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Figma’s Q2 Revenue Soars 41% to $250M, Stock Plummets 13%

UPDATE: Figma Inc. has just reported a staggering 41% revenue increase for the second quarter of 2025, reaching $250 million as of June 30, 2025. However, despite this impressive growth, the company’s stock has plunged 13% in after-hours trading due to cautious forward guidance.

This rapid financial surge comes amid a significant boost in AI adoption, attracting a diverse customer base that now includes startups and Fortune 500 companies alike. Analysts had predicted strong results following Figma’s initial public offering in July, but the latest figures have exceeded expectations, highlighting the company’s robust performance.

Figma’s free cash flow has turned to a positive $60 million, a notable turnaround from the previous year’s negative figures. Its net dollar retention rate stands at a remarkable 129%, indicating that existing customers are not only remaining loyal but are also increasing their spending on additional products.

Figma’s pivot towards artificial intelligence has been a major catalyst for this growth. The company rolled out four new AI-powered products in the last quarter, enhancing its offerings in motion design and vector tooling. Strategic acquisitions like Modyfi and Payload have further solidified Figma’s position in the competitive design software market, enabling it to capture more market share.

Despite these promising developments, the company’s stock faced a sharp decline as investors reacted to its third-quarter revenue guidance of $263 million to $265 million, suggesting a slowdown to 33% year-over-year growth. This tempered outlook contrasts sharply with the explosive debuts of peers such as Snowflake, raising concerns about sustainability.

Figma has also raised its full-year revenue forecast to between $1.021 billion and $1.025 billion, surpassing earlier analyst estimates of $1.01 billion. This adjustment, along with projected non-GAAP operating income of $370 million to $375 million, reflects the company’s confidence in achieving long-term profitability.

However, Figma has flagged an upcoming share unlock on September 5, which may introduce volatility as 25% of employee shares become eligible for sale. This is a critical moment for the company, as it navigates investor expectations and market pressures.

Figma’s journey has not been without challenges. The company notably scrapped a $20 billion acquisition by Adobe in late 2023 due to regulatory scrutiny, compelling it to pursue an independent path. Its first public quarter has shown steady profit growth, setting a strong stage for future acceleration.

The design software sector is witnessing a transformation where AI integration is key to customer retention and expansion. Figma’s ability to achieve 41% growth in its inaugural public quarter, despite economic headwinds, underscores the resilience of digital collaboration tools in a post-pandemic world.

Wall Street’s mixed reaction highlights the ongoing tension in tech: the balance between immediate results and future potential. While the stock dip may reflect profit-taking, Figma’s strong customer metrics and AI adoption indicate that the company is building a sustainable competitive edge.

As one executive emphasized during the earnings call, the focus remains on empowering teams to “design at the speed of thought.” With revised guidance and strategic investments, Figma is poised for continued expansion in the digital design space. Investors and industry insiders will be closely watching how Figma navigates its next chapters, which could reshape the future of creative work in the digital age.

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