Figma’s stock declined 7% in after-hours trading following the release of third-quarter financial results that surpassed analyst expectations across multiple metrics. The design software company reported revenue growth of approximately 43% year over year, while narrowing its net loss to $81.3 million, or 15 cents per share, compared with a loss of $1.10 billion, or $2.72 per share, in the same period a year earlier.
The company demonstrated profitability improvements with a 12% adjusted operating margin, exceeding the 6.1% consensus estimate among analysts. Management raised full-year guidance, projecting an 11% operating margin compared with the previously forecast 9%, and estimated revenue between $1.497 billion and $1.499 billion for 2026, up from the earlier range of $1.463 billion to $1.467 billion. Wall Street had anticipated $1.471 billion in annual revenue. For the fourth quarter, Figma projected revenue growth of approximately 33%, above the 28% growth rate that analysts had predicted.
Despite the strong results, investors reacted negatively, reflecting concerns about the company’s strategic direction. Figma’s shares have declined approximately 41% through 2026, while the S&P 500 index has gained 12%. Earlier in the year, market participants worried that artificial intelligence systems could threaten Figma’s competitive position, though such concerns have largely moderated across the broader software sector as established companies maintained growth momentum.
Figma’s management emphasized a deliberate trade-off between immediate revenue and long-term customer investment. The company increased AI credit allocations to clients while maintaining pricing, a strategy aimed at building durable growth. Weekly active users at organizations spending over $10,000 on Figma who utilized AI credits rose by almost 50% during the quarter, and the share of work performed by Figma’s proprietary AI model doubled, with declining rates of users reversing AI-generated outputs.
Executives also highlighted an emerging focus on cybersecurity infrastructure following recent incidents affecting other technology companies. While customers are not requesting Figma to become a security vendor, management indicated the company is conducting heightened scrutiny of vendor security practices.
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