Figma publicly shared its financials Tuesday, inching the design software program firm nearer to an IPO. And whereas this preliminary S-1 is lacking particulars similar to variety of shares to be supplied and what value, the regulatory submitting gives the clearest view but of its monetary well being — and potential.
IPO specialists Renaissance Capital estimate that Figma could raise up to $1.5 billion on this providing. If it does meet or exceed that, Figma’s IPO will match or beat CoreWeave’s, which raised $1.5 billion and has been the largest tech IPO of 2025 up to now.
There are some causes to imagine that Figma may pull it off: It’s financials are spectacular, per the S-1 submitting.
The corporate introduced in $749 million in income in 2024, a 48% leap from 2023. Figma’s income continued to rise within the first quarter of 2025 with a 46% year-over-year development. The corporate reported rolling 12-month revenues as $821 million, with a 91% gross margin.
Figma’s revenue is attention-grabbing, too. The corporate was worthwhile in 2023 after which swung to an enormous lack of $732 million in 2023. However this was largely on account of one-time bills associated to a significant worker inventory compensation occasion. (Figma issued 10.5 million inventory choices, with a strike value of $8.50 per share to eligible workers, it stated).
By the fourth quarter of 2024, Figma reported earnings once more, because it did in Q1 of 2025.
Figma has additionally calculated its complete debt to be so negligible that it studies it has none. However once more, this can be a line merchandise that must be stuffed in. The corporate, naturally, has a revolving debt line, and left room to replace its complete debt in affiliation with that.
We additionally don’t know but if any of the executives or VCs might be promoting shares. Main backers embody Index, Greylock, Kleiner Perkins, and Sequoia.
We do know that in 2024, executives took a part of a giant tender provide that allowed workers to money out of shares. As an illustration, co-founder CEO and chairman Dylan Area cashed out of $20 million price of shares as a part of that sale.
The S-1 doc made one other attention-grabbing disclosure is about co-founder Evan Wallace, who left Figma in 2021, according to his website. Wallace is known as within the paperwork as a co-founder. Nonetheless, Figma says Wallace has given Area full voting rights and management over his shares. Wallace’s household belief holds about one-third of the super-voting rights Class B shares (15 votes per share, Figma says). All instructed, the S-1 discloses that Area, pre-IPO controls about 75% of the voting rights.
The financials actually appear like the sort of firm that Wall Road and retail traders usually like to purchase. The one black cloud, when you can name it that, is the rise of vibe coding/designing AI apps. Upstarts like Lovable are focusing on Figma’s market and rising quick. Figma, although, has its personal set of AI merchandise as effectively.
Figma acknowledges within the S-1 the dangers of failing to standout in a aggressive AI business.
“While we have made, and expect to continue to make, significant investments to integrate AI, including
generative AI, into our platform, AI technologies are rapidly evolving and there can be no guarantee that
our products will remain competitive as new AI technologies are developed, adopted, and integrated into
software solutions,” the corporate says within the regulatory doc.
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