Figma, Inc. (FIG) Stock Forecast & Price Target

Figma Inc. demonstrated robust growth through a $249.6 million revenue figure for Q3, marking a 41% year-over-year increase, which outperformed prior growth metrics. The company's expanding customer base is reflected in the addition of over 1,000 $10K+ ARR customers and strong engagement from its $100K+ ARR customers, with notable increases of 31% and 42% year-over-year, respectively. Furthermore, the recent acquisition of Weavy bolsters Figma's platform with enhanced AI capabilities, potentially accelerating future growth and creating a positive long-term financial outlook.

Figma Inc. has experienced a decline in gross margins, dropping to 86% from 90% in the previous quarter, attributed to increased AI-related costs associated with the rollout of features such as Figma Make. The company’s revenue outlook may be negatively impacted, with a downside scenario suggesting a potential revenue of $1.1 billion by CY26, which is below baseline estimates due to slower adoption rates and softer upsell activities. Furthermore, Figma faces significant operational risks, including intense competition from established players like Adobe, international revenue exposure, and uncertainties regarding the success of new product offerings.