Figma’s Stock (NYSE:FIG) Under Scrutiny as Markets Await First Post-IPO Earnings

Figma (NYSE:FIG) is poised to unveil its inaugural earnings report since its IPO today, a pivotal moment for markets assessing the cloud-based design platform's financial footing and expansion capabilities. The report arrives amidst high expectations and a valuation that has sparked debate among analysts.

The stock's journey since its July 31, 2025, IPO has been volatile. Initially priced at $33, shares surged to an opening price of $85, ultimately closing the first day at $115.50, representing a near 250% increase. This initial exuberance translated to a market capitalization of approximately $67 billion.

The euphoria proved short-lived, however, as the stock price corrected to a $65 leading into the print. Figma's stock price is now 43.23% lower than that first day close.

Ahead of its public debut, Figma exhibited strong financial performance. The company's Q1 2025 revenue reached $228.2 million, marking a 46% increase year-over-year. Net income saw even more impressive growth, tripling to $44.9 million during the same period. These figures underline Figma's robust market presence and efficient operations leading up to its IPO.

Analysts project Figma's Q2 2025 revenue to fall come in at $248.67 million, indicating a 9% increase compared to Q1. EPS is expected to come in at $0.08, with the range on the street currently between $0.04 and $0.09.

Beyond these headline figures, markets will be closely watching key metrics such as Net Dollar Retention (NDR), the number of customers with Annual Recurring Revenue (ARR) exceeding $100,000, and gross margin.

As of March 31, Figma's NDR stood at a healthy 132%, reflecting strong customer loyalty and expansion. The company also reported 1,031 customers contributing over $100,000 in ARR, a 47% year-over-year increase. Gross margins were notably high at 91%, although ongoing investments in artificial intelligence (AI) are expected to impact these margins in the short to medium term.

Figma has been actively integrating AI into its platform, introducing features like AI-powered template and visual generation. The launch of “Figma Make,” a prompt-to-app tool, further underscores the company's commitment to expanding its capabilities beyond traditional design applications. Management has also indicated that a portion of the IPO proceeds may be allocated to strategic acquisitions aimed at enhancing its AI capabilities, signaling a proactive approach to innovation and market leadership.

Despite these positive indicators, Figma's valuation remains a point of contention. The stock has traded at multiples significantly exceeding industry averages, with a price-to-sales ratio of 45.90x compared to the software industry average of 5.23x. This disparity raises concerns about potential overvaluation, suggesting that any failure to meet growth expectations could result in a significant downward re-rating.

Figma's first earnings report will serve as a crucial barometer of the company's ability to justify its high valuation and sustain its growth momentum. Revenue growth, customer retention, gross margins, and the impact of AI investments will be key areas of focus.