Figma shares fell for the eighth consecutive session on Friday, sliding to $18.12 and hitting a session low of $17.85. The prolonged selloff has erased approximately $4.1 billion in market capitalization, bringing the stock's year-to-date loss to 48.2%, sharply underperforming the S&P 500's 8.0% gain over the same period. The company's market cap now stands at roughly $9.48 billion.
Strong Revenue Growth Fails to Stem Losses
The decline comes despite Figma reporting robust first-quarter results. Revenue surged 46% year-over-year to $333.4 million, exceeding the company's own guidance. Management also raised its full-year revenue forecast to a range of $1.422 billion to $1.428 billion. Co-founder and CEO Dylan Field emphasized that "design is the competitive edge," particularly as artificial intelligence drives down the cost of coding.
AI Adoption Accelerates
Figma's AI initiatives are gaining traction. The company reported that paid customers increased 54% from a year ago to approximately 690,000. Notably, about 60% of clients spending over $100,000 annually on Figma Make used the platform weekly. After implementing AI credit limits on March 18, over 75% of Org and Enterprise users who had exceeded their caps continued to use the service, indicating strong engagement.
Profitability Concerns Linger
Despite the top-line growth, Figma continues to operate at a loss. The company posted a GAAP net loss of $142.4 million and a GAAP operating loss of $137.4 million in the first quarter. On a non-GAAP basis, Figma reported operating income of $52.1 million. The company holds $1.6 billion in cash, cash equivalents, and marketable securities, providing a buffer as it invests in growth.
Competitive Landscape Intensifies
The design-software market is becoming increasingly competitive. Reuters reported that Adobe recently raised its annual revenue and profit outlooks, but faces mounting pressure from Figma and Canva, both of which have rapidly introduced AI tools. Adobe noted its AI-first annual recurring revenue has tripled to over $500 million, underscoring the strategic importance of AI in the sector.
Analyst Outlook and Investor Sentiment
Analysts remain cautious. The consensus rating from 12 analysts is "Hold," with an average price target of $36.88, far above the current trading level. The wide gap between Figma's stock price and its business performance highlights investor skepticism about AI monetization progress, mounting losses, and fierce competition. Shares are currently trading well below the analyst target, reflecting ongoing uncertainty.
Upcoming Investor Event
Figma has scheduled an investor and analyst session at Config 2026 in San Francisco on June 24 at 2 p.m. Pacific. The event will be webcast on Figma's investor relations site. Management is expected to face questions about revenue growth, AI credit monetization, and the performance of products like Figma Make. Investors will be watching closely for any signs of a turnaround in sentiment.
