Figma Inc. Revenue Rises 48% While AI Costs Sink Stock
Figma Inc. reported second-quarter revenue of $370.1 million, but its stock fell 15% after hours due to significant losses from AI investments.
The design software company Figma Inc. reported second-quarter revenue of $370.1 million, marking a 48% year-over-year increase that surpassed analyst expectations. Despite this growth and adjusted earnings per share of 8 cents, the company's stock dropped 15% in after-hours trading. Investors reacted to a $117.3 million GAAP loss from operations and a decline in free-cash-flow margins, which fell from 24% to 14% compared to the previous year.
Company leadership attributed these losses to aggressive investments in artificial intelligence, including the May launch of a design agent and increased inference spending. To offset these costs, Figma Inc. introduced AI credit packages alongside its existing seat-based pricing model. However, CFO Praveer Melwani noted that several newer products currently in beta or early-access programs are not yet drawing down paid credits.
CEO Dylan Field linked the company's third-quarter growth guidance to limited visibility regarding these beta products. Despite the current operational losses, Figma Inc. raised its full-year revenue guidance to a range between $1.463 billion and $1.467 billion.
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