Figma’s Record-Quality Performance in Q3 2025
Figma, Inc. (FIG) delivered a standout performance in the third quarter of 2025, with the company reporting its highest-ever revenue and significant growth in key metrics. CEO Dylan Field described the quarter as “the best in Figma’s history,” emphasizing that AI is “the most important technology shift of our lifetimes so far.” The company crossed $1 billion in annual revenue run rate, achieving $274 million in Q3 revenue—representing a 38% year-over-year growth and exceeding previous guidance.
Field highlighted the team’s efforts, stating that they are “working harder, moving faster, and shipping extremely quickly,” citing the launch of over 50 new features across the platform during the quarter. He also pointed to the rapid adoption of AI-native workflows, noting that by the end of September, approximately 30% of customers spending $100,000 or more in ARR were using Figma Make on a weekly basis. This number has continued to grow, signaling strong momentum in AI integration.
In addition to product advancements, Figma made strategic moves, including its first acquisition of Weavy and the opening of an India hub next week. These steps reflect the company’s ongoing expansion into new markets and product capabilities. Field introduced Loredana Crisan, the newly appointed Chief Design Officer, who joined from Meta, as a key hire to further elevate Figma’s design capabilities.
Financial Highlights
CFO Praveer Melwani shared the financial results, stating that Figma ended Q3 with $274 million in revenue, marking a 38% year-over-year increase. The annualized revenue run rate now exceeds $1 billion. On a quarterly basis, this represents the company’s best sequential quarter of net revenue added on record.
Looking ahead, Figma raised its outlook for both revenue and operating income for the full year. For Q4, revenue is expected to be between $292 million and $294 million, representing 35% year-over-year growth at the midpoint. Full-year revenue is forecasted to be between $1.044 billion and $1.046 billion, up $22 million from the previous range. Operating income for the full year is expected to be between $112 million and $117 million.
Melwani clarified that the outlook does not assume material consumption revenue this year and expects Q4 adjusted free cash flow margin to decline sequentially due to continued AI investments and one-time tax payments. Despite these challenges, Figma ended Q3 with $1.6 billion in cash, cash equivalents, and marketable securities.
Customer Growth and Retention
The company added over 90,000 paid teams in just two quarters, bringing total paid customers to 540,000 at the end of Q3. Net dollar retention for paid customers with ARR of $10,000 or more reached 131%, up 2 percentage points from Q2. This highlights strong customer retention and upselling potential.
Melwani noted a large one-time stock-based compensation expense related to the go-public process, which resulted in a GAAP net loss in Q3. However, he emphasized that the normalization of this expense is expected to take several quarters.
Q&A Insights
During the earnings call, analysts asked a variety of questions about Figma’s strategy, product launches, and future growth. Field discussed the Weavy acquisition, explaining how it enhances Figma’s platform by enabling higher-quality content creation. He also addressed the growing adoption of Figma Make among high-spending customers, noting that the 30% weekly usage rate continues to rise.
Melwani provided insights on Figma’s Dev seats, highlighting strong adoption and innovation in remote access to the MCP server. He also shared details on the company’s international growth, which reached 42% in Q3. Analysts expressed confidence in Figma’s direction, with many praising the company’s strong quarter, product launches, and growth trajectory.
Strategic Shifts and Future Outlook
Compared to Q2, both management and analysts showed increased confidence, with a stronger focus on AI-driven growth and expanded platform capabilities. The company accelerated revenue growth, net dollar retention, and customer acquisition compared to the previous quarter. Revenue grew to $274 million from $250 million, and net dollar retention improved to 131% from 129%.
Figma also shifted its strategic focus toward AI-native workflows, with the general availability of Figma Make and the launch of over 50 new features. The number of paid customers and multi-product adoption increased, with 70% of customers using three or more products, up from two-thirds in Q2.
Risks and Challenges
Despite the strong performance, management acknowledged risks, including the impact of AI investments on gross margins. Melwani noted that the cost to serve these products and features has affected gross margin, and this trend is expected to continue as AI adoption scales. He also warned that Q4 adjusted free cash flow margin may decline due to continued AI investments and one-time tax payments.
Additionally, the one-time stock-based compensation expense from the go-public process contributed to a GAAP net loss in Q3. However, the company remains focused on long-term growth and profitability.
Final Takeaway
Figma delivered record results in Q3 2025, driven by robust revenue growth, strong customer adoption of AI-native products, and a raised outlook for both Q4 and the full fiscal year. The company is investing heavily in AI, platform expansion, and product innovation while maintaining profitability and a strong cash position. These factors position Figma for continued momentum into 2026.