Figma reported fourth‑quarter 2025 revenue of $303.8 million, a 40% year‑over‑year increase, and earnings per share of $0.08, beating the consensus estimate of $0.07. The lift was driven by strong demand for the company’s AI‑enabled design tools, particularly the new Figma Make feature, and by a 136% net dollar retention rate that signals expanding usage among existing customers.
The company’s net dollar retention rate was 136%, higher than the 131% reported in the original article. The figure reflects the company’s ability to grow revenue from its existing customer base, a key indicator of product stickiness and the success of its AI‑driven features. The rate is also a sign that customers are adding more seats and services as they adopt the platform’s new capabilities.
Comparing to prior periods, Q4 2024 revenue was approximately $217 million and Q3 2025 revenue was $274.2 million. The year‑over‑year jump to $303.8 million represents a 40% increase from the $217 million of the same quarter a year earlier, while the quarter‑over‑quarter growth from $274.2 million to $303.8 million is 11%. EPS rose from $0.06 in Q4 2024 to $0.08 in Q4 2025, a 33% increase that reflects both higher revenue and disciplined cost management.
Gross margin for the quarter was 86%, and operating margin stood at 14%. Management noted that margin compression is expected to continue, with a projected operating margin of 8% for 2026, down from 14% in Q4 2025. The decline is attributed to increased spending on AI infrastructure and go‑to‑market initiatives, which are expected to pay off through higher revenue and customer expansion.
Guidance for the first quarter of 2026 was raised to a revenue range of $315 million to $317 million, and full‑year 2026 revenue guidance was increased to $1.366 billion to $1.374 billion, representing roughly 30% year‑over‑year growth at the midpoint. The upward revision reflects management’s confidence in sustained demand for AI‑enhanced design tools and the expected uptake of the new AI credit monetization model.
Starting in March 2026, Figma will introduce a consumption‑based pricing model for its AI credits. The shift is intended to monetize the growing usage of AI features more directly and is expected to provide a new revenue stream that could offset the margin pressure from AI infrastructure investments.
"2025 was a massive year for Figma, and the fourth quarter was our best quarter yet. Our accelerated revenue and customer growth going into 2026 reflect design's power and Figma's essential place at the center of the product development stack. Whether that work begins in a terminal, a prompt box, with UI in the Figma canvas or a hand‑drawn sketch, great products come from exploration, craft, and point of view. This is what Figma's platform uniquely makes possible." – Dylan Field, Co‑founder and CEO
"Q4 was our best quarter for net new revenue on record, as platform‑led adoption across our customer base–including enterprise and international–powered durable growth at scale. We closed the year with 40% year‑over‑year revenue growth in Q4, an uptick in Net Dollar Retention Rate, and strong cash generation, with a 13% operating cash flow margin. Our healthy balance sheet and positive free cash flow gives us the flexibility to continue investing in AI and the platform while maintaining financial discipline for sustainable, long‑term growth." – Praveer Melwani, CFO
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