Figma (FIG)
Market Price (3/28/2026): $20.17 | Market Cap: $10.3 BilSector: Information Technology | Industry: Application Software
Figma (FIG)
Market Price (3/28/2026): $20.17Market Cap: $10.3 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -16% | Weak multi-year price returns2Y Excs Rtn is -104%, 3Y Excs Rtn is -144% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -1.3 Bil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -122% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 41% | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 129% | |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 24%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -17% | |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -55% | Key risksFIG key risks include [1] margin pressure and an existential threat from AI-native competitors, Show more. | |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), and Collaborative Software. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -16% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 41% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 24%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -55% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), and Collaborative Software. |
| Weak multi-year price returns2Y Excs Rtn is -104%, 3Y Excs Rtn is -144% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -1.3 Bil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -122% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 129% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -17% |
| Key risksFIG key risks include [1] margin pressure and an existential threat from AI-native competitors, Show more. |
Qualitative Assessment
AI Analysis | Feedback
1. Sector-wide pressure on SaaS stocks and AI disruption fears. Figma's stock decline was significantly influenced by a broader market downturn for Software-as-a-Service (SaaS) companies, fueled by investor apprehension that artificial intelligence (AI) could fundamentally disrupt existing software offerings. This market sentiment intensified in January 2026, leading to a 31% drop in Figma's stock that month. Competitors like Adobe also experienced a 16% decline in January, indicating a sector-wide pressure rather than an isolated Figma issue. Enterprise SaaS valuations broadly contracted, with revenue multiples decreasing by 30-55% from their previous peaks.
2. Persistent premium valuation and ongoing correction. Despite previous declines, Figma's stock continued to undergo a valuation correction during this period. As of December 11, 2025, Figma was trading at a forward 12-month Price/Sales ratio of 12.85x, significantly higher than the Computer and Technology sector's average of 4.92x. By December 22, 2025, the stock, at $37 per share, was still trading at approximately 18x estimated 2025 revenue. This recalibration from its initial post-IPO peak, where it traded over 60x forward revenue, continued to exert downward pressure as the market adjusted to a "compressed multiple."
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Stock Movement Drivers
Fundamental Drivers
The -43.9% change in FIG stock from 11/30/2025 to 3/27/2026 was primarily driven by a -61.1% change in the company's P/S Multiple.| (LTM values as of) | 11302025 | 3272026 | Change |
|---|---|---|---|
| Stock Price ($) | 35.97 | 20.19 | -43.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 677 | 1,056 | 56.1% |
| P/S Multiple | 25.2 | 9.8 | -61.1% |
| Shares Outstanding (Mil) | 475 | 513 | -7.5% |
| Cumulative Contribution | -43.9% |
Market Drivers
11/30/2025 to 3/27/2026| Return | Correlation | |
|---|---|---|
| FIG | -43.9% | |
| Market (SPY) | -5.3% | 30.4% |
| Sector (XLK) | -9.1% | 33.3% |
Fundamental Drivers
The -71.3% change in FIG stock from 8/31/2025 to 3/27/2026 was primarily driven by a -7.5% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 8312025 | 3272026 | Change |
|---|---|---|---|
| Stock Price ($) | 70.28 | 20.19 | -71.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | 1,056 | 0.0% |
| P/S Multiple | � | 9.8 | 0.0% |
| Shares Outstanding (Mil) | 475 | 513 | -7.5% |
| Cumulative Contribution | 0.0% |
Market Drivers
8/31/2025 to 3/27/2026| Return | Correlation | |
|---|---|---|
| FIG | -71.3% | |
| Market (SPY) | 0.6% | 33.5% |
| Sector (XLK) | -0.7% | 35.8% |
Fundamental Drivers
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Market Drivers
2/28/2025 to 3/27/2026| Return | Correlation | |
|---|---|---|
| FIG | ||
| Market (SPY) | 9.8% | 24.5% |
| Sector (XLK) | 15.9% | 27.0% |
Fundamental Drivers
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Market Drivers
2/28/2023 to 3/27/2026| Return | Correlation | |
|---|---|---|
| FIG | ||
| Market (SPY) | 69.4% | 24.5% |
| Sector (XLK) | 94.5% | 27.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FIG Return | - | - | - | - | -68% | -41% | -81% |
| Peers Return | 15% | -46% | 51% | 5% | -7% | -28% | -34% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -5% | 72% |
Monthly Win Rates [3] | |||||||
| FIG Win Rate | - | - | - | - | 17% | 33% | |
| Peers Win Rate | 60% | 27% | 63% | 53% | 45% | 13% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | |
Max Drawdowns [4] | |||||||
| FIG Max Drawdown | - | - | - | - | -71% | -44% | |
| Peers Max Drawdown | -19% | -53% | -7% | -22% | -25% | -31% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -5% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ADBE, MSFT, TEAM, ZM, ADSK.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 3/27/2026 (YTD)
How Low Can It Go
FIG has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -34.0% | -25.4% |
| % Gain to Breakeven | 51.6% | 34.1% |
| Time to Breakeven | 278 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -31.5% | -33.9% |
| % Gain to Breakeven | 46.0% | 51.3% |
| Time to Breakeven | 79 days | 148 days |
| 2018 Correction | ||
| % Loss | -24.1% | -19.8% |
| % Gain to Breakeven | 31.8% | 24.7% |
| Time to Breakeven | 105 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -53.6% | -56.8% |
| % Gain to Breakeven | 115.3% | 131.3% |
| Time to Breakeven | 1,183 days | 1,480 days |
Compare to ADBE, MSFT, TEAM, ZM, ADSK
In The Past
SPDR Select Sector Fund's stock fell -34.0% during the 2022 Inflation Shock from a high on 12/27/2021. A -34.0% loss requires a 51.6% gain to breakeven.
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About Figma (FIG)
AI Analysis | Feedback
Figma is like:- Google Docs for digital product design and collaboration.
- The modern, collaborative Adobe for creating apps and websites.
- GitHub for visual design and prototyping of software.
AI Analysis | Feedback
- Collaborative Ideation and Whiteboarding: A core offering within the Figma platform that allows teams to collaboratively share and explore ideas and align on a vision for digital products.
- Digital Product Design and Prototyping: An AI-powered suite of tools within the Figma platform for visualizing concepts, designing user interfaces, and translating them into coded digital products.
AI Analysis | Feedback
Figma (FIG) primarily sells its software and services to other companies and organizations.
While Figma's customer base is very broad, encompassing 95% of the Fortune 500 and 78% of the Forbes Global 2000, the company's description highlights several prominent organizations whose digital products are created using Figma. These serve as examples of Figma's major customers:
- Google (Alphabet Inc.) (Symbol: GOOGL)
- Uber Technologies, Inc. (Symbol: UBER)
- JetBlue Airways Corporation (Symbol: JBLU)
- Netflix, Inc. (Symbol: NFLX)
- Duolingo, Inc. (Symbol: DUOL)
- LinkedIn (a subsidiary of Microsoft Corporation) (Symbol: MSFT)
- MercadoLibre, Inc. (Symbol: MELI)
- Airbnb, Inc. (Symbol: ABNB)
- Anthropic (Claude) (Private Company)
These companies represent a diverse range of industries, all leveraging Figma to develop their digital products and experiences.
AI Analysis | Feedback
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Dylan Field, CEO & Co-Founder
Dylan Field co-founded Figma in 2012 with Evan Wallace after receiving a Thiel Fellowship, which led him to drop out of Brown University. He previously interned at LinkedIn and Flipboard. Field is also an angel investor. Figma went public in July 2025. An attempted $20 billion acquisition of Figma by Adobe in 2022 was terminated in 2023 due to antitrust scrutiny from regulators.
Praveer Melwani, Chief Financial Officer
Praveer Melwani joined Figma in July 2017 as Head of Business Operations and Finance and was appointed Chief Financial Officer in March 2022. Prior to his time at Figma, Melwani held positions in Business Operations at NerdWallet and in Strategic Finance at Dropbox. He played a key role in preparing Figma for its initial public offering and navigating the period of the attempted Adobe acquisition.
Kris Rasmussen, Chief Technology Officer
As CTO, Kris Rasmussen is responsible for driving Figma's technology strategy, scaling engineering operations, and enhancing platform reliability. Before joining Figma, Rasmussen served as VP of Engineering and Technical Advisor at Asana and held significant engineering roles at other SaaS companies.
Sheila Joglekar Vashee, Chief Marketing Officer
Sheila Joglekar Vashee leads Figma's marketing efforts, including brand building, demand generation, and product marketing. She holds an MBA from Stanford Graduate School of Business. Her prior experience includes marketing leadership at Salesforce, and earlier roles at Google and Adobe. Vashee also serves as an advisor at Basis Set Ventures.
Yuhki Yamashita, Chief Product Officer
Yuhki Yamashita leads Figma's product team. Before joining Figma in 2019, he held product and design roles at Uber, where he was responsible for redesigning both the rider and driver applications. He also previously held product leadership positions at Medium and Adobe.
AI Analysis | Feedback
The key risks to Figma's business are:
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Dependence on continuous innovation and adaptation to rapidly evolving AI technologies: Figma's platform is described as "AI-powered," and the company explicitly states that "as AI makes software much easier to create," better-designed digital products become even more critical. This indicates that Figma's success is closely tied to its ability to continuously innovate and integrate cutting-edge AI advancements to maintain its competitive edge and relevance in the evolving landscape of software creation and design tools.
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Potential slowdown or reversal in digital transformation and the perceived importance of differentiated digital product design: Figma benefits from "organizations across industries and geographies continue to invest heavily in digital transformation" and the belief that "better-designed digital products and experiences have become even more critical." A decrease in the pace of global digital transformation or a shift in industry perception regarding the necessity of highly refined digital design (e.g., if simpler, AI-generated solutions become widely sufficient) could impact Figma's growth trajectory and market demand for its platform.
AI Analysis | Feedback
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AI Analysis | Feedback
Figma (symbol: FIG) estimates its total addressable market to be approximately $33 billion globally. This market encompasses various aspects beyond just design, including collaboration, workflow, presentation, marketing, and product operations.
AI Analysis | Feedback
Figma (symbol: FIG) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
- Advanced AI Integration and New Product Offerings: Figma's ongoing integration of artificial intelligence and the launch of new AI-powered products, such as Figma Make, are significant growth catalysts. Figma Make, which became generally available in July 2025, has been instrumental in accelerating business changes and increasing paid customer adoption. By the fourth quarter of 2025, weekly active users of Figma Make grew over 70% quarter-over-quarter, with more than half of its large customers (those with over $100,000 in Annual Recurring Revenue or ARR) utilizing it weekly. The company has also expanded its product portfolio to include Figma Draw, Figma Sites, and Figma Buzz, broadening its addressable use cases. Furthermore, the monetization of AI credits, which began in March 2026, is anticipated to contribute to revenue growth.
- Expansion of Customer Base and Increased Usage by Existing Customers: Figma is seeing consistent growth in its customer base and deeper engagement from existing users. The company added over 90,000 paid teams in Q2 and Q3 of 2025. Its net dollar retention (NDR) rate for paid customers spending over $10,000 in ARR rose to 136% in Q4 2025, indicating that existing customers are expanding their usage and spending more on the platform. A substantial portion of customers, over 70% by Q3 2025, are using three or more Figma products, and the company has seen a 27% quarter-over-quarter increase in multi-year customer deals in the same period. Figma estimates its total addressable market at $33 billion, highlighting significant untapped growth potential.
- International Market Expansion: International growth continues to be a strong driver for Figma. International revenue grew 45% year-over-year in Q4 2025, accounting for 54% of its quarterly revenue. Figma is making strategic global investments, including the planned opening of an India hub, and has expanded language support to include Korean and Brazilian Portuguese, broadening its accessibility and reach in diverse markets.
- Introduction of a Hybrid Monetization Model: Figma is transitioning its pricing structure to a hybrid model that monetizes both seats and credits, with AI consumption serving as a key meter. This shift from a purely seat-based model is expected to impact revenue positively, with the new pricing and packaging already contributing to full-year 2025 revenue growth. Beginning in March 2026, administrators can purchase AI credits through flexible subscription or pay-as-you-go options.
- Expansion into Broader Workflows and New User Personas: Figma's strategy extends beyond traditional design roles to encompass the entire software creation lifecycle, targeting developers, product managers, marketers, and other non-designers. Non-designers constituted two-thirds of Figma's 13 million monthly active users in March 2025. The company's Dev Mode facilitates the translation of designs into code, while new features like native Git integration, live code sync, and AI-generated design tokens are blurring the lines between design and development environments. The "Code to Canvas" integration with Anthropic's Claude models, launched in February 2026, further bridges the gap by allowing developers to push live code directly into Figma designs. Additionally, products like Figma Buzz are targeting brand and marketing teams, and Figma Slides is catering to product teams for presentations.
AI Analysis | Feedback
Share Issuance
- Figma completed its Initial Public Offering (IPO) on July 31, 2025, raising $1.2 billion by selling shares at $33 each.
- The company itself directly received $412.5 million from the IPO by offering 12.47 million new shares.
- A one-time stock-based compensation expense of $975.7 million was recognized in the third quarter of 2025, primarily due to the IPO.
Inbound Investments
- Figma raised $250 million in its Series E funding round in 2021, led by Durable Capital Partners, at a $10 billion valuation.
- In May 2024, a tender offer valued the company at $12.5 billion, with investors such as Fidelity participating.
- Figma received a $1 billion breakup fee from Adobe in December 2023 after their proposed acquisition was terminated due to regulatory pressure.
Outbound Investments
- Figma made strategic acquisitions, including Payload and Weavy, to bolster its platform capabilities.
Capital Expenditures
- In March 2025, Figma announced plans to invest nearly $15 million in the expansion of its New York City office.
- For fiscal year 2025, Figma reported capital expenditures of $734 thousand.
- The company also incurred capitalized internal-use software development costs of $700 thousand for fiscal year 2025.
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| 02282026 | BMI | Badger Meter | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 02282026 | VRNS | Varonis Systems | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 02272026 | ITRI | Itron | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 02272026 | FSLR | First Solar | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 02272026 | PEGA | Pegasystems | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
Research & Analysis
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 153.78 |
| Mkt Cap | 36.0 |
| Rev LTM | 6,483 |
| Op Inc LTM | 1,459 |
| FCF LTM | 2,150 |
| FCF 3Y Avg | 1,735 |
| CFO LTM | 2,221 |
| CFO 3Y Avg | 1,844 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 17.1% |
| Rev Chg 3Y Avg | 13.0% |
| Rev Chg Q | 18.1% |
| QoQ Delta Rev Chg LTM | 4.3% |
| Op Mgn LTM | 24.0% |
| Op Mgn 3Y Avg | 20.0% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 37.4% |
| CFO/Rev 3Y Avg | 39.3% |
| FCF/Rev LTM | 29.2% |
| FCF/Rev 3Y Avg | 27.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 36.0 |
| P/S | 5.8 |
| P/EBIT | 14.1 |
| P/E | 12.7 |
| P/CFO | 14.7 |
| Total Yield | 3.9% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.8% |
| D/E | 0.0 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -10.0% |
| 3M Rtn | -30.2% |
| 6M Rtn | -32.4% |
| 12M Rtn | -27.8% |
| 3Y Rtn | -11.9% |
| 1M Excs Rtn | -2.4% |
| 3M Excs Rtn | -22.0% |
| 6M Excs Rtn | -27.9% |
| 12M Excs Rtn | -39.6% |
| 3Y Excs Rtn | -72.8% |
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/18/2026 | 6.9% | 29.1% | 0.1% |
| 9/3/2025 | -19.9% | -25.1% | -23.8% |
| SUMMARY STATS | |||
| # Positive | 1 | 1 | 1 |
| # Negative | 1 | 1 | 1 |
| Median Positive | 6.9% | 29.1% | 0.1% |
| Median Negative | -19.9% | -25.1% | -23.8% |
| Max Positive | 6.9% | 29.1% | 0.1% |
| Max Negative | -19.9% | -25.1% | -23.8% |
Recent Forward Guidance [BETA]
Latest: Q4 2025 Earnings Reported 2/18/2026 | Prior: Q3 2025 Earnings Reported 11/5/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 315.00 Mil | 316.00 Mil | 317.00 Mil | 7.8% | Higher New | Guidance: 293.00 Mil for Q4 2025 | |
| 2026 Revenue | 1.37 Bil | 1.37 Bil | 1.37 Bil | 31.1% | Higher New | Guidance: 1.04 Bil for 2025 | |
| 2026 Non-GAAP Operating Income | 100.00 Mil | 105.00 Mil | 110.00 Mil | -8.3% | Lower New | Guidance: 114.50 Mil for 2025 | |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Herb, Tyler | Chief Accounting Officer | Direct | Sell | 1062026 | 37.21 | 2,408 | 89,597 | 7,478,709 | Form |
| 2 | Herb, Tyler | Chief Accounting Officer | Direct | Sell | 1062026 | 37.15 | 2,840 | 105,519 | 7,362,446 | Form |
| 3 | Voskanian, Shaunt | Chief Revenue Officer | Direct | Sell | 1062026 | 37.21 | 3,933 | 146,338 | 59,569,975 | Form |
| 4 | Voskanian, Shaunt | Chief Revenue Officer | Direct | Sell | 1062026 | 37.24 | 8,449 | 314,664 | 59,311,456 | Form |
| 5 | Rasmussen, Kris | Chief Technology Officer | Direct | Sell | 1062026 | 37.21 | 14,252 | 530,285 | 404,820,255 | Form |
External Quote Links
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