Figma, Inc. (FIG) Down 6.3% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Figma, Inc. (FIG). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Figma, Inc. due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Figma, Inc. before we dive into how investors and analysts have reacted as of late.

Figma's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Figma came out with fourth-quarter 2025 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 14.3%. The company reported earnings of 6 cents per share in the year-ago quarter.

Figma posted revenues of $303.7 million in the fourth quarter of 2025, surpassing the Zacks Consensus Estimate by 3.7%. Figma’s fourth-quarter 2025 revenues increased 40% year over year.

Figma’s Quarterly Results in Detail

Figma’s non-GAAP gross profit rose 30.5% year over year to $261.79 million, with a non-GAAP gross margin of 86%, down 600 basis points from the prior-year quarter.

The company’s non-GAAP operating profit declined 22% year over year to $44 million, with a non-GAAP operating margin of 14%, down 1,200 basis points from the prior-year quarter.

Figma continued to show strong expansion within its customer base. Net dollar retention for customers with ARR above $10,000 increased to 136%, up five percentage points sequentially, reflecting deeper product adoption and growing usage across teams.

The company ended the quarter with 13,861 customers generating more than $10,000 in ARR, adding 951 customers in this category in the fourth quarter of 2025. The company now has 1,405 customers generating more than $100,000 in ARR, adding 143 customers in this category in the fourth quarter of 2025 alone.

The company’s non-GAAP net profit declined 18.7% year over year to $43.0 million.

FIG’s Balance Sheet

As of Dec. 31, 2025, Figma held $1.7 billion in cash and marketable securities.Figma generated $39.9 million in operating cash flow and $38.5 million in adjusted free cash flow during the quarter.

Figma’s Q1 and 2026 Outlook

Figma provided guidance for the first quarter of 2026 and 2026. Figma expects its first-quarter 2026 revenues to be between $315 million and $317 million, implying year-over-year growth of 38%.

The company now projects its 2026 annual revenues between $1.366 billion and $1.374 billion, implying year-over-year growth of 30%.

Figma projects its 2026 non-GAAP operating income between $100 million and $110 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -10% due to these changes.

VGM Scores

Currently, Figma, Inc. has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Figma, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Figma, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, Datadog (DDOG), has gained 7.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Datadog reported revenues of $953.19 million in the last reported quarter, representing a year-over-year change of +29.2%. EPS of $0.59 for the same period compares with $0.49 a year ago.

For the current quarter, Datadog is expected to post earnings of $0.50 per share, indicating a change of +8.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Datadog. Also, the stock has a VGM Score of D.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Figma, Inc. (FIG): Free Stock Analysis Report

Datadog, Inc. (DDOG): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research