Figma’s stock is trading perilously close to its all-time low as investors await the company’s first-quarter results due Thursday, May 14, with analysts split between cautious concern over costs and optimism about continued revenue growth. After surging to about $142 following its initial public offering, FIG shares have slid to roughly $21, wiping out billions of market value and leaving the stock under pressure as the market digests faster-moving trends in artificial intelligence and rising expenses.
The company’s recent financials show a mix of healthy top-line momentum and widening losses. In the fourth quarter, Figma reported revenue of $303.8 million, a 40% jump from a year earlier, and full-year revenue rose about 41% to just over $1.05 billion. International sales were a particularly strong point, growing about 45% year over year. Despite that growth, Figma’s annual net loss widened to more than $1.3 billion as operating costs continued to climb.
Investors will be watching Thursday for signs that the growth story is intact into 2026. Wall Street consensus models anticipate first-quarter revenue of just over $316 million, with second-quarter guidance expected near $329 million and full-year revenue forecasts topping $1.37 billion — roughly a 30% increase year over year. Several analysts argue the company could report figures above those street estimates, underscoring the tension between solid demand and heavy spending.
Other operational indicators point to resilience in the business. Figma’s net dollar retention, a measure of how much revenue existing customers generate over time, rose to 136% in the fourth quarter from 132% a year earlier. The company also closed the quarter with more than 13,800 customers paying at least $10,000 in annual recurring revenue, and 1,405 customers contributing more than $100,000 ARR, highlighting continued success upselling larger accounts despite broader market worries.
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Market sentiment, however, is mixed. Analysts remain relatively upbeat on the name versus current prices: the consensus price target stands at $43, implying upside of about 100% from the present level, with individual targets including $42 from Wells Fargo’s Michael Turrin and $45 from Morgan Stanley’s Elizabeth Porter. That optimism sits alongside investor anxiety about how AI-driven tools and competitors might affect Figma’s long-term growth trajectory and margin profile, a key reason the stock has underperformed since its IPO peak.
Technically, some chart watchers are pointing to bullish patterns that could encourage a rebound if earnings tone is constructive. Traders note a double-bottom around $16.35 with a neckline near $32.70 and a falling-wedge formation that typically precedes breakouts; a move back toward $34 would represent a roughly 65% rally from current levels. The technical case would be invalidated if the stock breaks decisively below the $16.3 support.
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With its upcoming report, Figma faces a classic post-IPO test — can it sustain high growth while narrowing losses enough to satisfy public-market investors? The May 14 results and management’s guidance will likely determine whether buyers step in to chase a recovery or whether concerns about costs and AI disruption keep pressure on the share price.
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