Investors should monitor Figma’s planned AI investments, which management warns will weigh on near-term margins even as they aim to expand the product suite. The end of the IPO quiet period on August 25, 2025, will bring the first independent analyst ratings, likely influencing institutional demand. Finally, around late January 2026, the expiration of the 180-day lock-up will allow insiders and early backers to sell shares; the resulting supply increase could exert downward pressure on the stock if demand does not keep pace. Despite robust fundamentals, Figma trades at a price-to-sales multiple well above the 15–20× range typical for high-growth software peers, suggesting the market has baked in several years of flawless execution. This elevated valuation leaves little room for error: any slowdown could trigger a sharp correction. The company’s dual-class share structure further concentrates control with founders and early investors, limiting public shareholders’ influence on strategic decisions and heightening governance risk if performance falters. According to its S-1 filing, Figma delivered 48% year-over-year revenue growth to $749 million in its last fiscal year and sustained 46% expansion in Q1 2025. The company reported a non-GAAP operating margin of 17% in the most recent quarter, a clear sign of underlying profitability once stock-based compensation charges are excluded. Equally impressive is its 132% net dollar retention rate, indicating that existing customers increased their spending by more than 30%, and underscoring deep integration of Figma’s design platform within enterprise workflows. Figma’s debut on the public markets was 40 times oversubscribed, reflecting extraordinary demand among institutional and retail investors. On its first trading day, the stock spiked from its offering price to a peak of $125 per share before retreating toward $90, illustrating both the intensity of initial hype and the volatility that followed. Sapphire Ventures’ president Jai Das noted that this phenomenon shares characteristics with so-called “meme stocks,” driven as much by social sentiment and media chatter as by traditional valuation metrics.
Investors should monitor Figma’s planned AI investments, which management warns will weigh on near-term margins even as they aim to expand the product suite. The end of the IPO quiet period on August 25, 2025, will bring the first independent analyst ratings, likely influencing institutional demand. Finally, around late January 2026, the expiration of the 180-day lock-up will allow insiders and early backers to sell shares; the resulting supply increase could exert downward pressure on the stock if demand does not keep pace. Despite robust fundamentals, Figma trades at a price-to-sales multiple well above the 15–20× range typical for high-growth software peers, suggesting the market has baked in several years of flawless execution. This elevated valuation leaves little room for error: any slowdown could trigger a sharp correction. The company’s dual-class share structure further concentrates control with founders and early investors, limiting public shareholders’ influence on strategic decisions and heightening governance risk if performance falters. According to its S-1 filing, Figma delivered 48% year-over-year revenue growth to $749 million in its last fiscal year and sustained 46% expansion in Q1 2025. The company reported a non-GAAP operating margin of 17% in the most recent quarter, a clear sign of underlying profitability once stock-based compensation charges are excluded. Equally impressive is its 132% net dollar retention rate, indicating that existing customers increased their spending by more than 30%, and underscoring deep integration of Figma’s design platform within enterprise workflows. Figma’s debut on the public markets was 40 times oversubscribed, reflecting extraordinary demand among institutional and retail investors. On its first trading day, the stock spiked from its offering price to a peak of $125 per share before retreating toward $90, illustrating both the intensity of initial hype and the volatility that followed. Sapphire Ventures’ president Jai Das noted that this phenomenon shares characteristics with so-called “meme stocks,” driven as much by social sentiment and media chatter as by traditional valuation metrics.