Is Now the Time to Buy Figma Stock?

Figma (NYSE: FIG) banal has underperformed successful its abbreviated trading history. The stock's terms has steadily fallen since the summertime arsenic the hype surrounding its July 31 IPO steadily fizzled.

However, aft its net announcement for the 4th fourth of 2025 and the year's end, Figma banal reversed that inclination and moved importantly higher. Does that evident betterment mean present is the clip to buy? Let's instrumentality a person look.

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Figma has go hugely fashionable for designing idiosyncratic interfaces. The instrumentality brings teams unneurotic for this purpose, allowing for connection and the presumption of modifications successful existent time, dramatically reducing the imaginable for redundancy.

Figma was truthful fashionable that Adobe attempted to bargain the institution earlier the IPO. With regulators blocking that move, it has launched a competing instrumentality that has truthful acold failed to unseat Figma.

Nonetheless, arsenic antecedently mentioned, that optimism has not translated into banal marketplace occurrence since the IPO astir 7 months ago. Currently, it sells astatine a discount of much than 80% from its intraday grounds precocious successful aboriginal August.

Despite the stock's performance, the institution continues to grow. In 2025, its $1.06 cardinal successful gross roseate 41% from year-ago levels.

Unfortunately, costs and expenses accrued by 42% implicit the aforesaid period, and its operating expenses were much than treble the revenue. Consequently, the $1.25 cardinal nonaccomplishment for the twelvemonth came successful substantially supra the $732 cardinal nonaccomplishment successful 2024.

However, investors should not number the $1.36 cardinal successful stock-based compensation arsenic a non-cash expense. Thus, its escaped currency travel was $243 million, up from the $68 cardinal successful antagonistic escaped currency travel successful 2024. This means it tin present screen operations without extracurricular funding, though the stock-based compensation could bring immoderate banal dilution successful the future.

Valuation besides offers mixed news. Without a profit, Figma has nary P/E ratio, though its price-to-sales (P/S) ratio is 13. That is down from implicit 60 successful aboriginal August, and specified levels are not antithetic for a maturation banal similar Figma. Still, that income aggregate is good supra the S&P 500's mean P/S ratio of 3.4, which makes it a riskier proposition.

Under existent conditions, Figma banal is simply a buy, but lone for those with the hazard tolerance for specified a holding.

Indeed, fixed its losses and comparatively elevated income multiple, Figma remains highly risky, truthful lone risk-tolerant investors should see this stock.