Anne Marie
Figma isn’t just another tech IPO—it’s the most exciting one in years. With nearly $900 million in annual revenue, 46% year-over-year growth, 91% gross margins, and a 132% net dollar retention rate, Figma has what most software IPOs only dream of: growth, scale, and profitability.
Even more impressive? The company is already operating profitably with a 17% operating margin and $44.9 million in net income for Q1 2025. That puts it well above the so-called "Rule of 40" benchmark used to evaluate SaaS businesses. Figma's combined growth and margin metrics land it at 63% on the Rule of 40 scale.
Is Figma a Threat to Adobe?
Absolutely—so much so that Adobe tried to acquire it in 2022 for $20 billion. That deal was ultimately blocked by EU regulators, but it shows how seriously Adobe viewed the competitive threat. Figma’s flagship design tool has quickly become the industry standard for UI/UX design, effectively replacing Adobe XD in many workplaces.
And Figma is pushing further: it recently launched Figma Slides, Figma Sites, and an AI-powered tool called Figma Make. These expansions are designed to pull in everyone from marketers to developers, giving Figma a larger footprint across the design workflow.
Should You Buy on Day One?
With the IPO priced between $25 and $28 per share, the initial valuation could push Figma to a sky-high revenue multiple. Given the excitement and low IPO volume in recent years, it’s likely to pop on day one. But smart investors may want to wait.
Figma insiders are under a standard 180-day lockup period. As with many hot tech IPOs, the stock may see selling pressure once that lockup expires. If you believe in Figma long-term, consider putting it on a watchlist and waiting for a more attractive entry point.
When Will Figma IPO?
In early July, Figma publicly filed its paperwork with the Securities and Exchange Commission to go public. On Monday, July 21, the software firm priced its public offering, saying it plans to sell roughly 37 million shares—which includes stock from existing shareholders—at $25 to $28 apiece. The company is expected to begin trading sometime next week on the New York Stock Exchange under the ticker symbol "FIG."
Interestingly, Figma's prospectus indicates it has authorized the issuance of blockchain common stock "that our Board of Directors could use to, among other things, issue shares of our capital stock in the form of blockchain tokens," though it added that it doesn't have any specific plans currently to do so.
The Bottom Line
Figma has all the hallmarks of a software superpower: sticky users, top-tier financials, and huge market potential. If you’re looking for exposure to next-gen productivity software, this IPO deserves your attention. Just be ready to pay up—or wait for the dip.