Figma Shares Plunge 80% After Lock-Up; Q4 Revenue Soars 40%
Since its mid-2025 IPO high of $115, Figma shares have plunged over 80% after a January lock-up expiration released new shares and a $1 billion stock-based compensation loss pressured the valuation. Despite the sell-off, Q4 revenue rose 40% to $303 million, with 136% net retention and $1.37 billion 2026 guidance.
1. Stock Performance Decline
Since peaking at $115 per share in mid-2025, Figma stock has fallen over 80%, trading near $20 after a wave of share releases and valuation pressure.
2. Valuation and Lock-Up Effects
The stock’s premium valuation of over 55x forward revenue left little margin for error, and the primary lock-up expiry on January 27 released significant share volume, compounding a $1 billion stock-based compensation hit.
3. Business Growth and Revenue Guidance
Figma delivered 40% revenue growth in Q4 2025 to $303 million and sees full-year 2026 revenue reaching $1.37 billion, driven by a net revenue retention rate of 136% among enterprise clients.
4. AI Integration Strategy
The rollout of Figma Make, an AI-assisted UI generator, and the new MCP server for AI agents aims to shift the business toward an AI credit model and bolster revenue per customer.