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Wall Street frowns as Figma sacrifices revenue to win over AI

Figma has reported quarterly results and guidance above Wall Street expectations, but its stock fell 7% after the market closed. The US digital design software maker is prioritizing adoption of its... In Q3, Figma posted revenue of $391.4m, up 43% y-o-y, beating the $375.8m expected. Adjusted EPS came to $0.10, double the $0.05 forecast, while it's adjusted operating margin reached 12%, compared with the 6.1% consensus. It's net loss narrowed to $

Truvace record2 min read1 sourceEvidence: Emerging · 42/100 — News report · 1 independent sourceJournalismTRV-2026-2388 · cite or check it
Wall Street frowns as Figma sacrifices revenue to win over AI

In brief

Figma reported third-quarter revenue of $391.4m, up 43% year on year and ahead of the $375.8m analysts expected, yet its stock dropped 7% after the market closed. The design software maker says it is putting adoption of its AI features ahead of immediate monetization and accepting lower short-term revenue.

The mechanism is more AI credits for customers at unchanged prices. CFO Praveer Melwani said the policy amounts to temporarily giving up some revenue to encourage lasting adoption. Investors remain cautious about whether that usage will turn into additional revenue and sustainable profit.

The pressure is industry-wide. Figma shares are down roughly 41% year to date while the S&P 500 is up 12%, and rival Canva announced it would cut 22% of its workforce, a sign of the adjustment under way in design software.

Main points

  1. Q3 revenue reached $391.4m, up 43% year on year, against $375.8m expected; adjusted EPS was $0.10 versus a $0.05 forecast.
  2. Adjusted operating margin hit 12% compared with a 6.1% consensus, and the net loss narrowed to $81.3m from $1.10bn a year earlier.
  3. Figma raised its 2026 revenue forecast to between $1.497bn and $1.499bn and lifted its operating margin target to 11% from 9%.
  4. Growth is expected to slow to about 33% in Q4 from 43% in Q3, though that would still beat the 28% analysts expected.
  5. Figma says weekly users consuming AI credits rose nearly 50% at companies spending over $10,000, and the share of tasks handled by its proprietary model has doubled.

The problem

Figma is granting customers more AI credits without raising prices, which its CFO described as temporarily giving up revenue, and its stock has fallen about 41% this year amid competition from AI-powered design tools.

The full story

Figma's quarter beat expectations on revenue, earnings and margin, and the company lifted its full-year guidance. The stock still fell 7% after the close, as the market focused on the cost of its AI strategy and the expected slowdown in Q4 growth.

The company is granting customers more credits for its AI tools without raising prices. Early results cited by the company include a rise of nearly 50% in weekly users consuming AI credits at companies spending over $10,000, and a doubling of the share of tasks handled by its own model. A decline in cancellations of AI-generated changes suggests their quality is improving.

Figma plans to develop its own technologies to cut costs, improve performance and reduce reliance on external providers. Meanwhile, concerns about competition from new AI-powered design tools have weighed on the shares, and Canva's 22% workforce cut shows the strain across the sector.

Sources

  1. JournalismMarketScreener2026-11-05

The debate