Figma, a cloud-based design platform, reported strong Q1 2025 results ahead of its planned initial public offering (IPO) on the New York Stock Exchange.

For the quarter ending March 31, 2025, Figma reported US$228.2 million in revenue, up from US$156.2 million during the same period last year.

The company’s net income rose threefold to US$44.9 million.

Figma indicated that part of the proceeds from the IPO would be used to repay debt.

The IPO is anticipated to be a significant listing this year, with plans to trade under the ticker symbol “FIG.”

Morgan Stanley, Goldman Sachs, Allen & Co, and JP Morgan are leading the offering, following a 2024 valuation of US$12.5 billion via a tender offer.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Figma’s financial strength defies the typical “failed acquisition” narrative

Figma has demonstrated extraordinary financial resilience since the collapsed Adobe deal, with revenue reaching $228.2 million for Q1 2024 and net income tripling to $44.9 million [original article].

This performance represents significant growth from the company’s 2021 revenues of approximately $75 million 1, showcasing how Figma continued its upward trajectory despite the terminated acquisition.

The $1 billion breakup fee Adobe paid after the deal collapsed 2 provided Figma with substantial additional capital, strengthening its balance sheet heading into the IPO.

Figma’s market position remained dominant throughout this period, maintaining approximately 40% market share in the design software industry 3, suggesting the failed acquisition had minimal negative impact on its business operations.

The company’s current IPO preparation at a reported $12.5 billion valuation, though lower than Adobe’s $20 billion offer, still represents impressive growth for a company founded in 2016 that generated its first revenue just a few years ago.

2️⃣ Regulatory scrutiny of tech mergers is creating alternative exit paths

The Adobe-Figma deal collapsed specifically due to concerns from EU and UK regulators about reduced competition in the design software market 4, illustrating the heightened regulatory environment for tech acquisitions.