Figma Shares Fall 8% After Quarterly Results Show Revenue Growth and Margin Pressure
Key Facts
Figma shares fell 8% in extended trading on November 4, 2026, after third-quarter results showed strong revenue growth offset by gross margin slightly below analyst expectations. Reuters said the decline followed the company’s report of U.S. GAAP gross margin of 80%, compared with expectations of 81%. Revenue, meanwhile, was $391.4 million in the quarter ended September 30, up 43% year over year. The company said revenue exceeded the high end of its prior guidance by $16.4 million. The market response focused on the gap between sales growth and margin performance as Figma continues to expand its AI tools.
A comparison of margins showed year-over-year improvement in the GAAP gross margin metric, although the reported level did not match analyst estimates. U.S. GAAP gross margin was 80% in the third quarter, compared with 69% in the same period of 2025. Non-GAAP gross margin fell to 82% from 86% a year earlier. The decline in the non-GAAP metric puts the cost of delivering services in focus in reading the results, alongside the expanded use of AI tools. Revenue in the second quarter had risen 48% year over year to $370.1 million, marking a third consecutive quarter of accelerating annual revenue growth; the growth rate then slowed to 43% in the third quarter.
The company said its net revenue retention rate was 131% on September 30, 2026, after registering 136% on June 30. The metric reflects increased spending by the existing customer base, while the number of paid customers with annual recurring revenue above $10,000 stood at 16,566 at the end of September. That count was up by more than 3,650 customers from the same period a year earlier. Paid customers with annual recurring revenue above $100,000 totaled 1,717, an increase of more than 450 year over year. These figures offer indications of a broadening base of high-spending customers alongside revenue growth.
Figma said 65% of paid customers with annual recurring revenue above $10,000 had used Figma’s agent weekly as of October 31, while more than 80% of them consumed AI credits weekly. Between July 1 and October 31, the number of weekly active users in the same group consuming those credits increased by about 50%. The company said use of the MCP protocol tripled quarter over quarter in the third quarter, while use of the write-back feature quadrupled. The MCP server was Figma’s fastest-growing product by increase in weekly active users during the quarter. The company is relying on improved AI cost efficiency alongside customer momentum to justify raising its outlook, while continuing to invest in its capabilities in this area.
Figma raised its full-year 2026 revenue forecast to a range of $1.497 billion to $1.499 billion, an increase of $33.0 million from its prior guidance, equivalent to 42% year-over-year growth at the midpoint. It also forecast fourth-quarter revenue of between $402.0 million and $404.0 million, indicating 33% year-over-year growth at the midpoint. The company estimated full-year non-GAAP operating income of between $158.0 million and $163.0 million, with an operating margin of 11% at the midpoint. On October 14, it began an open beta rollout of Code Layers, a feature that lets users bring working code into the design canvas and create and edit code-based prototypes. After extended trading on November 4, EL7 data showed FIG shares closing at $18.44 on November 5, while Investing.com reported a decline of about 6% in premarket trading that day to $20.82.