Beaten-Down Figma Shares Rebound on Strong Growth Outlook. Is the Stock a Buy?

After rejecting a buyout connection from Adobe and alternatively opting to spell public, Figma (NYSE: FIG) has struggled successful presumption of banal price. The collaborative plan level institution has been caught successful the software-as-a-service (SaaS) sell-off, which has taken the banal to beneath its $33 IPO price.

For a banal that opened astatine $85 its archetypal time of trading and closed astatine $115.50, it has been a hard autumn from grace.

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However, the enactment successful Figma's banal terms hasn't needfully been correlated with its operational performance. For Q4, the institution saw its gross soar 40% twelvemonth implicit twelvemonth to $303.8 million, easy topping the $293.15 cardinal expert statement compiled by London Stock Exchange Group. Adjusted EPS, meanwhile, came successful astatine $0.08, a penny supra expert estimates.

One of the astir awesome metrics that Figma reported was a 136% nett gross retention (NRR) complaint for customers with yearly recurring gross (ARR) of $10,000 oregon more. This metric measures however overmuch further wealth existing clients who person been customers for a twelvemonth oregon much person spent implicit the past year, aft immoderate churn. Any fig implicit 100% represents growth. This fig has been accelerating with the institution reporting 131% NRR successful Q3 and 129% successful Q2.

The maturation successful NRR has been helped by beardown cross-platform adoption, with customers opting to usage some Figma Make and Figma Design. Figma noted that 80% of play users who usage Figma Make connected afloat bundle licenses present besides usage Figma Design, showing however the products tin beryllium tightly integrated. Figma Design is its halfway merchandise that helps make layouts and idiosyncratic interfaces, portion Figma Make is an AI instrumentality that tin assistance crook designs into apps oregon prototypes.

The institution has leaned into AI, and its merchandise lineup doubled successful 2025 to 8 solutions. Meanwhile, it said astir 75% of its customers with ARR supra $10,000 are present utilizing AI credits weekly, up from nary a twelvemonth ago. In March, the company's exemplary volition displacement to charging for some spot and AI credits.

Looking ahead, Figma forecast that its 2026 gross would travel successful betwixt $1.366 cardinal and $1.374 billion, representing astir 30% year-over-year maturation astatine the midpoint of its guidance. For Q1, it is looking for gross of betwixt $315 cardinal and $317 million, representing 38% year-over-year maturation astatine the midpoint.

Figma is increasing rapidly with nary signs of AI disrupting its business. Meanwhile, its valuation has shrunk to a guardant price-to-sales (P/S) ratio of astir 8.5 times. That's beauteous charismatic for a institution projecting 30% gross maturation this year. Meanwhile, the institution is introducing caller AI-powered products that should proceed to thrust beardown maturation and looking to displacement its pricing exemplary from subscription to complaint for AI recognition usage.