Figma's Q3 2025 Earnings Call: Contradictions Emerge in Figma Make Adoption and Pricing Strategy Impact

Date of Call: None provided

Financials Results

• Revenue: $274.0M, up 38% year-over-year; crossed $1.0B annualized revenue run rate; best sequential net revenue added on record
• Gross Margin: 86% gross margin ($237M gross profit); margin impacted by higher cost to serve AI features (no prior-period comparison provided)
• Operating Margin: 12% non-GAAP operating margin (operating income $34M)

Guidance:

• Q4 revenue expected to be $292M–$294M (~35% YOY at midpoint)
• FY2025 revenue expected to be $1.044B–$1.046B (~40% YOY at midpoint)
• Full-year operating income expected to be $112M–$117M
• Q4 adjusted free cash flow margin expected to decline sequentially due to continued AI investments and some one-time tax payments
• Outlook does not assume material consumption revenue this year; pricing/packaging rollout expected to be a mid-to-high single-digit growth driver

Business Commentary:

• Revenue Growth and AI Integration:
• Figma reported annualized revenue run rate over $1 billion and Q3 revenue of $274 million, with a 38% year-over-year growth.

• The growth was driven by the integration of AI features and new products like Figma Make, which attracted new customers and increased engagement from existing customers.

• Customer Expansion and Product Adoption:

• Figma ended the quarter with 540,000 total paid customers, up from nearly 450,000 at the end of Q1, adding over 90,000 paid teams in just two quarters.

• This expansion was fueled by the general availability of Figma Make, which provided new features and attracted more users, leading to increased adoption and customer retention.

• Strong Financial Performance and Guidance:

• Figma achieved an adjusted free cash flow margin of 18% in Q3, with a healthy balance of $1.6 billion in cash, cash equivalents, and marketable securities.

• The company raised its outlook for revenue and operating income, projecting $292 million to $294 million in revenue for Q4 and $1.044 billion to $1.046 billion for the year, driven by strong customer acquisition and product innovation.

• AI Product Development and Strategic Acquisitions:

• Figma's AI products, such as Figma Make and MCP Server, gained traction, with 30% of customers spending $100,000 or more in ARR using Figma Make weekly.
• The acquisition of Weavy was seen as a strategic move to enhance craft and creativity in the product suite, aligning with Figma's long-term focus on design differentiation.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management called Q3 “the best quarter in Figma’s history,” reported $274M revenue (up 38% YOY) and crossing $1B ARR, raised revenue and operating income outlooks, and highlighted NDR rising to 131% and a 12% non-GAAP operating margin, indicating strong momentum.

Q&A:

• Question from Keith Weiss (Morgan Stanley): Where does Weavy fit in the design paradigm, how does it expand the user base, and does it imply value accrues more to the platform versus models?
  Response: Weavy complements Figma by enabling higher-craft editing of AI outputs, integrates with Figma workflows to raise final output quality, may open new personas over time, and reinforces Figma’s thesis that design/craft and the platform capture significant value.

• Question from Rishi Jaluria (RBC): For the 100K+ customers using Figma Make, what tangible results are you seeing (faster design/deployment, velocity) and what is the longer-term adoption target?
  Response: Make is driving faster prototyping and some straight-to-production usage, expanding to new personas (PMs, researchers), with ~30% of $100K+ customers using Make weekly and adoption continuing to grow toward becoming a core part of the platform.

• Question from Arjun Bhatia (William Blair): How do Buzz and Weavy fit together and how will you target content creators versus app/dev users?
  Response: Buzz targets graphics/brand self-serve workflows; Weavy focuses on modular, high-craft production; Weavy will operate standalone initially and may be integrated over time, while go-to-market targets both brand/content teams and production workflows.

• Question from Kash Rangan (Goldman Sachs): How much halo is Make creating for core product uptake, what are Dev Mode adoption metrics, and how is pricing/packaging affecting revenue growth?
  Response: Make is increasing multi-product adoption (70% of customers use 3+ products) and expanding use cases; Dev Mode adoption is strong with new integrations (MCP server, Code Connect, GitHub Export); pricing/packaging rollout is halfway done, on track, and expected to add mid-to-high single-digit growth this year and more benefit in 2026.

• Question from Aleksandr Zukin (Wolfe Research): Any revenue or adoption implications from ChatGPT/OpenAI integrations over the next 12–18 months, and thoughts on NDR trajectory?
  Response: ChatGPT integration is early and valuable for FigJam diagramming and flows, users report time savings but monetization is undecided; NDR improved to 131% for the $10K+ cohort, driven by platform adoption, new products, and pricing/packaging strength.

• Question from Brad Sills (BofA Securities): Where are the incremental paid customers coming from (domestic vs international) and how are Sites/Buzz/Draw performing?
  Response: Customer additions are broad-based; international revenue grew faster (≈42% in Q3); Buzz and Draw adoption is progressing across existing customers as they seek higher craft.

• Question from Michael Turrin (Wells Fargo Securities): Why is Make growing while some vibe-coder tools slow, and what is driving the stronger Q4 guide if consumption isn’t material?
  Response: Make’s strength comes from B2B team workflows and platform interoperability (serving product teams and long-tail users); Q4 guide strength is driven by GA rollout benefits—higher paid seats and team adoption from AI features—and not materially by consumption or Weavy.

• Question from Mark Murphy (JPMorgan): Do customers see limitations of prompt-only tools when moving to production and shift toward Figma Make?
  Response: Customers value Figma’s linkage of design systems to code (Code Connect, MCP) to avoid rebuilds; Figma’s platform + Make enables production-ready outputs and consistency versus prompt-only tools.