#Figma Reports Strong Q4 and Full Year 2025 Results
Figma reported fourth-quarter and full fiscal-year 2025 results for the period ended December 31, 2025, delivering continued high growth and non-GAAP profitability. Q4 revenue reached $303.8 million, up 40% year over year, with net dollar retention of 136%, reflecting expansion within its existing customer base. For the full year, revenue surpassed $1.05 billion, an increase of approximately 41% compared to 2024. While GAAP results showed a net loss driven largely by stock-based compensation expenses, the company generated positive non-GAAP earnings and operating cash flow in the quarter.
#Financial Performance Breakdown
Fourth-quarter revenue of $303.8 million reflected broad-based strength across enterprise and international customers. GAAP net loss for the quarter was $226.6 million, primarily due to stock-based compensation and related charges. On a non-GAAP basis, net income was $43.0 million, or $0.08 per diluted share, with a non-GAAP operating margin of 14%.
Operating cash flow in Q4 totaled $39.9 million, and adjusted free cash flow was $38.5 million, both representing 13% margins. For fiscal 2025, total revenue reached $1.056 billion. The company reported a GAAP net loss of approximately $1.3 billion for the year, largely attributable to a one-time IPO-related stock-based compensation expense of $975.7 million, which hit in Q3. Excluding these items, non-GAAP net income for the year was $166.8 million.
Figma ended the year with approximately $1.7 billion in cash and equivalents, providing significant balance sheet flexibility.
Figma went public in 2025, and the stock has fallen sharply, -78%, but it has gained 16% over the past 5 days.
#Strategic and Operational Highlights
Management highlighted continued platform expansion and AI integration as central to growth. The company reported 13,861 customers with more than $10,000 in annual recurring revenue, alongside growth in customers generating over $100,000 and $1 million in ARR. These figures point to increasing enterprise penetration and account expansion.
AI-enabled offerings, including Figma Make and related tools, saw rising weekly active usage, with more than half of customers spending over $100K in ARR engaging with Figma Make weekly in Q4. Management positioned AI as a key driver of deeper engagement across design and development workflows. International revenue growth outpaced overall company growth, signaling continued global adoption.
The elevated 136% net dollar retention rate reflects both new customer additions and expanded product usage within existing accounts.
#Management Commentary and Outlook
CEO Dylan Field described 2025 as a significant year for the company, citing accelerated revenue growth and product innovation as foundational for the year ahead. For the first quarter of 2026, management guided revenue to a range of $315 million to $317 million. Full-year 2026 revenue guidance was provided at $1.366 billion to $1.374 billion.
Management noted that continued investment in infrastructure and AI capabilities may impact margins, but emphasized long-term product development and customer value creation. These forward-looking statements are subject to risks and uncertainties, including competitive dynamics and macroeconomic conditions.
#Investor Takeaway and Risk Framing
Figma’s fiscal 2025 results reflect sustained top-line momentum, strong customer expansion, and sustained non-GAAP profitability. However, GAAP losses remain influenced by significant stock-based compensation, and margin durability will depend on execution and cost management. Elevated retention and enterprise growth suggest durable demand, but forward guidance and AI-driven initiatives carry operational and competitive risks. Results represent a single reporting period and should be evaluated within a broader, evolving context.