Figma strikes nearer to a blockbuster IPO that might increase $1.5B
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 akin to variety of shares to be provided and what value, the regulatory submitting supplies the clearest view but of its monetary well being — and potential.
IPO specialists Renaissance Capital estimate that Figma might increase as much as $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 most important tech IPO of 2025 thus 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 fascinating, too. The corporate was worthwhile in 2023 after which swung to a large lack of $732 million in 2023. However this was largely because of one-time bills associated to a significant worker inventory compensation occasion. (Figma issued 10.5 million inventory choices, with a strike value of $8.50 per share to eligible staff, it stated.)
By the fourth quarter of 2024, Figma reported earnings once more, because it did in Q1 of 2025.
Figma has additionally calculated its complete debt to be so negligible that it reviews 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 can 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 staff 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 fascinating disclosure, about co-founder Evan Wallace, who left Figma in 2021, in line with his web site. Wallace is known as 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 definitely appear like the form of firm that Wall Avenue and retail traders sometimes like to purchase. The one black cloud, in the event 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 effectively.
Figma acknowledges within the S-1 the dangers of failing to face out in a aggressive AI trade.
“Whereas we have now made, and count on to proceed to make, vital investments to combine AI, together with
generative AI, into our platform, AI applied sciences are quickly evolving and there might 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.