Figma Stock Down 80% Since IPO as Costs Rise, Stock Split Looms
FIG's stock has plunged nearly 80% since its 2025 IPO due to slower revenue growth and rising operational expenses. The company, which delivered robust quarterly performance post-IPO, is reportedly under consideration for a forward stock split.
1. Growth Deceleration Weighs on Investor Sentiment
After debuting as one of the most highly anticipated IPOs of 2025, Figma’s quarterly revenue growth slowed from 72% year-over-year in Q1 to 38% in Q4. Operating expenses surged by 55% over the same period, driven primarily by expanded server capacity and a 30% increase in headcount to support international expansion. These dynamics have prompted analysts to revise full-year revenue forecasts downward by an average of 15%.
2. Rising Costs Pressure Profitability
Figma’s R&D and sales & marketing costs now account for 48% and 32% of revenues respectively, up from 40% and 25% twelve months ago. The company reported a net loss of $112 million in its latest quarter versus $68 million a year earlier, reflecting higher investments in AI-powered design tools and global data-center deployments. As Figma continues to prioritize feature development, breakeven remains projected to slip into late 2026.
3. Stock-Split Speculation Gains Traction
Despite share performance down almost 80% from peak levels, Figma’s board signaled interest in a forward stock split to improve liquidity and broaden retail participation. The company’s float stands at just 28 million shares, one of the smallest among peer SaaS listings. Should management pursue a 4-for-1 split, free-float would quadruple to roughly 112 million shares, potentially invigorating secondary trading volumes.