Figma (FIG) quarter year Financial Results Summary
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Figma (FIG) Q1 2026 Financial Results Summary
Figma, Inc. (NYSE:FIG) announced its financial results for the first quarter ended March 31, 2026, on May 14, 2026.
Summary of Financial Results
- Revenue:
- Q1 2026 revenue was $333.4 million, reflecting a 46% year-over-year growth, which represents an increase from 40% in Q4 2025 and 38% in Q3 2025.
- Operating Performance:
- GAAP loss from operations was $(137.4) million, with a GAAP operating margin of (41%).
- Non-GAAP operating income stood at $52.1 million, resulting in a non-GAAP operating margin of 16%.
- Net Cash Flow:
- Net cash provided by operating activities was $97.3 million, with an operating cash flow margin of 29%.
- Free Cash Flow for the quarter was $88.6 million, translating to a Free Cash Flow margin of 27%.
- Net Loss:
- GAAP net loss totaled $(142.4) million.
- Non-GAAP net income was reported at $56.5 million.
- GAAP net loss per share, both basic and diluted, was $(0.27), while non-GAAP net income per share was $0.11 (basic) and $0.10 (diluted).
- Cash Position:
- Cash, cash equivalents, and marketable securities amounted to $1.6 billion as of March 31, 2026.
Customer Metrics and Business Highlights
- Net Dollar Retention Rate:
- At 139%, up three percentage points from the previous quarter, marking Figma’s highest Net Dollar Retention Rate in over two years.
- Customer Growth:
- 15,218 Paid Customers with over $10,000 in ARR, representing a 37% year-over-year growth, accelerating by five percentage points compared to Q4 2025.
- 1,525 Paid Customers with over $100,000 in ARR, up 48% year-over-year, with an increase of two percentage points from Q4 2025.
- Total Paid Customers grew 54% year-over-year, reaching approximately 690,000.
- New Pro team conversions surged over 150% year-over-year, indicative of continued adoption of Figma’s AI features.
- AI Product Usage:
- Approximately 60% of customers with over $100,000 in ARR utilized Figma Make weekly, up from 50% in the prior quarter.
- AI Monetization:
- AI credit limits were implemented for all seats beginning March 18, 2026.
- Over 75% of Org and Enterprise users exceeding AI credit limits continued active usage in April, with 95% remaining active on the platform through the end of April.
- Product Innovations:
- Expanded Code to Canvas capabilities, integrating various prototyping tools and IDEs.
- New Figma Model Context Protocol (MCP) capabilities enabled direct modifications of Figma files by AI agents, resulting in MCP weekly active users increasing five times quarter-over-quarter.
Quarterly Guidance
- Second Quarter 2026 Outlook:
- Revenue is projected between $348.0 million and $350.0 million, anticipating a 40% year-over-year growth at the midpoint.
- Full Year 2026 Outlook:
- Expected revenue between $1.422 billion and $1.428 billion, indicating a 35% year-over-year growth at the midpoint and a $55 million increase from previous guidance.
- Anticipates Non-GAAP operating income between $125.0 million and $135.0 million, achieving a non-GAAP operating margin of 9% at the midpoint.
Capital Actions
- Dividends and Share Buybacks:
- There was no mention of declared quarterly dividends or share repurchase programs in the report.
This summary provides a comprehensive overview of Figma’s Q1 2026 financial performance and strategic outlook, highlighting its growth trajectory and financial commitments moving forward.
Note: All amounts are in thousands.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
| March 31, 2026 | March 31, 2025 | |
|---|---|---|
| Revenue | $333,439 | $228,199 |
| Cost of revenue(1) | $68,666 | $19,452 |
| Gross profit | $264,773 | $208,747 |
| Operating expenses(1): | ||
| Research and development | $172,974 | $69,925 |
| Sales and marketing | $125,568 | $68,840 |
| General and administrative | $103,629 | $30,233 |
| Total operating expenses | $402,171 | $168,998 |
| Income (loss) from operations | $-137,398 | $39,749 |
| Other income (expense), net | $-4,325 | $7,274 |
| Income (loss) before income taxes | $-141,723 | $47,023 |
| Provision for income taxes | $678 | $2,141 |
| Net income (loss) | $-142,401 | $44,882 |
| Less: net income attributable to participating securities | $— | $-36,271 |
| Net income (loss) attributable to common stockholders | $-142,401 | $8,611 |
| Net income (loss) per share, basic | $-0.27 | $0.04 |
| Net income (loss) per share, diluted | $-0.27 | $0.04 |
| Weighted-average shares outstanding used in computing net income (loss) per share, basic | 523,485 | 214,883 |
| Weighted-average shares outstanding used in computing net income (loss) per share, diluted | 523,485 | 231,076 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $405,654 | $403,469 |
| Digital assets, current | $15,696 | $15,575 |
| Marketable securities | $1,232,810 | $1,252,474 |
| Accounts receivable, net | $188,351 | $247,915 |
| Prepaid expenses and other current assets | $93,882 | $85,267 |
| Total current assets | $1,936,393 | $2,004,700 |
| Property and equipment, net | $30,982 | $19,996 |
| Intangible assets, net | $12,663 | $19,083 |
| Digital assets, non-current | $11,787 | $15,116 |
| Goodwill | $101,396 | $101,396 |
| Operating lease right-of-use assets | $54,458 | $57,411 |
| Restricted cash | $9,800 | $9,799 |
| Other assets | $133,309 | $120,706 |
| Total assets | $2,290,788 | $2,348,207 |
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | $8,928 | $4,502 |
| Accrued and other current liabilities | $82,157 | $66,535 |
| Accrued compensation and benefits | $53,173 | $107,105 |
| Operating lease liabilities, current | $2,540 | $2,630 |
| Deferred revenue | $627,664 | $595,334 |
| Total current liabilities | $774,462 | $776,106 |
| Operating lease liabilities, non-current | $
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