After a long wait, Figma stock has finally gone public. The cloud-based software company best known for its user interface and user experience (UI/UX) design tools started trading on the New York Stock Exchange on July 31, 2025.
NYSE: FIG
Key Data Points
To investors, Figma may be best known as the former target of Adobe (ADBE -0.96%), which tried to acquire the start-up for $20 billion back in 2022. It later backed away after regulators brought up antitrust concerns. Since then, Figma has continued to deliver strong growth, and it just had a blowout initial public offering (IPO) as the stock surged on opening day, more than tripling from its $33 IPO price.
IPO
In this look at how to invest in Figma, we'll discuss how to buy the stock, whether you should buy it, whether Figma is profitable, what exchange-traded funds (ETFs) own it, whether it will pay a dividend, and its prospects for a stock split. Keep reading to learn more.
How to buy Figma stock
If you're interested in buying Figma, the process is the same as buying shares of any other publicly traded company. Just follow these steps.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Figma?
As a company, Figma has a lot of attractive qualities. It's growing quickly, with revenue up 46% in its most recent quarter and trailing-12-month revenue of $821 million. It has strong margins across the board, including a generally accepted accounting principles (GAAP) operating margin of 17% in its most recent quarter, and several quarters of profits.
The company is also a leader in web design software despite having less than $1 billion in revenue over the last four quarters, and Adobe's attempt to acquire the company shows the quality of Figma's product and business. Adobe was set to purchase Figma for $20 billion three years ago before regulators blocked the deal, claiming it would hurt competition in the industry.
While Figma's business looks strong, prospective investors also have to consider its valuation, and after the post-IPO surge, the stock is pricey. As of Aug. 1, when the stock was trading at $123 a share, its market cap had reached $60 billion, giving it a price-to-sales (P/S) ratio of 73.
High valuations aren't unusual in the software sector, but 73 times sales is extreme, even for a fast-growing new issue like Figma. By comparison, Adobe trades at a P/S of 7 and has a price-to-earnings ratio (P/E) of 23, though it's growing much more slowly.
In the S&P 500, only one company has a higher P/S ratio: Palantir (PLTR -3.32%), whose P/S ratio has recently been above 100. The number reflects its accelerating revenue growth, improving operating margins, and advantages in artificial intelligence (AI). Figma's valuation shows that it's priced for perfection, meaning it could be vulnerable to weaker-than-expected results or a macroeconomic slowdown.
Is Figma profitable?
As of its most recent quarter, Figma was not only profitable but also growing rapidly. The strong results help explain the company's decision to go public in 2025. In the first quarter of 2025, Figma reported revenue of $228.2 million, up 46% from a year ago, and had an operating profit of $39.8 million, giving it an operating margin of 17.4%.
On the bottom line, the company reported net income of $44.9 million in the quarter. In the two previous years, Figma had been unprofitable on a GAAP basis. In 2023, it reported an operating loss of $73.5 million on revenue of $504.9 million. In 2024, its operating loss exploded to $877.4 million on revenue of $749 million.
On an adjusted basis, however, the company was profitable. It reported a $27.1 million adjusted operating profit in 2023, which excludes $97.8 million in expenses associated with the failed merger with Adobe.
In 2024, Figma's adjusted operating profit was $127.2 million due to $947.5 million in stock-based compensation, which the company granted through a restricted stock unit release to reward shareholders following the abandoned merger with Adobe.
Over the last four quarters, the company has had an 18% adjusted operating margin on $821 million in revenue. By any reasonable definition, Figma is profitable, and its other financial metrics are impressive, including a 91% gross margin and 132% net dollar retention, meaning revenue from existing customers increased by 32% over the previous four quarters.
The bottom line on Figma
Figma will end up being one of the biggest, if not the biggest, IPOs of 2025, and there are a number of reasons the stock soared on its debut. It's growing rapidly, profitable, appears to have a bright future, has built a large customer base -- with 76% of the Forbes 2000 companies among its customers -- and it's been able to cross-sell products as it grows its product portfolio.
Adobe's attempt to buy the company for $20 billion when it was much smaller three years ago also adds to its credibility. As a business, Figma looks poised for success. While its valuation is steep, the stock deserves to trade at a premium, given its track record of revenue growth and profitability and the strength of its product portfolio.
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