Figma, the design software company known for its collaborative interface tools, experienced a notable increase in its stock value, rising 15% in after-hours trading following the release of its latest quarterly earnings. The company reported that its earnings per share came in at 8 cents, exceeding Wall Street’s expectations of 7 cents, while revenue for the quarter reached $303.8 million, surpassing predictions of $293.15 million. This marks a significant 40% year-over-year growth for Figma in the fourth quarter.
Despite the positive revenue growth, the company recorded a net loss of $226.6 million, translating to 44 cents per share. This starkly contrasts with the previous year’s fourth-quarter results, where Figma had a net income of $33.1 million, or 15 cents per share. Looking ahead, Figma’s management has projected first-quarter revenue between $315 million to $317 million, indicating anticipated growth of 38% compared to analysts’ predictions of $292 million.
For the upcoming fiscal year, the company anticipates adjusted operating income of $100 million to $110 million on revenues between $1.366 billion and $1.374 billion, suggesting a revenue increase of around 30%. Analysts previously estimated $1.29 billion in revenue for 2026.
In a landscape where concerns over generative artificial intelligence (AI) products potentially dampening the growth of software companies are increasingly prevalent, Figma’s performance stands out. As of the report, Figma shares had decreased by about 35% in 2025, while the iShares Expanded Tech-Software Sector Exchange-Traded Fund saw a decline of 22%. In contrast, the S&P 500 index recorded a slight gain of nearly 1% during the same timeframe.
The company noted that customer loyalty remains strong, exemplified by an increase in net dollar retention from clients contributing at least $10,000 in annualized revenue, which rose to 136% from 131% in the previous quarter. Company CFO Praveer Melwani emphasized that there is an increasing reliance on software, noting that “there’s going to be way more of it than ever before,” despite growing competition.
Figma aims to leverage the ongoing shift towards AI in design, with its Figma Make tool enabling users to generate app prototypes by simply entering descriptive text. More than half of Figma’s customers who spend over $100,000 annually utilized Figma Make on a weekly basis during the quarter. Melwani highlighted that the company has optimized its infrastructure to reduce operational costs for this service while maintaining an impressive adjusted gross margin of 86%, even as the number of weekly active users for Figma Make surged by 70% from the prior quarter.
Starting in March, Figma plans to implement monthly AI credit limits for clients, allowing them to either pay based on usage or subscribe to AI credit packages. Melwani noted a “power law distribution” among users, where a small segment derived extensive value from the service, often exceeding the projected limits.
Figma also announced a partnership with ServiceNow aimed at streamlining the process of translating designs into applications for larger enterprises. RBC analyst Rishi Jaluria has expressed cautious optimism surrounding the adoption of both Figma Make and Figma Design, suggesting that AI workflows are gaining traction on the platform.
As the company continues to expand its reach, Field highlighted the potential to engage new user demographics beyond traditional roles like developers and designers, pointing to an increasing involvement of product managers and opportunities arising within user experience research disciplines.
