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 similar to variety of shares to be supplied and what worth, the regulatory submitting offers the clearest view but of its monetary well being — and potential.
IPO specialists Renaissance Capital estimate that Figma could raise up to $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 biggest tech IPO of 2025 so 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% leap 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 an enormous 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 workers, it stated.)
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 studies it has none. However once more, this can be a line merchandise that must be crammed 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 shall be promoting shares. Main backers embody Index, Greylock, Kleiner Perkins, and Sequoia.
We do know that in 2024, executives took a part of a giant tender supply that allowed workers to money out of shares. As an illustration, Figma co-founder CEO and chairman Dylan Discipline cashed out of $20 million price 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, according to his website. Wallace is called within the paperwork as a co-founder. Nevertheless, 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 actually seem like the sort of firm that Wall Road and retail buyers sometimes like to purchase. The one black cloud, in case you 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 nicely.
Figma acknowledges within the S-1 the dangers of failing to face out in a aggressive AI trade.
“Whereas we have now made, and anticipate 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.