Figma, Inc.
FIG10-Q,quarter ended Jun 30, 2026,filed Aug 5, 2026,Original on SEC EDGAR
3 of 5 checkable figures matched the company’s XBRL, 4 of 4 risk excerpts located in the filing text
The Print
cautiousFigma reported Q2 2026 revenue of $370.1M, up 48% YoY, but swung to a net loss of $112.2M (-$0.21 diluted EPS) from net income of $28.2M a year earlier, as stock-based compensation expense rose to $147.6M from $7.3M.
Revenue increased 48% YoY to $370.1M, which management attributes to growth and expansion in total Paid Customers, as the number of Paid Customers with more than $10,000 in ARR and Paid Customers with more than $100,000 in ARR increased by 34% and 46%, respectively. The company moved from operating income of $2.1M to an operating loss of $117.3M, and from net income of $28.2M to a net loss of $112.2M, with total stock-based compensation, net of amounts capitalized, of $147.6M in the quarter versus $7.3M a year earlier.
- Revenue rose 48% YoY to $370.1M for the three months ended June 30, 2026, with Paid Customers above $100,000 in ARR up 46% to 1,635 and Net Dollar Retention Rate at 136% versus 129%.
- Net loss was $112.2M (-$0.21 diluted EPS) versus net income of $28.2M a year earlier; the swing reflects a $147.6M stock-based compensation expense in the quarter, up from $7.3M, and a $29.4M decrease in other income, net.
- Gross margin declined to 83.7% from 88.8% as cost of revenue rose 117% to $60.5M, driven by a $27.1M increase in technical infrastructure and hosting costs relating to AI and increased paid-user usage.
- Operating cash flow was $60.9M for the quarter and $158.2M for the six months, with free cash flow of $53.2M and $141.8M respectively.
Results That Matter
- Revenue
- Current period
- $370.1M
- Prior period
- $249.6M
- Change
- +48.2%
Management attributes the increase primarily to growth and expansion in total Paid Customers, with Paid Customers above $10,000 in ARR up 34% and above $100,000 in ARR up 46% as of June 30, 2026 versus the prior year. - Cost of revenue
- Current period
- $60.5M
- Prior period
- $27.9M
- Change
- +116.8%
The increase was primarily due to a $27.1 million increase in technical infrastructure and hosting costs relating to AI and increased usage of the platform by paid users, a $2.8 million increase in employee-related costs, and a $2.3 million increase in payment processing fees. - Gross profit
- Current period
- $309.6M
- Prior period
- $221.8M
- Change
- +39.6%
Gross margin was 83.7% versus 88.8% a year earlier, as cost of revenue grew faster than revenue. - Research and development
- Current period
- $167.3M
- Prior period
- $83.1M
- Change
- +101.3%
The increase was primarily due to a $70.8 million increase in employee-related costs driven by $58.1 million of stock-based compensation expense and related employer payroll taxes recognized after and as a result of the completion of the IPO in July 2025, and a $10.1 million increase in technical infrastructure and hosting costs primarily driven by AI-related costs. - Sales and marketing
- Current period
- $154.9M
- Prior period
- $97.7M
- Change
- +58.5%
The increase was primarily due to a $32.4 million increase in employee-related costs, $13.5 million of higher technical infrastructure and hosting costs for users of the free version of Figma, and $5.0 million of higher marketing and advertising spend. - General and administrative
- Current period
- $104.7M
- Prior period
- $38.9M
- Change
- +169.2%
The increase was primarily due to a $68.2 million increase in employee-related costs primarily driven by $64.7 million of stock-based compensation expense and related employer payroll taxes recognized after and as a result of the completion of the IPO in July 2025. - Income (loss) from operations
- Current period
- -$117.3M
- Prior period
- $2.1M
- Change
- −5685.7%
Operating margin was (32)% versus 1% a year earlier. - Other income, net
- Current period
- $7.6M
- Prior period
- $37.0M
- Change
- −79.5%
The decrease was due to a $26.5 million unfavorable change in the fair value of equity securities, primarily due to a shift from an unrealized gain on the investment in a Bitcoin exchange traded fund during the three months ended June 30, 2025 to an unrealized loss during the three months ended June 30, 2026. - Provision for income taxes
- Current period
- $2.5M
- Prior period
- $10.8M
- Change
- −76.9%
The provision for the three months ended June 30, 2026 was primarily due to taxes in foreign jurisdictions; the prior-year provision was primarily due to the estimated U.S. federal taxable income position as of June 30, 2025. - Net income (loss)
- Current period
- -$112.2M
- Prior period
- $28.2M
- Change
- —
Net margin was (30)% versus 11% a year earlier. - Net income (loss) per share, diluted
- Current period
- -$0.21
- Prior period
- $0.00
- Change
- —
For the three months ended June 30, 2026, diluted net loss per share is the same as basic net loss per share as there was no net income attributable to common stockholders, and the inclusion of all potential common shares outstanding would have been antidilutive.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
Revenue | $370.1M | $249.6M | +48.2% | Management attributes the increase primarily to growth and expansion in total Paid Customers, with Paid Customers above $10,000 in ARR up 34% and above $100,000 in ARR up 46% as of June 30, 2026 versus the prior year. |
Cost of revenue | $60.5M | $27.9M | +116.8% | The increase was primarily due to a $27.1 million increase in technical infrastructure and hosting costs relating to AI and increased usage of the platform by paid users, a $2.8 million increase in employee-related costs, and a $2.3 million increase in payment processing fees. |
Gross profit | $309.6M | $221.8M | +39.6% | Gross margin was 83.7% versus 88.8% a year earlier, as cost of revenue grew faster than revenue. |
Research and development | $167.3M | $83.1M | +101.3% | The increase was primarily due to a $70.8 million increase in employee-related costs driven by $58.1 million of stock-based compensation expense and related employer payroll taxes recognized after and as a result of the completion of the IPO in July 2025, and a $10.1 million increase in technical infrastructure and hosting costs primarily driven by AI-related costs. |
Sales and marketing | $154.9M | $97.7M | +58.5% | The increase was primarily due to a $32.4 million increase in employee-related costs, $13.5 million of higher technical infrastructure and hosting costs for users of the free version of Figma, and $5.0 million of higher marketing and advertising spend. |
General and administrative | $104.7M | $38.9M | +169.2% | The increase was primarily due to a $68.2 million increase in employee-related costs primarily driven by $64.7 million of stock-based compensation expense and related employer payroll taxes recognized after and as a result of the completion of the IPO in July 2025. |
Income (loss) from operations | -$117.3M | $2.1M | −5685.7% | Operating margin was (32)% versus 1% a year earlier. |
Other income, net | $7.6M | $37.0M | −79.5% | The decrease was due to a $26.5 million unfavorable change in the fair value of equity securities, primarily due to a shift from an unrealized gain on the investment in a Bitcoin exchange traded fund during the three months ended June 30, 2025 to an unrealized loss during the three months ended June 30, 2026. |
Provision for income taxes | $2.5M | $10.8M | −76.9% | The provision for the three months ended June 30, 2026 was primarily due to taxes in foreign jurisdictions; the prior-year provision was primarily due to the estimated U.S. federal taxable income position as of June 30, 2025. |
Net income (loss) | -$112.2M | $28.2M | — | Net margin was (30)% versus 11% a year earlier. |
Net income (loss) per share, diluted | -$0.21 | $0.00 | — | For the three months ended June 30, 2026, diluted net loss per share is the same as basic net loss per share as there was no net income attributable to common stockholders, and the inclusion of all potential common shares outstanding would have been antidilutive. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Mar 31, 2026.
Prior 10-QRevenue up 48.2%; Net income down 497.3%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Revenue | $249.6M | $370.1M | +48.2% | Favorable |
| Net income | $28.2M | -$112.2M | −497.3% | Unfavorable |
| EPS | $0.00 | -$0.21 | Down | Unfavorable |
- Revenue+48.2%Prior $249.6M, current $370.1MFavorable
- Net income−497.3%Prior $28.2M, current -$112.2MUnfavorable
- EPSDownPrior $0.00, current -$0.21Unfavorable
▲ and ▼ show the direction of each change. Color and “Read as” show whether that direction is usually favorable for the metric.
Earnings Quality & Cash Conversion
The reported loss from operations of $117.3M includes stock-based compensation expense of $147.6M, net of amounts capitalized, in the quarter. The company defines non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, amortization of stock-based compensation included in capitalized internal use software development costs, employer payroll taxes on employee stock transactions, amortization of acquired intangibles from acquisitions, and certain non-recurring charges such as impairment losses on long-lived assets; on that basis non-GAAP operating income was $36.1M (10% non-GAAP operating margin) versus $11.5M (5%) a year earlier. The non-GAAP measure still includes the $26.5M unfavorable change in the fair value of equity securities recorded in other income, net, which is below the operating line.
Red flag
Red flag
Red flag
Value Drivers & Capital Allocation
“Net cash provided by financing activities during the six months ended June 30, 2025 was $15.8 million, which was primarily due to proceeds from option exercises of $20.7 million, partially offset by $3.5 million used to pay deferred offering costs and $1.4 million used to pay for issuance costs on the Revolving Credit Facility.”
— Filing statement
“During the third quarter of 2025, we completed our IPO, in which we issued and sold an aggregate of 12.5 million shares of Class A common stock at a public offering price of $33.00 per share, resulting in net proceeds to us of approximately $393.1 million after deducting underwriting discounts and commissions, but before deducting offering expenses payable by us.”
— Filing statement
Period net income attributable to the parent / period-end equity, not annualized: -7.6% (prior at 2025-06-30: 2.0%); period net income attributable to the parent / period-end assets, not annualized: -4.8%.
Forward Signals
cautiousNo financial guidance (revenue, earnings, or margin targets) is provided in the filing. The filing states that the interim results are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending December 31, 2026 or any other future period.
Known trends
- The company expects that its AI investments and use of AI technologies, including spend on AI inference and model training, will impact cost of revenue, research and development expenses, and sales and marketing expenses, which it expects to negatively impact gross margins and operating margins in the short term.
- The company expects cost of revenue to increase in absolute dollars as its business grows and to fluctuate as a percentage of revenue from period to period depending on the timing of investments, including those related to AI initiatives.
- The company expects free cash flow to fluctuate in future periods as it invests in its business to support its plans for growth, and notes that certain increased operating expenses may result in a decrease in free cash flow as a percentage of revenue in future periods.
- The company states that it has observed a lengthening of the sales cycle recently for some prospective customers that it attributes to increased sensitivity to information technology security concerns, particularly with respect to products that include AI features.
Subsequent events
- In June 2026, Mr. Field voluntarily forfeited, for no consideration, RSUs covering 930,868 shares of Class B common stock subject to the 2025 CEO Stock Price Award and RSUs covering 1,448,017 shares of Class B common stock subject to the 2025 CEO Service Award that were scheduled to vest on July 1, 2026; no replacement awards were granted and no adjustment to stock-based compensation expense was recorded.
“In the short-term, we expect that our AI investments and use of AI technologies, including spend on AI inference and model training, will impact our cost of revenue, research and development expenses, and sales and marketing expenses, which we expect to negatively impact our gross margins and operating margins.”
— Figma, Inc. (MD&A)
“We believe that our current cash, cash equivalents, digital assets, current, and marketable securities, in addition to amounts available for borrowing under our Revolving Credit Facility, will be sufficient to fund our operations for at least the next twelve months.”
— Figma, Inc. (MD&A)
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
in the short term, we expect that our AI investments and use of AI technologies, including as part…
in the short term, we expect that our AI investments and use of AI technologies, including as part of Figma Make and our other AI features, will negatively impact our gross margins and operating margins and, given the newness of and rapid development of these technologies, the impacts on our gross margins and operating margins, and on our business, operating results, financial condition, and future prospects over the longer term, are currently unknown.
Certain competitors, including larger platform providers, model providers, AI-native companies…
Certain competitors, including larger platform providers, model providers, AI-native companies, or well-capitalized startups, offer competing AI-powered functionality at very low prices, bundle such functionality into broader offerings, subsidize usage for extended periods, or operate at margins that are lower than those historically associated with our core software products.
we have significant purchase commitments with a limited number of foundational AI model providers…
we have significant purchase commitments with a limited number of foundational AI model providers and a material portion of our AI features currently depend on models from them.
the U.S. federal government recently identified Anthropic PBC (“Anthropic”) as a supply chain risk…
the U.S. federal government recently identified Anthropic PBC (“Anthropic”) as a supply chain risk and directed all federal agencies to cease use of Anthropic’s products, including Claude, the large language model on which we have built the AI features embedded in our governmental offerings
4 of 4 excerpts located in the filing text
Balance Sheet & Liquidity
Leverage: This filing's standardized financial data reports no debt balance under a concept whose scope can be verified. That is an unestablished scope, not zero debt and not a net cash position; no total debt, net debt or debt-to-equity figure is stated.
Liquidity: Principal sources of liquidity as of June 30, 2026 were cash and cash equivalents of $445.8M, digital assets, current of $15.8M (USDC), and marketable securities of $1.2B, plus $500.0M of available borrowing capacity under the Revolving Credit Facility. Management states these sources are sufficient to fund operations for at least the next twelve months.
Working capital: Current assets $2.0B vs. current liabilities $806.7M (current ratio 2.45x). Prior reported balance sheet as of 2025-12-31: $2.0B vs. $776.1M (2.58x).
Maturities & covenants
- The Revolving Credit Agreement contains a financial covenant requiring that Liquidity (defined as unrestricted cash and cash equivalents, plus the undrawn revolver commitments) is not less than $100.0 million as of the last day of each fiscal quarter; the company was in compliance with all applicable covenants as of June 30, 2026.
- The Revolving Credit Facility matures on June 27, 2030, and obligations under the Revolving Credit Agreement are secured by liens on substantially all of the company's assets.
- As of June 30, 2026, the company had significant non-cancelable purchase commitments of $556.4 million, of which $184.8 million was due within the next twelve months.
Notable Footnotes
| Item | Impact |
|---|---|
| Deferred revenue and remaining performance obligations | Deferred revenue was $626.8M at June 30, 2026 versus $595.3M at December 31, 2025; approximately 72% of revenue recognized in the quarter came from the deferred revenue balance as of March 31, 2026. Remaining performance obligations were $687.0M, with the substantial majority to be satisfied over the twelve months following June 30, 2026. |
| Stock-based compensation and CEO equity awards | Total stock-based compensation, net of amounts capitalized, was $147.6M for the quarter and $316.6M for the six months. Unrecognized expense related to RSUs (excluding CEO awards) was $1.4B over a weighted-average remaining service period of 3.4 years; the 2025 CEO Stock Price Award had $281.6M unrecognized over approximately 3.8 years and the 2025 CEO Service Award had $371.2M over 4.0 years. |
| Digital assets and equity securities | The company held approximately 173 Bitcoins with a fair value of $10.1M and a Bitcoin exchange traded fund with a fair value of $49.3M as of June 30, 2026. Unrealized losses on the Bitcoin exchange traded fund were $7.7M for the quarter and $24.3M for the six months, and a $5.0M remeasurement loss on the Bitcoin investment was recorded for the six months. |
| Legal matters and contingencies | The company states it is not presently a party to any legal proceedings that, if determined adversely, would individually or taken together have a material adverse effect, and had no material liabilities recorded as a result of legal matters as of June 30, 2026 and December 31, 2025. |
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