Figma, Inc. Class A (FIG)
NYSE:FIG
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Figma, Inc. Class A
(NYSE:FIG)
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Rating:63Neutral
Price Target:
$26.00
▲(37.42% Upside)
Action:Reiterated
Date:05/19/26
The score is driven by a very strong earnings call with raised guidance and evidence of accelerating growth/retention, partially offset by mixed financial performance due to large recent losses and cash-flow volatility. Technicals are moderately supportive near term but look stretched, while valuation is weaker given the negative P/E and lack of dividend support.
Positive Factors
Revenue Growth & Retention
Sustained high revenue growth (+46% in Q1) combined with exceptional net dollar retention (139%) signals durable product-market fit and strong expansion within existing customers. This underpins predictable recurring revenue, scalable seat expansion, and a high lifetime value base supporting long-term top-line durability.
Negative Factors
Large and Persistent GAAP Losses
Despite top-line strength, GAAP profitability deteriorated sharply with very large losses in 2024–25. Persistent substantial operating losses erode returns, increase reliance on non-GAAP adjustments to show profit, and raise the risk of future dilution or constrained investment if losses persist before sustained GAAP recovery.
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Positive Factors
Negative Factors
Revenue Growth & Retention
Sustained high revenue growth (+46% in Q1) combined with exceptional net dollar retention (139%) signals durable product-market fit and strong expansion within existing customers. This underpins predictable recurring revenue, scalable seat expansion, and a high lifetime value base supporting long-term top-line durability.
Read all positive factors
Figma, Inc. Class A (FIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.41B
Dividend YieldN/A
Average Volume (3M)21.34M
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth41.42%
EPS Growth-88.39%
CountryUS
Employees1,646
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-2.94
Shares Outstanding445,682,600
10 Day Avg. Volume28,218,205
30 Day Avg. Volume21,341,810
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 Cap0.94
Enterprise Value/Revenue9.23
Enterprise Value/Gross Profit11.57
Enterprise Value/Ebitda-7.50
Forecast
1Y Price Target
$33.57Price Target Upside77.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.24
Revenue Forecast (FY)$1.37B
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:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 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
Earlier Technical Constraints on Make
Management admitted some early technical decisions constrained Figma Make’s capabilities (since corrected), signaling product execution risk earlier in Make's lifecycle even though recent improvements have accelerated adoption.
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 | -1.43B | -1.27B | -869.74M | -64.96M |
| 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 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $98.67B | 14.24 | 62.31% | ― | 10.96% | 12.71% | |
68 Neutral | $410.19M | ― | -19.29% | ― | 12.27% | 37.41% | |
63 Neutral | $11.41B | ― | -101.33% | ― | 41.42% | -88.39% | |
63 Neutral | $548.81M | 21.17 | 77.23% | ― | 5.36% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FIG
Figma, Inc. Class A
22.71
-99.29
-81.39%
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Figma, Inc. Class A Corporate Events
Executive/Board Changes
Figma Announces Resignation of Board Member Mike Krieger
Neutral
Apr 15, 2026
On April 14, 2026, Figma, Inc. announced that board member Mike Krieger resigned from its Board of Directors, effective immediately. The company stated that Krieger’s decision was not due to any disagreement over Figma’s operations, po...
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.
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