Wolfe Research reiterates Peerperform rating on Figma stock after Q2 results

Investing.com - Wolfe Research has reiterated its Peerperform rating on Figma Inc (NYSE:FIG) following the company’s first earnings report as a public company. According to InvestingPro data, the company currently trades at $68.13, significantly above its Fair Value, suggesting an overvalued status.

Figma reported second-quarter revenue of $249.6 million, representing 41% year-over-year growth, with operating income of $11.5 million, translating to a 4.6% operating margin. These results aligned with preliminary figures the company had previously shared. The company maintains impressive gross profit margins of 88.5% and a healthy current ratio of 3.54, indicating strong operational efficiency.

The design software company maintained its fiscal year 2025 revenue guidance of $1.023 billion and operating income guidance of $92 million, representing a 9.0% operating margin, which matched consensus expectations. Analysts on InvestingPro anticipate 35% revenue growth for the current year, with the company expected to achieve profitability. Get access to 12+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Figma added 799 new customers with annual recurring revenue (ARR) exceeding $10,000, bringing the total to 11,906, while also adding 88 new customers with ARR exceeding $100,000, reaching 1,119 total. The company benefited from its new pricing and packaging structure during the quarter.

Net dollar retention (NDR) for customers with ARR exceeding $10,000 was 129%, down from 132% in the first quarter of 2025, which the company attributed to facing a 5 percentage point tougher comparison driven by more significant DevMode monetization in the second quarter of 2024.

In other recent news, Figma Inc . reported its financial results for the second quarter of 2025, highlighting a significant revenue increase. The company’s revenue reached $250 million, marking a 41% growth compared to the same period last year. However, the earnings per share (EPS) were lower than anticipated, at $0.04 instead of the expected $0.08. Despite this shortfall in EPS, Figma’s revenue slightly exceeded projections. These developments reflect the company’s ongoing financial performance and market presence. The revenue growth may be of interest to investors, given the company’s ability to surpass revenue expectations despite the EPS miss. Analyst firms have not provided additional upgrades or downgrades in this recent report. These updates are part of the latest developments surrounding Figma Inc.

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