Figma Inc. signage during the company’s initial public offering at the New York Stock Exchange on July 31, 2025. Getty Images
Figma’s first earnings release since its July IPO showed rapid growth and a swing to profit. But despite the upbeat figures, the design software firm’s stock dropped 14% in extended trading on Wednesday.
The company reported revenue of $249.6 million for the second quarter, above analyst expectations of $248.8 million. Revenue jumped 41% from $177.2 million a year earlier. Earnings per share came in at breakeven, matching estimates.
Net income totalled $846,000, compared with a loss of $827.9 million in the same quarter last year. Adjusted operating income reached $11.5 million, within the company’s guidance range of $9 million to $12 million.
Forecast Beats Expectations
For the third quarter, Figma projected revenue between $263 million and $265 million, implying growth of about 33%. Analysts had forecast $256.8 million.
For the full year, Figma expects just over $1.02 billion in revenue and adjusted operating income of $88 million to $98 million. That guidance suggests 37% growth and exceeds Wall Street consensus.
Expanding Product Line
Figma has been pushing into artificial intelligence. In the second quarter, it launched Figma Make, which generates designs from text prompts, and Figma Sites, which converts designs into websites. The company also acquired startups Modyfi and Payload.
Chief Financial Officer Praveer Melwani said customers would eventually be able to buy AI credits. CEO Dylan Field argued AI would expand the role of designers rather than diminish it.
“The easier software becomes to build with AI, the more valuable human creativity becomes,” Field told media.
Customer Momentum
The company ended the quarter with 1,119 customers paying more than $100,000 in annualized revenue, up from 1,031 in the March quarter. Net revenue retention was 129%, down slightly from 132% in the first quarter.
Figma previously boosted sales by promoting its Dev Mode feature, which helps developers translate designs into code. That surge is now moderating, Field said.
Stock Under Pressure
Shares closed at $68.13 on Wednesday. The stock was priced at $33 in its IPO and surged to $115.50 on its debut.
A lockup on 25% of certain employee-held shares expires after market close on September 4. More than half of Figma’s outstanding Class A stock is under an extended lockup, with the final tranche due to expire in August 2026.
Field said the company disclosed lockup details to provide investors with clarity.
Strong Balance Sheet
Figma ended the quarter with $1.6 billion in cash, cash equivalents, and marketable securities. That included $90.8 million in a Bitcoin exchange-traded fund.
Field stressed that the Bitcoin holding is limited and part of a broader treasury strategy. “We’re not trying to be Michael Saylor here,” he said. “Figma is a design company, not a Bitcoin company.”
What’s Ahead
Despite investor caution, Figma is positioning itself for sustained growth with AI-driven products and strong cash reserves. Analysts say the company’s ability to scale its customer base will be critical as it navigates its first year as a public company.
