Figma (NYSE:FIG) Announces Earnings Results

Figma (NYSE:FIG) issued its earnings results on Wednesday. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.32, FiscalAI reports. The business had revenue of $391.42 million for the quarter. Figma had a negative net margin of 40.21% and a negative return on equity of 33.14%. The company’s revenue was up 42.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.10 EPS.

Here are the key takeaways from Figma’s conference call:

• Q3 revenue was $391 million, up 43% year over year and $16 million above the high end of guidance. Net dollar retention was 131% for the fifth consecutive quarter above 130%, and customers with more than $10,000 in ARR represented nearly 70% of ARR.
• AI adoption and usage grew: the MCP server reached about 1 million weekly active users, with usage up 3x quarter over quarter, while paid AI credit consumption increased 2.5x through the Agent’s launch. Figma also cited large customers increasing AI credit commitments by roughly 6x to 8x, though these are early examples presented by management.
• Figma raised its full-year revenue outlook to $1.497 billion–$1.499 billion and non-GAAP operating income outlook to $158 million–$163 million. Q4 revenue is expected to be $402 million–$404 million, or 33% growth at the midpoint.
• Management said pricing and packaging changes are encouraging higher AI usage, but revenue conversion may take time; the changes could also weigh on near-term net dollar retention. The effects of earlier pricing changes are expected to continue flowing through results until Q1 2027.
• Non-GAAP gross margin fell three percentage points sequentially to 82%, partly because Figma covered Agent inference costs ahead of its general launch; operating margin was 12%. Management is prioritizing long-term profit dollars over near-term margins while working to reduce AI serving costs.

Figma Stock Up 1.9%

NYSE:FIG traded up $0.35 during trading hours on Friday, hitting $18.79. 12,572,268 shares of the company’s stock traded hands, compared to its average volume of 16,793,570. Figma has a 52 week low of $16.60 and a 52 week high of $45.42. The business’s fifty day simple moving average is $22.85 and its two-hundred day simple moving average is $23.01. The firm has a market cap of $8.55 billion, a P/E ratio of -17.56 and a beta of 1.17.

Insiders Place Their Bets

In other news, major shareholder Ventures Vi (Jersey) Lp Index sold 12,475 shares of Figma stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $25.39, for a total transaction of $316,740.25. Following the completion of the sale, the insider owned 786,700 shares in the company, valued at approximately $19,974,313. This trade represents a 1.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Lynn Vojvodich Radakovich sold 20,266 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $22.63, for a total value of $458,619.58. Following the transaction, the director directly owned 84,809 shares of the company’s stock, valued at $1,919,227.67. The trade was a 19.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 406,002 shares of company stock worth $11,128,663. 32.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Figma

Several hedge funds have recently bought and sold shares of the stock. Seelaus Asset Management LLC grew its position in Figma by 6.9% during the third quarter. Seelaus Asset Management LLC now owns 12,217 shares of the company’s stock valued at $257,000 after acquiring an additional 788 shares during the last quarter. Kestra Advisory Services LLC raised its stake in shares of Figma by 3.2% during the third quarter. Kestra Advisory Services LLC now owns 25,976 shares of the company’s stock worth $546,000 after acquiring an additional 803 shares in the last quarter. Allen Operations LLC lifted its holdings in shares of Figma by 4.3% in the 1st quarter. Allen Operations LLC now owns 19,596 shares of the company’s stock worth $414,000 after acquiring an additional 813 shares during the last quarter. D.A. Davidson & CO. lifted its holdings in shares of Figma by 9.7% in the 1st quarter. D.A. Davidson & CO. now owns 12,230 shares of the company’s stock worth $259,000 after acquiring an additional 1,085 shares during the last quarter. Finally, Commonwealth Equity Services LLC lifted its holdings in shares of Figma by 2.8% in the 3rd quarter. Commonwealth Equity Services LLC now owns 41,617 shares of the company’s stock worth $875,000 after acquiring an additional 1,133 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Rothschild & Co Redburn began coverage on Figma in a report on Monday. They issued a “neutral” rating and a $23.00 price target for the company. Weiss Ratings upgraded Figma from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. decreased their price objective on Figma from $28.00 to $24.00 and set a “neutral” rating on the stock in a research note on Thursday. Bank of America increased their price objective on Figma from $30.00 to $33.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Finally, Citigroup cut their target price on Figma from $37.00 to $35.00 and set a “buy” rating for the company in a research note on Wednesday, October 28th. Four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Figma presently has a consensus rating of “Hold” and a consensus price target of $28.90.

Key Figma News

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma reported Q3 revenue of $391.4 million, up 42.8% year over year, and earnings of $0.10 per share that beat estimates. It also raised its 2026 revenue outlook to $1.497 billion–$1.499 billion and forecast Q4 revenue of $402 million–$404 million. Figma Q3 earnings report
• Positive Sentiment: Figma said changes to AI-credit pricing increased usage by 40%. Monetizing AI features and developing an in-house design model could support growth and, over time, help manage delivery costs. Figma: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Figma executives Tyler Herb and Brendan Mulligan sold shares through pre-arranged Rule 10b5-1 plans. Both retained substantial holdings, making the transactions a limited standalone signal. Figma insider transactions
• Negative Sentiment: Despite the earnings beat and raised outlook, investors have focused on the expense of developing and delivering AI models and features, which could pressure margins. That concern contributed to a sharp post-earnings selloff. Investors worry about AI costs
• Negative Sentiment: JPMorgan and RBC lowered their price targets to $24 from $28, while keeping neutral or sector-perform ratings, reinforcing a cautious analyst outlook. JPMorgan analyst update

Figma Company Profile

Figma, Inc (NYSE: FIG) develops collaborative software for designing digital products and user experiences. Its browser-based platform enables teams to create, prototype, review and manage designs in real time, supporting collaboration among designers, developers, product managers and other stakeholders.

The company’s product portfolio includes Figma Design, a collaborative interface-design and prototyping tool; FigJam, an online whiteboard for brainstorming and planning; and Dev Mode, which helps developers inspect designs and translate them into software.