Figma, Inc. (FIG) Earnings & Analysis

Latest quarter

Figma reported Q3 FY2026 revenue of $391.4 million, up 42.8% from $274.2 million a year earlier and above its own guidance. The company attributed revenue growth primarily to adding and expanding paid customers.

Figma’s diluted loss per share narrowed to −$0.15 from −$2.72 a year earlier. Its gross margin rose to 80.3% from 69.4%, while its operating margin moved to −30.4% from −414.6%. The filing attributed reductions in several expense categories partly to lower stock-based compensation and related payroll taxes, following higher charges after the prior-year IPO.

The filing also reported higher technical infrastructure and hosting costs associated with AI and increased platform use by paid customers. Figma generated $41.5 million in free cash flow, compared with $44.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Dylan Field said teams were using Figma’s MCP server to connect AI tools to the platform, and that it was bringing in new teams. He said customers using the server expanded their full seats faster than those who did not. Field also described Code Layers, which brings code onto Figma’s visual canvas, as infrastructure the company plans to keep developing.

CFO Praveer Melwani said renewals, customer expansion and upgrades helped revenue exceed the company’s prior outlook. He said customers were increasing their use of AI credits after Figma repriced add-ons in August to include more credits. Figma also introduced drawdown arrangements that give its largest customers more flexibility in how they use those credits across the platform.

Asked about the trade-off between pricing changes and retention, Melwani said the changes could affect net dollar retention in the near term. He said customers often begin with smaller credit purchases and increase them over time. Field said the company’s outlook incorporated recent utilization and agent adoption, although revenue from increased consumption would take time to flow through.

On margins, Melwani said Figma had covered inference costs for its agent before general availability. He reported a Q3 non-GAAP gross margin of 82.0% and non-GAAP operating margin of 12.0%. In response to questions about margin, he said Figma was focused on growing gross and operating profit dollars and had served AI features more efficiently during the quarter.

Field said Figma was investing in its own models alongside third-party models. He described bringing design and code together as part of Figma’s strategy as coding models improve. Melwani said the company’s revised operating income outlook reflected Q3 performance, internal AI efficiencies and improvements in the cost of serving AI products.

Guidance

Figma expects Q4 FY2026 revenue of $402.0 million to $404.0 million. The company also raised its full-year revenue outlook.

For FY2026, Figma raised its non-GAAP operating income outlook to $158.0 million to $163.0 million, with a non-GAAP operating margin of 11.0%. Melwani said the operating income revision reflected Q3 results and AI-related efficiencies.