Figma Drops 29% in a Month: Buy, Sell or Hold the FIG Stock?

Figma FIG shares have declined 29.3% in the past month, underperforming the Zacks Computer and Technology sector’s return of 4.5% and the Zacks Internet Software industry’s appreciation of 0.7%. Figma’s underperformance can be attributed to modest growth prospects. The company’s investments in AI-powered products like Figma Make are expected to hurt margin expansion in the near term. Will an innovative portfolio and an expanding clientele help the stock recover in the rest of 2025? Let’s find out.

Figma’s Q3 Guidance Reflects Declining Growth Rate

The company now expects third-quarter 2025 revenues between $263 million and $265 million, which suggests 33% year-over-year growth at the midpoint but slower than the 41% growth reported in the second quarter of 2025. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $263.9 million. The consensus mark for earnings is pegged at 4 cents per share, unchanged over the past seven days.
 

Figma, Inc. Price and Consensus

Figma, Inc. price-consensus-chart | Figma, Inc. Quote

For 2025, revenues are expected between $1.021 billion and $1.025 billion, which suggests 37% year-over-year growth at the midpoint. The company expects operating income between $88 million and $98 million.

The Zacks Consensus Estimate for 2025 revenues is pegged at $1.02 billion. The consensus mark for earnings is pegged at 30 cents per share, unchanged over the past seven days.

Figma Suffers From Stiff Competition

Figma has underperformed close peers, including Adobe ADBE, Microsoft MSFT and Atlassian TEAM. Shares of Atlassian have appreciated 2.7% while Adobe and Microsoft dropped 2.9% and 0.4%, respectively.

FIG Stock’s YTD Performance

Figma faces tough competition from well-established Adobe, Microsoft and Atlassian, as these companies boast of a growing AI-powered revenue base. Adobe’s Firefly and Microsoft Copilot have been playing a crucial role in driving their respective top-line growth and profitability. Atlassian’s focus on adding generative AI features to some of its collaboration software is likely to drive the top line. In comparison, Figma’s AI initiatives are in a much nascent stage.

Figma shares are also overvalued, as suggested by a Value Score of F.

In terms of forward 12-month price/sales Figma currently trades at 18.81X.

FIG Stock’s Valuation
 

Can Figma’s Innovative Portfolio Boost Prospects?

Figma’s prospects are expected to benefit from an innovative portfolio. At its annual Config conference, the company launched four new products — Figma Make, Figma Draw, Figma Sites and Figma Buzz — doubling its product offerings. Figma also launched the Dev Mode MCP server, which speeds up developer workflows by bringing context from Figma Design into any surface that consumes MCP.

Figma Make is the company’s new prompt-to-code product that allows designers to use an existing Figma design or natural language to create a fully functional prototype. Figma Make enables its users to edit, download or export the actual code behind the prototype. The product also allows for multiplayer editing. The product helps designers build working apps and publish them directly to the web. Figma Make now helps in bringing ideas to working apps much faster. 

Figma Draw offers more than 20 new tools like textures, effects and improved vector editing. Figma Draw offers more creativity and visual expression to designers. Figma Sites helps users publish their dynamic websites with custom code interactions powered by AI. Finally, Figma Buzz, which helps brand and marketing teams build assets at scale using the design teams libraries and brand graphics in Figma.

Dev Mode MCP server is a nice addition for developers who accounted for 30% of Figma’s monthly active users in the second quarter of 2025. Figma had 11,906 paid customers with more than $10,000 in annual recurring revenues (ARR) as of June 30, 2025, and 1,119 paid customers with more than $100,000 in ARR as of June 30, 2025. Dev Mode MCP server speeds up developer workflows by bringing context from design systems into LLM-generated code.

Here's Why Figma is a Hold Right Now

Figma’s innovative portfolio is a key catalyst. In the second quarter of 2025, more than 80% of Figma customers used two or more products, and two-thirds of the customers used three or more products. The acquisitions of Modyfi and Payload are noteworthy. Modify strengthens Figma’s motion, animation and vector tooling offerings while Payload is expected to boost Figma’s footprint among developers through its headless content management system and application framework offerings.

However, Figma’s modest growth prospects and a stretched valuation make the stock risky for investors. Figma currently has a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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