-GAAP operating margin of 12% and an adjusted free cash flow margin of 18%. The company's cash, cash equivalents, and marketable securities totaled $1.6 billion at the end of Q3. Looking ahead, Figma raised its Q4 revenue guidance to $292-$294 million, implying a 35% year-over-year growth, and projected full fiscal year revenue between $1.044 billion and $1.046 billion, representing a 40% year-over-year growth.Figma, Inc. Class A Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $139.79B | 19.61 | 55.43% | ― | 10.53% | 34.24% | |
63 Neutral | $1.13B | 7.66 | 70.46% | ― | 7.01% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $634.13M | ― | -26.69% | ― | 13.09% | 32.34% | |
52 Neutral | $18.50B | ― | ― | ― | ― | ― |
* Technology Sector Average
FIG
Figma, Inc. Class A
36.40
-85.60
-70.16%
ADBE
Adobe
327.65
-85.06
-20.61%
PD
PagerDuty
12.26
-6.07
-33.12%
SPT
Sprout Social
10.14
-20.58
-66.99%
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.