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 resembling variety of shares to be supplied and what worth, the regulatory submitting gives the clearest view but of its monetary well being — and potential.
IPO consultants Renaissance Capital estimate that Figma might increase 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 most important tech IPO of 2025 to date.
There are some causes to imagine that Figma might 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% soar from 2023. Figma’s income continued to rise within the first quarter of 2025 with a 46% year-over-year progress. The corporate reported rolling 12-month revenues as $821 million, with a 91% gross margin.
Figma’s revenue is fascinating, 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 result of one-time bills associated to a serious worker inventory compensation occasion. (Figma issued 10.5 million inventory choices, with a strike worth of $8.50 per share to eligible staff, it mentioned).
By the fourth quarter of 2024, Figma reported income once more, because it did in Q1 of 2025.
Figma has additionally calculated its complete debt to be so negligible that it experiences 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 complete debt in affiliation with that.
We additionally don’t know but if any of the executives or VCs will probably be promoting shares. Main backers embody Index, Greylock, Kleiner Perkins, and Sequoia.
We do know that in 2024, executives took a part of an enormous tender supply that allowed staff to money out of shares. As an illustration, 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 fascinating disclosure is about co-founder Evan Wallace, who left Figma in 2021, in line 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 seem like the type of firm that Wall Avenue and retail buyers usually like to purchase. The one black cloud, if you happen to 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 standout in a aggressive AI trade.
“Whereas we now have made, and count on to proceed to make, important investments to combine AI, together with
generative AI, into our platform, AI applied sciences are quickly evolving and there could be no assure that
our merchandise will stay aggressive as new AI applied sciences are developed, adopted, and built-in into
software program options,” the corporate says within the regulatory doc.