Introduction
In July 2025, Figma Inc. (ticker: FIG) made one of the most explosive Wall Street debuts in recent years. The browser-based design platform, known for its collaborative tools used by developers, designers, and startups, raised over $1.2 billion in its initial public offering (IPO). Shares skyrocketed more than 250% above the offering price, giving the company a market valuation close to $68 billion.
But after the IPO excitement, investors are asking: Is Figma stock a smart buy in 2025? This article explores the company’s IPO, earnings, risks, and long-term outlook.
🔎 What is Figma?
- Founded: 2012 by Dylan Field and Evan Wallace
- Headquarters: San Francisco, California
- Industry: Design collaboration software (SaaS)
- Users: Millions of designers, developers, and companies worldwide
Figma allows multiple people to collaborate in real time on digital design projects, similar to how Google Docs allows document collaboration. Its cloud-native approach has disrupted traditional design tools like Adobe Photoshop and Sketch.
💰 The 2025 IPO Success Story
Figma priced its IPO at $33 per share. On opening day, shares surged above $100, reflecting strong investor demand. The IPO:
- Raised $1.2 billion in capital
- Valued the company near $68 billion
- Created huge windfalls for early investors and co-founders
This IPO made headlines as one of the most successful tech listings of the decade.
📊 First Earnings Report as a Public Company
In its Q2 2025 earnings report, Figma showed both strengths and weaknesses:
- Revenue: $249.6 million (+41% YoY)
- Profit: $846,000 (narrowly profitable)
- Wall Street Expectation: Missed by just $400,000
Despite strong growth, the stock fell 12–15% in after-hours trading because investors had set very high expectations.
🏦 Who Got Rich from the IPO?
The IPO created billions in wealth for Figma insiders:
- Dylan Field (CEO): ~$6.6 billion
- Evan Wallace (Co-founder): ~$3.1 billion
- Index Ventures: ~$7.2 billion
- Greylock Partners: ~$6.7 billion
- Kleiner Perkins: ~$6 billion
- Marin Community Foundation: ~$440 million (through founder’s charitable gift)
This highlights the scale of wealth creation tied to Figma’s IPO.
⚡ Why Investors Are Interested in Figma Stock
- Explosive Growth
- Revenue growth of 40%+ annually.
- Rapid user adoption across startups, enterprises, and freelancers.
- Collaboration Advantage
- Cloud-first, browser-based, and real-time features set it apart from Adobe.
- Strong Leadership
- CEO Dylan Field, a Thiel Fellow, is seen as a visionary leader in design tech.
- Market Opportunity
- The global design software market is expected to grow into the tens of billions.
⚠️ Risks and Concerns
- High Valuation
- At IPO, Figma was trading at nearly 200× earnings—much higher than Adobe (17×).
- Competition with Adobe
- Adobe remains dominant in creative software and is investing heavily in AI design tools.
- Post-IPO Volatility
- Shares dropped after earnings, showing how fragile sentiment can be.
- Execution Risk
- Figma must prove it can maintain rapid growth while scaling profitably.
📈 Analyst Opinions on FIG Stock
- Out of 11 analysts covering FIG, only 4 recommend Buy, while the rest suggest Hold.
- Price Targets:
- Average: $80–$85
- Bullish: $100+ if growth continues
- Bearish: $60 if growth slows further
This shows that analysts are cautious despite long-term optimism.
🧠 Long-Term Outlook for Figma
The big question: Can Figma justify its massive valuation?
- If it continues growing revenue above 30% annually, Figma could become a long-term winner.
- If competition intensifies and growth slows, the stock may struggle.
- Investors will closely watch AI integration, user growth, and enterprise adoption.
❓ FAQs About Figma Stock
Q1: Is Figma stock a buy in 2025?
👉 For aggressive investors, Figma offers high-growth potential. For cautious investors, the valuation may be too high right now.
Q2: Why did Figma stock fall after earnings?
👉 Despite strong growth, it slightly missed revenue expectations, which disappointed investors.
Q3: Who owns the most Figma stock?
👉 Major shareholders include Index Ventures, Greylock Partners, Kleiner Perkins, and co-founders Dylan Field and Evan Wallace.
Q4: How does Figma make money?
👉 Subscription-based model — teams pay monthly or yearly to use Figma’s design and collaboration tools.
✅ Conclusion
Figma’s IPO was one of the hottest in 2025, delivering massive gains for insiders and drawing global attention. The company continues to grow quickly, with a strong product loved by designers and enterprises alike.
However, investors must balance the excitement with caution. The stock’s valuation remains extremely high, competition is intense, and volatility is expected in the short term.
For long-term believers in cloud design collaboration, Figma stock could be a strong addition to a growth portfolio. But conservative investors may want to wait for a better entry point.