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Figma, Inc. announced its second quarter 2025 financial results, showcasing a 41% year-over-year revenue increase to $249.6 million, driven by new AI-powered products and strong customer retention. The results, reported on September 3, 2025, highlight Figma’s leadership in the collaborative design software market.
Revenue: $249.6M, up 41% YoY.
Net Income: GAAP at $28.2M, non-GAAP at $19.8M.
Gross Margin: GAAP at 90% (per earnings call transcript).
Operating Income: GAAP at $2.1M (1% margin), non-GAAP at $11.5M (5% margin).
Free Cash Flow: Adjusted free cash flow at $60.6M (24% margin).
Customer Metrics: 129% Net Dollar Retention Rate, 11,906 customers with >$10K ARR, 1,119 with >$100K ARR.
New Products: Launched Figma Make, Figma Draw, Figma Sites, and Figma Buzz.
Acquisitions: Closed Modyfi and Payload to enhance motion design and developer tools.
Figma reported record Q2 revenue of $249.6 million, a 41% increase from $177.2 million in Q2 2024, slightly surpassing analyst expectations of $248.8 million. GAAP operating income was $2.1 million (1% margin), with non-GAAP operating income at $11.5 million (5% margin). Net cash from operating activities reached $62.5 million (25% margin), and adjusted free cash flow was $60.6 million (24% margin). Net income stood at $28.2 million, compared to a $827.9 million loss in Q2 2024, with non-GAAP net income at $19.8 million. Cash, cash equivalents, and marketable securities totaled $1.6 billion as of June 30, 2025.
Figma’s growth was fueled by a 129% Net Dollar Retention Rate for customers with ARR of $10,000 or more, reflecting strong customer loyalty and expansion. The company had 11,906 paid customers with over $10,000 in ARR and 1,119 with over $100,000, a 42% YoY increase for the latter. Over 80% of customers used two or more products, and two-thirds used three or more, indicating deep platform adoption.
At its Config 2025 conference, Figma launched four AI-powered products:
Figma Make: AI-driven prototyping tool.
Figma Draw: Advanced vector illustration for richer visuals.
Figma Sites: Publishes designs as live websites.
Figma Buzz: Creates marketing assets with AI enhancements.
Figma also released the Dev Mode MCP server, integrating design systems into LLM-generated code to streamline developer workflows. The acquisitions of Modyfi (motion, animation, vector tooling) and Payload (headless CMS for developers) further expanded Figma’s capabilities.
CEO Dylan Field emphasized, “This was another strong quarter for Figma… Design is more important than ever, and we have so much more to build”. CFO Praveer Melwani added, “Our 129% Net Dollar Retention Rate also shows that our customers are continuing to deepen their investment in Figma’s platform”. Despite a 13.7% post-earnings stock drop due to margin concerns and an early lock-up expiration, Figma’s 95% Fortune 500 adoption and 40.65% market share underscore its dominance. However, competition from Adobe and Canva, along with AI investment costs, poses challenges.
Figma anticipates the Early Release Condition for 25% of employee-held shares will be met, allowing these shares to become eligible for sale on September 5, 2025. Additionally, an Extended Lock-Up Agreement with holders of 54.1% of Class A Common Stock restricts sales until staggered releases begin after Q3 2025 earnings, with full release by August 31, 2026.
For Q3 2025, Figma projects revenue of $263.0M-$265.0M (33% YoY growth). Full-year 2025 revenue is expected to be $1.021B-$1.025B (37% YoY growth), with non-GAAP operating income of $88.0M-$98.0M. Margin compression is anticipated due to AI investments, including Figma Make.
Figma’s Q2 2025 results and AI-driven product expansion solidify its position as a leader in collaborative design, with strong growth potential tempered by competitive and margin pressures.
Figma (NYSE: FIG), founded in 2012, is a connected, AI-powered platform that enables teams to ideate, design, build, and ship digital products collaboratively. Its tools, including Figma Make, Figma Draw, Figma Sites, and Figma Buzz, streamline the product development process.
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