Executive Summary

Figma delivered a “best quarter in company history”: revenue $274.173M (+38% YoY), above guidance and consensus; non-GAAP operating income $34.0M (12% margin); non-GAAP diluted EPS $0.10; ARR surpassed $1B run rate . Versus S&P Global consensus, Q3 revenue beat by ~$10.3M and Primary EPS beat by ~$0.084* (see Estimates Context). Values retrieved from S&P Global.
AI-led product momentum (Figma Make, MCP Server) accelerated adoption: Net Dollar Retention (10k+ cohort) rose to 131% (+2 pts QoQ), 12,910 customers at $10k+ ARR (+1,000 QoQ), 1,262 customers at $100k+ ARR (+140 QoQ) . Management highlighted record sequential net revenue add and faster multi-product adoption .
Gross margin compressed with broad GA of AI features (inference costs), offset by top-line outperformance; non-GAAP gross margin 86% (Q2: 90%); adjusted FCF $49.0M (18% margin), with Q4 FCF margin expected to decline sequentially on continued AI investments and one-time tax payments .
Guidance raised: Q4 revenue $292–$294M (35% YoY mid), FY25 revenue $1.044–$1.046B (40% YoY mid), FY25 non-GAAP operating income $112–$117M; consumption revenue not material in 2025 .
Stock reaction catalysts: clear beat-and-raise, accelerating enterprise AI engagement (30% of $100k+ customers create in Make weekly by September), and stronger multi-year deals (+27% QoQ) underscore durable growth drivers; near-term debate centers on AI cost curve, SBC-driven GAAP losses, and lock-up/overhang dynamics discussed previously .

What Went Well and What Went Wrong

What Went Well
- Broad-based beat: revenue $274.173M (+38% YoY) exceeded prior guidance, with non-GAAP OI $34.0M (12% margin), and ARR >$1B run rate .
- AI product flywheel: “Q3 was the best quarter… driven in part by AI investments in Figma Make and MCP server,” with 30% of $100k+ customers creating in Make weekly by end-September; 70% of customers now use ≥3 products .
- Enterprise traction and multi-year commitments: multi-year deals up 27% QoQ; Governance Plus add-on gaining adoption beyond highly regulated sectors .
- Quote: “After the internet, AI is the most important technology shift… Q3 was the best quarter in Figma’s history” — Dylan Field .
What Went Wrong
- Gross margin compression from inference and infrastructure spend as AI features went GA; non-GAAP gross margin fell to 86% (from 90% in Q2) .
- GAAP optics: one-time SBC tied to IPO ($975.7M) drove GAAP operating loss $(1.14)B and GAAP EPS $(2.72) in Q3 .
- Cash flow cadence to soften in Q4: adjusted FCF margin guided down sequentially due to continued AI investments and one-time tax payments .
- Analyst concerns: pricing/packaging rollout tailwind is mid- to high-single-digit growth in 2025 but requires continued execution and renewal cycles; consumption model revenue not material in 2025 .

Financial Results

Overall P&L trends (GAAP unless noted; periods in chronological order)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$228.199*	$249.640	$274.173
Primary EPS ($)	n/a	$0.0854*	$0.132*
Non-GAAP Operating Income ($M)	n/a	$11.5	$34.0
Non-GAAP Operating Margin (%)	n/a	5%	12%
Non-GAAP Gross Margin (%)	n/a	90%	86%
Adjusted Free Cash Flow ($M)	n/a	$60.6	$49.0
Adjusted FCF Margin (%)	n/a	24%	18%

Values retrieved from S&P Global for cells marked with *.

Estimate beats (S&P Global vs actuals)

Metric	Consensus (Q3 2025)	Actual (Q3 2025)	Surprise
Revenue ($USD Millions)	$263.900*	$274.173	+$10.273M (Beat)
Primary EPS ($)	$0.0476*	$0.132*	+$0.0844 (Beat)

Values retrieved from S&P Global for consensus and Primary EPS actuals.

YoY growth reference

Q3 2025 revenue +38% YoY vs $198.639M in Q3 2024 .
Q2 2025 revenue +41% YoY vs $177.198M in Q2 2024 .

KPI trends

KPI	Q2 2025	Q3 2025
Net Dollar Retention (>$10k ARR)	129%	131%
Customers >$10k ARR	11,906	12,910
Customers >$100k ARR	1,119	1,262
Total Paid Customers	n/a	540,000
% Customers using ≥3 products	~66% (two-thirds)	>70%
Multi-year deal signings	n/a	+27% QoQ

Segment breakdown: Not disclosed/applicable.

Drivers/why:

Revenue outperformance driven by Make adoption and platform interoperability expanding to adjacent personas (PMs, researchers, developers) and accelerating multi-product usage .
Margin compression tied to inference/infrastructure costs as AI features scaled to GA; credits not fully enforced yet; future consumption monetization expected to offset some inference spend .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q4 2025	n/a	$292–$294	Initiated
Revenue ($B)	FY 2025	$1.021–$1.025	$1.044–$1.046	Raised
Non-GAAP Operating Income ($M)	FY 2025	$88–$98	$112–$117	Raised

Additional color: Q4 adjusted FCF margin expected to decline sequentially on continued AI investments and one-time tax payments; consumption revenue not material in 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
AI/Technology initiatives	GA of Figma Make in July; Dev Mode MCP server; AI to lower floor/raise ceiling; strong early customer examples (Affirm, Coinbase)	Make accelerating: 30% of $100k+ customers creating weekly; >50 new features; Prompt to Edit (alpha); OpenAI/ChatGPT integration; Weavy acquisition to elevate craft	Up
Platform interoperability	Emphasis on unified platform; multiproduct adoption (80%+ using 2+; two-thirds 3+)	70% using ≥3 products; Make↔Design copy; Code Connect/MCP to code; “two sides of the same coin”	Up
Pricing & packaging	Rolled out in March; tailwind expected mid- to high-single-digit in 2025	Tracking in line; still mid- to high-single-digit tailwind; more benefit in 2026 as renewals cycle	Stable/positive
Dev Mode adoption	Initial launch and early traction highlighted (Coinbase)	Features added (remote MCP, GitHub export); driving larger platform investments (Flipkart, NAB)	Up
International growth	Product localization (Korean, Portuguese); large LatAm logos	Intl revenue grew ~42% in Q3; India hub opening; Flipkart renewal	Up
Consumption model	Envisioned complement to seats; infra underway	Not material to FY25 outlook; credits not strictly enforced on full seats yet	2026+
Gross margin/COGS	Indicated AI spend would compress GM near term	Non-GAAP GM 86% on AI inference costs; future consumption expected to offset	Down near-term
Tax rate/SBC	n/a	Non-GAAP tax rate reduced to 10% due to new legislation; large one-time SBC at IPO causing GAAP loss	Mixed

Management Commentary

“Q3 was the best quarter in Figma’s history. We crossed $1 billion in annual revenue run rate and delivered Q3 revenue of $274 million… above the high end of guidance.” — Dylan Field .
“Driven by Figma Make adoption, we ended Q3 with 540,000 total paid customers… more than 70% of our customers were using three or more products.” — Praveer Melwani .
“As we brought Figma Make and our other AI features to our entire customer base, the cost to serve these products… impacted gross margin… When we [enforce credits/consumption], we anticipate it will offset some incremental inference spend.” — Praveer Melwani .
“We now expect revenue for the fourth quarter to be between $292 million and $294 million… For the year… $1.044–$1.046 billion… [and] full-year operating income $112–$117 million.” — Praveer Melwani .

Q&A Highlights

AI product strategy and Weavy acquisition: Weavy brings multi-model composition with pro editing to elevate “craft” beyond prompt outputs; supports Figma’s thesis that platform/craft capture value, not just models .
Figma Make adoption/halo: Make is expanding to PMs, research, and dev personas; driving platform upsell and seat expansion; aim for Make and Design to be “two sides of the same coin” .
Developer ecosystem: New Dev Mode features (remote MCP, GitHub export) deepen design-code integration, enabling larger enterprise commitments (Flipkart, NAB) .
Integrations/top-of-funnel: Early days for ChatGPT integration; helpful for diagramming in FigJam with pop-out to Figma; monetization TBD .
Metrics outlook: NDR improved to 131%; pricing/packaging is a mid- to high-single-digit 2025 tailwind, with 2026 benefit as renewals roll through .

Estimates Context

Q3 2025: Revenue $274.173M vs $263.900M consensus (beat); Primary EPS $0.132 vs $0.0476 consensus (beat).* Values retrieved from S&P Global.
Q4 2025: Company guides revenue $292–$294M vs Street $293.047M consensus revenue; no EPS guidance provided; Street EPS consensus $0.0613.* Values retrieved from S&P Global and company guidance .
Implications: Street models likely move up on stronger Q3 and raised FY25 revenue/OI; AI-driven adoption metrics (Make usage, multi-product) support upward revisions to expansion/renewal assumptions .

Key Takeaways for Investors

Figma executed a clean beat-and-raise quarter with accelerating AI adoption and stronger enterprise commitments; the narrative is shifting from “new products launched” to “AI products scaling revenue expansion” .
Near-term gross margin and cash flow pressure from inference and infra investments are strategic; consumption monetization and credit enforcement are expected to offset over time .
KPIs inflecting positively (NDR to 131%, +1,000 $10k+ customers, +140 $100k+ customers QoQ) underpin durable growth despite macro variability .
Q4 guide brackets Street revenue; FY25 revenue/OI raised, setting a higher baseline heading into 2026 when consumption uplift and full pricing/packaging renewal cycles can compound .
Watch list: AI cost curve/unit economics progress, Make-to-Design interoperability improvements, enterprise expansion pace (Go-to-market motion to developer leaders), and any updates on consumption monetization .
Risk flags: GAAP optics from SBC, sequential FCF margin dip in Q4, timing of consumption ramp, and potential supply from lock-up releases as previously disclosed .

Notes

We reviewed the Q3 2025 8‑K and its EX‑99.1 press release and the full Q3 2025 earnings call transcript; no separate additional Q3 press releases were listed beyond the 8‑K attachment .
Prior quarter (Q2 2025) 8‑K and call were reviewed for trend analysis .

Values retrieved from S&P Global for any cells marked with *.

Figma, Inc. (FIG)·Q3 2025 Earnings Summary