Figma (FIG)
Market Price (12/4/2025): $37.6 | Market Cap: $15.2 BilSector: Information Technology | Industry: Application Software
Figma (FIG)
Market Price (12/4/2025): $37.6Market Cap: $15.2 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 43% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -1.0 Bil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -108% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28% | Expensive valuation multiplesP/SPrice/Sales ratio is 22x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 74x |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), and Collaborative Software. | 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 -8.9% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 43% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), and Collaborative Software. |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -1.0 Bil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -108% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 22x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 74x |
| 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 -8.9% |
Valuation, Metrics & Events
FIG Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
1. Initial Overvaluation and Subsequent Market Correction. Figma's stock experienced a significant decline following its mid-2025 IPO, with some analysts suggesting the initial valuation was overpriced and required a correction. Even after the substantial year-to-date performance dip, the stock's valuation was considered inflated by many measures.
2. Broader Tech Market Sell-Off and Macro-Economic Factors. A general sell-off among technology stocks and broader macro factors beyond the company's control contributed significantly to Figma's stock decline in 2025.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FIG Return | - | - | - | - | - | - | |
| Peers Return | 13% | -2% | -7% | 5% | 55% | 836% | 1483% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| FIG Win Rate | - | - | - | - | - | 0% | |
| Peers Win Rate | 13% | 10% | 9% | 30% | 44% | 36% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| FIG Max Drawdown | - | - | - | - | - | - | |
| Peers Max Drawdown | -5% | -4% | -8% | -15% | -8% | -51% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: ADSK, HIT, BMR, BTTC, CCC.
[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] 2025 data is for the year up to 12/3/2025 (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 | 1183 days | 1480 days |
Compare to
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.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
| Title | Topic | Date | |
|---|---|---|---|
| ARTICLES | |||
| Figma Stock Falls 55%: Deal or Falling Knife at $50? | October 2nd, 2025 | ||
| Lockup Jitters Tank Figma Stock. What’s Next? | September 4th, 2025 | ||
| Figma Stock Falls To $40? | August 18th, 2025 |
| Title | |
|---|---|
| DASHBOARDS |
Trade Ideas
Select past ideas related to FIG. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.9% | 0.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 0.8% | 0.0% |
| 11212025 | CRM | Salesforce | 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 | 3.3% | 3.3% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.1% | 5.1% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 4.0% | 4.0% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.9% | 0.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 0.8% | 0.0% |
| 11212025 | CRM | Salesforce | 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 | 3.3% | 3.3% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.1% | 5.1% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 4.0% | 4.0% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Figma
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 5.49 |
| Mkt Cap | 15.1 |
| Rev LTM | 969 |
| Op Inc LTM | 1 |
| FCF LTM | 262 |
| FCF 3Y Avg | 960 |
| CFO LTM | 297 |
| CFO 3Y Avg | 1,023 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 21.7% |
| Rev Chg 3Y Avg | 11.0% |
| Rev Chg Q | 27.6% |
| QoQ Delta Rev Chg LTM | 6.3% |
| Op Mgn LTM | 5.0% |
| Op Mgn 3Y Avg | 14.2% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 29.2% |
| CFO/Rev 3Y Avg | 29.9% |
| FCF/Rev LTM | 26.3% |
| FCF/Rev 3Y Avg | 26.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 15.1 |
| P/S | 10.0 |
| P/EBIT | 24.6 |
| P/E | 35.8 |
| P/CFO | 34.3 |
| Total Yield | 1.6% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 3.3% |
| D/E | 0.0 |
| Net D/E | -0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -12.8% |
| 3M Rtn | -32.6% |
| 6M Rtn | -14.5% |
| 12M Rtn | -12.3% |
| 3Y Rtn | 52.8% |
| 1M Excs Rtn | -12.7% |
| 3M Excs Rtn | -30.0% |
| 6M Excs Rtn | -29.2% |
| 12M Excs Rtn | -27.0% |
| 3Y Excs Rtn | -15.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 11052025 | 10-Q 9/30/2025 |
| 6302025 | 9032025 | 10-Q 6/30/2025 |
| 12312024 | 7312025 | 424B4 12/31/2024 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |