Figma reported a 46% year-over-year revenue growth in the first quarter of 2026, reaching $333.4 million, while its stock price has fallen about 87% from its peak in 2025. The company’s market capitalization dropped from nearly $68 billion at its IPO peak to around $10 billion this week, despite accelerating business performance and raised full-year guidance.
The company went public on July 31, 2025, at $33 per share, with the stock surging 250% on the first day to close at $115.50 and peaking at $142.92. Since then, the stock has declined steadily, trading near $19 recently. Figma’s revenue growth accelerated from 38% to 40% and then to 46% over the last three reported quarters. The company also reported a net dollar retention rate of 139% among paid customers with over $10,000 ARR, its highest in more than two years.
Figma’s strong financial metrics include 82% gross margins, $89 million in free cash flow representing a 27% margin, and $1.6 billion in cash on its balance sheet. The number of paid customers increased 54% to 690,000, with accounts paying over $100,000 annually rising 48% to 1,525. The company raised its full-year revenue guidance to between $1.422 billion and $1.428 billion, projecting about 35% growth at the midpoint, highlighting its position among high-growth B2B software firms.
Figma’s performance contrasts with many other software IPOs that have seen growth slow as stock prices fell. The company’s accelerating revenue growth and strong customer retention metrics underscore its resilience. The next quarterly earnings report, expected in mid-October 2026, will provide further insight into whether Figma can sustain this growth trajectory amid market volatility.