Figma (NYSE:FIG) shares fell more than 18% at Thursday’s open after the design software company reported second-quarter results that met market expectations but did little to alleviate worries over its high valuation.
The company posted revenue of $249.6 million for the quarter ended July, up 41% from the prior year, with operating income of $11.5 million and an operating margin of 4.6%. Figma reaffirmed its full-year guidance of $1.02 billion in revenue and $92 million in operating income, equal to a 9.0% margin. These figures matched preliminary results issued earlier and consensus estimates.
Customer growth included 799 additions with annual recurring revenue above $10,000, bringing the total to 11,906, and 88 additions above $100,000, increasing that total to 1,119. The company credited new pricing and packaging strategies for some of the growth, while early feedback on products such as Dev Mode MCP Server and Figma Make was described as positive.
BofA Securities noted that revenue growth decelerated from 46% in Q1 to 41% in Q2, with growth among large customers also moderating compared with the prior year. The brokerage reiterated a “neutral” rating and cut its price target to $69 from $85, citing valuation concerns. BofA highlighted that Figma’s stock trades at a 2026 enterprise value-to-sales ratio of 31.6, compared with 8.2 for large-cap software peers. It also noted that monetization of Figma’s AI features is expected to begin in fiscal 2026.
Wolfe Research maintained a “peer perform” rating, noting that Figma trades at more than a 125% premium to high-growth peers. Wolfe set a fair value range of $25 to $60, implying 10 to 31 times 2026 sales, and pointed out that the early release of 11.4 million employee shares—representing 27% of the current float—scheduled for September 5 could put pressure on the stock. The brokerage said fundamentals remain solid but reiterated caution due to valuation.
Both BofA and Wolfe highlighted Figma’s expansion beyond its core design platform with products including Make, Draw, Sites, and Buzz, which management reported are gaining traction with a wider user base. BofA noted that Figma’s 13 million monthly active users and 450,000 paying customers support its market position, but added that near-term upside appears largely reflected in the current stock price.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.