Figma (FIG +2.50%) made its stock market debut less than a year ago. It immediately popped on its first day of trading, marking the largest single-day gain for a U.S. company of its size in three decades.
The good times didn't last though, and now shares are down nearly 80% from their peak. Last week, Anthropic released Claude Design as a direct rival to Figma, Adobe, and Canva. In a space where artificial intelligence (AI) competitors are improving substantially and quickly, does this spell doom for Figma?
NYSE: FIG
Key Data Points
The answer isn't definitive right now, but Figma does need to deepen its relationship with its core customer: professional designers. As of right now, Claude Design is more likely to be used by nonprofessionals and hobbyists. This is where Figma can reassert its dominance.
Figma has become a leading design tool for designers worldwide, and it's indispensable to the workers who rely on it. It's doubtful companies will jump ship and immediately pledge loyalty to Claude Design.
Figma had an excellent 2025. Revenue eclipsed $1 billion, increasing 41% year over year. International revenue grew 45%.
Image source: Getty Images.
Early 2025 estimates showed that Figma had more than 13 million users and that 95% of Fortune 500 companies used the platform. Figma also has a commanding market share in the design industry. Rival Invision went out of business in late 2024, leaving Figma and Adobe competing for design professionals' preference.
Figma only has so much time to cement its relationship with professional teams. Figma isn't doomed, but it does need to act with urgency. AI is closing the gap on professional design tools.
Now is the time for Figma to stay true to its core purpose: serving pros better than anyone else.
