Figma's AI Tools Gain Traction: Is Innovation Driving Top-Line Growth?

Figma FIG is benefiting from its focus on innovation, especially in AI-powered tools, which is driving strong revenue growth. In the second quarter of 2025, the company achieved a record $250 million in revenues, representing a notable 41% year-over-year growth.

The company’s growth is fueled by its ability to innovate rapidly and meet the evolving needs of its customers. At its annual Config conference, Figma doubled its product portfolio by introducing four new products, which include Figma Make, Figma Draw, Figma Sites, and Figma Buzz. In the second quarter of 2025, Figma also launched the Dev Mode MCP server. This server speeds up developer workflows by providing context from Figma Design to any platform that uses MCP.

Figma has been adding new features to increase user engagement. Figma has made improvements that make it easier and more reliable to navigate files with a keyboard or screen reader. The company has made the Figma app available in ChatGPT, which will be able to recommend and create AI-generated FigJam diagrams based on user conversations. A new feature now lets users copy any design from a Figma Make preview to the design canvas.

The new set of features is expected to boost Figma’s clientele. As of June 30, 2025, the company had 11,906 paid customers with more than $10,000 in annual recurring revenues (ARR) and 1,119 paid customers with more than $100,000 in ARR.

Figma Suffers From Stiff Competition

Figma is facing stiff competition from companies like Adobe ADBE and Atlassian TEAM, both of which are expanding their AI-driven revenue base.

Adobe’s strategy of infusing AI into its portfolio is driving growth. Adobe’s AI-influenced ARR surpassed $5 billion in the third quarter of 2025, reflecting strong adoption of AI-infused solutions across its portfolio.

Atlassian’s focus on adding generative AI features to some of its collaboration software is likely to drive the top line. Atlassian has collaborated with OpenAI to enhance the capabilities of its Confluence, Jira Service Management, and other programs with generative AI features.

Figma’s Share Price Performance, Valuation, and Estimates

Figma’s shares have lost 58.4% in the past three months. The broader Zacks Computer & Technology sector has appreciated 16.5% and the Zacks Internet - Software industry has increased 0.4% in the same period.

FIG Stock's Performance

Figma’s stock is trading at a premium, with a forward 12-month Price/Sales of 17.29X compared with the Computer and Technology sector’s 7.23X. FIG has a Value Score of F.

FIG Valuation

The consensus mark for 2025 earnings is pegged at 30 cents per share, unchanged over the past 30 days. This indicates a 108.02% increase from the reported figure of 2024.

Figma, Inc. Price and Consensus

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

Figma currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research