Is Figma Stock a Buy Now?

Shares of plan bundle developer Figma (NYSE: FIG) experienced unthinkable occurrence erstwhile they went nationalist past July, debuting astatine $33 per stock earlier skyrocketing to a 52-week precocious of $142.92 successful August.

Since then, the banal has reversed people large time. Shares deed a 52-week debased of $26.79 connected Jan. 21, dropping beneath the IPO price. This whitethorn beryllium a large accidental to scoop up Figma stock. Or could reasons beryllium to clasp off?

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Answering those questions requires a deeper dive into Figma's business.

Figma is striving to reinvent plan software, and 1 of the ways it's doing truthful is by incorporating artificial intelligence. For instance, the institution acquired AI plan start-up Weavy successful October.

Weavy, present called Figma Weave, combines respective starring AI models with nonrecreational editing tools to streamline the plan process and alteration designers to usage AI arsenic a collaborator to rapidly execute their originative visions.

The company's proprietary AI tool, Figma Make, is seeing 30% of customers providing yearly recurring gross (ARR) of $100,000 oregon much utilizing it connected a play basis, and usage is growing.

CFO Praveer Melwani explained the company's maturation strategy connected a November telephone with analysts, saying, "We deepened our investments successful Q3 to physique for the AI autochthonal workflows of the future." The attack is working, arsenic evidenced by Figma's beardown lawsuit maturation and retention.

In the 3rd 4th of 2025, the institution added much than 1,000 customers with ARR of $10,000 oregon more. In addition, Figma's nett dollar retention complaint for clients with ARR of astatine slightest $10,000 was 131%, which indicates these high-value customers are expanding their spending.

The company's occurrence successful acquiring and retaining customers is driving income growth. In Q3, Figma achieved grounds gross of $274.2 million, a 38% year-over-year increase. In fact, income person grown each 4th since Q1 of 2024, erstwhile gross totaled $156.2 million.

Figma expects that inclination to continue. It anticipates Q4 gross to travel successful betwixt $292 cardinal and $294 million, representing 35% year-over-year maturation astatine the midpoint.

The institution besides boasts an outstanding equilibrium sheet. It exited Q3 with full assets of $2.1 billion, of which implicit $1.5 cardinal was cash, currency equivalents, and marketable securities. Total liabilities were $684.7 million, but $473.6 cardinal of that was deferred revenue, representing upfront lawsuit payments that volition beryllium recognized arsenic income aft services are delivered.