Summary
Figma closed fiscal 2025 with fourth quarter revenue of $303.8 million, up 40% from the prior year quarter. Full year revenue reached $1.056 billion, up 41%. The fourth quarter stood out for platform adoption. Net Dollar Retention Rate rose to 136% as of December 31, 2025. The company ended the year with 13,861 Paid Customers with more than $10,000 in ARR, 1,405 Paid Customers with more than $100,000 in ARR, and 67 Paid Customers with more than $1,000,000 in ARR. Figma Make became a larger part of the story. Weekly active users of Figma Make grew over 70% quarter-over-quarter. Over half of Paid Customers with more than $100,000 in ARR built in Figma Make weekly during the quarter, and more than 80% of Figma Make weekly active users on Full seats also used Figma Design. Those figures point to AI workflows pulling users deeper into the platform.
Profitability under GAAP moved sharply lower. Fourth quarter gross margin was 82.1%, down 10.3 percentage points from the prior year quarter. Full year gross margin was 82.4%, down 5.9 percentage points. GAAP operating loss was $195.5 million in the quarter, a swing from operating income in the prior year quarter. GAAP operating margin was -64.4%, down 88.2 percentage points. The full year GAAP operating loss widened to $1.29 billion, and full year GAAP operating margin was -122.2%, down 5.1 percentage points. GAAP net loss was $226.6 million for the quarter, a swing from a profit in the prior year quarter. For the full year, GAAP net loss widened to $1.25 billion, and diluted loss per share was $3.71, an improvement from the prior year. Non-GAAP results looked different. Fourth quarter non-GAAP operating income was $44.0 million, with a 14% non-GAAP operating margin. Non-GAAP net income was $43.0 million, or $0.08 per share basic and diluted. Full year non-GAAP operating income was $129.5 million, with a 12% non-GAAP operating margin, and non-GAAP net income was $166.8 million.
Cash generation held up on a full year basis but slowed in the quarter. Fourth quarter operating cash flow was $39.9 million, down 45.4% from the prior year quarter. Full year operating cash flow was $250.7 million, up from the prior year. Adjusted Free Cash Flow was $38.5 million in the fourth quarter and $242.7 million for the full year. Deferred revenue rose to $595.3 million as of December 31, 2025, up 56.1% from a year earlier. Remaining performance obligations stood at $647.9 million. Those balances suggest customers continued to commit to the platform despite the GAAP losses.
Guidance puts the focus on 2026. For the first quarter of 2026, Figma guided revenue to between $315.0 million and $317.0 million, implying 38% year-over-year growth at the midpoint of the range. For the full fiscal year 2026, the company guided revenue to between $1.366 billion and $1.374 billion, implying 30% year-over-year growth at the midpoint, and non-GAAP operating income to between $100.0 million and $110.0 million. Management continued to point to AI as a central investment area. The MD&A warned that AI investments and use of AI technologies, including spend on AI inference and model training, will affect cost of revenue, research and development expenses, and sales and marketing expenses, and are expected to negatively impact gross margins and operating margins. The longer term impact remains unknown. Figma also plans to enforce AI credit limits and roll out additional AI credit subscription or pay-as-you-go options starting in March 2026. Liquidity and capital needs remain a risk. The company states it may require additional capital to fund its business and support growth, and any inability to raise capital when desired and at reasonable rates could adversely affect its business, operating results, and financial condition. The Revolving Credit Facility has a $500.0 million capacity and a covenant requiring Liquidity of not less than $100.0 million as of the last day of each fiscal quarter. Those are the main guardrails around the growth story.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $303.8M | $274.2M | +10.8% | — | — |
| Gross profit | $249.5M | $190.3M | +31.1% | — | — |
| Gross margin | 82.1% | 69.4% | +12.7 pp | — | — |
| Research & development | $195.8M | $680.9M | -71.2% | — | — |
| Sales & marketing | $134.2M | $274.8M | -51.2% | — | — |
| General & administrative | $114.9M | $371.4M | -69.1% | — | — |
| Total operating expenses | $445.0M | $1.33B | -66.5% | — | — |
| Operating income (loss) | -$195.5M | -$1.14B | +82.8% | — | — |
| Operating margin | -64.4% | -414.6% | +350.3 pp | — | — |
| Net income (loss) | -$226.6M | -$1.10B | +79.3% | — | — |
| Net margin | -74.6% | -400.1% | +325.5 pp | — | — |
| Diluted EPS | -$0.67 | -$2.72 | +$2.05 | — | — |
Risks
AI developments may reduce demand for Figma's platform, lower switching costs, and let competitors build design-to-code or prompt-to-product tools faster; the filing states AI investments and use of AI technologies, including Figma Make, are expected to negatively impact gross margins and operating margins in the short term, and gross margin was 82.1% in FY2025 Q4, down 10.3 pp from 92.4% in FY2024 Q4.
Figma implemented significant pricing, packaging, and billing changes in March 2025 and plans to enforce AI credit limits starting in March 2026, with customers able to buy additional AI credit subscriptions or opt into pay-as-you-go; customers may curtail or stop using AI features, and credit-based billing increases disputes, refunds, and revenue recognition complexity.
As Figma sells to larger organizations, more extensive internal approval requirements and March 2025 administrator controls may delay or prevent organic seat expansion; the filing states Net Dollar Retention Rate is expected to fluctuate or decline in the future.
Figma faces intense competition from larger companies with greater resources, point tools, design-to-code and AI-driven tools, and bundled software suites; competitors may offer lower pricing or bundle competing products for free, which could reduce sales, lower margins, or cause loss of market share.
Figma relies on third-party foundational model providers for AI features; if providers impose usage restrictions, experience outages, or face capacity constraints, AI features may be delayed, degraded, or unavailable, and the company may be unable to secure access on commercially reasonable terms.
Figma reported a net loss of $1.25 billion for FY2025, an operating loss of $1.29 billion, and operating margin of -122.2% for FY2025, down 5.1 pp from -117.1% in FY2024; stock-based compensation expense was $1.36 billion for FY2025, and AI investments are expected to continue pressuring margins.
The extended lock-up agreement with holders of approximately 54.1% of Class A common stock provides for releases, including 17.5% released on November 7, 2025, 20% expected on February 20, 2026, and further releases after March 31, 2026 and June 30, 2026 earnings; sales of substantial shares could cause the market price of Class A common stock to decline.
The filing highlights risks from trade barriers, tariffs, protectionist measures, volatile interest rates, inflation, global banking issues, labor shortages, supply chain disruptions, and geopolitical instability, any of which could reduce software spending and impact Figma's growth.
Figma's headcount grew from 1,577 employees as of December 31, 2024 to 1,886 as of December 31, 2025, straining management, operational, engineering, and financial resources; rapid development cycles have created technical debt, and the company has experienced credential sharing, abuse of education offerings, credit card fraud, bad debt, and chargebacks.
Figma has experienced credential sharing, abuse of Figma for Education offerings, credit card fraud, and other misuse that resulted in bad debt, chargebacks, or losses; such incidents may increase in scale or frequency as the company grows.
AI regulation is rapidly evolving, including the EU AI Act and U.S. state laws on automated decision-making and high-risk AI; Figma may face enforcement, litigation, and compliance costs, and existing litigation alleges breach of contract and related claims regarding use of user data in AI training.
Figma holds Bitcoin and a Bitcoin exchange traded fund, and changes in market value of these investments can cause volatility in other income, net; other income, net decreased 23% for FY2025 compared to FY2024, partly due to a $25.0 million change in fair value of equity securities.
Credit-based, usage-based, or outcome-based billing may increase complexity in measuring usage, applying revenue recognition guidance, estimating variable consideration, and accounting for unused credits; higher credits, refunds, disputes, or price concessions could adversely affect reported revenue, deferred revenue, and operating cash flows.
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
Operating Cash Flow Margin
Summary, forecast, risks and KPIs are extracted from Figma, Inc.'s SEC filings for Q4 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.