Figma (NYSE:FIG – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.22) by $0.32, FiscalAI reports. The company had revenue of $391.42 million for the quarter. Figma had a negative return on equity of 100.03% and a negative net margin of 123.15%. The business’s revenue for the quarter was up 42.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.10 EPS.
Here are the key takeaways from Figma’s conference call:
- Q3 revenue was $391 million, up 43% year over year and $16 million above the high end of guidance. Net dollar retention was 131% for the fifth consecutive quarter above 130%, and customers with more than $10,000 in ARR represented nearly 70% of ARR.
- AI adoption and usage grew: the MCP server reached about 1 million weekly active users, with usage up 3x quarter over quarter, while paid AI credit consumption increased 2.5x through the Agent’s launch. Figma also cited large customers increasing AI credit commitments by roughly 6x to 8x, though these are early examples presented by management.
- Figma raised its full-year revenue outlook to $1.497 billion–$1.499 billion and non-GAAP operating income outlook to $158 million–$163 million. Q4 revenue is expected to be $402 million–$404 million, or 33% growth at the midpoint.
- Management said pricing and packaging changes are encouraging higher AI usage, but revenue conversion may take time; the changes could also weigh on near-term net dollar retention. The effects of earlier pricing changes are expected to continue flowing through results until Q1 2027.
- Non-GAAP gross margin fell three percentage points sequentially to 82%, partly because Figma covered Agent inference costs ahead of its general launch; operating margin was 12%. Management is prioritizing long-term profit dollars over near-term margins while working to reduce AI serving costs.
Figma Price Performance
FIG stock traded up $1.14 during trading on Wednesday, hitting $22.17. The stock had a trading volume of 14,012,388 shares, compared to its average volume of 16,748,820. Figma has a twelve month low of $16.60 and a twelve month high of $46.79. The stock has a market capitalization of $10.09 billion, a P/E ratio of -6.09 and a beta of 1.17. The company’s 50-day moving average price is $23.03 and its two-hundred day moving average price is $23.06.
Wall Street Analysts Forecast Growth
FIG has been the subject of a number of recent analyst reports. Wells Fargo & Company cut their price objective on Figma from $34.00 to $30.00 and set an “overweight” rating for the company in a research report on Monday, October 12th. Weiss Ratings upgraded Figma from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, October 6th. Piper Sandler reiterated an “overweight” rating on shares of Figma in a research report on Monday, October 26th. KeyCorp initiated coverage on shares of Figma in a research note on Monday, September 14th. They issued a “sector weight” rating on the stock. Finally, Bank of America boosted their price target on shares of Figma from $30.00 to $33.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Four research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $30.50.
Get Our Latest Research Report on Figma
Insider Activity at Figma
In other news, CAO Tyler Herb sold 1,418 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $21.62, for a total value of $30,657.16. Following the transaction, the chief accounting officer owned 246,130 shares in the company, valued at $5,321,330.60. This trade represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lynn Vojvodich Radakovich sold 20,266 shares of Figma stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $22.63, for a total value of $458,619.58. Following the completion of the sale, the director directly owned 84,809 shares in the company, valued at $1,919,227.67. This represents a 19.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 393,296 shares of company stock worth $10,858,069 in the last quarter. Corporate insiders own 32.26% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FIG. Greylock XIV GP LLC purchased a new stake in shares of Figma during the second quarter worth $1,056,824,403. SC US Ttgp LTD. raised its position in shares of Figma by 5.8% in the first quarter. SC US Ttgp LTD. now owns 26,728,171 shares of the company’s stock valued at $565,034,000 after buying an additional 1,466,851 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Figma by 428.1% in the first quarter. Bank of America Corp DE now owns 4,180,575 shares of the company’s stock worth $88,377,000 after buying an additional 3,388,902 shares in the last quarter. Pictet Asset Management Holding SA boosted its position in Figma by 26,445.4% during the third quarter. Pictet Asset Management Holding SA now owns 3,072,370 shares of the company’s stock worth $64,581,000 after acquiring an additional 3,060,796 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Figma during the first quarter worth about $36,600,000.
Trending Headlines about Figma
Here are the key news stories impacting Figma this week:
- Positive Sentiment: Figma reported third-quarter revenue of $391.42 million and earnings of $0.10 per share, above analysts’ consensus estimate of a $0.22-per-share loss. Reports also pointed to growth among large customers. Figma Revenue Rises as Large Customers Increase
- Positive Sentiment: The company forecast fourth-quarter revenue of $402 million to $404 million, supporting expectations for continued sales growth. Figma Q4 Revenue Guidance
- Neutral Sentiment: Figma is betting that AI credits and an in-house AI model can support adoption and eventually improve margins. The payoff depends on whether those initiatives can generate sufficient revenue relative to their costs. Figma Banks on AI Credits and In-House Model
- Neutral Sentiment: Telsey Advisory Group initiated coverage with a “hold” rating, signaling a cautious stance. Telsey Advisory Group Ratings
- Negative Sentiment: Despite the results and outlook, investors were concerned that AI features and development are expensive. The near-term cost of delivering AI tools—and Figma’s focus on long-term AI growth—could limit margin improvement, helping explain the negative reaction to earnings. Investors Weigh the Cost of Figma’s AI Push
About Figma
Figma, Inc (NYSE: FIG) develops collaborative software for designing digital products and user experiences. Its browser-based platform enables teams to create, prototype, review and manage designs in real time, supporting collaboration among designers, developers, product managers and other stakeholders.
The company’s product portfolio includes Figma Design, a collaborative interface-design and prototyping tool; FigJam, an online whiteboard for brainstorming and planning; and Dev Mode, which helps developers inspect designs and translate them into software.
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