Figma reported a 41% increase in revenue. Why did its shares collapse after the report?

Designer software developer Figma said in its first post-IPO report that it increased revenue by 41% for the quarter. However, the company failed to meet analysts' profit expectations. Figma share prices collapsed after the close of the main session.

Shares of the software developer for designers collapsed by 14% to $58.08 in extended trading on September 3 after the publication of the report for the second quarter of 2025. Quotes fell almost 50% from the closing price on July 31 - the first day of trading after the public offering. At that time they reached $115.5.

In the report, the company said it was able to increase revenue by 41% due to the influx of new clients and expansion of cooperation with existing clients. Revenue totaled $249.6 million, according to FactSet, which matched analysts ' consensus forecast, The Wall Street Journal reported.

Things are worse for profits. Figma earned $846,000 in net income attributable to shareholders for the quarter, which is effectively a zero result, the WSJ writes. Analysts were forecasting earnings of $0.09 per share. A year earlier, the company reported a loss of $827.9 million, or $4.39 per share. Then the report included $858.4 million in employee stock-based compensation expenses, the publication explains.

Figma offers a platform for collaborative design work, from websites and mobile apps to other digital products. According to CEO Dylan Field, demand is growing from large corporations, startups and SMBs alike. The company reported a 129% net customer retention rate, reflecting revenue growth from existing customers. In the first quarter, the figure was 132%, CNBC noted. The number of paying customers generating more than $10,000 in annual revenue increased 31% from last year. There were 42% more customers with annual revenue above $100,000.

Going forward, Figma will continue to invest in artificial intelligence: after launching several AI features in Q2, the company plans to monetize them in the long term.

"We believe: AI plays a key role in transforming the workflows of designers and developers. Our philosophy is that models should improve with us," Field emphasized.

Figma expects to generate revenue of just above $1.02 billion for the full fiscal year, up 37% from a year earlier and in line with analysts' estimates.

For the third quarter, the developer is forecasting revenue in the range of $263-265 million, which translates to growth of about 33%. Analysts expected $261.7 mln.

Now Figma securities, according to MarketWatch, are tracked by 11 analysts. Seven of them recommend holding the startup's shares in their portfolios (Hold), while four recommend buying (Buy). The Wall Street consensus price target is $75.6, up 11% from the closing price in Wednesday's main trading session.

This is the San Francisco-based startup's first quarterly report since its successful IPO in July. Figma's initial public offering was one of the most colorful IPOs of recent years: the shares were offered at $33 apiece, but more than tripled on the first day of trading and closed at $115.50. Since then, the stock has fallen significantly in price and by the evening of September 3 was trading around $66.85.

The lockup period, during which you can't sell shares after the IPO, for 25% of the company's employees will expire after the close of trading on Sept. 4. Holders of more than half of the outstanding Class A shares have agreed to extend the lockup, with the remaining 35% of the securities not being unlocked until August 2026, CNBC writes.

This article was AI-translated and verified by a human editor