Figma, Inc. (FIG), Financial Analysis

1 Revenue & Business Model

• Storyline: revenue growth of 46.1% in Q1 2026, 48.2% in Q2 2026 and 42.8% in Q3 2026, with Q4 2026 guidance implying 33%; GAAP operating losses after stock compensation equal to 49.6% of TTM revenue; and a pricing model that added AI credits to per seat subscriptions from March 2026. Chapters 2 to 4 cover the three revenue drivers: core design seats and enterprise customers, developer workflows (Dev Mode, Make, MCP and Code Layers), and new products with AI credits and the Figma agent.
• Figma reports one segment and no revenue by product. The 10-K describes a platform for designing and building digital products: Figma Design, FigJam, Dev Mode, Figma Slides, Figma Make, Sites, Buzz, Draw and Figma Weave. Seats (Collab, Content, Dev and Full) are sold on Starter, Professional, Organization and Enterprise plans, billed annually or monthly; AI credit add ons and pay as you go usage were added in March 2026.
• Filed history starts in FY2023: Figma listed on the NYSE on 31 Jul 2025, and its filings carry audited results for FY2023 to FY2025 only. Revenue FY2023 $504.9m, FY2024 $749.0m and FY2025 $1.056bn, a 44.6% CAGR; TTM Q3 2026 $1.399bn. FY2023 net income of $737.8m includes the $1.0bn termination fee Adobe paid after their merger agreement ended in Dec 2023.
• Revenue by billing address: US $491.5m and international $564.2m in FY2025 (53.4% international against 50.0% in FY2023). No single country outside the US exceeded 10% of revenue; India is Figma's second largest market by monthly active users (8-K Ex 99.1, 18 Feb 2026).
• Employees 1,886 at 31 Dec 2025 in 14 offices in 11 countries (10-K). Non designers were about two thirds of the more than 13m monthly active users in Q1 2025 (424B4).

2 Core Design Seats and Enterprise: 1,717 Customers Above $100k ARR

• Revenue $391.4m in Q3 2026, +42.8%; growth year on year 38.0% in Q3 2025, 40.0% in Q4 2025, 46.1% in Q1 2026 and 48.2% in Q2 2026 (8-K releases). Revenue is per seat subscription plus AI credit add ons and pay as you go usage.
• Paid customers above $10k ARR 16,566 at 30 Sep 2026, +28.3%; above $100k ARR 1,717, +36.1%. Since Q1 2023 the counts rose from 5,945 and 456. Customers above $1m ARR were 67 at 31 Dec 2025, +68%; no later count was given.
• Net dollar retention as filed: 159% in Q1 2023, 122% in Q4 2023, 136% in Q4 2025, 139% in Q1 2026, 136% in Q2 2026 and 131% in Q3 2026. Gross retention was 96% at 31 Mar 2025 (424B4).
• Pricing: in Mar 2025 Figma changed seat upgrade rules, introduced multi product seats and raised the Full seat price (10-K).

How the market for design seats is changing

• Market size: Figma estimates its addressable market at $33bn, from a study it commissioned that sizes the workforce engaged in software design at 144m by 2029 (424B4).
• Seat growth at peers: Microsoft 365 commercial seats grew 5% while Microsoft 365 cloud revenue grew 17.2% in the Sep 2026 quarter (10-Q).
• Peer growth: Atlassian revenue +23.7% in the Sep 2026 quarter; monday.com +21.9% in the Jun 2026 quarter; Autodesk Design +16% in the Jul 2026 quarter; Adobe Creative & Marketing Professionals +13% in the Aug 2026 quarter.
• Large customers at peers: monday.com customers above $100k ARR 2,019, +37%, with net dollar retention of 109% (6-K of 10 Aug 2026), against Figma's 1,717, +36%, and 131%.

3 Developer Workflows: Dev Mode, Make, MCP and Code Layers

• Product line: Dev Mode launched in 2023 and Figma Make in 2025 (10-K); the MCP server gives third party AI agents read access and, from Mar 2026, write access to Figma files; Code Layers entered open beta on 14 Oct 2026 (8-K Ex 99.1).
• Usage as filed: about 30% of monthly active users were developers in Q1 2025 (424B4). Over half of customers above $100k ARR built in Make weekly in Q4 2025 and about 60% in Q1 2026; Make weekly active users rose over 70% quarter on quarter in Q4 2025.
• MCP: weekly active users in Figma Design grew 5x quarter on quarter in Q1 2026, and customers above $100k ARR that used MCP grew Full seats about 70% faster than non users; total MCP usage rose 3x and write back usage 4x in Q3 2026, with 20 partner integrations launched in Oct 2026 (8-K Ex 99.1).
• Integrations: Code to Canvas imports from Claude Code, Codex, Cursor, VS Code and Warp, and MCP write access for third party agents, were added in Q1 2026 (8-K Ex 99.1, 14 May 2026). The same quarter's 10-Q added the risk factor on agents lowering paid seats.

How design to code workflows are changing

• Figma 10-K: AI driven design to code tools are listed among competitors; the same tools are integration partners through Code to Canvas and the MCP server.
• Developer seats at Microsoft: GitHub cloud moved from Azure into Microsoft 365 commercial cloud from FY2027 (8-K of 2 Sep 2026); seats incl. paid GitHub seats +5% in the Sep 2026 quarter.
• Peers: Atlassian Cloud revenue $1.30bn, +30.5%, in the Sep 2026 quarter, with Data Center revenue +4.8%; Autodesk Make revenue $244.0m, +26%, its fastest growing product type.
• Users: a Figma survey found 56% of non designers engage a lot or a great deal in at least one design task, and 72% cite AI tools as a main cause of role change (8-K Ex 99.1, 5 Nov 2025).

4 New Products, AI Credits and the Figma Agent

• Products launched: Figma Slides in 2024; Figma Sites, Make, Buzz, Draw and Weave in 2025 (10-K). Weavy, acquired on 3 Oct 2025 for $85.3m, became Figma Weave for AI image and video generation.
• AI credits: credit limits were enforced on all seats from 18 Mar 2026 with monthly add ons and pay as you go billing; Q2 2026 was the first full quarter of credit monetization. Over 80% of customers above $10k ARR consumed credits weekly at 30 Jun and 31 Oct 2026; weekly users consuming credits rose almost 50% from 1 Jul to 31 Oct 2026 (8-K Ex 99.1).
• Figma agent: launched at Config in Q2 2026; over 50% of customers above $10k ARR used it weekly at 31 Jul 2026 and 65% at 31 Oct 2026. The share of agent work on Figma's own post trained design model more than doubled from 1 Jul to 31 Oct 2026 (8-K Ex 99.1).
• Cost: non GAAP gross margin 91.5% in Q1 2025, 86.2% in Q4 2025, 82.3% in Q1 2026, 84.8% in Q2 2026 and 82.0% in Q3 2026 (8-K); FY2025 AI and usage related hosting costs in cost of revenue +$49.1m and 9M 2026 +$90.3m (10-K, 10-Q).

How AI monetization in creative software is changing

• Credits on top of seats: Figma moved from AI credits included in all seats (2025) to enforced limits with paid add ons and pay as you go (Mar 2026); the 10-K added a factor that billing beyond per seat subscriptions could affect results.
• Peers: Adobe AI first ARR grew more than 150% in the Aug 2026 quarter and Business Professionals & Consumers subscription revenue $1.91bn, +16%; Microsoft reported a $37bn AI business annual revenue run rate, +123%, in the Mar 2026 quarter; monday.com AI product ARR was 17% of net new ARR in the Jun 2026 quarter.
• Model supply: Figma states purchase commitments with a limited number of foundational AI model providers (10-Q); its 10-K states that it relies primarily on off the shelf foundation models.

5 Financial Analysis & Ratios

• GAAP operating margin (14.5%) in FY2023, (117.1%) in FY2024, (122.2%) in FY2025 and (40.7%) TTM. Stock based compensation was $947.6m in FY2024 (May 2024 RSU release) and $1.36bn in FY2025 (IPO); non GAAP operating income $127.2m in FY2024 and $129.5m in FY2025.
• Net loss TTM ($562.5m), incl. other income of $41.8m on cash, securities and a Bitcoin ETF, and tax expense of $34.9m. Figma holds about 173 Bitcoin ($14.4m) and USDC of $15.9m at 30 Sep 2026; a full valuation allowance applies to deferred tax assets.
• Free cash flow TTM $221.8m, 15.9% of revenue (operating cash flow less capital expenditure and capitalized software). 9M 2026 operating cash flow of $206.6m includes a $56.1m annual bonus payment with no prior year equivalent.
• Balance sheet at 30 Sep 2026: cash and marketable securities $1.72bn; no debt; the $500m revolving credit facility is undrawn. Deferred revenue $626.6m, +32.3%; remaining performance obligations $677.5m.
• No buybacks or dividends. Cash used for tax withholding on net share settlement was $499.8m in FY2025 and $210.7m in 9M 2026. Weighted diluted shares rose from 231.1m in Q1 2025 to 532.4m in Q3 2026.

Cost structure, stock compensation and profitability

• Costs (revenue less operating income) $510.6m in Q3 2026 against $1.41bn in Q3 2025, when IPO related stock compensation of $975.7m was recorded; operating margin (30.4%) against (414.6%), and (31.7%) in Q2 2026.
• Stock based compensation $158.6m in Q3 2026, 40.5% of revenue; $693.4m TTM, 49.6% of revenue. It is the main item between the TTM GAAP operating loss of ($569.4m) and non GAAP operating income of $179.2m.
• Cost of revenue 19.7% of revenue; R&D 52.4%, sales and marketing 33.4%, G&A 25.0%, each incl. stock compensation.
• Non GAAP operating margin 12.0% in Q3 2026 against 12.4% in Q3 2025 and 15.6% in Q1 2026.

Guidance revisions

• FY2026 revenue guidance midpoint $1.370bn in February, $1.425bn in May, $1.465bn in August and $1.498bn in November 2026, +41.9% on FY2025.
• FY2026 non GAAP operating income midpoint $105m in February, $130m in May and August, and $160.5m in November 2026.

6 MD&A & Management Commentary

Q3 2026 results, Form 10-Q and earnings release

• Q3 2026 (10-Q and 8-K Ex 99.1 of 4 Nov 2026): revenue $391.4m, +42.8% and +5.8% on Q2 2026, $16.4m above the top of the $373m to $375m guidance; GAAP net loss ($81.3m); diluted EPS ($0.15); free cash flow $41.5m, 10.6% of revenue, against $49.0m.
• Revenue driver in the 10-Q: growth in paid customers, with customers above $10k ARR +28% and above $100k ARR +36%.
• Costs in the 10-Q: cost of revenue $77.0m, (8%), as stock compensation and payroll tax fell $40.3m and AI and usage related hosting costs rose $29.5m; GAAP gross margin 80.3%. R&D $205.2m, sales and marketing $130.7m and G&A $97.7m, all lower year on year on lower stock compensation. R&D includes $14.5m more AI related infrastructure; sales and marketing $8.8m more hosting for free users.
• 10-Q outlook statements: AI inference and model training spend is expected to lower gross and operating margins in the short term. Figma expects to become a large accelerated filer and to lose emerging growth company status at 31 Dec 2026; the FY2026 10-K will carry an auditor attestation on internal control.
• 9M 2026: revenue $1.095bn, +46%; GAAP operating loss ($373.9m); non GAAP operating income $135.2m, 12.4%; free cash flow $183.3m (17%). The FY2026 non GAAP operating income guidance of $158m to $163m implies $22.8m to $27.8m for Q4 2026.

Management and CFO commentary

• CEO Dylan Field, Q3 2026 release (8-K Ex 99.1): linked the Q3 2026 results to value shifting from code to design as code becomes a commodity; the Figma canvas is increasingly powered by its first party model.
• CFO Praveer Melwani, Q3 2026 release: revenue +43%, ahead of guidance, on seat expansion; customers are moving from trial of AI to larger commitments, and the Figma agent widens credit use; AI cost efficiency gains supported the higher FY2026 outlook.
• CFO, Q2 2026 release: Q2 2026 was the first full quarter of AI credit monetization; net dollar retention of 136% came from seat and AI credit add on expansion.
• CFO, Q1 2026 release: outperformance came from seat expansion across organizations and adoption of Make, MCP and Weave; FY2026 non GAAP operating income guidance moved from $100m to $110m to $125m to $135m, +$25m at the midpoint.
• CEO and CFO, Q4 2025 release: the CEO called Q4 2025 the best quarter to date and the CFO the best quarter for net new revenue on record; the CFO cited positive free cash flow as giving flexibility to keep investing in AI.

7 Peer Valuation & Sector Summary

• Sector: design and product development software, incl. collaborative design, prototyping and AI app generation. Peers in the table: Adobe, Atlassian, HubSpot and Datadog; the driver chapters add Autodesk, Microsoft and monday.com. Canva, a private company, files no SEC reports and is left out.
• Growth (latest quarter, Atlassian full year): FIG 42.8%, DDOG 35.2%, TEAM 26.0%, HUBS 17.1%, ADBE 12.9%.
• GAAP operating margin TTM: ADBE 35.7%, HUBS 5.3%, DDOG 2.3%, TEAM 0.2%, FIG (40.7%); FCF margin: ADBE 40.8%, DDOG 25.9%, TEAM 20.1%, HUBS 19.5%, FIG 15.9%. Figma's non GAAP operating margin TTM was 12.8%.
• Valuation: FIG 5.8x EV/Sales against ADBE 3.7x, TEAM 5.9x, HUBS 2.6x and DDOG 14.9x. Adobe TTM revenue of $26.0bn is about 19 times Figma's.

8 Material Events & Contracts

• Six Forms 8-K from 6 Nov 2025 to 6 Nov 2026: four earnings releases with Ex 99.1, the resignation of director Mike Krieger (Item 5.02) and the annual meeting results (Item 5.07); no Form 8-K/A.
• Board: Mike Krieger resigned on 14 Apr 2026; the filing states no disagreement with the company. The 424B4 described him as Chief Product Officer at Anthropic PBC since May 2024. The board elected at the June 2026 meeting has eight directors.
• IPO and lock up: 12.5m primary Class A shares at $33.00 on 31 Jul 2025, net proceeds $393.1m. Extended lock up agreements of August 2025 expired at the start of trading on 7 Aug 2026; substantially all Class A shares are now freely tradable (Q3 2026 10-Q).
• Sanctions review: Figma filed a voluntary self disclosure with OFAC on potential violations of US sanctions laws; in Sep 2026 OFAC completed its review and issued a Cautionary Letter, with no monetary penalties assessed (Q3 2026 10-Q).

9 Ownership, Voting Power & Annual Meeting

• Dual class control. Class B shares carry 15 votes. Dylan Field held 54.4m Class B shares and an irrevocable proxy over 26.7m Class B shares of the Wu‑Wallace Family Trust, 98.1% of Class B and 72.3% of total voting power at 31 Mar 2026; directors and officers as a group held 77.5% (2026 proxy).
• Venture holders: Index Ventures 14.1%, Greylock 13.2%, Kleiner Perkins 10.7% and Sequoia Capital 7.3% of Class A at 31 Mar 2026; all four have since reported in kind distributions to their partners (Form 4, code J). A 13F holder trend was not collected.
• First annual meeting as a public company (2 Jun 2026): two items, director elections and auditor ratification, with no say on pay vote as an emerging growth company. All eight directors were elected with 98.4% (Danny Rimer) to 99.9% (Luis von Ahn) of votes cast; Dylan Field 99.1%. Ernst & Young was ratified with 99.9%. Votes count Class B at 15 per share.
• Insiders, 12 months to 6 Nov 2026 (146 Forms 4): open market sales about $287m, about $281m of it under 10b5‑1 plans. Dylan Field sold 4.63m shares for about $164.2m, $123.8m in Nov 2025 after the post IPO lock up; former CTO Kris Rasmussen about $61.4m; CRO Shaunt Voskanian $22.4m; CFO Praveer Melwani $17.2m; General Counsel Brendan Mulligan $16.9m.
• The only open market purchase: Sequoia funds, reported by director Andrew Reed as an indirect holding, bought 1,466,852 shares for $36.5m on 20 and 23 Feb 2026 at weighted average prices of $23.95 to $25.90.

Annual meeting remarks

• No management remarks, presentation or shareholder questions from the webcast meeting of 2 Jun 2026 were filed; the Form 8-K Item 5.07 reports vote counts only.

10 Risk Factors

• Item 1A of the FY2025 Form 10-K holds 61 risk factors against 62 in the IPO prospectus (38,718 words against 36,319): 4 added, 5 removed and 10 materially reworded. With no earlier 10-K, the prospectus is the base. Added factors cover billing beyond per seat subscriptions and third party providers beyond AWS; removed factors were specific to the IPO.
• Q1 2026 10-Q (14 May 2026) added one factor: AI agents and other third party tools on the platform “could reduce the number of paid seats required for a given level of output” and circumvent pricing and packaging controls. It also stated that the US federal government had identified Anthropic as a supply chain risk and directed federal agencies to stop using its products, including Claude, “the large language model on which we have built the AI features” in Figma's government offerings.
• Q3 2026 10-Q (4 Nov 2026): the lock up expired on 7 Aug 2026; OFAC “issued us a Cautionary Letter. No monetary penalties were assessed”; commitments with a limited number of foundational AI model providers may require Figma to “pay for capacity or services we do not use”; and in Feb 2026, after the US federal government identified Anthropic as a supply chain risk, Figma replaced Claude, on which it had built the AI features embedded in its government offerings, with alternative models.

How risk factors changed

• Comparison: 10-K FY2025 filed 18 Feb 2026 acc 0001628280-26-009228 against 424B4 IPO prospectus filed 31 Jul 2025 acc 0001628280-25-037014 (no prior 10-K; Figma listed on NYSE in Jul 2025).
• Risk factor text grew from 36,319 words in the 424B4 to 38,718 in the 10-K and 41,839 in the Q3 2026 10-Q, up 15% in total.
• 'AI' appears 118 times in the 424B4, 200 in the 10-K and 277 in the Q3 2026 10-Q; factors mentioning AI rose from 22 to 25 to 30.
• Usage based monetization is new: 'AI credit' appears 0 times in the 424B4 and 26 times in the 10-K, with two new factors on credit billing and on third party agents bypassing seat pricing.
• Dependence on AI model suppliers: purchase commitments with a few foundational model providers (from Q1 2026) and the Anthropic supply chain designation affecting government sales.
• IPO specific factors were removed, and 2026 updates record the lock up expiry on 7 Aug 2026 and the OFAC review closed with no penalty in Sep 2026.

11 Stock Price, Scenarios & Sensitivity

• FIG closed at $18.44 on 5 Nov 2026, the first full session after the Q3 2026 release; the October 2026 month end close was $21.65. Price history starts at the listing on 31 Jul 2025: IPO price $33.00, first day close $115.50. The 52 week range is $16.62 to $45.33; shares trade 44.1% below the IPO price.
• Valuation: market value $9.88bn on 535.6m Class A and Class B shares; EV/Sales 5.8x TTM after net cash of $1.72bn; free cash flow yield 2.2%; P/E n/a on a TTM net loss.
• Scenario model uses EV/Sales because TTM GAAP operating income is negative: revenue grows from TTM Q3 2026 $1.399bn for three years; price equals revenue times the exit EV/Sales plus net cash of $1.72bn, divided by shares up 9% from equity awards.
• Figure note: points to Oct 2026 are month end closes, the Jul 2025 point is the first trading day close, and the final point is the $18.44 close of 5 Nov 2026, the start of the scenario paths. Labels such as 17m high and 17m low refer to the plotted closes over the 17 calendar months shown (Jul 2025 to Nov 2026): the 17m high is the first day close of $115.50 and the 17m low the Apr 2026 month end close of $17.70, so they differ from the 52 week range of $16.62 to $45.33.

Critical factors and core assumptions

• Revenue base TTM Q3 2026 $1.399bn; FY2026 guidance midpoint $1.498bn; net cash $1.72bn; no debt, buybacks or dividends.
• Best case: 32% revenue CAGR as AI credits and agent usage add revenue on top of seats and retention returns to the 136% to 139% range of Q4 2025 to Q1 2026; exit EV/Sales 6.0x.
• Base case: 24% revenue CAGR as growth slows from the 33% implied for Q4 2026; exit EV/Sales 4.5x.
• Worst case: 14% revenue CAGR as AI design and code tools lower seat growth and retention falls below 120%, the level of Q4 2023; exit EV/Sales 3.0x.
• Shares 535.6m at 30 Oct 2026, up 3% a year from equity awards; dual class control unchanged.

Scenarios, three years forward

Sensitivity analysis

Disclaimer

This analysis is for information only and is not financial advice. It is derived from public SEC filings retrieved via sec-api.io and is not a publication of the U.S. Securities and Exchange Commission. Scenario values are model outputs under stated assumptions and are not forecasts. Data as of 6 November 2026.

Sources

All company and peer figures are read from SEC filings retrieved through the sec-api.io MCP server.