Figma (FIG) Stock Forecast: AI Growth, Insider Selling and Lawsuit Risks

Figma’s blockbuster 2025 IPO has quickly turned into one of the year’s most dramatic tech stock roller coasters. As of the close on December 5, 2025, Figma Inc. (NYSE: FIG) trades just under $38 per share, well below its post-IPO peak of about $143, but still above its $33 IPO price. ^[1]

Since 6 December 2025 is a Saturday, the latest full trading data comes from Friday’s session, along with news and analysis published through the weekend. Here’s a deep dive into what’s happening with Figma stock right now: price action, AI-fueled growth, a new class-action lawsuit, waves of insider selling, and what analysts are forecasting for 2026 and beyond.

Note: This article is for information and education only and is not investment advice.

1. Figma stock today: where things stand after the IPO hype

Latest close (Dec 5, 2025): around $38 (roughly $37.96–$37.97 depending on data provider). ^[2]
52‑week range: approximately $32.83 (low) to $142.92 (high). ^[3]
Market capitalization: about high‑teens billions of dollars (around $17.7B at $35.69 on Dec 1; slightly higher at current prices). ^[4]
Sector: cloud‑based collaborative design and product development platform, with a growing suite of AI tools. ^[5]

Figma went public on July 31, 2025, after pricing its IPO at $33 per share. The stock surged nearly 158% on its first trading day, closing around $85 and briefly valuing the company at roughly $50–56 billion. ^[6]

That euphoric start didn’t last. After hitting an intraday high of about $142.92, Figma has since lost roughly 70%+ of its value from the peak, and by late November it even fell below its IPO price. ^[7]

Yet, despite the bruising drawdown, Wall Street and many long‑term‑oriented commentators still see upside, largely because Figma continues to post strong revenue growth and expand its AI‑powered product portfolio.

2. Q3 2025 earnings: AI bet drives 38% revenue growth

Figma’s most recent earnings report covers the third quarter of 2025, released on November 5:

Q3 revenue:$274.2 million, up 38% year over year, and ahead of consensus estimates (~$264–265 million). ^[8]
Annualized revenue run‑rate: crossed $1 billion for the first time. ^[9]
Adjusted EPS: roughly $0.10 per share, beating expectations of about $0.05. ^[10]
GAAP net loss: around $1.1 billion, due largely to a one‑time stock‑based compensation charge associated with the IPO. ^[11]
Updated full‑year revenue guidance (2025): raised to $1.044–$1.046 billion (from ~ $1.021–$1.025 billion). ^[12]
Q4 2025 guidance: revenue of $292–294 million, ahead of prior Street expectations (~$283 million). ^[13]

Management attributes the outperformance to:

Multi‑product adoption: customers layering Figma’s newer products—like Figma Sites, Make, Buzz and Draw—on top of the core design tool. ^[14]
AI integration: particularly Figma Make, which turns natural‑language prompts into interactive prototypes and web apps, helping non‑designers (PMs, researchers, marketers) participate in product creation. ^[15]
Strong expansion within large accounts: net dollar retention among customers with >$10,000 in ARR reached ~131%, up from 129% in Q2. ^[16]

On the flip side, Figma warned that free‑cash‑flow margins will dip in the near term as it invests aggressively in AI and absorbs some one‑time tax payments. ^[17]

Despite the fundamental strength, the stock has traded down about 19% since Q3 results, as investors remain wary of valuation, competition and legal risks. ^[18]

3. AI product strategy: from Figma Make to Figma Weave

Figma’s entire equity story is now tightly bound to its AI roadmap.

3.1 New product lines: Sites, Make, Buzz, Draw

At its Config 2025 conference in May, Figma unveiled four major product lines:

Figma Sites – an AI‑driven website and web‑app builder with CMS elements.
Figma Make – an AI tool that can generate prototypes and code from text prompts, powered by Anthropic’s Claude.
Figma Buzz – marketing and content creation tools for brands.
Figma Draw – a more advanced illustration product competing more directly with tools like Adobe Illustrator. ^[19]

The strategic idea: own more of the product‑development lifecycle, not just interface design.

3.2 Weavy acquisition and the launch of Figma Weave

In late October, Figma announced the acquisition of Weavy, an AI‑powered image and video generation startup. The product and team are being integrated under a new brand, Figma Weave. ^[20]

Weave uses a node‑based system that lets creators chain together multiple AI models (for example, different image and video models) in one canvas, compare results, and build complex pipelines without jumping between tools. ^[21]

Figma says this will allow it to expand into:

Image and video generation
Animation, motion design and VFX
Rich, AI‑assisted editing within the same environment where teams already design and prototype products. ^[22]

For investors bullish on AI, these moves strengthen the argument that Figma is evolving from a design app into a full AI‑native product creation platform—a positioning that some analysts have called “generational” in scope. ^[23]

4. Legal overhang: class action over AI training and data privacy

One of the biggest new developments in late 2025 is a proposed class‑action lawsuit over Figma’s AI practices.

On November 21, 2025, plaintiffs filed Khan v. Figma Inc, No. 3:25‑cv‑10054 in the U.S. District Court for the Northern District of California. The complaint alleges that Figma: ^[24]

Misused customers’ designs and proprietary data to train its generative AI models without meaningful consent.
Automatically opted users in to data‑sharing settings that enabled AI training, contradicting years of assurances that Figma would not use customer content for its own purposes.
Benefited from the allegedly unauthorized data use in the form of a “sky‑high valuation” around its $1.2 billion IPO earlier in 2025. ^[25]

The lawsuit focuses less on copyright and more on trade secrets and unlawful data access, arguing that user designs often embody highly sensitive commercial IP. ^[26]

Figma has responded publicly that it does not use customer data to train its AI models without explicit authorization, and that where data is used, it is de‑identified and constrained to avoid reproducing users’ unique work. ^[27]

For shareholders, the implications include:

Legal risk: potential damages and an injunction limiting Figma’s ability to train or deploy some AI models.
Reputational risk: enterprise customers (especially large design‑heavy organizations) may re‑evaluate their use of AI features if they fear IP leakage, and some reports already highlight corporate data‑governance warnings around Figma AI. ^[28]

So far, the market appears to be pricing in some additional risk, but not a worst‑case scenario where AI capabilities are drastically curtailed.

5. Insider selling wave after lock‑up expiry

Another headline story for Figma stock since November has been a flood of insider sales.

5.1 CEO and leadership team sales

Following the IPO lock‑up expiry on November 7, multiple senior executives began selling shares under Rule 10b5‑1 trading plans: ^[29]

CEO Dylan Field sold about 3.03 million shares around $37.30 on November 17, plus additional blocks totaling 312,500 shares on November 24 at roughly $34.76, for proceeds above $120 million in aggregate. ^[30]
Other executives—including the CTO, CFO, Chief Revenue Officer, CAO, and General Counsel—have reported numerous smaller sales throughout November and early December, often in the tens of thousands of shares. ^[31]
On December 3, filings show the CTO alone sold roughly 177,000 shares for around $6.5 million, while still retaining very large Class B stakes. ^[32]

Most of these sales were:

Pre‑scheduled via 10b5‑1 plans.
Made after many years of private‑company illiquidity, which is typical for newly public tech names.

However, the optics are poor when heavy insider selling coincides with:

A stock that has already dropped more than two‑thirds from its highs, and
Growing concern over litigation and competition.

Several analyses and news summaries explicitly flag insider activity as a key reason sentiment turned more cautious in November. ^[33]

6. How analysts see Figma stock now

Despite the volatility, Wall Street’s stance on Figma is neutral‑to‑cautiously‑positive.

6.1 Ratings and price targets

Multiple aggregators show broadly similar numbers:

Consensus rating:“Hold”
- One recent tally: 1 Sell, 7 Hold, 3 Buy. ^[34]
Average 12‑month price target:
- Around $62–68 per share, depending on the source. ^[35]
- Target range: roughly $52 (low) to $85 (high). ^[36]

At a current price near $38, those averages imply potential upside of roughly 60–80% if Figma executes well and sentiment normalizes.

One forecast compilation notes that about 14 analysts cover the stock, with 5 rating it a Buy and 9 a Hold, and estimates an average upside potential of nearly 68% into 2026—although, as always, these are opinions, not guarantees. ^[37]

6.2 Valuation: expensive or opportunity?

Recent commentary from outlets like The Motley Fool and Simply Wall St highlights that: ^[38]

Figma now trades at a significantly lower valuation than during the IPO frenzy, but
It still commands a rich price‑to‑sales multiple—roughly in the mid‑teens on projected 2025 revenue.

Analysts generally argue that:

If Figma can sustain 30–40%+ revenue growth, expand margins, and become a durable AI platform, today’s valuation could eventually look justified—or even cheap.
If growth slows meaningfully or legal/competitive pressures intensify, the stock may remain range‑bound or fall further.

7. Themes from the latest research and opinion pieces (Dec 1–6, 2025)

From 1–6 December 2025, several fresh articles and notes have shaped the conversation around FIG:

“Why Figma Stock Fell 28% in November” (Motley Fool) – links the November slide to:
- The AI class‑action lawsuit,
- Heavy insider selling,
- Concerns that software valuations are correcting after an AI‑driven boom. ^[39]
“Is This AI Stock the Best Bargain on the Market Right Now?” (Motley Fool) – argues that:
- Adobe once tried to acquire Figma for $20 billion,
- Today’s valuation around the high‑teens billions looks more reasonable given >$1B revenue run‑rate,
- Figma’s sticky customer base and expanding product suite could support years of profitable growth, if management executes. ^[40]
“What Makes Figma (FIG) a Good Investment Choice?” (Insider Monkey / Yahoo) – emphasizes:
- Figma’s penetration of large enterprises (including many Fortune 500 companies),
- Its role as a core collaboration layer in product development,
- The potential for AI features to deepen switching costs. ^[41]
“Is Figma’s Drop of 68.9% in 2025 Creating a New Opportunity?” (Simply Wall St) – notes:
- The stock has plunged nearly 69% from earlier in the year,
- But fundamentals (revenue growth, balance sheet) remain solid,
- The key question is whether the market has over‑corrected for risk. ^[42]
“Wall Street Remains Optimistic on Figma (FIG)” (Insider Monkey) – underscores that:
- The stock is down about 19% since Q3 earnings,
- Yet consensus ratings and price targets point to sizeable upside,
- Options activity and hedge‑fund interest suggest investors are actively trading the volatility rather than abandoning the name. ^[43]

Taken together, late‑2025 commentary paints Figma as a high‑beta AI design platform caught between strong fundamentals and heavy overhangs (legal, insider selling, and sector‑wide re‑rating).

8. Bull case vs bear case for Figma stock

8.1 Bull case: why some see FIG as an AI bargain

Supporters of Figma stock generally highlight:

Category leadership: Figma remains the default interface‑design and collaboration tool for thousands of teams worldwide, including many flagship tech and consumer brands. ^[44]
Network effects and high switching costs: once entire product, engineering and marketing teams are working in Figma, moving away is disruptive and expensive.
Rapid product expansion: from design to websites, code, marketing, illustration, and now AI‑driven media via Weave, creating more ways to monetize the same customers. ^[45]
Strong growth metrics: 38% revenue growth, >$1B revenue run‑rate, and >130% net dollar retention among large customers suggest the growth engine is still very healthy. ^[46]
Balance sheet and cash: the company raised $1.2B in its IPO and remains well‑funded to invest in AI and expansion. ^[47]
Valuation reset: after a nearly 70% drop from highs, bulls argue that a lot of optimism has already been wrung out of the share price, potentially setting up long‑term upside if growth persists. ^[48]

8.2 Bear case: why others remain cautious

Skeptics focus on several risk factors:

Valuation still rich: even after the drawdown, Figma trades at a double‑digit price‑to‑sales multiple on 2025 estimates—higher than many mature software peers. ^[49]
Legal and compliance uncertainty:
- The AI data‑privacy class action could lead to costly settlements, stricter data‑usage rules, or technical constraints on AI features. ^[50]
- Large enterprises may slow adoption of AI features until policies are clearer.
Insider selling and supply overhang:
- Massive insider selling after lock‑up expiry creates selling pressure and negative optics, even if driven by diversification. ^[51]
Competition:
- Figma faces intense pressure from Adobe, Atlassian, Canva, and open‑source tools like Penpot, which some users say now rival or exceed Figma in certain workflows. ^[52]
Macroeconomic and sector risk:
- Software valuations are still recalibrating after the AI boom, and Barron’s recently grouped Figma with other recent IPOs that have “fizzled” amid higher volatility and investor fatigue. ^[53]

9. Figma stock forecast heading into 2026

No one can predict exact prices, but the current consensus and scenario analysis look roughly like this:

Wall Street 12‑month target band (roughly into late 2026):
- Low: around $52
- Average: mid‑$60s
- High: around $85 ^[54]
Implied upside from ~$38: approximately +36% to +120% across the low‑to‑high range, if those targets are reached.

Upside scenario (bullish):

Revenue growth holds in the mid‑30s% range or better.
AI products like Make and Weave become mainstream within Figma’s customer base, driving higher ARPU and reinforcing lock‑in.
The AI lawsuit is resolved on manageable terms, with minimal impact on product capabilities.
Insider selling tapers off, and institutional investors accumulate at depressed prices.

Downside scenario (bearish):

Growth decelerates sharply as competition intensifies and macro spending tightens.
Courts or regulators impose tough restrictions on how Figma can use customer data for AI, slowing innovation and increasing costs.
Continued insider selling and possible further secondary offerings keep pressure on the share price.
The stock remains stuck below IPO price or makes new lows as investors rotate into more profitable or less risky software names.

Realistically, many investors expect a bumpy path, with FIG trading as a high‑volatility AI bet rather than a steady compounder—at least until legal issues clear and the company proves a sustainable profit track.

10. What to watch next

If you’re following Figma stock into 2026, key checkpoints include:

Q4 2025 earnings (likely early 2026)
- Does Figma hit or beat its $292–294M revenue guidance?
- Any updated commentary on AI adoption, lawsuit impacts, or enterprise churn? ^[55]
Legal updates in the AI class action
- Motions to dismiss, early rulings, or any settlement discussions in Khan v. Figma Inc. ^[56]
Insider activity
- Whether the pace of Form 4 filings slows as early trading plans complete, or remains heavy. ^[57]
Product and partnership news
- Further progress on Figma Weave, deeper integrations with cloud and AI platforms, and broader rollouts of AI features that could drive usage and pricing power. ^[58]
Analyst revisions
- Any sweeping upgrades or downgrades to price targets and ratings as more data comes in on growth, margins and litigation.

Bottom line

As of early December 2025, Figma (FIG) is a classic high‑risk, high‑reward AI software stock:

The business is executing well—revenue growth near 40%, a crossed $1B run‑rate, a rapidly expanding AI product suite and strong expansion within large customers. ^[59]
The stock, however, reflects a tug‑of‑war between that growth and significant overhangs: a big valuation reset, a major AI data‑privacy lawsuit, and visible insider selling.

For some investors, this combination looks like a long‑term opportunity in a potentially foundational design and product‑development platform. For others, the unresolved legal and valuation risks argue for caution—or watching from the sidelines.

Whatever your view, any decision on Figma stock will likely hinge on your conviction that:

AI‑native design platforms will keep gaining importance, and
Figma can navigate its legal challenges and competition while turning its strong top‑line growth into durable, shareholder‑friendly profitability.