Figma's Shares Slide After Earnings, CEO Stresses Company's Design Focus Amid Bitcoin Holdings

Figma's shares fell nearly 20% to $54.56 after Q2 revenue rose 41% to $249.6 million, slightly beating expectations. The company disclosed $91 million in Bitcoin holdings but CEO Dylan Field stressed that it is "a design company," not a Bitcoin holding firm. Figma expects adjusted operating income for 2025 to be $88-$98 million.

Figma Inc. (FIG) saw its shares drop by nearly 20% to $54.56 on September 2, 2025, following the release of its second-quarter financial results. Despite reporting a 41% year-over-year (YoY) increase in revenue to $249.6 million, the company's stock experienced significant sell-off pressure [1].

The company's adjusted net profit for the quarter was $11.5 million, which was notably lower than the estimated $13.5 million, contributing to the stock's decline. Figma's stock has faced recent regulatory challenges, including a failed acquisition attempt by Adobe Inc. (ADBE) in 2022, and its market capitalization currently stands at $32 billion [2].

Figma's revenue growth was driven by its focus on expanding its platform and integrating AI capabilities. The company introduced four new products during the quarter, including Figma Make (AI prototyping), Figma Draw (visual expression), Figma Sites (website publishing), and Figma Buzz (marketing assets). Additionally, Figma completed acquisitions of Modyfi and Payload to enhance motion design and developer tools [3].

Despite the strong revenue growth, investors remain concerned about profitability. The company's operating margin was 1% on a GAAP basis and 5% on a non-GAAP basis. Figma's cash flow from operations was $62.5 million, with a robust operating cash flow margin of 25% [3].

The company also disclosed $91 million in Bitcoin holdings, but CEO Dylan Field stressed that Figma is primarily a design company and not a Bitcoin holding firm. Figma expects adjusted operating income for 2025 to be between $88 million and $98 million [4].

Figma's stock has faced intense scrutiny from investors, with the stock plunging 16% post-IPO earnings, highlighting valuation concerns despite strong Q2 revenue growth and profitability. The 68.6x revenue multiple far exceeds Adobe's 11x, raising doubts about sustainability amid margin pressures from AI investments and rising sales costs [5].

The company's competitive edge is under threat from Adobe's AI integration, Canva's enterprise push, and AI-driven startups, challenging Figma's design-to-code dominance. Figma's response to these threats includes launching AI-powered tools like Figma Make and Sites, demonstrating its agility but raising questions about differentiation in a crowded market [5].

Figma's long-term success hinges on its ability to balance innovation with profitability. The company's 2025 strategy emphasizes AI-driven workflows, including LLM-powered design-to-code integration and motion design capabilities via acquisitions of Modyfi and Payload. However, these moves require significant capital outlays that could strain margins [5].

The company's valuation demands exceptional execution. Investors must weigh the company’s potential to dominate the AI-enhanced design workflow against the risks of overvaluation and intensifying competition. For now, Figma's stock appears to be a high-reward, high-volatility play—suited for those who believe its vision of a unified digital creation platform can outpace the challenges ahead [5].

References:
[1] https://www.ainvest.com/news/figma-shares-drop-10-post-market-q2-revenue-250-million-41-yoy-adjusted-net-profit-11-5-million-full-year-revenue-forecast-1-021-1-025-billion-2509/
[2] https://www.marketwatch.com/story/figmas-revenue-jumps-41-but-thats-not-enough-to-lift-the-stock-cace7a67
[3] https://www.chartmill.com/news/FIG/Chartmill-33958-Figma-Inc-NYSEFIG-Q2-2025-Earnings-Revenue-Miss-and-EPS-Shortfall-Drive-Stock-Decline
[4] https://www.nasdaq.com/articles/figma-revenue-jumps-41-fiscal-q2
[5] https://www.ainvest.com/news/figma-stock-plunge-assessing-sustainability-business-model-competitive-edge-2509/