Figma IPO: Valuation Soars to $1.5 Billion

Figma's Financial Disclosure and IPO Prospects

On Tuesday, Figma released its financial data to the public, representing a step toward a potential initial public offering (IPO). Although the preliminary S-1 filing lacks specifics regarding the number of shares offered and their pricing, it provides the most comprehensive insight to date into the company’s financial standing and future possibilities.

Potential IPO Valuation

Analysts at Renaissance Capital, specializing in IPOs, project that Figma could secure up to $1.5 billion through this offering. Achieving this target would position Figma’s IPO as either matching or surpassing that of CoreWeave, which raised $1.5 billion and currently stands as the largest tech IPO of 2025.

Impressive Financial Performance

The S-1 filing reveals strong financial results, bolstering the likelihood of a successful IPO.

In 2024, the company generated $749 million in revenue, demonstrating a substantial 48% increase compared to the previous year, 2023. This positive trend continued into the first quarter of 2025, with revenue growth reaching 46% year-over-year. Figma’s rolling 12-month revenue reached $821 million, accompanied by a robust 91% gross margin.

Profitability and Expenses

Figma’s profitability profile is noteworthy. The company achieved profitability in 2023, but subsequently experienced a significant loss of $732 million in the same period. This loss was primarily attributable to one-time expenses associated with a substantial employee stock compensation initiative. Specifically, Figma granted 10.5 million stock options to eligible employees, priced at $8.50 per share.

However, Figma returned to profitability by the fourth quarter of 2024, a trend that continued into the first quarter of 2025.

Debt and Investment

The company reports its total debt as negligible, effectively stating it has none. It is important to note that this is a preliminary figure, as Figma maintains a revolving line of credit and intends to update its total debt accordingly.

Currently, details regarding potential share sales by executives or venture capital firms remain unknown. Key investors include prominent firms such as Index, Greylock, Kleiner Perkins, and Sequoia.

Shareholder Activity

In 2024, executives participated in a tender offer, enabling employees to liquidate their shares. Dylan Field, Figma’s co-founder, CEO, and chairman, sold $20 million worth of shares as part of this transaction.

Voting Control

The S-1 filing also disclosed information regarding co-founder Evan Wallace, who departed from Figma in 2021. Wallace is officially recognized as a co-founder in the documents. However, Figma states that Wallace has transferred full voting rights and control over his shares to Field. Wallace’s family trust holds approximately one-third of the super-voting rights Class B shares (each share carries 15 votes). In total, the filing indicates that Field controls around 75% of the voting rights prior to the IPO.

Competitive Landscape and AI Risks

The company’s financial performance aligns with the characteristics typically favored by Wall Street and retail investors. A potential challenge lies in the emergence of AI-powered design applications, such as Lovable, which are rapidly gaining traction in Figma’s target market. Figma is actively developing its own suite of AI-driven products in response.

Figma acknowledges the competitive risks within the rapidly evolving AI industry in its S-1 filing.

“We have made, and expect to continue to make, significant investments to integrate AI, including generative AI, into our platform. However, AI technologies are rapidly evolving, and there is no assurance that our products will remain competitive as new AI technologies are developed, adopted, and integrated into software solutions,” the company states in the regulatory document.