Figma Q4 Revenue reached $303.8 million in the fourth quarter of 2025, representing a 40% year-over-year increase and the strongest quarterly performance in the company’s history. The results capped a milestone fiscal year in which total revenue climbed to approximately $1.06 billion, marking a 41% annual increase and solidifying the company’s position as one of the fastest-growing collaboration software platforms globally.
While the company recorded a GAAP net loss, largely attributed to stock-based compensation and continued investment in growth initiatives, its adjusted performance reflected operational strength. Non-GAAP operating income reached $44 million in the fourth quarter, representing a 14% operating margin. Adjusted free cash flow stood at $38.5 million, accounting for 13% of quarterly revenue, a sign that Figma continues to generate healthy cash even as it scales aggressively.
Enterprise demand remained a key growth driver following the strong Figma Q4 Revenue results. The company’s Net Dollar Retention Rate rose to 136%, indicating that existing customers are expanding their usage of Figma’s tools. The company also reported significant growth in adoption of its AI-powered offerings, particularly Figma Make, which saw weekly active users increase more than 70% quarter over quarter.
AI Expansion and Product Diversification Drive Strategy
Throughout 2025, Figma accelerated its transformation from a core design tool into a broader product development ecosystem. The company expanded its portfolio to eight products, embedding AI capabilities deeper into its platform. Tools like Figma Make enable users to convert text prompts into interactive designs and prototypes, signaling a shift toward AI-assisted creative workflows.
Leadership emphasized that artificial intelligence is central to the company’s long-term roadmap. Figma integrated advanced AI models and expanded interoperability with widely used product management and developer platforms, aiming to streamline collaboration between designers, engineers, and product teams.
However, these investments are expected to impact margins in the near term. For fiscal 2026, Figma projects non-GAAP operating margins of roughly 8%, down from 14% in Q4 2025, following the strong Figma Q4 Revenue performance. The company attributes this anticipated compression to higher AI infrastructure costs and continued spending on sales and marketing initiatives. Executives described the spending as a strategic move to capture long-term market opportunity rather than a sign of weakening fundamentals.
Optimistic 2026 Outlook Boosts Investor Confidence
Looking ahead, Figma forecasts full-year 2026 revenue between $1.366 billion and $1.374 billion, implying approximately 30% year-over-year growth at the midpoint. For the first quarter of 2026, revenue is expected to land between $315 million and $317 million, reflecting sustained demand momentum across enterprise and mid-market segments.
The forward guidance exceeded market expectations, reinforcing confidence in the company’s expansion strategy. Shares rose in after-hours trading following the earnings release, signaling improved investor sentiment after a volatile period for technology stocks.
Despite competitive pressures in the design software market, Figma’s expanding enterprise footprint, strong customer retention metrics, and accelerating AI adoption position it favorably for continued growth. The company’s ability to balance innovation with disciplined cash generation will likely remain a focal point for investors as it builds on the momentum of its record Figma Q4 Revenue performance and navigates the evolving SaaS landscape.
With record revenue, expanding product capabilities, and ambitious 2026 projections, Figma enters the new fiscal year aiming to strengthen its role as a central platform for collaborative digital creation worldwide.
