One-time Adobe (ADBE) buyout target Figma (FIG) staged one of its biggest rallies since listing after stronger‑than‑expected Q4 2025 results and robust guidance that surpassed Wall Street expectations.
The design‑software firm’s shares surged 13%+ pre-market after posting Q4 revenue growth of 40% and earnings that smashed analyst projections by a third. EPS came in at $0.08 on $303.8 million revenue.
Source: Figma
Rampant demand
Figma reckons the performance is thanks to rising adoption of its platform and growing integration of AI tools across its customer base. Investors were also lured in by Figma’s upbeat guidance.
| Figma (FIG) | Price: $24.29 (+13%) | Market cap: $13.60bn |
For Q1 2026, the company anticipates revenue between $315 million-$317 million, significantly higher than the Street’s $292.5 million projections. For full year 2026, Figma estimates revenue in the $1.366 billion–$1.374 billion ballpark, outpacing the analyst consensus of $1.286 billion.
Source: Figma
‘2025 was a huge year for Figma, and the fourth quarter marked our strongest results to date’, said CEO and co‑founder Dylan Field. ‘Our accelerating momentum in both revenue and customer growth heading into 2026 highlights the importance of design and Figma’s core role in the product development ecosystem.’
Widening AI ecosystem
The company’s Net Dollar Retention Rate rose to 136%, signalling continued expansion among existing customers. Figma now counts 13,861 customers generating over $10,000 in annual recurring revenue (ARR). Of those, 1,405 exceed $100,000 ARR, and 67 bring in more than $1 million annually.
Figma’s AI strides also seem to be paying off. Weekly active users of Figma Make climbed more than 70% quarter‑on‑quarter, buoyed by new AI features and collaborations with Anthropic and OpenAI. The company also broadened its global footprint with the opening of a new office in Bengaluru, India.
Source: Figma
Despite its strong topline performance, Figma posted a GAAP net loss of $226.6 million for the quarter. Still, the company generated positive adjusted free cash flow of $38.5 million, representing a 13% margin.
Adobe abandoned its $20 billion buyout of Figma in December 2023 after ani-trust regulators raised concerns. It IPO’d in July last year at $33 per share for a $60 billion+ market cap.
That said, several analysts see compelling long-term fundamentals, with Goldman Sachs recently citing a multi-year opportunity to deepen wallet share within large accounts, expand into adjacent workflows, and capture new revenue streams from AI through Figma Make.
But for now, this is a high-risk stock that needs time to grow into its valuation. Data shows the stock on a triple-digit 12-month rolling PE, with limited short-term fundamental attractions.
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