Core Insights - Figma's shares have declined 29.3% in the past month, underperforming the Zacks Computer and Technology sector's return of 4.5% and the Zacks Internet Software industry's appreciation of 0.7% due to modest growth prospects and investments in AI-powered products [1] Financial Performance - For Q3 2025, Figma expects revenues between $263 million and $265 million, indicating a 33% year-over-year growth at the midpoint, slower than the 41% growth reported in Q2 2025 [2] - For the full year 2025, revenues are projected between $1.021 billion and $1.025 billion, suggesting a 37% year-over-year growth at the midpoint, with expected operating income between $88 million and $98 million [3] Competitive Landscape - Figma faces stiff competition from established players like Adobe, Microsoft, and Atlassian, with Figma's AI initiatives being in a nascent stage compared to competitors' advanced offerings [4][8] - Figma's shares are considered overvalued, trading at a forward 12-month price/sales ratio of 18.81X, reflected in a Value Score of F [9] Product Innovation - Figma launched four new products at its annual Config conference, doubling its product offerings to enhance customer adoption [7][12] - Key new products include Figma Make, which allows designers to create prototypes from existing designs or natural language, and Figma Draw, which offers over 20 new tools for enhanced creativity [13][14] - The Dev Mode MCP server is designed to improve developer workflows, catering to 30% of Figma's monthly active users [15] Customer Engagement - More than 80% of Figma's customers used two or more products in Q2 2025, indicating strong customer engagement and potential for cross-selling [16]
Figma Drops 29% in a Month: Buy, Sell or Hold the FIG Stock?