San Francisco, Calif. — Figma, a prominent name in design software, has taken a significant step toward its initial public offering (IPO) by making its financials publicly available. Although the S-1 filing lacks specific details such as share count and pricing, it offers a comprehensive overview of the company’s financial trajectory, indicating robust potential for investors.
Analysts at Renaissance Capital predict that Figma could generate as much as $1.5 billion from the IPO. Should it achieve this target, Figma’s offering would tie with CoreWeave for the largest tech IPO of 2025 so far, emphasizing the significance of this launch in the technology sector.
Figma’s financial performance, as highlighted in the filing, shows a remarkable upward trend. The company reported revenues of $749 million for the year 2024, reflecting a 48% increase from the previous year. This positive momentum continued into the first quarter of 2025, with the company achieving 46% year-over-year growth. Furthermore, Figma noted a rolling 12-month revenue totaling $821 million, accompanied by an impressive gross margin of 91%.
Profitability remains a mixed picture for Figma. While the company was profitable in 2023, it experienced a substantial loss of $732 million in 2024, largely due to one-time costs associated with employee stock compensation. The company had issued 10.5 million stock options at a strike price of $8.50 per share, significantly impacting its bottom line. However, Figma rebounded to report profits by the fourth quarter of 2024, continuing this trend into early 2025.
The company’s debt situation appears favorable, as it claims to have no outstanding debt, although it does maintain a revolving credit line. Details regarding total debt will likely be clarified in subsequent filings. Additionally, it remains uncertain whether any executives or venture capitalists will be liquidating shares during the IPO process. Noteworthy investors include Index Ventures, Greylock Partners, Kleiner Perkins, and Sequoia Capital.
In 2024, Figma executives participated in a substantial tender offer allowing employees to cash out some of their shares. Notably, co-founder and CEO Dylan Field sold $20 million worth of shares in this transaction. The S-1 filing also mentions former co-founder Evan Wallace, who exited in 2021. Although he retains a shareholding through a family trust, Field maintains significant control, overseeing approximately 75% of the voting rights prior to the IPO.
Despite the promising financials, some challenges linger. The emergence of artificial intelligence (AI) design tools poses growing competition, with new players like Lovable entering the market. Nonetheless, Figma is also investing in its own AI technologies. The company acknowledges the fast-paced nature of AI development in its filing, emphasizing the need for innovative solutions to remain competitive.
As Figma prepares for its IPO, it is positioned both as a leader in design software and a key player in the evolving landscape of AI technology. Investors will be keenly watching to see how the company navigates its challenges while leveraging its strengths in the competitive market ahead.