Figma, Inc. (NYSE: FIG) saw its shares surge 16% in after-hours trading on Wednesday, following the release of its impressive fourth-quarter earnings report. The design software company delivered accelerated revenue growth and issued guidance that far surpassed analyst predictions, fueling investor excitement.
The company reported fourth-quarter revenue of $303.8 million, marking a 40% year-over-year increase and beating analyst estimates. Adjusted earnings per share reached $0.08, exceeding the consensus forecast of $0.06. This strong performance stemmed from growing platform adoption and the integration of AI across its customer base.
Building on this momentum, Figma issued an optimistic outlook for the first quarter, projecting revenue between $315 million and $317 million—well above the $292.5 million analyst consensus. For fiscal year 2026, the company expects revenue to land between $1.366 billion and $1.374 billion, significantly outpacing the $1.286 billion estimate.
“2025 was a massive year for Figma, and the fourth quarter was our best quarter yet,” said Dylan Field, Figma’s co-founder and CEO. “Our accelerated revenue and customer growth heading into 2026 highlight the power of design and Figma’s essential role at the heart of the product development stack.”
Figma’s Net Dollar Retention Rate climbed to 136%, reflecting robust customer expansion. The company now boasts 13,861 paid customers generating more than $10,000 in annual recurring revenue (ARR). Among these, 1,405 customers exceed $100,000 in ARR, while 67 customers contribute over $1 million in ARR.
The company’s AI initiatives also delivered impressive results. Weekly active users of Figma Make grew by more than 70% quarter-over-quarter, showcasing the platform’s increasing relevance. Figma expanded its AI capabilities by introducing new features and forming partnerships with Anthropic and OpenAI. Additionally, the company strengthened its global footprint by opening a new office in Bengaluru, India.
Although Figma achieved strong revenue growth, it reported a GAAP net loss of $226.6 million for the quarter. However, the company generated positive adjusted free cash flow of $38.5 million, representing a 13% margin.
With its accelerated growth, innovative AI advancements, and strong customer retention, Figma continues to solidify its position as a leader in the design software space.
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