Figma’s Shares Plunge 75%; Stock Now Trades at 15x Price-to-Sales
Figma shares have plunged nearly 75% from their $142.92 peak to around their $33 IPO price, valuing the company at about $18.5 billion versus Adobe’s aborted $20 billion takeover bid. The stock trades at roughly 15x price-to-sales following 38% third-quarter revenue growth and AI investments including the Weavy acquisition.
1. Stock Performance Since IPO
Figma’s shares have exhibited extreme volatility since the company went public on July 31. After listing at $33 per share, the stock rocketed to an all-time high of $142.92 the very next day, only to give up nearly all of those gains and close at approximately $37.33 on January 9. This represents a decline of roughly 75% from the peak and places the current trading level just above the IPO price, reinforcing the narrative of a ‘broken IPO’ despite the broader strength in the SaaS sector.
2. Valuation and Market Cap
At today’s price, Figma carries a market capitalization of about $18.5 billion, below the $20 billion valuation that Adobe had agreed to pay in a blocked acquisition deal in 2022. With roughly $1.5 billion in cash and marketable securities on its balance sheet, the company trades at an adjusted price-to-sales multiple of approximately 15x on a run-rate basis. This multiple compares favorably to peers given Figma’s growth trajectory and profitability, suggesting a potential valuation floor and meaningful upside if market sentiment improves.
3. Strong Financial Performance
In the third quarter, Figma delivered revenue of $274.2 million, marking a 38% year-over-year increase. The company reported adjusted operating income of $34 million, underscoring its ability to scale profitably. A one-time non-cash expense related to stock-based compensation tied to the IPO weighed on GAAP results, but management highlighted a track record of GAAP profitability outside of these items. These fundamentals signal robust operational execution in a competitive SaaS landscape.
4. AI Investments and Strategic Acquisition
Figma has doubled down on AI integration across its platform, launching tools such as Figma Make for prompt-to-app code generation, Figma Sites for automatic website publishing, and Figma Buzz for AI-driven brand marketing. In 2025, it acquired Weavy—now rebranded as Figma Weave—adding AI-powered design interface capabilities. These initiatives position Figma to capitalize on the growing intersection of AI and UX/UI design, potentially cementing its leadership in next-generation web and application design software.