Figma (FIG) 2025 Q4 Earnings Report

figma Shares rose 15% in after-hours trading Wednesday after the design software maker reported stronger results and quarterly guidance that beat Wall Street expectations.

Here’s how the company performed compared to the LSEG consensus:

Earnings per share: 8 cents adjusted vs. 7 cents expected Earnings: $303.8 million vs. $293.15 million expected

According to the announcement, Figma’s fourth quarter revenue increased 40% year over year. The company’s fourth-quarter 2024 net income was $33.1 million, or 15 cents per share, compared to a net loss of $226.6 million, or 44 cents per share.

Management had estimated first-quarter revenue of $315 million to $317 million, representing 38% growth. Analysts polled by LSEG had expected $292 million.

For 2026, Figma expects adjusted operating income to be between $100 million and $110 million on revenue of $1,366 million to $1,374 million, implying 30% sales growth. LSEG’s revenue consensus was $1.29 billion.

Investors have recently become concerned that generative artificial intelligence products could weaken software companies’ growth prospects. As of Wednesday’s close, Figma stock was down about 35% since the beginning of the year, while the iShares Expand High-Tech Software Sector Exchange Traded Fund was down 22%. The S&P 500 index rose nearly 1% over the same period.

Customers are sticking around and spending more. Figma’s net dollar retention rate from customers contributing at least $10,000 in annual revenue rose to 136% from 131% in the third quarter, beating internal expectations, Praveer Melwani, the company’s finance chief, said on a conference call with analysts.

“If you look at software, not only is it not going to go away, there’s going to be a lot more software than ever before,” Figma co-founder and CEO Dylan Field said in an interview Wednesday. But he said the market “could become more competitive.”

The company, which went public in July, wants to make sure it can benefit as people turn to AI products for design. The Figma Make tool allows people to type in a few words and create Anthropic. google Interpret the information and prototype your app. More than half of customers with annual revenue of more than $100,000 used Figma Make every week during the quarter, the statement said.

By optimizing its computing infrastructure, Figma was able to reduce the cost of running the Make service for end users, Melwani said. Despite Figma Make’s weekly active users increasing 70% from Q3, the company’s adjusted gross margin remained at 86%.

Soon, Figma will bring in even more revenue from AI adoption. In March, we will start applying monthly AI credit limits to various types of account holders. According to a December blog post, customers will pay based on their monthly usage or sign up for an AI Credit subscription.

“What we observed is that there tends to be a power law distribution where some users within the organization receive exorbitant value and therefore exceed the expected limits that we are trying to enforce,” Melwani said. “Now we expect it to continue to evolve.”

Also during this quarter, Figma announced collaborations with: ServiceNow Transform your designs into applications that can be adopted by large enterprises.

“We are pleased to see positive comments for both Figma Make and Figma Design, indicating increasing adoption of AI workflows across Figma’s platforms,” RBC analyst Rishi Jallia, who rated the stock a Hold rating, wrote in a note to clients.

There may be room for Figma to cater to a new kind of office worker, beyond developers, designers, and marketers. For example, product managers are increasingly involved in Figma files, Field said on a conference call with analysts.

“Overall, I think there’s a lot of opportunity to start branching out into use cases like UX (user experience) researchers and other use cases for teams,” he said.

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