Executive Summary

Strong first public quarter: revenue $249.64M (+41% y/y), non-GAAP operating margin 5%, adjusted FCF margin 24%; beats vs Street on both revenue and EPS. The company launched four new products (Make, Draw, Sites, Buzz) and highlighted AI as a near‑term margin headwind offset by product differentiation and platform expansion .
Guidance: Q3 revenue $263–$265M and FY25 revenue $1.021–$1.025B; FY25 non‑GAAP operating income $88–$98M. Guidance reflects changing monetization with AI credits and consumption elements alongside seat subscriptions .
Estimates context: Q2 revenue slightly beat consensus ($249.64M vs $248.67M*) and EPS beat ($$0.09 vs $$0.08*). Q3 guidance midpoint (~$264.0M) was essentially in line with Street ($263.90M*) *. Values retrieved from S&P Global.
Potential stock reaction catalysts: lock‑up mechanics—early release for employee shares conditioned after Q2 announcement and extended lock‑ups with staged releases for large VC holders; CEO 10b5‑1 plan for up to ~3.3% of holdings—could influence supply/demand around future earnings dates .

What Went Well and What Went Wrong

What Went Well

Record revenue and profitable growth: $249.64M revenue (+41% y/y), GAAP operating income $2.08M, non‑GAAP operating income $11.47M; adjusted free cash flow $60.60M (24% margin) .
Platform expansion and customer adoption: launch of Make, Draw, Sites, Buzz; >80% of customers using 2+ products and ~⅔ using 3+ products, signaling multi‑product engagement and cross‑sell .
Enterprise expansion and retention: Net Dollar Retention Rate 129% (>$10k ARR cohort), 11,906 customers >$10k ARR and 1,119 >$100k ARR (+42% y/y), underscoring seat growth and renewals on new pricing/packaging .

What Went Wrong

Gross margin compression: CFO flagged near‑term pressure from AI inference costs as new AI products roll out; Q2 non‑GAAP gross margin 90% (down q/q) with expectation of further compression .
Elevated S&M around Config: sales and marketing spend rises in the quarter when the user conference occurs; management notes recurring Q2 seasonality and higher public company readiness costs in G&A .
Monetization still evolving: AI credits and consumption model integration are early; management is not strictly enforcing full‑seat limits yet and plans to transition customers to paid credits, creating near‑term revenue recognition uncertainty .

Financial Results

Core Results vs Prior Year and Prior Quarter

Metric	Q2 2024 (oldest)	Q1 2025	Q2 2025 (newest)
Revenue ($USD Millions)	$177.20	$228.20 (derived from 6M $477.84 minus Q2 $249.64 )	$249.64
GAAP Net Income ($USD Millions)	$(827.85)	$44.88 (derived from 6M $73.11 minus Q2 $28.23 )	$28.23
GAAP Operating Income ($USD Millions)	$(894.29)	$39.75 (derived from 6M $41.83 minus Q2 $2.08 )	$2.08
GAAP Operating Margin %	(505)%	17.4% (derived: $39.75/$228.20)	1%
Non-GAAP Operating Income ($USD Millions)	$4.88	$40.03 (derived from 6M $51.50 minus Q2 $11.47 )	$11.47
Non-GAAP Operating Margin %	3%	17.5% (derived: $40.03/$228.20)	5%
Net Cash from Operating Activities ($USD Millions)	$(178.24)	$97.18 (derived from 6M $159.63 minus Q2 $62.46 )	$62.46
Adjusted Free Cash Flow ($USD Millions)	$6.13	$94.58 (derived from 6M $155.19 minus Q2 $60.60 )	$60.60
GAAP Gross Margin %	78%	N/A	89%
Non-GAAP Gross Margin %	92%	N/A	90%

Notes: “Derived” values calculated from disclosed six-month and quarterly figures (citations provided for source components).

Results vs Street Consensus (S&P Global)

Metric	Q2 2025 Actual	Q2 2025 Consensus	Surprise
Revenue ($USD Millions)	$249.64	$248.67*	+$0.97M*
Primary EPS ($USD)	$0.09*	$0.08*	+$0.01*

Values retrieved from S&P Global.

Geographic Revenue Mix

Geography	Q2 2024	Q2 2025
United States ($USD Millions)	$85.20	$116.77
International ($USD Millions)	$92.00	$132.87
Total ($USD Millions)	$177.20	$249.64

KPIs

KPI	Q2 2024	Q2 2025
Net Dollar Retention Rate (>$10k ARR)	130%	129%
Paid Customers >$10k ARR	9,071	11,906
Paid Customers >$100k ARR	787	1,119

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 2025	N/A	$263–$265 (midpoint $264)	Initial
Revenue ($USD Billions)	FY 2025	N/A	$1.021–$1.025 (midpoint $1.023)	Initial
Non-GAAP Operating Income ($USD Millions)	FY 2025	N/A	$88–$98	Initial

Management emphasized evolving monetization (AI credits and consumption) alongside seat subscriptions, which may influence future guidance frameworks .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025 and Q2 2024)	Current Period (Q2 2025)	Trend
AI investment and gross margin	RSU-related volatility and IPO readiness dominated prior year; pricing/packaging updated in March (first full quarter in Q2)	Explicit near‑term gross margin compression due to AI inference; strategic investment for product differentiation	Increasing AI spend; margin pressure near term
Product expansion (Make/Draw/Sites/Buzz)	N/A (products launched at Config May)	Four new products launched; strong early engagement; expanding personas beyond design	Rapid rollout; broadening platform scope
Monetization model evolution	Seat-based subscriptions dominant historically	Introducing AI credits and consumption elements; not strictly enforcing full‑seat limits yet; future paid credits	Transition phase; clarity to improve over time
Pricing/packaging and enterprise admin control	Changes implemented in March; early remapping effects on Pro renewals	Mid- to high-single-digit growth tailwind expected from changes	Positive tailwind developing
International/localization	Ongoing expansion	Localization for Korean and Brazilian Portuguese; wins at Itaú and Nubank	Strengthening intl adoption
Lock-up dynamics / supply	N/A	Early employee share release post-Q2; extended VC lock-up staged through Q2’26; CEO 10b5‑1	Potential supply events around earnings dates

Management Commentary

“We achieved $250,000,000 of revenue…41% year over year growth…non GAAP operating margin of 5% and adjusted free cash flow margin of 24%.”
“You should expect to see significant investments in our AI efforts…we expect margins to come down in the near term as we invest in the long term.”
“We doubled our product portfolio…Figma Make, Figma Draw, Figma Sites, and Figma Buzz.”
“Our net dollar retention rate…was 129% in Q2…driven by seat expansion…along with renewals on our new pricing and packaging model.”
“We intend to complement the existing seat-based model with a consumption model…We also plan to provide annual guidance for operating income…as we expect timely opportunities to reinvest.”

Q&A Highlights

Monetization of new AI products: Near term, broader S&M pushes and inference investments; moving to AI credits and consumption, with intentional transition for customers to understand value/pricing .
Competitive differentiation: Make leverages design context and interoperability across the Figma platform to produce higher-quality outputs versus other “AI coding” tools .
Persona expansion: Make serves designers, developers, PMs, marketers; “lower the floor, raise the ceiling” to broaden participation while enabling higher fidelity work for professionals .
Use of cash and “big swings”: $1.6B liquidity supports AI/product investments; strict M&A framework (team/asset quality, cultural fit, top-priority alignment) for any large transactions .
Pricing/packaging outcomes: Multiproduct seat, admin approval, full-seat price change—management expects mid‑ to high‑single‑digit growth tailwind in FY25 .

Estimates Context

Q2 results beat consensus: revenue $249.64M vs $248.67M*, EPS $$0.09 vs $$0.08*. Street may raise near‑term revenue and EPS given demonstrated multi‑product engagement and retention metrics *. Values retrieved from S&P Global.
Q3 guidance midpoint is ~in line with consensus ($264.0M vs $263.90M*), but management flagged evolving monetization and AI cost dynamics; expect estimates to adjust as AI credit pricing/consumption ramps *. Values retrieved from S&P Global.

Key Takeaways for Investors

Execution and platform expansion: Strong revenue growth, early traction in four new products, and high NDR support a durable growth profile despite AI‑driven margin pressure in the near term .
Monetization transition: Watch AI credits and emerging consumption model alongside seats—near‑term uncertainty but medium‑term ARPU and attach rate opportunities if engagement stays high .
Margin trajectory: Expect gross margin compression from AI inference; operating margin flexibility maintained given disciplined capital allocation and reinvestment focus .
Enterprise/customer mix: Rising counts of >$100k ARR customers (+42% y/y) indicate deeper enterprise adoption; admin control and pricing/packaging changes are tailwinds in 2H .
Liquidity and optionality: ~$1.6B cash/marketable securities plus a $500M revolver provide ample capacity for product investment and selective M&A aligned to top priorities .
Supply considerations: Early employee lock‑up release post‑Q2 and extended VC lock‑ups staged through mid‑2026; CEO 10b5‑1 plan starting November 2025—monitor share supply around earnings catalysts .
International growth: Localization (Korean, Brazilian Portuguese) and notable LatAm references (Itaú, Nubank) support a broader global thesis .

Additional document notes:

8-K 2.02 press release (Q2 2025) read in full; earnings call transcript read in full. No standalone additional press releases found for Q2 beyond the 8-K exhibit .
Prior two quarters’ dedicated earnings releases were not available pre‑IPO; Q1 2025 trend metrics were derived from the Q2 10-Q (six-month data) and Q2 2025 8-K .

Figma, Inc. (FIG)·Q2 2025 Earnings Summary