Figma’s First Post-IPO Earnings Miss Expectations, Shares Plunge 14% After Hours

TradingKey - Global collaborative design platform Figma (FIG.US) triggered a market sell-off with its first earnings report since going public, sending shares down more than 14% in after-hours trading on Wednesday. Despite reporting second-quarter revenue of $249.6 million, a 41% year-over-year increase, and achieving breakeven profitability — slightly above its IPO guidance — the results still fell short of Wall Street’s expectations.

Source: Google Finance

The key metric that drew scrutiny was the net revenue retention rate (NRR), which dipped from 132% in Q1 to 129%. While still considered healthy, the deceleration raised concerns among investors about future growth momentum.

Although Figma counts 1,119 customers spending over $100,000 annually, and is accelerating the rollout of AI-powered products like Figma Make and Sites, management’s guidance offered only modest upside. The company projected Q3 revenue of $263–265 million, and full-year profitability slightly above consensus — insufficient to justify its valuation, which remains far above industry averages.

Currently, Wall Street has largely assigned Figma a “neutral” rating. JPMorgan and Goldman Sachs have set price targets of just $65 and $48, respectively — well below the current share price — reflecting caution over its high premium.

RBC Capital Markets pointed out that the market is valuing Figma at 32 times its expected 2026 revenue, while comparable software companies trade at an average of just 10 times — signaling that risks are now significantly elevated.

Adding to investor concerns, approximately 25% of Figma’s shares will become eligible for sale on September 4, when lock-up restrictions expire, potentially increasing near-term selling pressure.

While Figma is deeply integrating AI into the design workflow and strengthening its product moat, investors are shifting from the post-IPO euphoria to a more rational assessment of its profitability timeline and growth sustainability.