Figma (FIG 1.90%), a provider of cloud-based collaborative design software, released its Q2 FY2025 earnings on Sept. 3, 2025. The most significant news was a 41% year-over-year increase in Q2 revenue, reaching $249.6 million. The company posted positive operating and net profits on both a GAAP and non-GAAP basis. Results slightly outpaced reported analyst expectations, especially given elevated spending on new products and the Config user conference.
The company delivered an overall solid quarter, with strong growth in customer engagement and retention, but also signaled slower top-line growth for the coming quarters.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue | $249.6 million | $177.2 million | 41% |
| Adj. operating income | $11.5 million | $4.9 million | 135% |
| Net income | $19.8 million | $14.3 million | 38.5% |
| Adj. free cash flow | $60.6 million | $6.1 million | 893% |
| Adj. operating margin | 5 % | 3 % | 2 pp |
Source: Figma.
Business Overview and Key Success Factors
Figma offers software tools that enable design teams to create, prototype, and collaborate on user interfaces directly in the browser. Its core products include Figma Design (vector-based interface design), FigJam (digital whiteboarding), and Figma Make (AI-powered prototyping).
The company's focus is on rapid product innovation and deep integration with existing workflows. Recent priorities included artificial intelligence enhancements, expanding the developer toolset, and increasing the number of features that support content and code delivery. Key success factors for Figma include keeping its product suite ahead of competitors, driving up cross-product usage, and growing its base of high-value enterprise customers generating more than $10,000 or $100,000 in annualized revenue (as measured by ARR as of Q2 2025).
Quarter in Review: Product Innovation and Business Momentum
During the quarter, Figma launched four new tools: Figma Make (AI-powered prototyping), Figma Draw (tools for drawing and visual expression), Figma Sites (solution to convert designs into live websites), and Figma Buzz (tools for creating marketing assets). The company also debuted its Dev Mode MCP server, which streamlines the process of turning designs into usable code using large language models (LLMs). These expansions reinforced Figma’s strategy to extend beyond basic design and support the entire workflow from initial sketch to final product delivery.
Figma completed two acquisitions in the quarter: Modyfi, which adds advanced animation and motion design features, and Payload, a content management system (CMS) focused on developers. Both acquisitions strengthen the platform’s capabilities for integrating animation and content management into product development workflows.
Figma reported 11,906 customers with annual recurring revenue (ARR) above $10,000 as of Q2 2025 and 1,119 customers with ARR above $100,000 as of Q2 2025. Over 80% of customers used at least two products in Q2 2025, About two-thirds of customers used three or more products during the quarter ended June 30, 2025.
Figma maintained positive operating margins, even as it increased spending for its major Config user conference and accelerated hiring tied to new product launches. The company posted non-GAAP operating income of $11.5 million (up from $4.9 million) in Q2 and non-GAAP net income of $19.8 million. Adjusted Free Cash Flow rose sharply, reaching $60.6 million in Q2 2025, up from $6.1 million in Q2 2024. Cash, cash equivalents, and marketable securities totaled $1.6 billion as of June 30, 2025.
Outlook and What to Watch
Management issued GAAP revenue guidance for Q3 2025 of $263 million to $265 million, representing approximately 33% year-over-year growth at the midpoint. For FY2025, Figma projects GAAP revenue between $1.021 billion and $1.025 billion, signaling ongoing growth but at a slower rate than previous quarters. Non-GAAP operating income is expected to be between $88 million and $98 million for FY2025. There was no explicit guidance on net income margins or free cash flow. Figma does not currently pay a dividend.
A significant amount of employee and service provider shares will be released from lock-up beginning September 5, 2025, allowing up to 25% of eligible shares to enter the market after Q2 2025 earnings, with further unlocks scheduled through August 2026. Investors should also keep an eye on the impact of share unlocks on trading activity and float.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
