Figma (NYSE:FIG) Releases Quarterly Earnings Results, Beats Expectations By $0.32 EPS

Figma (NYSE:FIG) posted its quarterly earnings data on Wednesday. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.32, FiscalAI reports. The business had revenue of $391.42 million during the quarter. Figma had a negative return on equity of 100.03% and a negative net margin of 123.15%. The business’s revenue for the quarter was up 42.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.10 earnings per share.

Here are the key takeaways from Figma’s conference call:

• Q3 revenue was $391 million, up 43% year over year and $16 million above the high end of guidance. Net dollar retention was 131% for the fifth consecutive quarter above 130%, and customers with more than $10,000 in ARR represented nearly 70% of ARR.
• AI adoption and usage grew: the MCP server reached about 1 million weekly active users, with usage up 3x quarter over quarter, while paid AI credit consumption increased 2.5x through the Agent’s launch. Figma also cited large customers increasing AI credit commitments by roughly 6x to 8x, though these are early examples presented by management.
• Figma raised its full-year revenue outlook to $1.497 billion–$1.499 billion and non-GAAP operating income outlook to $158 million–$163 million. Q4 revenue is expected to be $402 million–$404 million, or 33% growth at the midpoint.
• Management said pricing and packaging changes are encouraging higher AI usage, but revenue conversion may take time; the changes could also weigh on near-term net dollar retention. The effects of earlier pricing changes are expected to continue flowing through results until Q1 2027.
• Non-GAAP gross margin fell three percentage points sequentially to 82%, partly because Figma covered Agent inference costs ahead of its general launch; operating margin was 12%. Management is prioritizing long-term profit dollars over near-term margins while working to reduce AI serving costs.

Figma Stock Performance

Shares of FIG stock traded down $3.48 during trading hours on Thursday, hitting $18.65. 20,026,757 shares of the company were exchanged, compared to its average volume of 16,761,037. The firm has a market cap of $8.49 billion, a P/E ratio of -5.12 and a beta of 1.17. Figma has a fifty-two week low of $16.60 and a fifty-two week high of $46.79. The company has a 50 day simple moving average of $23.03 and a two-hundred day simple moving average of $23.06.

Insider Activity at Figma

In other Figma news, General Counsel Brendan Mulligan sold 211,599 shares of Figma stock in a transaction on Friday, August 28th. The shares were sold at an average price of $29.79, for a total value of $6,303,534.21. Following the completion of the sale, the general counsel directly owned 727,952 shares of the company’s stock, valued at approximately $21,685,690.08. The trade was a 22.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Lynn Vojvodich Radakovich sold 20,266 shares of Figma stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $22.63, for a total transaction of $458,619.58. Following the completion of the sale, the director directly owned 84,809 shares of the company’s stock, valued at approximately $1,919,227.67. This trade represents a 19.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 393,296 shares of company stock worth $10,858,069 over the last ninety days. 32.26% of the stock is owned by corporate insiders.

Institutional Trading of Figma

Large investors have recently made changes to their positions in the company. Torrey Growth & Income Advisors raised its position in Figma by 1.3% in the 3rd quarter. Torrey Growth & Income Advisors now owns 105,781 shares of the company’s stock valued at $2,238,000 after buying an additional 1,355 shares during the last quarter. Fulcrum Asset Management LLP purchased a new position in Figma during the 3rd quarter worth $2,510,000. Allspring Global Investments Holdings LLC purchased a new position in Figma during the 3rd quarter worth $215,000. J. Derek Lewis & Associates Inc. bought a new stake in shares of Figma in the 3rd quarter worth $238,000. Finally, Pictet Asset Management Holding SA grew its stake in shares of Figma by 26,445.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 3,072,370 shares of the company’s stock worth $64,581,000 after acquiring an additional 3,060,796 shares in the last quarter.

Figma News Summary

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Q3 revenue rose 42.8% year over year to $391.4 million, and earnings beat expectations. Figma also forecast Q4 revenue of $402 million to $404 million and raised its 2026 revenue outlook to $1.497 billion–$1.499 billion. Figma forecasts Q4 revenue and raises 2026 outlook
• Positive Sentiment: Figma said repricing AI credit add-ons helped increase user utilization by 40%, indicating stronger engagement and a potential route to monetizing AI features. Figma: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Figma plans to rely on its own design model as it develops AI products and seeks to improve margins; the payoff depends on execution and the economics of delivering those tools. Figma banking on AI credits and in-house model to lift margins
• Negative Sentiment: Investors are concerned that AI features and development are expensive. Those costs could pressure margins, tempering the upbeat revenue growth and guidance and helping explain why shares fell after the earnings release. Figma’s stock falls as investors worry that AI momentum is coming at a high price

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Telsey Advisory Group initiated coverage on Figma in a research note on Monday. They issued a “hold” rating for the company. Citigroup lowered their price objective on Figma from $37.00 to $35.00 and set a “buy” rating for the company in a research report on Wednesday, October 28th. Bank of America lifted their price objective on Figma from $30.00 to $33.00 and gave the stock a “buy” rating in a research note on Wednesday, August 19th. Weiss Ratings upgraded Figma from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 6th. Finally, Morgan Stanley set a $33.00 target price on shares of Figma in a research report on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $30.50.

About Figma

Figma, Inc (NYSE: FIG) develops collaborative software for designing digital products and user experiences. Its browser-based platform enables teams to create, prototype, review and manage designs in real time, supporting collaboration among designers, developers, product managers and other stakeholders.

The company’s product portfolio includes Figma Design, a collaborative interface-design and prototyping tool; FigJam, an online whiteboard for brainstorming and planning; and Dev Mode, which helps developers inspect designs and translate them into software.