Figma shares jump after Q4 earnings beat

Figma’s shares rose by up to 15% after reporting better-than-expected Q4 earnings and issuing optimistic guidance, though they closed around 7% higher.

The company’s revenue increased 40% year-on-year to US$304 million, but it posted a net loss of US$227 million.

For Q1, Figma expects revenue between US$315 million and US$317 million, representing about 38% growth, surpassing analyst estimates of US$292 million.

Analysts from Bank of America noted the results were solid but highlighted market uncertainty could pressure shares.

Despite concerns about AI’s impact on the software sector, Morgan Stanley analysts described Figma as a strong participant in AI innovation, citing increased AI tool usage and new partnerships.

🔗 Source: CNBC

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GAAP loss hides strong cash flow, though Q4 still ended in the red

Figma reported a roughly US$227 million fiscal-year GAAP net loss. Figma tied the result to a one-time stock-based compensation expense of $975.7 million recorded in the third quarter after its initial public offering (IPO) 1.
Excluding stock-based compensation and other items, Figma posted non-GAAP operating income of $44.0 million for the quarter 1.
For the full fiscal year, Figma generated $242.7 million in adjusted free cash flow 1.
Customer spend rose. Figma’s Net Dollar Retention Rate (a measure of how much existing customers increase or decrease spending over time) for customers with more than $10,000 in Annual Recurring Revenue (ARR) reached 136% as of Dec. 31, 2025 1.

Figma aims to use AI to fuel growth

As investors weigh whether generative AI could slow software growth, Figma has added AI across its products and workflow 2.
A partnership with Anthropic (an AI startup) includes “Code to Canvas,” which turns code produced in tools like Claude Code into fully editable designs inside Figma 3.
Usage grew. Weekly active users of Figma Make rose over 70% quarter over quarter, and over half of paid customers with more than $100,000 in ARR built in Figma Make weekly during the quarter 1.
Starting in March, Figma will enforce monthly AI credit limits. Customers will pay based on monthly usage or through AI credit subscriptions 2.