Figma Reports 41% Revenue Surge to $250M; Stock Plummets 13%
UPDATE: Figma Inc. has just reported a staggering 41% revenue surge to $249.6 million for the second quarter of 2025, driven by the rapid adoption of its AI-enhanced design tools. However, the San Francisco-based company saw its stock tumble 13% in after-hours trading, following the release of its earnings report.
This announcement comes as businesses increasingly seek collaborative design solutions, with Figma expanding its customer base to include startups and Fortune 500 companies alike. The company’s remarkable growth reflects a broader trend in enterprise software, where AI integration is becoming vital for user retention and market expansion.
Figma’s second-quarter results, covering the period ending June 30, 2025, exceeded analysts’ expectations, with free cash flow turning positive at $60 million—a remarkable turnaround from a year ago. The company also reported a net dollar retention rate of 129%, indicating existing customers are not only staying but also spending more on Figma’s offerings.
The surge in revenue is attributed to a strategic pivot towards artificial intelligence. During this quarter, Figma launched four new AI-powered products, enhancing its capabilities in motion design and vector tooling, following its acquisitions of Modyfi and Payload. These innovations position Figma to capture a larger share of the market amid a competitive landscape increasingly reliant on automated design workflows.
Despite these impressive numbers, investor sentiment turned sour after Figma announced its third-quarter revenue guidance of $263 million to $265 million, suggesting a slowdown to 33% year-over-year growth. This tempered outlook raised questions about Figma’s sustainability in a maturing market, contrasting sharply with the explosive debuts of peers like Snowflake.
Looking ahead, Figma has revised its full fiscal year 2025 revenue forecast to between $1.021 billion and $1.025 billion, surpassing earlier analyst projections of $1.01 billion. Moreover, the company expects a non-GAAP operating income between $370 million and $375 million, signaling confidence in long-term profitability.
However, Figma faces challenges as a significant share unlock is set for September 5, allowing 25% of employee shares to become eligible for sale, which could introduce volatility in the stock price.
Figma’s journey has been marked by strategic acquisitions and market pressures, notably the scrapped $20 billion acquisition by Adobe in late 2023 due to regulatory scrutiny. This forced Figma to chart its own course, ultimately leading to its NYSE listing under the ticker FIG.
The company’s ability to achieve 41% growth in its inaugural public quarter, despite economic challenges, highlights the resilience of digital collaboration tools in the post-pandemic landscape. Yet, with a valuation hovering around $12.5 billion, Figma must navigate investor expectations for consistent high growth in a competitive market.
As industry observers note, Figma’s multi-product strategy is crucial for fending off rivals like Canva and emerging AI startups. The company’s focus on empowering teams to “design at the speed of thought” remains central to its mission.
In summary, while Figma’s first public earnings report showcases its formidable position in collaborative design, the mixed reaction from the market indicates a need for sustained innovation and strategic agility as the company faces increasing competition. Investors and industry insiders will be closely monitoring the next steps for Figma as it continues to evolve in the dynamic design software sector.
