Figma stock falls to IPO low near $19

Figma shares fell to about $19, an IPO low, after peaking at $143 last year. The company’s market value declined to roughly $10.2 billion from about $60 billion.

The company reported first-quarter revenue of $334 million, a 46% increase year over year. Net dollar retention rose to 139%.

Paid customers with annual recurring revenue of $10,000 or more increased to 15,218 from 9,000 a year earlier. Customers with ARR of $100,000 or more rose to 1,525 from 1,000.

Figma recorded a net loss of $142 million for the quarter, compared with a $44 million profit in the prior-year period. Operating expenses rose: research and development totaled $172 million, sales and marketing $125 million, and general and administrative costs $103 million. The company generated $89 million in adjusted free cash flow and reported an operating profit of $52 million.

Company guidance and margin metrics show projected forward revenue growth near 35% and an operating profit margin around 16%, which together yield a rule-of-40 figure near 51%.

Several analysts maintain price targets above the current level. One firm set a $42 target while others have targets above $35.

Investor concern about new artificial intelligence services that generate graphics and layouts has been cited as a factor in the share decline. Trading patterns show the stock trading below a descending trendline that began in December, below major moving averages, and forming a descending triangle; some technical analysis places a key support level near $15.

Company management increased spending on product development and go-to-market efforts, which pushed up operating costs. Customer retention metrics and growth among larger accounts indicate continued enterprise spending on the platform.

Analysts say the stock may remain under pressure in the near term as investors assess how AI tools will affect demand and digest the quarterly results; some project further downside toward the $15 support level before any sustained recovery.