stockrowWhat it does
Figma sells software that helps teams turn ideas into digital products, such as websites and apps. Its browser-based platform gives designers, developers, product managers, marketers and other colleagues a shared place to explore ideas, make designs and prepare them for production. People can work in the same file at the same time, even when they are in different locations.
Figma Design is used to create mock-ups and prototypes, while Figma Draw provides tools for detailed vector editing. FigJam supports brainstorming and diagrams, and Figma Slides lets teams make presentations together. Dev Mode gives developers access to design details and code snippets as they translate designs into working software.
Figma also offers tools for other stages of the process. Figma Make turns text prompts or existing designs into prototypes or web apps. Figma Sites lets users publish websites, and Figma Buzz helps teams produce marketing materials from templates. Figma Weave combines AI models with editing tools for visual media. The products share content and can be extended through integrations and plugins.
Figma Agent helps users generate designs and automate tasks. Code Layers brings working code onto the design canvas, and Specs lets teams place written context alongside visual work. Figma’s Model Context Protocol server connects design information to other tools and AI agents.
Founded in 2012, Figma is headquartered in San Francisco. Co-founder Dylan Field is chief executive officer.
How it makes money
Figma primarily makes money from subscriptions. Customers can subscribe annually or monthly, paying for seats that give individual users access to different products and functions. The company sells directly through its website and through a sales team that sets up accounts, upgrades plans and expands existing relationships.
The free Starter plan lets people try Figma for personal projects. Paid plans add features for individuals, small teams and larger organizations. Professional includes unlimited files and projects; Organization adds centralized administration and security; and Enterprise offers capabilities for businesses managing multiple products or brands. Free education offerings are also available to eligible students and educators.
Seat types reflect what a person needs to do. Viewers can inspect files and comment for free, while other seats provide access to combinations of collaboration, content, developer and design products. A Full seat gives access to Figma’s main design and product-development tools. Sales can grow when an organization adds seats, moves to a different plan or purchases access to more products.
AI credits add another way to pay. Customers receive credits with their seats and can buy additional credit subscriptions or use pay-as-you-go when they exceed their included amount. Figma increased the credits included in add-ons in August 2026 while leaving seat allotments unchanged. Its largest customers can also use drawdown arrangements that allow credits to be consumed over a longer period. Code Layers, Figma Make and other AI features consume credits.
In Q3 2026, revenue was $391 million and net dollar retention was 131%. The retention measure tracks changes in annual recurring revenue from an existing group of paid customers with more than $10,000 in ARR, including expansion, contraction and churn.
Customers and how it sells
Figma serves independent freelancers, small teams and large organizations. Its users include designers, developers, product managers, researchers, marketers and writers. Customers operate across industries including banking, consumer-packaged goods, energy, manufacturing and software. Uber uses Figma Agent to help document design-system components, while Cox Automotive’s design, engineering and product teams use Code Layers to explore a dealer-facing customer relationship management product.
People can discover and purchase Figma through its self-service website. Direct sales teams also work with customers on new accounts, plan upgrades and expansion. Figma supports paid users in multiple languages and works with service partners that provide training and project support. It also offers education plans to eligible students and educators.
International revenue was $564.2 million in FY2025, or 53.4% of revenue. United States revenue was $491.5 million, or 46.6%. Figma maintains offices and staff across several countries and continues to invest in localization.
In Q3 2026, Figma added more than 600 paid customers with more than $10,000 in annual recurring revenue and more than 80 with more than $100,000. As of October 31, 65% of paid customers with more than $10,000 in ARR used Figma Agent weekly, and over 80% consumed AI credits weekly. A separately billed account is counted as a paid customer, so an organization with several separately billed teams can count more than once.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| International | $564.2 million | 53.4% | 44.8% |
| United States | $491.5 million | 46.6% | 36.8% |
Suppliers and costs
Figma relies on outside foundational AI models for features across its platform and is also investing in models of its own. Its AI features incur inference costs: the cost of running models to process users’ requests. Figma covered the inference cost of Figma Agent ahead of its general release. The company has since reduced the average cost per message across agent messages and increased the share of work powered by its own post-trained design model.
Figma invests in product development and the infrastructure supporting its browser-based platform. It also spends on sales and marketing, customer support, security, privacy and international operations. Its sales process includes salespeople, solutions consultants and developer and designer advocates. The company supplements its employees with contractors and consultants.
In Q3 2026, non-GAAP gross profit was $321 million and non-GAAP gross margin was 82%. Figma has identified potential decreases in gross and operating margins associated with AI-related products and features as a factor that can affect results. The company also continues to invest in acquisitions and integration of complementary technology and teams.
- Revenue$1.1B
- Cost of revenue−$185.5M
- Research and development−$1.0B
- Selling, general and administrative−$1.1B
- Operating income−$1.3B
Competitive position
Figma competes for work across the design and development of software. Its rivals include companies serving several stages of that process, specialized tools focused on individual tasks, design-to-code and AI-driven tools, and customized or internal solutions built by customers. Figma does not name individual competitors.
Customers can compare products on features, ease of use, collaboration, integrations, security, reliability and price. They can also choose broader software suites that bundle AI capabilities or tools that take users from a prompt to a finished product. Figma considers the size of a customer base, user adoption and an engaged community among the factors relevant to competition.
Our reading: Collaboration and shared design systems are a meaningful source of customer attachment because teams can build reusable components and work together in the same files. Their strength is not fixed: improved file conversion and automated recreation of design systems could make it easier to switch. [item1, item1a]
Our reading: Figma’s integrations and plugin ecosystem also support its position by connecting design work to other tools and workflows, although competing products can offer integrations too. [item1, item1a]
Our reading: The breadth of Figma’s platform gives it multiple ways to serve a product team, but specialized tools and AI-driven approaches challenge individual parts of that workflow. [item1]
Growth opportunities
Figma’s growth strategy includes converting free users to paid plans, adding users and products within existing customers, extending its platform and expanding internationally. Paid features such as shared libraries and custom workspaces address the needs of teams, while products such as Dev Mode and Figma Buzz serve developers and marketers. The company also intends to invest in localization and international operations.
AI is part of its product and revenue strategy. Figma Agent became generally available, and Code Layers rolled out to all users during the week of the Q3 2026 call. Figma is developing its own models alongside the third-party models it uses. From the start of Q3 through October 31, it more than doubled the share of work powered by its own post-trained design model.
The company is also extending connections between its platform and other software. Its MCP server lets agents and other tools access Figma context; Figma added capabilities to generate Code Layers and images and to move written context into Specs. In Q3, total MCP usage grew 3x quarter-over-quarter. Figma continues to support plugins and community resources that extend its products.
Acquisitions can add teams and technology. Payload expands Figma’s content-management capabilities, while Weavy, now Figma Weave, adds tools for AI-based media generation and editing. Figma expects AI monetization to become a more meaningful contributor to growth over time.
- $504.9MFY2023
- $749.0MFY2024
- $1.1BFY2025
- $1.5BFY2026 guidance
Structural risks
- AI and competition: Customers may buy broader software suites with bundled AI or choose other design-to-code and prompt-to-product tools. AI may also make it easier to convert files or recreate design systems, reducing switching costs.
- Seats and pricing: Organizations may need fewer designers, developers or collaborators as AI changes how products are built, leading them to purchase or renew fewer seats. A shift toward usage- or outcome-based billing could increase pricing pressure and reduce revenue predictability.
- AI costs: AI products and features may reduce gross and operating margins. Pricing and packaging changes can also affect results; Figma has acknowledged a potential near-term impact on net dollar retention from its credit changes.
- Customer adoption: Results depend on attracting customers, retaining them and increasing usage, as well as converting free users into subscribers. Customers’ budgets, purchasing practices and sales cycles can affect timing.
- Security and regulation: Security breaches, interruptions or technical difficulties could affect use of the platform. Figma processes personal data and is subject to privacy and security laws in the jurisdictions where it operates.
- Growth and integration: Figma’s past growth may not indicate future growth. It must develop and price products, hire and retain staff, expand sales capacity and integrate acquired businesses and technologies.
Bottom line
Our reading
Figma is a subscription software business built around shared design work, with AI credits adding a consumption-based revenue stream. Its products and integrations give teams several reasons to work on the same platform, while expansion within existing customers is important to growth. [item1, call_prepared]
The trade-off is exposure to changes in how AI software is bought and used: fewer seats, easier switching or higher inference costs could offset some benefits of wider AI adoption. [item1a, call_prepared]