Figma (FIG) Stock: First Earnings as Public Company Triggers Sharp Selloff. Here's Why

TLDR

Table of Contents

Figma shares dropped over 14% after-hours following first quarterly earnings report as a public company
Revenue of $221.75 million missed company’s own guidance range of $247-250 million despite 61% year-over-year growth
Stock has lost 41% since July IPO debut, trading at extremely high 299.2 times earnings multiple
Lock-up period for employee shares expires this week, potentially flooding market with new supply
CEO’s comments about making large AI investments spooked investors concerned about spending priorities

Figma’s honeymoon period as a public company came to an abrupt end Wednesday night. The design software maker’s shares tumbled over 14% in after-hours trading following its first quarterly earnings report since going public.

The San Francisco-based company reported second-quarter revenue of $221.75 million. While this represented strong 61% growth from $137.64 million a year ago, it fell short of the company’s own guidance range of $247-250 million.

This miss stung particularly hard given the lofty expectations surrounding Figma’s blockbuster IPO debut in July. The stock was priced at $33 per share but opened at $85 on its first day of trading. Shares peaked at $142.92 just one day later.

Figma, $FIG, Q2-25. Results:
📊 Adj. EPS: $0.09 🟢
💰 Revenue: $249.6M 🟢
📈 Net Income: $28.2M
🔎 Record revenue as Figma launches 4 new AI-driven products and sees strong multi-product adoption across its customer base. pic.twitter.com/9IksZt8gxJ
— EarningsTime (@Earnings_Time) September 3, 2025

Since then, reality has set in. Figma stock has now lost 41% from its peak, wiping out billions in market value. The company trades at a staggering 299.2 times earnings, dwarfing Adobe’s 15.3 multiple and the S&P 500’s 23.7 ratio.

CEO Dylan Field tried to put a positive spin on the results. “We delivered record revenue in Q2 as we continued to innovate with the launch of four new products,” he said during the earnings call.
But it was Field’s comments about future investments that really rattled investors. The CEO talked about making “big swings” in AI and hinted at both organic and inorganic investments. “We know this approach won’t resonate with everyone, but we believe we have a massive opportunity in front of us,” Field told analysts.

Timing Challenges

The earnings disappointment comes at a particularly bad time for Figma. Employee lock-up periods expire later this week, potentially flooding the market with new shares. This could create additional downward pressure on the stock price.

Only 41% of Figma’s outstanding shares currently trade as free float. This limited supply has made the stock especially volatile since its debut. When more shares hit the market through lock-up expirations, price swings could become even more dramatic.

Five major venture capital investors remain locked up with staggered release dates extending through mid-2026. But the immediate employee unlock represents the first major test of demand versus supply.

Financial Performance Details

Looking past the revenue miss, Figma did show some positive trends. The company achieved breakeven results on a GAAP basis, a major improvement from the $4.39 loss per share reported a year ago.

Non-GAAP net income jumped to $19.78 million from $14.28 million in the prior year. Adjusted operating income of $11.5 million came in within the company’s estimated range of $9-12 million.

For the current quarter, Figma expects revenue between $263-265 million. Full-year revenue is projected at $1.021-1.025 billion, roughly in line with analyst estimates of $1.02 billion.

Retail investors on trading platforms showed mixed reactions to the results. Some saw the post-earnings drop as a buying opportunity, while others expressed concern about the company’s high valuation.

One trader reported placing orders for 1,200 shares at $58.40, calling the company’s guidance “excellent” and predicting short sellers would get squeezed. Short interest in the stock has climbed to nearly 1%, the highest level since its public debut.

The earnings report and subsequent stock reaction highlight the challenges facing newly public growth companies. Investors who paid premium prices during Figma’s IPO euphoria are now grappling with the reality of quarterly reporting cycles and execution risk.

With lock-up expirations looming and questions about spending priorities, Figma faces a critical period in its public company journey. The next few quarters will determine whether the design platform can justify its premium valuation through consistent execution.

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