Hey there, design enthusiasts and investors! If you’ve ever sketched a wireframe or prototyped an app, chances are you’ve heard of Figma.
This collaborative design tool has taken the creative world by storm.
But with its recent splashy entry into the stock market, the big question on everyone’s mind is: Is Figma a good investment? We’ll break it down step by step.
What is Figma?
Figma is a cloud-based design platform that lets teams create, collaborate, and prototype user interfaces in real time. Think of it as Google Docs but for designers.
You can build everything from mobile apps to websites, all while sharing feedback instantly with your team.
Founded in 2012 by Dylan Field and Evan Wallace, Figma started as a browser-based tool to make design more accessible.
No more downloading heavy software or dealing with version control headaches.
Today, it’s used by millions for UI/UX design, whiteboarding with FigJam, and even AI-powered features like prototype generation.
What sets Figma apart? Its focus on collaboration. Designers, developers, and product managers can work in the same file without conflicts.
Big names like Microsoft, Airbnb, and Uber rely on it daily. And with recent additions like Figma Slides and AI tools, it’s evolving into a full product development hub.
If you’re new to design tools, Figma’s free tier is a great entry point. But for businesses, paid plans unlock advanced features like design systems and analytics.
Figma’s Road to Becoming a Public Company
Figma’s story is full of twists. It began with seed funding in 2013 and grew through several rounds, raising about $333 million from investors like Sequoia Capital and Andreessen Horowitz. By 2021, its valuation hit $10 billion.
Then came the drama: In 2022, Adobe offered $20 billion to buy Figma. It seemed like a perfect match, but regulators in the EU and UK blocked it over antitrust concerns.
The deal fell apart in 2023, and Adobe paid Figma a $1 billion breakup fee. That cash helped Figma reset and push forward.
Fast-forward to 2025. Figma filed confidentially for an IPO in April, went public on July 31 under the ticker FIG on the NYSE.
Priced at $33 per share, it valued the company at around $19.3 billion. But the stock popped huge on day one, closing at $115.50 – a 250% jump, pushing the market cap to about $68 billion.
Since then? It’s been volatile. By early August, shares dropped 35%, trading around $75.
As of August 19, 2025, the price is about $69.41, with a market cap of $33.8 billion. That’s tech stocks for you – exciting but unpredictable.
Breaking Down Figma’s Financials
Numbers don’t lie, so let’s look at Figma’s performance. The company has shown strong growth, turning profitable recently after years of investment.
In 2024, Figma hit $749 million in revenue, up 48% from 2023. For Q1 2025, revenue was $228.2 million, a 46% year-over-year increase. Trailing 12-month revenue? $821 million.
Profitability is key here. Q1 2025 net income was $44.9 million, with a 91% gross margin. That’s impressive for a software firm.
Customer metrics shine too: 1,031 customers pay over $100K annually, up 47%, and net dollar retention is 132%. That means existing users are spending more.
Here’s a quick table of key financials:
| Year/Quarter | Revenue | Growth YoY | Net Income | Gross Margin |
|---|---|---|---|---|
| 2024 (Full Year) | $749M | 48% | Profitable (exact figure not specified) | 88-91% |
| Q1 2025 | $228.2M | 46% | $44.9M | 91% |
| TTM (as of Q1 2025) | $821M | N/A | N/A | N/A |
Analysts expect revenue to top $1 billion by end of 2025.
Figma makes money through subscriptions: Free for starters, $12/editor/month for pros, and custom enterprise plans. Add-ons like FigJam and a marketplace for plugins chip in too.
Where Figma Stands in the Market
Figma dominates collaborative design with about 40% market share. It’s overtaken tools like Adobe XD, Sketch, and InVision.
Why? Real-time editing and browser access make it ideal for remote teams.
Competitors include Adobe (with XD and Illustrator), Canva (more consumer-focused), and Miro for whiteboarding.
But Figma’s edge is its all-in-one approach. It’s popular in tech (19% of users in IT/services), but spans marketing, education, and more.
With AI features like Figma Make (prototype-to-code) and Figma Buzz (marketing tools), it’s future-proofing against rivals. User base? Over 4 million, growing fast.
Why Figma Could Be a Smart Investment
Ready for the positives?
Figma has a lot going for it.
- Explosive Growth: Revenue’s doubling every couple of years. With design tools in demand as apps and websites boom, this could continue.
- Profitable and Efficient: Unlike many tech startups, Figma’s making money. High margins mean more cash for innovation.
- Market Leadership: It’s the go-to for collaborative design. Partnerships with Google and integrations with tools like Slack keep it sticky.
- AI and Expansion: New products like Figma Sites and Draw position it against Adobe head-on. Analysts see it as a “tech titan in the making.”
- Post-IPO Potential: The dip after the initial pop might be a buying opportunity. If Q2 earnings on September 3 impress, shares could rebound.
If you’re bullish on software and creativity tools, Figma fits the bill.
The Risks: Not All Sunshine
No investment is risk-free.
Here’s what could go wrong.
- Sky-High Valuation: At 37x estimated 2025 revenue, it’s pricey compared to Adobe’s 7.5x. Any slowdown could tank the stock.
- Volatility: Post-IPO, it shed $11 billion in value quickly. Tech markets are fickle, especially with economic jitters.
- Competition: Adobe’s still a giant, and Canva’s nipping at heels. If Figma slips on innovation, users might switch.
- Regulatory Echoes: The Adobe deal’s fallout shows scrutiny in tech mergers. Future acquisitions could face hurdles.
- Broader Market Risks: Recession fears or AI hype bursting could hit growth stocks hard.
Weigh these against your portfolio. If you’re risk-averse, maybe watch from the sidelines.
How to Buy Figma Stock
Interested? Figma trades as FIG on the NYSE.
Open a brokerage account with Robinhood, E*TRADE, or Fidelity.
Search for FIG, decide your shares, and buy. Keep an eye on fees and taxes.
For indirect exposure, check ETFs that hold FIG, though it’s new, so inclusion might take time.
FAQs About Is Figma a Good Investment
Q: Is Figma stock a buy right now?
It depends on your goals. With strong growth and profitability, it’s appealing for long-term holders. But the high valuation suggests caution – consider dollar-cost averaging if you’re in.
Q: What is Figma’s current valuation?
As of August 19, 2025, Figma’s market cap is about $33.8 billion, trading at around $69 per share. That’s down from its IPO peak but still premium.
Q: How does Figma make money, and what’s its growth like?
Figma earns from subscriptions and add-ons. Revenue grew 48% in 2024 to $749 million, with expectations to hit $1 billion soon. It’s profitable, with high retention.
Conclusion
So, is Figma a good investment? It has the makings of a winner – rapid growth, solid finances, and a key role in digital creation. But the steep price and post-IPO volatility mean it’s not for everyone.
If you believe in the future of collaborative tools and AI in design, it could pay off big. Do your homework, watch those earnings, and align with your risk level.
Disclaimer: This post is for informational purposes only and not financial advice. Investing involves risks, including loss of principal. Consult a qualified advisor before making decisions. All data is current as of August 21, 2025, but markets change fast.
Anurag is a passionate researcher and writer who enjoys exploring diverse topics and sharing valuable insights through his blogs. With a strong interest in personal finance and automobiles, he simplifies complex ideas into easy-to-understand content for readers of all backgrounds.
