Figma Shares Plunge 2.29% as GAAP Losses Widen to $1.1 Billion Amid IPO Costs

The share price dropped to a record low today, with an intraday decline of 2.29%, marking a significant reversal for the design software firm despite recent strategic AI-driven initiatives and revenue growth.

Figma (FIG) reported a 38% year-over-year revenue increase in Q3 2025, surpassing estimates, driven by adoption of AI tools like Figma Make and partnerships with OpenAI. The company raised its full-year revenue guidance to $1.044–$1.046 billion, reflecting confidence in its AI roadmap. However, GAAP net losses widened to $1.1 billion in Q3, primarily due to one-time IPO-related expenses, highlighting the tension between growth investments and profitability. Analysts noted that while non-GAAP metrics showed strength, the GAAP losses underscore structural challenges in scaling AI integration while managing costs.

The stock has faced persistent pressure since its July IPO, declining ~70% from its $143 peak. Despite a 5% after-hours rally post-Q3 earnings, long-term volatility reflects broader investor skepticism about high-growth tech valuations in a cooling market. Analysts remain divided, with a median 12-month price target of $62.50 (29.6% upside) versus a 61% upside cited by some bullish traders. Strategic moves, including the acquisition of Weavy and leadership appointments, aim to solidify Figma’s AI-driven differentiation, but execution risks and competitive pressures from rivals like Adobe remain critical headwinds for sustained recovery.