Figma plunges 14% in premarket trade as earnings meet views, valuation cut

Investing.com -- Figma (NYSE:FIG) shares tumbled more than 14% in premarket trading on Thursday after the design software company reported second-quarter results that met expectations but failed to ease concerns over its steep valuation.

The company posted revenue of $249.6 million in the quarter ended July, up 41% from a year earlier, with operating income of $11.5 million and an operating margin of 4.6%. 

Figma reaffirmed its full-year forecast of $1.02 billion in revenue and $92 million in operating income, equal to a 9.0% margin. The results matched preliminary figures issued earlier and consensus estimates.

Customer growth included 799 additions with annual recurring revenue above $10,000, bringing the total to 11,906, and 88 additions above $100,000, bringing that total to 1,119. 

New pricing and packaging changes contributed to those gains, and early feedback on new products such as Dev Mode MCP Server and Figma Make was described as positive.

BofA Securities said revenue growth slowed from 46% in the first quarter to 41% in the second, with large customer growth also moderating from the year-earlier period. 

The brokerage reiterated a “neutral” rating and lowered its price objective to $69 from $85, citing valuation. 

BofA said Figma’s stock trades at a 2026 enterprise value-to-sales ratio of 31.6, compared with 8.2 for large-cap software peers. 

The brokerage said monetization of Figma’s artificial intelligence features is expected to begin in fiscal 2026.

Wolfe Research maintained a “peer perform” rating and noted that Figma trades at more than a 125% premium to high-growth peers. 

Wolfe set a fair value range of $25 to $60, implying 10 to 31 times 2026 sales, and said the early release of 11.4 million employee shares, representing 27% of the current float, scheduled for Sept. 5 could weigh on the stock. Wolfe said fundamentals remain solid but reiterated caution given the valuation.

Both brokerages flagged Figma’s expansion beyond core design with products including Make, Draw, Sites and Buzz, which management said are gaining traction with a broader base of users. 

BofA said Figma’s base of 13 million monthly active users and 450,000 paying customers underpins its market position, but it added that near-term upside appears reflected in the stock price.