Figma (NYSE:FIG) Issues Quarterly Earnings Results

Figma (NYSE:FIG) posted its quarterly earnings data on Thursday. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of ($0.17) by $0.27, FiscalAI reports. Figma had a negative net margin of 121.87% and a negative return on equity of 97.03%. The firm had revenue of $333.44 million during the quarter. The business’s revenue was up 46.1% on a year-over-year basis.

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

• Figma reported a strong Q1, with revenue up 46% year over year to $333 million, marking a second straight quarter of acceleration. Management said growth was broad-based across seat expansion, retention, enterprise adoption, new users, and AI.
• Net dollar retention reached 139%, its highest level in more than two years, while paid customers spending over $10,000 and $100,000 in ARR both accelerated. The company also said its total paid customer base grew to about 690,000.
• AI is becoming a meaningful growth driver, with strong usage of Figma Make, MCP, and Weave, plus early traction from AI credit monetization that began on March 18. Management said more than 75% of users who were over their limits kept consuming credits, and over 95% remained active.
• Enterprise adoption appears to be deepening, including larger seat expansions and broader organizational rollout of Figma products across customers like Google, Rocket Mortgage, and a hyperscaler deal with over 35,000 paid seats. Figma highlighted that usage is spreading beyond design teams into engineering, product, and other functions.
• Management raised full-year guidance, now expecting revenue of $1.422 billion to $1.428 billion and non-GAAP operating income of $125 million to $135 million. They said the outlook improvement is driven by stronger paid conversion, continued seat expansion, and better-than-expected AI credit utilization and add-on purchases.

Figma Price Performance

Shares of Figma stock traded up $2.91 on Friday, hitting $23.15. 36,456,888 shares of the company’s stock traded hands, compared to its average volume of 15,249,400. The firm’s 50-day moving average price is $21.70 and its two-hundred day moving average price is $30.03. The stock has a market capitalization of $10.28 billion and a PE ratio of -7.54. Figma has a one year low of $16.60 and a one year high of $142.92.

Key Headlines Impacting Figma

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma beat Q1 earnings and revenue estimates, with revenue up 46.1% year over year and management pointing to stronger customer expansion and heavier platform usage.
• Positive Sentiment: The company raised its fiscal 2026 revenue outlook and boosted non-GAAP operating income guidance, reinforcing the case that AI-driven monetization is gaining traction.
• Positive Sentiment: Several reports highlighted “surging” demand and improved enterprise adoption, which helped drive premarket strength in the stock.
• Neutral Sentiment: Piper Sandler reaffirmed an overweight rating and set a $30 target, while Morgan Stanley lowered its target to $38 and kept an equal-weight rating, reflecting constructive but more cautious expectations.
• Negative Sentiment: Despite the strong quarter, Figma remains unprofitable on a net basis, and some commentary noted lingering questions around costs, valuation, and how durable the AI growth narrative will be.

Insider Buying and Selling at Figma

In related news, CTO Kris Rasmussen sold 179,331 shares of Figma stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $29.80, for a total transaction of $5,344,063.80. Following the completion of the sale, the chief technology officer directly owned 10,169,178 shares of the company’s stock, valued at $303,041,504.40. The trade was a 1.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Dylan Field sold 236,930 shares of the company’s stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $30.77, for a total value of $7,290,336.10. The SEC filing for this sale provides additional information. Insiders sold 745,697 shares of company stock valued at $22,665,009 over the last quarter. 45.20% of the stock is owned by corporate insiders.

Institutional Trading of Figma

A number of hedge funds have recently modified their holdings of the company. Whittier Trust Co. of Nevada Inc. acquired a new position in Figma during the third quarter valued at approximately $26,000. NewEdge Advisors LLC acquired a new stake in Figma in the third quarter worth $26,000. Wilmington Savings Fund Society FSB acquired a new stake in Figma in the third quarter worth $27,000. Sunbelt Securities Inc. bought a new position in shares of Figma during the third quarter worth $30,000. Finally, US Bancorp DE acquired a new position in shares of Figma in the 3rd quarter valued at $31,000.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Stifel Nicolaus lowered their price target on shares of Figma from $40.00 to $30.00 and set a “hold” rating for the company in a report on Thursday, February 19th. Oppenheimer started coverage on Figma in a research report on Wednesday, March 25th. They issued a “market perform” rating on the stock. Wall Street Zen raised Figma from a “sell” rating to a “hold” rating in a research note on Sunday, February 8th. Morgan Stanley decreased their price target on Figma from $44.00 to $38.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Royal Bank Of Canada lowered their price objective on Figma from $31.00 to $28.00 and set a “sector perform” rating for the company in a research report on Friday. Four analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $41.50.

About Figma

Figma is a San Francisco–based software company that offers a web-based platform for interface design, prototyping and collaboration. Its flagship product, Figma, enables teams to create and refine user interfaces, vector graphics and design systems directly in a browser, eliminating the need for local installations. The platform’s real-time collaboration features allow multiple stakeholders—designers, developers and product managers—to edit and comment simultaneously, streamlining workflows and reducing version control issues.

In addition to its core design tool, Figma provides FigJam, a digital whiteboarding solution that facilitates brainstorming sessions, wireframing and diagramming.