Figma (NYSE:FIG) reported third-quarter revenue of $391 million, exceeding the high end of its prior guidance by $16 million, and raised its full-year outlook as customers expanded their use of its design and artificial intelligence tools.
Chief Financial Officer Praveer Melwani said renewals, customer expansion and upgrades drove the revenue performance. Net dollar retention was 131%, marking the fifth consecutive quarter above 130%, while gross retention remained in the mid-to-high 90% range.
Figma added more than 600 paid customers with over $10,000 in annual recurring revenue and more than 80 customers with over $100,000 in annual recurring revenue during the quarter. Customers in the larger-than-$10,000 group represented nearly 70% of total ARR at quarter-end, up from 64% at the end of the first quarter of 2025.
AI usage expands as products leave beta
Figma is investing in tools that bring design, code and AI-assisted workflows together on its canvas. Co-founder and Chief Executive Officer Dylan Field argued that as coding becomes easier, design will become a more important differentiator for product teams.
“As code becomes a commodity, we see value moving up the stack to design,” Field said. He pointed to Code Layers, the Figma Agent, the company’s MCP server and its own design model as pillars of that strategy.
Code Layers, which allows teams to work with code on Figma’s visual canvas, rolled out to all users during the week of the call. The Figma Agent became generally available on October 6. Melwani said Code Layers, although still in beta, is consuming credits, as are Figma Make and other AI features.
As of October 31, 65% of paid customers with more than $10,000 in ARR were using the Figma Agent weekly, and more than 80% were consuming AI credits. Excluding beta usage, weekly AI credit consumption across Figma increased 2.5 times through the transition of the Agent to general availability and the end of October.
Field said Figma’s MCP server had approximately 1 million weekly active users. Total MCP usage tripled quarter over quarter, while writeback usage quadrupled. About half of new Pro teams used the server in the third quarter, and MCP was driving 5% of credit consumption on Figma.
Melwani said the server has helped drive seat upgrades, expansion and retention. Over the medium to long term, he said, MCP-driven Figma Agent workflows could also generate more credit consumption.
Pricing changes and profitability
Figma repriced its AI credit add-ons in August, providing more credits for the same price, and introduced drawdown arrangements that give larger customers more flexibility over when they use credits. The number of credits included in seats did not change, Melwani clarified.
Among customers that purchased AI add-ons, utilization increased by an average of nearly 40% between the repricing and the end of October. Melwani said the changes could weigh on near-term growth and potentially affect net dollar retention, but management expects them to support longer-term adoption and monetization.
Third-quarter non-GAAP gross profit rose 36% year over year to $321 million, with an 82% gross margin. Melwani said Figma covered the cost of inference for the Agent before its general release, contributing to a three-percentage-point gross margin decline from the second quarter.
Non-GAAP operating income was $47 million, for a 12% margin. Free cash flow was $42 million, or 11% of revenue, and Figma ended the quarter with $1.7 billion in cash equivalents and marketable securities.
Management said it is using its own post-trained design model for a growing share of Agent work. From the start of the third quarter through October 31, Figma more than doubled that share and reduced the average cost per Agent message, according to Melwani.
Outlook raised
For the fourth quarter, Figma expects revenue of $402 million to $404 million, implying 33% year-over-year growth at the midpoint. It raised its full-year revenue outlook to $1.497 billion to $1.499 billion, an increase of $33 million at the midpoint from its prior forecast.
The company also raised its full-year non-GAAP operating income forecast to $158 million to $163 million, a $31 million midpoint increase. Melwani attributed the improvement primarily to third-quarter outperformance, internal AI efficiencies and lower costs to serve AI products.
Asked about the moderation implied by fourth-quarter guidance, Melwani said increased consumption from recent pricing changes will take time to translate into revenue. He also said effects from a pricing and packaging change made in the first quarter of 2025 will fully roll out of the model by the first quarter of 2027. Figma did not provide a 2027 outlook.
About Figma (NYSE:FIG)
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.
