Key Highlights

● Second-quarter revenue was $370.1 million, up 48 per cent from a year earlier.

● Net dollar retention was 136 per cent, with 1,635 customers above $100,000 in recurring revenue.

● GAAP operating loss was $117.3 million, while non-GAAP operating income was $36.1 million.

● Full-year revenue outlook rose by $40 million to between $1.463 billion and $1.467 billion.

Latest development

Figma, Inc. (NYSE:FIG), the design platform, has been weighing the cost of its artificial intelligence features against its margins. The chief financial officer said the company was willing to put margins on the line to boost demand for those features. The company also confirmed on 14 October that it will report third-quarter results on 4 November 2026.

What the last results showed

The most recent reported quarter, the second quarter ended 30 June 2026, delivered revenue of $370.1 million, up 48 per cent from $249.6 million. Net dollar retention was 136 per cent, and customers paying more than $100,000 in annual recurring revenue rose 46 per cent to 1,635. Free cash flow was $53.2 million, a 14 per cent margin, and cash and marketable securities stood at $1.7 billion.

Profitability was weaker. Figma reported a GAAP operating loss of $117.3 million and a GAAP net loss of $112.2 million, or $0.21 per share. Non-GAAP operating income was $36.1 million, a 10 per cent margin.

The margin question

Research and development spending more than doubled to $167.3 million and total operating expenses nearly doubled to $426.9 million, while adjusted operating margin fell to 10 per cent from 16 per cent in a quarter.

Management raised its full-year revenue outlook by $40 million to between $1.463 billion and $1.467 billion, but guided full-year non-GAAP operating income of $125 million to $135 million, a 9 per cent margin at the midpoint. The tension between faster revenue and flat profit guidance is the central issue of that release, and the chief financial officer's comment on the trade-off between margin and AI adoption touches the same point.

Guidance and context

For the third quarter, Figma guided revenue of $373.0 million to $375.0 million, which implies growth of about 36 per cent at the midpoint, down from 48 per cent in the second quarter. The company reported that more than 80 per cent of its largest customers use AI credits weekly, which supports the argument that usage is broadening, although the revenue contribution from those credits is not separated out.

Leadership changes and the 4 November report

Leadership changes were also reported, with the chief marketing officer and chief product officer departing.

Figma reports third-quarter results on 4 November 2026, with revenue guided to $373.0 million to $375.0 million and full-year non-GAAP operating income guided to a margin of about 9 per cent.