TLDR

  • After the Q4 revenue and guidance of Figma (FIG) exceeded Wall Street estimates, the company’s shares jumped approximately 15% in after – hours trading on Wednesday.
  • The Q4 revenue reached $303.8 million, a 40% year – on – year increase, surpassing the consensus of $293.15 million.
  • The Q1 guidance of $315–$317 million far exceeded the analysts’ expectation of $292 million.
  • The Net Dollar Retention Rate rose to 136%, up from 131% in Q3.
  • Figma will start charging for AI usage in March, and credit limits will be enforced across different account tiers.

On Wednesday, Figma’s stock soared about 15% in after – hours trading after the company reported better – than – expected fourth – quarter results and issued guidance that outperformed Wall Street estimates.

The Q4 revenue was $303.8 million, a 40% increase from the same period last year, beating the LSEG consensus of $293.15 million. The adjusted EPS was $0.08, higher than the expected $0.07.

The net loss for the quarter was $226.6 million, or $0.44 per share, compared to a net income of $33.1 million, or $0.15 per share, in Q4 2024. The adjusted free cash flow was positive at $38.5 million, with a 13% margin.

FIG Stock Card

For Q1 2026, Figma projected revenue of $315–$317 million, indicating a 38% growth. Analysts had estimated $292 million.

The full – year 2026 guidance called for revenue of $1.366–$1.374 billion, well above the consensus of $1.29 billion. The adjusted operating income is expected to be between $100 million and $110 million.

Customer Growth Holding Firm

The Net Dollar Retention from customers with an annualized revenue of at least $10,000 climbed to 136%, up from 131% in Q3, exceeding internal targets. At the end of the quarter, Figma had 13,861 paid customers in that tier, including 1,405 with an ARR above $100,000 and 67 with an ARR above $1 million.

CFO Praveer Melwani noted that more than half of the customers spending over $100,000 per year had employees using Figma Make weekly during Q4.

The number of weekly active users of Make, the AI – powered app prototyping tool, grew by over 70% quarter over quarter. Despite this significant increase, Figma’s adjusted gross margin remained stable at 86%, thanks to infrastructure optimizations that reduced per – user costs.

AI Monetization Starting in March

Figma will start enforcing monthly AI credit limits across different account types in March. Customers can either pay based on usage or subscribe for AI credits.

Melwani described the usage as following a “power law distribution,” where a small group of users within organizations consume a disproportionately large share of AI credits. The company views this as an opportunity for upselling in the future.

CEO Dylan Field said that AI is not a threat to software demand; on the contrary. “If you look at software, it’s not only not disappearing. There’s going to be a lot more of it than ever before,” he said, while acknowledging that the market is “potentially becoming more competitive.”

Figma also announced a collaboration with ServiceNow during the quarter to convert designs into enterprise applications.

RBC analyst Rishi Jaluria, who has a hold – equivalent rating, said the results showed “positive feedback regarding both Figma Make and Figma Design, indicating increased adoption of AI workflows.”

Despite the after – hours increase, as of Wednesday’s close, FIG shares were still down about 35% year – to – date.