Figma, Inc. Class A (FIG)
NYSE:FIG
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Figma, Inc. Class A
(NYSE:FIG)
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Rating:56Neutral
Price Target:
$21.50
▲(1.46% Upside)
Action:ReiteratedDate:03/26/26
The score is held back mainly by deteriorated GAAP profitability and bearish technical trends (price below major moving averages with negative MACD). Offsetting this are strong fundamental growth and improving 2025 cash generation, plus a constructive earnings-call outlook with raised guidance and strong retention, though margin pressure from AI investments remains a near-term risk.
Positive Factors
Revenue Growth and Scale
Sustained high revenue growth and a >$1B ARR milestone indicate durable demand and product-market fit. A large and growing revenue base reduces reliance on any single cohort, enabling long-term investment in product and sales while supporting scale economics across quarters.
Negative Factors
Severe GAAP Profitability Deterioration
Large, persistent GAAP losses materially weaken return metrics and can constrain strategic options. Even with revenue growth, severe negative margins erode equity returns, increase dependency on cash reserves or financing, and make consistent toward-profitability execution a multi-quarter structural challenge.
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Positive Factors
Negative Factors
Revenue Growth and Scale
Sustained high revenue growth and a >$1B ARR milestone indicate durable demand and product-market fit. A large and growing revenue base reduces reliance on any single cohort, enabling long-term investment in product and sales while supporting scale economics across quarters.
Read all positive factors
Figma, Inc. Class A (FIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.06B
Dividend YieldN/A
Average Volume (3M)13.22M
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,646
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.08
Shares Outstanding441,125,340
10 Day Avg. Volume11,257,094
30 Day Avg. Volume13,218,432
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 Cap0.86
Enterprise Value/Revenue9.03
Enterprise Value/Gross Profit10.95
Enterprise Value/Ebitda-7.62
Forecast
1Y Price Target
$40.25Price Target Upside89.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.25
Revenue Forecast (FY)$1.36B
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, ...
How the Company Makes Money
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Figma, Inc. Class A Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum and product/AI traction: robust top-line growth (Q4 revenue +40% YoY, FY revenue +41% YoY), excellent retention (NDR 136%), rapid adoption of Figma Make and AI features, a large cash balance and meaningful enterprise expansion. Offsetting this optimism, management signaled deliberate margin compression and lower operating margins in 2026 to accelerate AI and infrastructure investments, a sequential decline in adjusted FCF driven in part by a one-time $25M tax, elevated stock-based compensation in 2025, and some near-term uncertainty as the business transitions to a hybrid seats-plus-credits monetization model. Overall, the highlights around growth, retention, product velocity and AI adoption materially outweigh the near-term margin and predictability concerns.Positive Updates
Record Quarterly and Annual Revenue Growth
Q4 revenue of $304 million, up 40% year-over-year and above the high end of guidance; full-year 2025 revenue of $1.056 billion, up 41% year-over-year and also above the high end of guidance.
Negative Updates
Guided Margin Compression in 2026
Full-year 2026 non-GAAP operating income guidance of $100M–$110M implies an operating margin of ~8% at the midpoint (management noted ~7.7% midpoint in discussion), down from 12% in 2025, reflecting accelerated AI and infrastructure investments.
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Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue Growth
Q4 revenue of $304 million, up 40% year-over-year and above the high end of guidance; full-year 2025 revenue of $1.056 billion, up 41% year-over-year and also above the high end of guidance.
Read all positive updates
Company Guidance
Figma guided Q1 2026 revenue of $315–$317 million (implying ~38% y/y growth at the midpoint) and full‑year 2026 revenue of $1.366–$1.374 billion (implying ~30% y/y growth at the midpoint); it expects full‑year non‑GAAP operating income of $100–$110 million (about an 8% non‑GAAP operating margin at the midpoint) and said adjusted free cash flow should be roughly consistent with non‑GAAP operating profit for the year. Management noted seasonality (Config historically pressures Q2), will not provide quarterly operating‑income guidance, plans to accelerate AI and inference investment, and in March will shift to a hybrid monetization model of seats plus consumption credits (historical results don’t reflect credits); today ~75% of paid customers >$10k ARR consume AI credits weekly, and the company expects its non‑GAAP tax rate to remain ~14.5% in 2026 while it refines assumptions as customer consumption evolves.Figma, Inc. Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| 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 Risk Analysis
Figma, Inc. Class A disclosed 61 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 0 New Risks
Figma, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $97.06B | 14.24 | 62.31% | ― | 10.53% | 34.24% | |
64 Neutral | $545.57M | 5.56 | 77.23% | ― | 7.01% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $333.99M | -15.25 | -22.88% | ― | 13.09% | 32.34% | |
56 Neutral | $11.06B | -15.27 | -92.27% | ― | ― | ― |
* Technology Sector Average
FIG
Figma, Inc. Class A
21.19
-100.81
-82.63%
ADBE
Adobe
240.14
-124.50
-34.14%
PD
PagerDuty
6.42
-10.13
-61.21%
SPT
Sprout Social
5.60
-15.57
-73.55%
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.