Figma's AI-powered software playbook delivers an earnings beat

By Christine Ji

Figma crossed $1 billion in annual revenue run rate in the third quarter as the design platform saw increased adoption

Figma beat Wall Street estimates and raised its full-year guidance.

Figma Inc.'s artificial-intelligence strategy is paying off. On Wednesday, the design-software company posted third-quarter results that solidly beat Wall Street expectations for revenue and earnings.

In the best quarter yet for Figma (FIG), the company crossed $1 billion in annual revenue run rate, according to the company's press release. The report marked Figma's second as a public company after it debuted through a stock offering in July.

Figma shares jumped nearly 5% in after-hours trading.

Revenue for the quarter grew 38% year over year to $274 million, exceeding FactSet consensus estimates of $264 million. Figma reported adjusted earnings of 10 cents per share, while analysts were expecting 5 cents per share.

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Figma has not shied away from aggressively investing in AI to create an interconnected platform of tools across the entire product development lifecycle.

"The platform approach is really resonating," Figma CEO and co-founder Dylan Field told MarketWatch. "New customers are coming into Figma, existing customers are growing with us and we're seeing a lot of companies and customers use many products across the platform."

Field highlighted the company's Figma Make product, an AI-powered tool that allows users to turn text prompts into functional prototypes and web apps. "We're seeing not just designers but also product managers, researchers and more come in and add their voice to the conversation," he said.

The platform approach has also been driving an increase in net dollar retention, meaning that existing customers are spending more on Figma relative to a year before. The net dollar retention rate for customers with annual recurring revenue of $10,000 or more was 131% in the third quarter, up from 129% last quarter.

Figma issued fourth-quarter revenue guidance in the range of $292 million to $294 million and also raised its full-year outlook to a range of $1.044 to $1.046 billion. Analysts were projecting $1.023 billion.

After an explosive initial public offering that saw shares of Figma rise 250% on the first trading day, the stock has come down sharply from its all-time high of $142.92. Shares ended Wednesday's session at $44.01.

When initiating coverage of Figma's stock in August, Goldman Sachs analyst Kash Rangan called Figma "a generational design tool poised to evolve into an end-to-end product development platform." However, he expressed caution due to limited visibility into future momentum, "particularly given the nascency of new products and AI."

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-Christine Ji

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11-05-25 2026ET