Figma's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Figma FIG came out with fourth-quarter 2025 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 14.3%. The company reported earnings of 6 cents per share in the year-ago quarter.

Figma posted revenues of $303.7 million in the fourth quarter of 2025, surpassing the Zacks Consensus Estimate by 3.7%. Figma’s fourth-quarter 2025 revenues increased 40% year over year.

Figma shares gained 4.7% on Thursday’s pre-market session after strong results. Figma stock has plunged 67.3% in the past year, underperforming the Zacks Internet – Software industry’s decline of 16.8%.

Figma Six-Month Performance Chart

Figma’s Quarterly Results in Detail

Figma’s non-GAAP gross profit rose 30.5% year over year to $261.79 million, with a non-GAAP gross margin of 86%, down 600 basis points from the prior-year quarter.

The company’s non-GAAP operating profit declined 22% year over year to $44 million, with a non-GAAP operating margin of 14%, down 1,200 basis points from the prior-year quarter.

Figma continued to show strong expansion within its customer base. Net dollar retention for customers with ARR above $10,000 increased to 136%, up five percentage points sequentially, reflecting deeper product adoption and growing usage across teams.

The company ended the quarter with 13,861 customers generating more than $10,000 in ARR, adding 951 customers in this category in the fourth quarter of 2025. The company now has 1,405 customers generating more than $100,000 in ARR, adding 143 customers in this category in the fourth quarter of 2025 alone.

The company’s non-GAAP net profit declined 18.7% year over year to $43.0 million.

FIG’s Balance Sheet

As of Dec. 31, 2025, Figma held $1.7 billion in cash and marketable securities.

Figma generated $39.9 million in operating cash flow and $38.5 million in adjusted free cash flow during the quarter.

Figma’s Q1 and 2026 Outlook

Figma provided guidance for the first quarter of 2026 and full-year 2026. Figma expects its first-quarter 2026 revenues to be between $315 million and $317 million, implying year-over-year growth of 38%. The Zacks Consensus Estimate for the first quarter of 2026 revenues is pinned at $294 million.

The company now projects its 2026 annual revenues between $1.366 billion and $1.374 billion, implying year-over-year growth of 30%. The Zacks Consensus Estimate for 2026 revenues is pegged at $1.05 billion.

Figma projects its 2026 non-GAAP operating income between $100 million and $110 million.

Zacks Rank and Stocks to Consider

Currently, Figma carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Computer and Technology sector.

Amphenol APH carries a Zacks Rank #2 (Buy) at present. Amphenol shares have rallied 112.8% in the past 12-month period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Analog Devices ADI carries a Zacks Rank #2 at present. Analog Devices’ shares have jumped 39.7% in the trailing 12-month period.

Applied Optoelectronics AAOI carries a Zacks Rank #2 at present. Applied Optoelectronics shares have surged 60.7% in the trailing 12-month period.

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

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