Figma Inc (NYSE:FIG) Q2 2025 Earnings: Revenue Miss and EPS Shortfall Drive Stock Decline

Earnings Overview

Figma Inc (NYSE:FIG) reported its second-quarter 2025 financial results, revealing a mixed performance relative to analyst expectations. The company posted revenue of $249.6 million, marking a 41% year-over-year increase but falling short of the consensus estimate of $251.3 million. Non-GAAP earnings per share came in at -$0.04, significantly below the estimated $0.08. This earnings miss has contributed to a notable after-hours stock decline of approximately 9.9%.

Financial Performance vs. Estimates

The disparity between actual results and projections highlights both strengths and challenges in Figma's current operations:

• Revenue: $249.6 million actual vs. $251.3 million estimated (slight miss)
• Non-GAAP EPS: -$0.04 actual vs. $0.08 estimated (substantial miss)
• Operating Margin: 1% on a GAAP basis, 5% on a non-GAAP basis
• Cash Flow: Net cash from operations was $62.5 million, with a robust operating cash flow margin of 25%

While revenue growth remains strong, the earnings shortfall appears driven by increased investments in product development and marketing, including costs associated with the company's annual user conference, Config.

Market Reaction

The market's negative response is evident in the after-hours trading drop, reflecting investor concerns over profitability despite top-line growth. Over recent periods, Figma's stock has faced pressure, declining 13.8% over the past month. This reaction suggests that investors are prioritizing earnings performance and future guidance amid high growth expectations.

Business Highlights and Strategic Initiatives

Figma demonstrated several positive operational metrics during the quarter:

• Net Dollar Retention Rate: 129% for customers with annual recurring revenue (ARR) over $10,000
• Customer Growth: 11,906 paid customers with more than $10,000 in ARR, up from prior periods
• Product Launches: Introduction of four new products: Figma Make (AI prototyping), Figma Draw (visual expression), Figma Sites (website publishing), and Figma Buzz (marketing assets)
• Acquisitions: Completed purchases of Modyfi and Payload to enhance motion design and developer tools

These initiatives underscore Figma's focus on expanding its platform and integrating AI capabilities, which management believes will drive long-term growth.

Forward Guidance and Analyst Comparisons

Looking ahead, Figma provided optimistic revenue guidance for the third quarter and full year 2025:

• Q3 2025 Revenue Guidance: $263–265 million (approximately 33% growth at midpoint)
• Full-Year 2025 Revenue Guidance: $1.021–1.025 billion (approximately 37% growth at midpoint)
• Non-GAAP Operating Income: Projected between $88 million and $98 million for the full year

Notably, the company did not provide explicit EPS guidance. The revenue outlook slightly exceeds current analyst expectations for Q3, which stand at $260.7 million, suggesting confidence in continued demand despite competitive and macroeconomic headwinds.

Lock-Up Agreement Developments

The earnings release also detailed updates to lock-up agreements, with an early release condition met, allowing certain employees and service providers to sell shares starting September 5, 2025. Additionally, extended lock-up agreements with major shareholders will phase in share releases through August 2026, potentially affecting stock liquidity over the coming quarters.

Conclusion

Figma's Q2 results reflect a company in a robust growth phase but facing profitability challenges as it invests heavily in expansion and innovation. The market's reaction indicates scrutiny on bottom-line performance, even as top-line metrics remain impressive. Investors will be watching closely to see if the company's strategic investments translate into improved earnings in future quarters.

For more detailed earnings data and analyst estimates, visit Figma's earnings and estimates page.

---

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The content should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.