Figma’s 9.46X Forward P/S and 22% Profit Decline Highlight Premium Valuation Risk
Figma trades at a forward 12-month price/sales ratio of 9.46X versus the Internet-Software industry’s 4.03X, despite a 75% drop since IPO. In Q4 2025, non-GAAP operating profit fell 22% to $44 million and margins contracted 1,200 basis points to 14%, while goodwill surged to $101.4 million after over $200 million in AI-related acquisitions.
1. Premium Valuation and Share Decline
Figma’s forward 12-month price/sales multiple stands at 9.46X, more than double the 4.03X average for the Internet-Software industry, even as the stock has fallen roughly 75% since its IPO and underperformed peers.
2. Profit Contraction and Margin Pressure
In Q4 2025, non-GAAP operating profit dropped 22% year-over-year to $44 million, while operating margin contracted 1,200 basis points to 14%, reflecting rising development costs for new AI features such as Figma Make.
3. AI Acquisition Spend and Goodwill Increase
To bolster its AI capabilities, Figma acquired Weavy and Payload CMS for over $200 million combined in 2025, driving goodwill from $11.4 million at end-2024 to $101.4 million as of December 2025 and intensifying margin pressure.
4. Competitive Landscape and Outlook
Established rivals Adobe, Microsoft and Atlassian are embedding generative AI into their design and collaboration suites, while analysts now forecast Figma’s 2026 revenue growth at 29.8% and EPS of $0.23, a 23% year-over-year decline.