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 corresponding to variety of shares to be supplied and what value, the regulatory submitting offers the clearest view but of its monetary well being — and potential.
IPO specialists Renaissance Capital estimate that Figma might elevate as much as $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 thus far.
There are some causes to imagine that Figma might pull it off. Its financials are spectacular, per the S-1 submitting.
The corporate introduced in $749 million in income in 2024, a 48% bounce from 2023. Figma’s income continued to rise within the first quarter of 2025 with 46% year-over-year development. The corporate reported rolling 12-month income 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 a large lack of $732 million in 2023. However this was largely as a consequence of one-time bills associated to a serious worker inventory compensation occasion. (Figma issued 10.5 million inventory choices, with a strike value of $8.50 per share to eligible staff, it mentioned.)
By the fourth quarter of 2024, Figma reported earnings once more, because it did in Q1 of 2025.
Figma has additionally calculated its whole debt to be so negligible that it studies it has none. However once more, it is a line merchandise that must be stuffed in. The corporate, naturally, has a revolving debt line, and left room to replace its whole debt in affiliation with that.
We additionally don’t know but if any of the executives or VCs might be promoting shares. Main backers embrace Index, Greylock, Kleiner Perkins, and Sequoia.
We do know that in 2024, executives took a part of a giant tender provide that allowed staff to money out of shares. As an illustration, Figma co-founder CEO and chairman Dylan Discipline cashed out of $20 million value of shares as a part of that sale.
The S-1 doc made one other attention-grabbing disclosure, about co-founder Evan Wallace, who left Figma in 2021, in keeping with his web site. Wallace is called within the paperwork as a co-founder. Nonetheless, Figma says Wallace has given Discipline 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 Discipline, pre-IPO, controls about 75% of the voting rights.
The financials definitely appear to be the sort of firm that Wall Road and retail traders usually like to purchase. The one black cloud, for those who 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 properly.
Figma acknowledges within the S-1 the dangers of failing to face out in a aggressive AI trade.
“Whereas now we have made, and count on to proceed to make, important investments to combine AI, includinggenerative AI, into our platform, AI applied sciences are quickly evolving and there could be no assure thatour merchandise will stay aggressive as new AI applied sciences are developed, adopted, and built-in intosoftware options,” the corporate says within the regulatory doc.
