Figma Stock Tumbles 12% Despite Strong Earnings and Upbeat Outlook
Shares of the recently-public design software firm fall as a solid beat-and-raise report fails to meet Wall Street's lofty expectations.
Shares of Figma Inc. (FIG) plunged more than 12% in after-hours trading Wednesday, a surprising turn for the design software company after it delivered strong second-quarter results and a positive forecast in its first earnings report since going public.
The company posted impressive growth, with , meeting analyst expectations. Figma also swung to a profit of $28.2 million, a significant improvement from the $827.9 million loss reported in the same quarter of the prior year. Despite the strong performance, the results were not enough to satisfy Wall Street's immense expectations.
Investor enthusiasm had been high for Figma, whose shares had soared 250% from their initial public offering price of $33 on July 31. The sell-off suggests a classic case of the results, while strong, failing to justify a stock that was already priced for perfection. According to one analyst, Figma's "consistent innovation, execution, and durable growth" appeared to be .
Looking ahead, Figma projected third-quarter revenue between $263 million and $265 million, placing the low end of its guidance above the FactSet consensus of $262 million. For the full fiscal year, the company anticipates revenue between $1.021 billion and $1.025 billion.
Adding to potential investor concerns, Figma also announced an for certain employees and service providers, set for September 5, 2025. This could introduce new selling pressure on the stock just as its post-IPO momentum hits its first major hurdle.