Why Did Figma Stock Plunge 15.24%?

On September 4, 2025, Figma's stock experienced a significant drop of 15.24% in pre-market trading, marking a notable decline following its recent public debut.

Figma's first earnings report as a public company revealed a slight beat on second-quarter profit and revenue, but the results fell short of the high expectations set by investors. Despite a 41% increase in revenue for Q2 2025, the company's earnings did not meet market forecasts, leading to a sharp decline in its stock price.

One of the key factors contributing to the stock's decline is the upcoming expiration of early lock-up periods, which will allow certain employee-held shares to be sold starting September 5, 2025. This potential selling pressure has added to the market's concerns about the company's valuation and future performance.

Investors have expressed disappointment with Figma's performance outlook, which was deemed unremarkable despite the company's strong revenue growth. The market's reaction suggests that a 41% growth rate is not sufficient to justify the high valuation that Figma commanded at its IPO.

Overall, the combination of earnings that fell short of expectations, the upcoming share unlock, and a lackluster performance outlook has led to a significant sell-off in Figma's stock, raising questions about the company's ability to sustain its high valuation in the long term.