Design software darling Figma just delivered its strongest quarter on record—and it’s doing so while reshaping itself into a broader AI-powered product development platform.

For the fourth quarter of 2025, Figma reported $303.8 million in revenue, up 40% year-over-year and above guidance. For the full year, revenue crossed the billion-dollar mark for the first time, reaching $1.056 billion, a 41% annual increase.

If 2024 was about IPO headlines and post-merger drama, 2025 was about operational momentum.

The Financials: Growth With Discipline

Q4 marked Figma’s best quarter for net new revenue on record. Key highlights include:

• Revenue: $303.8 million (up 40% YoY)

• Non-GAAP operating income: $44.0 million (14% margin)

• Operating cash flow: $39.9 million (13% margin)

• Cash and marketable securities: $1.7 billion

For the full fiscal year:

• Revenue: $1.056 billion (up 41% YoY)

• International revenue growth: 45%

• Operating cash flow: $250.7 million (24% margin)

• Adjusted free cash flow margin: 23%

On a GAAP basis, the company posted a $1.3 billion net loss for the year, largely driven by a one-time $975.7 million stock-based compensation expense tied to its IPO. Strip that out, and Figma reported $166.8 million in non-GAAP net income.

In other words: headline losses, but underlying profitability and cash generation look healthy.

Enterprise Expansion and Retention

Figma’s enterprise penetration continues to deepen:

• Net Dollar Retention Rate: 136%

• 13,861 customers with more than $10,000 in ARR

• 1,405 customers above $100,000 in ARR

• 67 customers exceeding $1 million in ARR

A 136% retention rate signals strong expansion within existing accounts—an indicator that Figma isn’t just landing teams; it’s embedding itself across organizations.

CFO Praveer Melwani emphasized platform-led adoption across enterprise and international markets as a key growth driver. The company enters 2026 with projected first-quarter revenue between $315 million and $317 million, implying 38% growth. Full-year 2026 guidance points to roughly 30% growth.

That’s slower than 2025, but still elite territory for a company of this scale.

AI Is Now the Growth Engine

While financials tell one story, product evolution tells another.

Figma is no longer “just” a design tool. Its AI initiatives are expanding how teams ideate, prototype, and ship.

Weekly active users of Figma Make—its AI-powered app-building and prototyping tool—grew over 70% quarter-over-quarter. Notably, more than half of customers generating over $100,000 in ARR are now building in Figma Make weekly.

Even more telling: over 80% of Figma Make’s weekly active users on Full seats also used Figma Design during the quarter. That cross-product usage suggests AI features are enhancing, not cannibalizing, core workflows.

Deepening AI Integrations

Figma expanded its AI ecosystem aggressively in Q4:

• Support for experimental models Gemini 3 Pro and Claude Opus 4.6 within Figma Make

• “Claude Code to Figma,” allowing UIs generated in Claude Code to import directly into Figma’s canvas as editable layers

• Launch of Figma MCP app inside Claude, enabling diagram and Gantt chart creation via chat

• Expanded integration with ChatGPT to generate FigJam diagrams, Buzz marketing assets, and Slides presentations

The partnership with Anthropic reflects a broader AI ecosystem strategy. Rather than building a closed system, Figma is integrating deeply with leading AI platforms.

In a world where prompts increasingly initiate product workflows, Figma wants to be the canvas where those outputs are refined, iterated, and shipped.

Image Editing and the Weavy Acquisition

Figma also launched three AI-powered image editing tools directly inside its canvas. Complementing that move, it acquired Weavy—now rebranded as Figma Weave—which combines leading AI models with professional editing tools in a browser-based environment.

That acquisition signals Figma’s intent to expand beyond UI design into broader creative workflows, potentially competing more directly with creative tool incumbents.

Global Expansion: India in Focus

Figma opened a new office in Bengaluru and announced local data hosting and governance support for enterprise customers in India, now its second-largest market by monthly active users.

With international revenue growing 45% year-over-year, global expansion is no longer a side story—it’s central to the company’s growth thesis.

Strategic Positioning in the Product Stack

CEO Dylan Field framed Figma’s role as central to the product development stack—whether work begins in a terminal, a prompt box, or a hand-drawn sketch.

That positioning matters. As AI blurs the lines between design and development, Figma is aiming to remain the connective layer between ideation and execution.

Its abandoned merger with Adobe is now history. What remains is a publicly traded company with strong cash reserves, accelerating AI integration, and expanding enterprise adoption.

The Outlook

For 2026, Figma projects:

• Q1 revenue: $315–$317 million

• Full-year revenue: $1.366–$1.374 billion

• Non-GAAP operating income: $100–$110 million

Growth is expected to moderate from 41% to roughly 30%, but with sustained profitability and expanding platform adoption, that slowdown appears more like normalization than weakness.

The Bottom Line

Figma’s latest earnings show a company scaling rapidly while evolving into an AI-powered collaboration platform. Revenue growth remains strong, enterprise retention is high, and AI adoption is accelerating across its ecosystem.

As product teams increasingly begin their workflows in AI tools like Claude and ChatGPT, Figma is positioning itself not as a replacement—but as the creative control center where AI outputs become polished products.

If 2025 proved it could grow post-IPO, 2026 will test whether AI-driven platform expansion can sustain that momentum.

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