Figma shares drop 15% as rising AI expenses overshadow 48% revenue increase

NEW YORK, August 6, 2026, 05:02 EDT

Figma shares were down 15.1% in premarket trading at $23.90.
Revenue increased by 48%, whereas the cost of revenue surged 117%.
The midpoint of revenue guidance increased by $40 million, while profit guidance remained the same.

Shares of Figma, Inc. NYSE:FIG dropped 15.1% to $23.90 in premarket trade on Thursday. The main New York Stock Exchange session was not open.

The drop came despite a strong demand performance. Revenue was $370.1 million, surpassing the LSEG forecast of $351.6 million. However, investor attention shifted to the expense trajectory.

The worry centres on a sharp discrepancy: while sales jumped 48%, cost of revenue climbed 117%. Gross profit saw a gain of just 40%.

Second-quarter metric	2026	2025	Change
Revenue	$370.1 mln	$249.6 mln	up 48%
Cost of revenue	$60.5 mln	$27.9 mln	up 117%
Gross profit	$309.6 mln	$221.8 mln	up 40%
GAAP gross margin	84%	89%	down 5 points
Research and development	$167.3 mln	$83.1 mln	up 101%
Free-cash-flow margin	14%	24%	down 10 points

The firm posted approximately 73 cents in additional gross profit for each new dollar of revenue. AI infrastructure and hosting accounted for $27.1 million out of the $32.6 million rise in costs, representing 83%.

Figma increased its midpoint revenue projection for the full year by $40 million. Non-GAAP operating income guidance remained unchanged. The resulting midpoint margin declined by roughly 25 basis points.

Full-year 2026 outlook	Previous	New	Change
Revenue	$1.422–$1.428 bln	$1.463–$1.467 bln	Midpoint up $40 mln
Non-GAAP operating income	$125–$135 mln	$125–$135 mln	No change
Implied midpoint margin	9.12%	8.87%	Down 25 basis points

The margin is calculated based on the midpoint of each company’s range. Figma adjusts the revised value to 9%. However, the core ratio continued its downward trend.

Customer indicators held firm. Net dollar retention reached 136%. Over 80% of large paying customers used AI credits on a weekly basis.

By July 31, over half of these customers were using Figma’s agent each week. Chief Financial Officer Praveer Melwani described the second quarter as the “first full quarter of AI credit monetization.” Speaking to Reuters, Melwani said Figma aimed to “create durable modes of growth over the long term.” Business Wire

Wall Street was divided ahead of the report. Of 15 ratings, nine were Holds while six were Buys.

Analyst recommendation	Current	One month ago
Buy	6	6
Overweight	0	1
Hold	9	8
Underweight	0	0
Sell	0	0
Consensus	Overweight	Overweight

Before the results, analysts had set an average target of $30.44, within a range of $22 to $38. With shares at $23.90, the average target indicated a potential increase of about 27%. As of the dateline, there were no widespread changes to estimates following the results.

Figma ended Wednesday at $28.15, up 18.5% over the previous five sessions. The premarket decline is set to wipe out nearly all of those gains. As of Wednesday, shares had fallen 24.7% so far this year.

The upcoming supply event occurs on Friday, when around 77.7 million previously restricted Class A shares will be available for trading. This accounts for about 39% of the reported public float. Shares becoming eligible does not ensure they will be sold.

Risks continue to be balanced on both sides. AI expenses may cause continued margin fluctuations as monetization advances. As of July 15, short interest stood at 33.16% of float, and the upcoming lock-up expiration on Friday could increase volatility.

The revenue outperformance is not in question for investors. The key issue is if AI-credit sales can surpass infrastructure and hosting expenses. Figma’s steady profit outlook signals that returns are still some way off.

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Further analysis

Editorial insight

What led Figma shares to drop 16% following a strong quarter?

Shares dropped in after-hours trade, despite a significant revenue beat. Revenue jumped 48% to $370.1 million, topping expectations of $351.6 million. Research and development expenses surged 101.5%. Adjusted operating margin declined to 10%. The company raised its full-year revenue forecast, but its adjusted operating-income outlook was unchanged. Margins influenced the market response.

How significant is the projected deceleration in growth?

The company projects third-quarter revenue between $373 million and $375 million, suggesting 36% growth. The midpoint of this range is just 1% higher than second-quarter revenue. Full-year guidance increased by $40 million to a range of $1.463 billion–$1.467 billion. Growth is still strong, though momentum is decelerating.

Has AI monetization been demonstrated so far?

AI adoption is extensive, yet specific AI revenue has not been revealed. Over 80% of clients with ARR exceeding $10,000 used credits on a weekly basis. By July 31, more than half were using Figma’s agent each week. Some beta features continue to generate inference expenses without generating paid-credit income. Uptake is robust. The returns are still not measured.

What was the underlying strength of profit and cash flow excluding adjusted results?

Free cash flow came in at $53.2 million, representing a 14% margin, down from 24% in the previous year. Figma recorded a GAAP operating loss of $117.3 million. Adjusted operating profit totaled $36.1 million. Stock-based compensation amounted to $147.6 million, marking the largest adjustment. The disparity is significant.

Could the stock face pressure from Friday’s lock-up expiry?

Around 77.7 million Class A shares become available for sale on August 7, representing about 17% of the Class A shares outstanding as of July 31. While eligibility does not require holders to sell, the possibility of increased supply could weigh on the price in the near term.