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what it is
Figma makes the browser tools your team uses to design apps, test ideas, and hand work to engineers.
how it gets paid
Last year Figma made $1.1B in revenue. core design subscriptions was the main engine at $0.61B, or 55% of sales.
why it's growing
Revenue grew 41.0% last year. This marked a 38% vs. prior year increase and a record sequential net revenue gain.
what just happened
Revenue hit $752M, up 174% vs. prior year, while EPS stayed deeply negative at -$3.68.
At a glance
B+ balance sheet — decent shape, but not bulletproof
79.9x trailing p/e — you're paying up for this one
35.5% return on capital — every dollar works hard here
$1.50 fy2028 eps est
$3B fy2028 rev est
xvary composite: 45/100 — below average
What they do
Figma makes the browser tools your team uses to design apps, test ideas, and hand work to engineers.
Figma wins because your designer, engineer, and product manager can all work in the same file at the same time, in a browser. That workflow became habit across millions of users and a majority of the Fortune 500, according to the company profile. Switching costs (leaving is painful) matter here, because moving your whole team off the default workspace is harder than replacing one app.
How they make money
$1.1B
annual revenue · their business grew +41.0% last year
core design subscriptions
$0.61B
collaboration workflows
$0.22B
developer handoff tools
$0.14B
prototyping and presentations
$0.09B
education and community plans
$0.04B
The products that matter
design and collaboration platform
figma
$1.1B · essentially the whole business
it drives the company’s full $1.1B revenue base, which makes the bet easy to understand and concentrated at the same time. If the core platform keeps compounding, everything works. If it slows, there is no second engine hiding in segment disclosure.
one platform
Key numbers
$3.0B
FY2028 sales estimate
Sales are projected to rise from $1.1 billion to $3.0 billion by FY2028. That is the whole bull case in one number.
35.5%
return on capital
Return on capital → profit earned on money put into the business → so what: when Figma does invest well, each dollar has produced unusually strong returns.
79.9x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying a premium price today for profits that mostly live in the future.
82.6%
gross margin
Gross margin → revenue left after direct costs → so what: software this rich can turn small revenue gains into big profit gains if spending cools.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- net profit margin 22.6% — keeps 23 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for FIG right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $752M, up 174% vs. prior year, while EPS stayed deeply negative at -$3.68.
Revenue growth was the headline. The other headline was the bill for getting there, with operating margin at -122.2% and the market still pricing a future profit story.
$752M
revenue
$3.68
eps
82.6%
gross margin
the number that mattered
$752 million matters most because hypergrowth can forgive a lot, but only while revenue is still moving this fast.
-
figma shares have cratered by nearly 80% from their august 2025 peak.the stock debuted at $33 on july 31, 2025, vaulted to $142.92 within days, and now trades near $29.57.
-
the sharpest drops in late december and early january coincided with substantial sales by top executives (executed via 10b5-1 plans and early release provisions), including ceo dylan field, who sold approximately 250,000 class a shares, as well as the cfo and cto.such concentrated insider selling activity has signaled a lack of near-term confidence and flooded the market with excess supply.
-
this has been exacerbated by a broader correction from arguably unsustainable post-ipo valuations.even after several downward cycles, the shares still trade at roughly 15x sales versus the software sector average of 5x.
-
despite the stock carnage, the business continues to perform well.in the september quarter, figma crossed the $1 billion annual revenue run rate milestone, delivering a top line of $274 million.
-
this marked a 38% vs. prior year increase and a record sequential net revenue gain.
source: company earnings report, 2026
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What could go wrong
Figma’s biggest risk is multiple compression on a premium software stock. The business looks strong. The stock still needs that strength to keep looking exceptional.
med
valuation leaves little room for a softer story
79.9x trailing earnings on a company with a 45/100 composite score is a demanding setup. You do not need a broken business for the stock to disappoint.
If growth expectations ease before the market sees a cleaner path to $3B in FY2028 revenue, the multiple can do the damage first.
med
free and lower-cost tools can pressure the moat
Recent headlines tied share weakness to competitive threats, including Google’s free Gemini tool. That matters because premium pricing is part of the thesis here.
82.6% gross margin is a strength until the market starts asking whether that margin is defensible.
med
this is still a one-platform revenue story
The snapshot shows one core product driving the full $1.1B business. That makes the story easy to follow and concentrated by definition.
If the core platform slows, there is no segment mix shift to hide behind. You feel it across the income statement.
med
the standalone path has to prove itself
The blocked Adobe deal is now background, but it removed any takeout narrative. The market has to believe the company can justify ~$15B on fundamentals alone.
That means execution has to keep doing the talking: revenue growth, margin durability, and a believable path from $1.1B toward the street’s $3B target.
The risk feed on this page flags roughly $220M of combined revenue exposure, but the cleaner takeaway is simpler: a $15B stock on $1.1B of revenue needs the growth story to stay clean.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the path from $1.1B to $3B
That FY2028 revenue estimate is the whole long-duration setup. If estimate revisions start slipping, the stock loses one of its main supports.
risk
competitive headlines around free tools
The Gemini headline matters because it attacks the premium part of the premium-software thesis. Watch sentiment here before you watch consensus models.
calendar
the next margin check
Gross margin at 82.6% and operating margin at 26.5% are doing a lot of work. If those slip, the stock conversation changes fast.
trend
whether institutional sponsorship sticks
229 buyers versus 0 sellers in 3Q2025 is the kind of split you notice. The next question is whether that support survives volatility.
Analyst rankings
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
source: institutional data
Institutional activity
229 buyers vs. 0 sellers in 3q2025. total institutional holdings: 0.2B shares.
source: institutional data
Price targets
3-5 year target range
$55
$95
$30
current price
$75
target midpoint · +154% from current · 3-5yr high: $95 (+220% · 33% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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