Summary
Figma reported third-quarter revenue of $274.2 million, up 38.0% from the prior-year quarter. Year-to-date revenue was $752.0 million, up 41.3%. The company said the quarter crossed a $1.0 billion annual revenue run rate. Growth came from new Paid Customers. Paid Customers with more than $10,000 in ARR reached 12,910, and those with more than $100,000 in ARR reached 1,262. Figma added over 1,000 customers in the first group and over 140 in the second during the quarter. Net Dollar Retention Rate for customers with ARR of $10,000 or more was 131%, up 2 percentage points quarter-over-quarter.
GAAP results were deeply affected by IPO-related stock-based compensation. Gross profit was $190.3 million for the quarter, up 5.8% from the prior-year quarter. Year-to-date gross profit was $620.8 million, up 34.7%. Gross margin was 69.4%, down 21.2 percentage points from the prior-year quarter. Year-to-date gross margin was 82.6%, down 4.1 percentage points. The operating loss was $1.14 billion for the quarter, and the loss widened from the prior-year quarter. The year-to-date operating loss was $1.09 billion, and the loss widened from the prior-year period. Net loss was $1.10 billion for the quarter, and the loss widened from the prior-year quarter. Year-to-date net loss was $1.02 billion, and the loss widened from the prior-year period. Diluted EPS was negative $2.72 for the quarter, and the loss widened from the prior-year quarter. Year-to-date diluted EPS was negative $3.68, and the loss narrowed from the prior-year period. GAAP operating margin was negative 414.6%, down 390.8 percentage points from the prior-year quarter. Year-to-date operating margin was negative 145.6%, up 29.0 percentage points.
Deferred revenue was $473.57 million, up 46.0% from the prior-year quarter. Remaining performance obligations were $517.20 million. Non-GAAP operating income was $34.0 million, and non-GAAP operating margin was 12%. Non-GAAP net income was $62.4 million. Non-GAAP net income per share was $0.11 basic and $0.10 diluted. Operating cash flow was $51.2 million for the quarter, down 16.9% from the prior-year quarter. Year-to-date operating cash flow was $210.8 million, up 256.4% from the prior-year period. Capital expenditures were $1.70 million for the quarter, up 312.1%. Year-to-date capital expenditures were $3.71 million, up 182.1%. Adjusted Free Cash Flow was $49.0 million, and Adjusted Free Cash Flow Margin was 18%. Operating cash flow margin was 19%.
Figma launched over 50 new features during the quarter. It partnered with OpenAI to launch the Figma App for ChatGPT. The company acquired Weavy, which became Figma Weave. Loredana Crisan joined as Chief Design Officer. Management said AI products such as Figma Make and the MCP server are spreading Figma to new teams and audiences. The company also published research on shifting product development roles.
For the fourth quarter of 2025, Figma guided revenue to between $292.0 million and $294.0 million, implying 35% year-over-year growth at the midpoint. For full-year 2025, the company guided revenue to between $1.044 billion and $1.046 billion, implying 40% year-over-year growth at the midpoint, and non-GAAP operating income to between $112.0 million and $117.0 million. The company expects AI investments to affect its cost structure. It said AI spending on inference and model training should pressure gross margin and operating margin in the short term. It also expects cost of revenue and operating expenses to increase in absolute dollars. Figma maintains a full valuation allowance on its federal, state, and foreign deferred tax assets. Its revolving credit facility includes a liquidity covenant of at least $100 million as of the last day of each fiscal quarter. The company also flagged risks around additional capital needs and market adoption of its products.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $274.2M | $249.6M | +9.8% | — | — |
| Gross profit | $190.3M | $221.8M | -14.2% | — | — |
| Gross margin | 69.4% | 88.8% | -19.4 pp | — | — |
| Research & development | $680.9M | $83.1M | +719.8% | — | — |
| Sales & marketing | $274.8M | $97.7M | +181.2% | — | — |
| General & administrative | $371.4M | $38.9M | +854.3% | — | — |
| Total operating expenses | $1.33B | $219.7M | +504.1% | — | — |
| Operating income (loss) | -$1.14B | $2.1M | -54858.2% | — | — |
| Operating margin | -414.6% | 0.8% | -415.4 pp | — | — |
| Net income (loss) | -$1.10B | $28.2M | -3986.4% | — | — |
| Net margin | -400.1% | 11.3% | -411.4 pp | — | — |
| Diluted EPS | -$2.72 | $0.00 | -$2.72 | — | — |
| Net retention rate | 129.0% | — | — | — | — |
Risks
AI developments may reduce demand for Figma by lowering the cost for competitors to build design tools, reducing the number of designers and developers who need seats, or making parts of the platform obsolete. MD&A states AI inference and model training costs are expected to negatively impact gross margins and operating margins, and gross margin declined to 69.4% in FY2025 Q3 from 90.6% in FY2024 Q3.
In March 2025 Figma moved away from user-driven seat upgrades, required administrator approval before provisioning, introduced multi-product seats, and increased the price of its Full seat. The filing says these changes may inhibit seat upgrades, cause customer dissatisfaction, and make forecasting and period comparisons less meaningful.
The IPO triggered a one-time cumulative stock-based compensation expense of $975.7 million for vested RSUs and $411.4 million of related tax withholding paid in FY2025 Q3. Operating loss widened to $1.14 billion in FY2025 Q3 from $47.3 million in FY2024 Q3, and net loss widened to $1.10 billion from $15.6 million.
The IPO lock-up period is expected to expire at the commencement of trading on November 7, 2025, releasing 17.5% of Extended Lock-Up Holders' shares, about 38.9 million shares, with further tranches tied to FY2025 and Q1/Q2 2026 earnings. Sales or the perception of sales could cause the market price of Class A common stock to fall.
Figma faces intense competition from larger companies with greater resources, point tools, design-to-code and AI-driven companies, and customers' internal solutions. Pricing pressures and increased competition could result in reduced sales, lower margins, or loss of market share.
The EU AI Act entered into force in August 2024, with most substantive requirements applying from August 2, 2026, and fines for breaches of up to 7% of worldwide annual revenues. California enacted seventeen AI laws in 2024, and Colorado and Utah have also passed AI-focused legislation, increasing compliance costs and potential civil claims.
Figma generally relies on third-party models for AI features and cannot control their availability or pricing. If those technologies become incompatible, unavailable, or offered on unfavorable terms, the platform may become less appealing and business could be harmed.
Weak global or regional economic conditions, changes in U.S. federal spending, tariffs, trade restrictions, and the ongoing U.S. federal government shutdown could result in longer sales cycles, pressure to lower prices, reduced sales, or slower growth. Figma previously experienced longer sales cycles and downsizing of renewals by larger enterprise customers in 2023.
Figma has experienced credential sharing, abuse of Figma for Education offerings, credit card fraud, and other misuse that resulted in bad debt, chargebacks, or other losses. Such incidents may increase as the company grows and could harm business and operating results.
Figma's 2022 agreement to be acquired by Adobe was terminated in 2023 after the companies jointly assessed there was no clear path to obtain required regulatory approvals. Future acquisitions or strategic investments may divert management, dilute stockholders, and expose Figma to integration, security, and accounting risks.
Figma invests excess cash in marketable securities including a Bitcoin exchange traded fund, and other income, net increased 64% in FY2025 Q3 compared to FY2024 Q3 partly due to a $4.9 million increase in net unrealized gains on equity securities. The value of these investments may decline due to market volatility and could adversely affect financial condition.
Rapid growth and expansion have created technical debt within the platform, and addressing it requires engineering resources that could otherwise be devoted to new features. Failure to manage technical debt may cause platform performance to suffer, increased downtime, and harm business.
SaaS KPIs
All quarters →Free Cash Flow Margin
Net Dollar Retention Rate
Free Cash Flow
Non-GAAP Operating Margin
Paid Customers with more than $10,000 in ARR
Paid Customers with more than $100,000 in ARR
Adjusted Free Cash Flow Margin
Non-GAAP Operating Income
Operating Cash Flow Margin
Summary, forecast, risks and KPIs are extracted from Figma, Inc.'s SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.