September 4, 2025 — United States — Design software company Figma reported impressive second-quarter results with soaring revenue and a return to profitability, yet its shares tumbled as investors questioned whether future growth would meet lofty expectations.
Revenue Growth and Profit
Figma’s revenue jumped 41 percent year-on-year, reaching about $249.6 million. The company posted a $28.2 million profit, a dramatic turnaround from losses recorded in the same quarter last year. This marks a major milestone as the company proves it can deliver profits while expanding rapidly.
Stock Decline Despite Success
Despite the upbeat earnings, Figma’s stock dropped more than 13 percent in after-hours trading. Analysts attributed the decline to investor concerns that the results, while strong, fell slightly short of Wall Street’s sky-high expectations. Some investors also remain cautious about the company’s steep valuation compared to other software firms.
AI Investments and New Tools
Figma executives highlighted the company’s push into artificial intelligence, showcasing tools such as Figma Make, which can generate design prototypes directly from text prompts. While the innovations are seen as a long-term growth driver, the heavy investment required has fueled worries about near-term profitability.
Outlook for Coming Quarters
Looking ahead, Figma forecast third-quarter revenue between $263 million and $265 million, representing growth of roughly 33 percent from last year. For the full year, the company expects revenue to surpass $1 billion for the first time. While those figures align with analyst estimates, they did little to ease fears that the company’s momentum may be slowing.
Balancing Growth and Expectations
Figma’s results highlight a key challenge for newly public tech firms: balancing rapid innovation and strong earnings growth against the weight of market expectations. As the company doubles down on AI and seeks to expand its customer base, the question remains whether investors will give it the patience needed to prove its long-term vision.
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