Figma's stock slumps 18% after first earnings report to lowest since IPO
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Figma's stock slumps 18% after first earnings report to lowest since IPO

Why This Matters

Figma shares plummeted after the design software vendor reported earnings for the first time as a public company.

September 4, 2025
01:51 PM
2 min read
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In this articleFIG your favorite stocksCREATE FREE ACCOUNTwatch now3:5403:54Figma s continue to plunge on debut earnings callFast MoneyFigma s plummeted nearly 20% on Thursday, falling to the lowest price since the design software vendor's IPO in July after the company reported earnings for the first time as a public company.Results for the second quarter were largely inline with expectations, as Figma had issued preliminary results a little over a month ago.

Revenue increased 41% from a year earlier to $249.6 million, slightly topping analyst estimates of $248.8 million, according to LSEG.Analysts at Piper Sandler described the report as "largely a non-event," but noted that the "s have witnessed hyper-volatility" ing their 250% surge in the trading debut.Read more CNBC newsHuawei launches second trifold smartphone at $2,500 as it looks to cement comebackC3 AI reports declining revenue, announces new CEO to replace SiebelOpenAI boosts size of secondary sale to $10.3 billionApple has survived Trump's tariffs so far.

It might raise iPhone prices anywaySince closing at $115.50 on its first day, the stock has lost more than half its value, lowering the company's market cap to $27 billion.For the third quarter, Figma forecasted revenue of between $263 million and $265 million, which would represent 33% growth at the middle of the range.

The LSEG consensus was $256.8 million.Figma's IPO was significant for Silicon Valley and the sector broadly as it represented one of the highest-file offerings in years and signaled Wall Street's growing appetite for growth.

The market had been in a multiyear lull that began in early 2022, when inflation was soaring and interest rates were on the rise.Figma reported a 129% net retention rate, a reflection of expansion with existing customers.

The figure was down from 132% in the first quarter.— CNBC's Jordan Novet contributed to this report.WATCH: Figma s plungewatch now3:5403:54Figma s continue to plunge on debut earnings callFast Money

FinancialBooklet Analysis

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Key Insights

  • Inflation data often serves as a leading indicator for consumer spending and corporate pricing power
  • Earnings performance can signal broader sector health and future investment opportunities

Questions to Consider

  • What does this inflation data suggest about consumer purchasing power and corporate margins?
  • Could this earnings performance indicate broader sector trends or company-specific factors?

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