Figma's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Core Insights - Figma reported fourth-quarter 2025 earnings of 8 cents per share, exceeding the Zacks Consensus Estimate by 14.3% and up from 6 cents per share in the same quarter last year [1] - The company achieved revenues of $303.7 million in the fourth quarter of 2025, surpassing the Zacks Consensus Estimate by 3.7% and reflecting a 40% year-over-year increase [1] Financial Performance - Figma's non-GAAP gross profit rose 30.5% year over year to $261.79 million, with a non-GAAP gross margin of 86%, down 600 basis points from the prior-year quarter [5] - The company's non-GAAP operating profit declined 22% year over year to $44 million, with a non-GAAP operating margin of 14%, down 1,200 basis points from the prior-year quarter [5] - Non-GAAP net profit decreased 18.7% year over year to $43.0 million [7] Customer Growth - Figma's net dollar retention for customers with ARR above $10,000 increased to 136%, up five percentage points sequentially, indicating deeper product adoption [6] - The company ended the quarter with 13,861 customers generating more than $10,000 in ARR, adding 951 customers in this category during the fourth quarter [7] - Figma now has 1,405 customers generating more than $100,000 in ARR, with an addition of 143 customers in this category in the fourth quarter [7] Cash Flow and Balance Sheet - As of December 31, 2025, Figma held $1.7 billion in cash and marketable securities [8] - The company generated $39.9 million in operating cash flow and $38.5 million in adjusted free cash flow during the quarter [8] Future Outlook - Figma expects first-quarter 2026 revenues to be between $315 million and $317 million, implying year-over-year growth of 38% [10] - The company projects its 2026 annual revenues between $1.366 billion and $1.374 billion, indicating a year-over-year growth of 30% [11] - Figma anticipates its 2026 non-GAAP operating income to be between $100 million and $110 million [11]