Figma Q1 Revenue Climbs 46% to $333M, Raises $1.425B Guidance
ADSK•Figma reported Q1 2026 revenue of $333.4 million, up 46% year-over-year, and non-GAAP EPS of $0.10 versus $0.06 expected, with net dollar retention of 139% and 48% growth in >$100k customers. The company raised full-year 2026 revenue guidance to $1.425 billion and trades at ~10× sales on 80%+ gross margins.
1. Q1 2026 Financial Results
Figma generated $333.4 million in Q1 2026 revenue, marking a 46% year-over-year increase and surpassing expectations. Non-GAAP earnings reached $0.10 per share versus $0.06 forecast, while sequential growth accelerated from 38% in Q3 and 40% in Q4 to 46% this quarter.
2. Customer Adoption and Retention
Net dollar retention climbed to 139%, reflecting deeper adoption across existing accounts, and the count of customers spending over $100,000 annually jumped 48%. Conversion rates for Pro teams surged by 150%, indicating accelerated usage among larger enterprise users.
3. AI Integration and Margin Trends
Figma’s AI credit monetization exceeded internal targets, and new integrations with Claude Code, Cursor, and VS Code position the platform as an AI-driven design layer. Gross margins dipped slightly to 82% due to higher AI costs, but management projects margins above 80% for the full year.
4. Guidance, Valuation, and Outlook
Full-year 2026 revenue guidance was raised to roughly $1.425 billion, with operating income outlook also lifted. Trading at approximately 10 times forward sales against 80%+ gross margins, the stock appears reasonably valued, though ongoing stock-based compensation and rising AI competition pose risks.
